Although the 2011 figures showed an increase of 13.5%, the sector is losing productive capacity, producing only a third of what was manufactured in 2001.
Faced with the figures from the National Institute of Statistics and Census (INEC), industry representatives argue that the low production is mainly due to lack of personnel and training.
Augusto Corro Pinilla, president of the National Association of Clothes Making Industry, said: "...
The high cost of labor and other input materials has forced some companies to close operations.
Contrary to the performance of other countries in the region, the Panamanian textile industry has shown a significant decline in recent years compared to the positive performance of the eighties.
At that time it exported more than $80 million worth in textiles every year, but now barely manages one million dollars worth.
The National Association of Clothes Makers has proposes the creation of an exhibition fair for the textile industry in the country.
Augusto Corro, president of the Association, explained that an event of this type, where trade is allowed, it is important for the sector, given that exports of this segment have been declining.
The employer noted that the country has lost its position as leading exporter of textile products from Central America to the United States, a position it held during the 90's.
Panama's textile industry association has asked the government to provide tax incentives in order to maintain production levels.
Augusto Corro, president of the association, indicated that the sector is experiencing severe economic problems that put its survival at risk: "We don't want the sector to disappear so we are asking for exemption from taxes on machinery and inputs".
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