Textile and apparel exports declined in the first quarter of 2006 that ended March.
This downtrend began in the fourth quarter of 2005 and has continued since.
Major reason for this loss was the significant drop in the exports to the EU which has been its top market for past several years.
Total exports in the January-March 2006 period were pegged at around 1,290.9 billion Tunisian dinars, which is over 5.7 percent lower than the same period of 2005.
Tunisia is struggling to hold of its market share in the EU as it has to compete with cheaper as well as better products from Asian giants like China, India and Bangladesh.
Textile imports also fell 13.5 percent to 699.2 million Tunisian dinars during this period.
Deteriorating exports have also affected the domestic apparel and textile production.
Total textile and apparel output dropped 6.1 and 3.8 percent in January and February, respectively.
Cumulative January through February output decreased 4.9 percent.