In 2005, Taiwan's garment exports amounted to US$944 million, down 27%% from 2004 and accounting for 8% of the island's total annual textile exports. In the same year, Taiwan's garment imports came to US$926 million, up 13% from 2004 and commanding a 30% share of the island's total textile imports. Taiwan's total foreign trade of garment products amounted to US$1.869 billion in 2005, representing an annual drop of 11%. The decline in garment exports was mainly caused by the cancellation of global textile export quotas.

In recent years, Taiwan's garment makers have increasingly recognized the importance of using fashion designs, re-training workers and upgrading technologies, and have therefore moved to automate production process, improve marketing management and offer training courses to employees.

With the cancellation of global textile export quotas in 2005, local makers in the line took a conservative attitude toward making large-sized investment projects in 2004. But they still kept investing in buying automated and auxiliary equipment, especially in computerization and network equipment. Meanwhile, sweater makers are marching toward automated, small-volume but large-variety production, developing their own designs and establishing their own brands.