To mitigate the Geo-economic risks of textile sourcing in Asia and to be more responsive to demand changes, brands look for near shoring in the countries around the Mediterranean Sea. Though, near shoring is not happening fast enough believes the EU Commission. During a conference in Tunis, early September, stakeholders identified hurdles and a way forward. The EU Commission pledged to work with the conference outcomes and the Agadir countries (Morocco, Tunisia, Egypt & Jordan) to facilitate near shoring.

Developing the Euro-Mediterranean textile value chain

The share of textile & apparel import into the EU coming from the Agadir countries has been stable in the last five years. Since Covid near shoring has not increased. Morocco and Tunisia each count for about 2.5% of total textiles import into the EU. Egypt has very limited direct import into the EU (1%) as so Jordan. China is the largest EU textile supplier with 30% market share in Europe (World bank, 2023). First data shows China’s market share is rising again in the period 2024-2026. Türkiye accounts for 13% of textile import into the EU.

What has the Mediterranean to offer?

The case for Euro- Mediterranean business is strong for products that require rapid response, replenishment, smaller runs and flexibility. Examples are technical textiles, workwear, sportswear, denim, medical and automotive applications.

Agadir textile companies are mostly locally owned and in business for more than 10 years. Most are medium to large companies. China is the main supplier of man-made staple fibres/filament fabrics & yarns whereas India is the prime supplier of cotton yarns and cotton fabrics (UN Comtrade, 2024). Morocco produces apparel and exports nearly all to European buyers (65% to Spain, 16% to France). EU brands like Decathlon and Zara have facilities and suppliers here. Tunisia also has a focus on garment production, though also technical textiles (31% France, 23% Italy, 15% Germany). The garment production in Jordan is focused on the US with limited direct deliveries to Europe. Egypt is vertically oriented with cotton production, spinning and fabric production, going directly into their mills or exported to Türkiye. Egyptian apparel goes mostly to the US.

What are causes for status-quo?

Absence of sufficient locally produced raw materials and rules of origin

The absence of sufficient locally produced yarns, fabrics and accessories adds time, and cost makes it difficult to fully exploit proximity. That same absence also meddles with the rules of origin regulations and preferred access (duty free) to the EU make. Morocco, Egypt (and Tunesia for a large extent) fall under the standard PEM rule of double transformation. Therefore at least 2 significant manufacturing stages need to be done in the area. They can source yarn from Asia, though cannot source Asian Fabrics and only cut & sew in their country to allow for Agadir origin label. If the Agadir textile mill sources a Chinese fabric and only cuts and sews in the region, it will likely pay a 12% tariff when putting it on the EU market.

Capacity, technology and vertical integration

To take a larger share of the EU textile supply chain, the Agadir textile ecosystem needs to scale-up and invest in modern machinery, automation and more vertical integration to allow for more flexibility while assuring quality and reliability. Off course, those investments will only follow if EU brands will step in with longer term supplier relationships to enable financing of the required investments.

Competitiveness is an issue

Proximity alone does not suffice to be competitive. The region has work on reliability and price of energy, smooth logistics (e.g. uncertain shipping times between Egypt and Tunis), presence of sufficient labour at reasonable cost and access to finance to enable investment in machinery and infrastructure. Faster and more predictable customs and administrative procedures, better transport connections are necessary to compete with Asian suppliers.

How should the region move forward?

The Euro Mediterranean region has a lot of homework to keep up with Asia (Bangladesh, China, India and Vietnam). Here some:

1. Euro Med Value Connect platform

To increase transparency, resilience, flexibility and capacity, the Euro Med value chain should be more connected, virtual as well as physical. Brands and buyers at the center of the platform, generate more visibility on market demand and buyer requirements. For EU buyers it serves as a Euro-Med sourcing and capability platform. That facilitates investment in production equipment, training and logistics. The platform should catalyze the physical interconnection of the regional value chain, including companies, knowledge providers, industry associations and governments.

2. Invest in fibres, yarn, fabric production and skills

To make proximity work, the Euro Mediterranean region needs to ramp-up the production of high-quality raw materials production, as well as accessories and finishing.

Follow-up

The European Commission pledged to take forward the recommendations of the PanEuroMed conference with a pilot project. The pilot will match North African production capacity with European demand, examine company sourcing and investment needs, support strategic and B2B exchanges. The ambition is for it to develop into a broader initiative linking North African textiles more deeply with European value chains. The initiative is part of the Pact for the Mediterranean Action Plan, launched in November 2025. It is a flagship European Union initiative aimed at building a Common Mediterranean Space and includes 10 ten Southern Neighborhood countries of the EU, among which Morocco, Tunisia, Egypt and Jordan.