Egypt vs Pakistan: which suits your denim and knitwear?
Both countries grow cotton and make denim and knitwear from yarn to finished garment. Pakistan competes hard on price and ships most garments into the EU at 0% under GSP+. Egypt ships into the EU at 0% with a EUR.1, adds duty-free US entry from QIZ factories, and is closer to both Europe and the US East Coast.
| Egypt | Pakistan | |
|---|---|---|
| Duty into the EU | 0% with EUR.1, if origin rules are met | 0% for most garments under GSP+, which is conditional and monitored |
| Duty into the US | 0% from QIZ-registered factories | No US preference for apparel: normal duty applies |
| Own cotton | Yes — Egyptian cotton | Yes — a major cotton grower |
| Denim | Integrated: woven and sewn in-country | Large-volume, vertically integrated jeans |
| Transit to Europe | Short | Longer |
| Best suited for | US-bound cotton basics, runs from 50 pieces a colour | EU-bound denim and knitwear where unit price leads |
| Watch out for | Mid-sized industry; synthetics are not its strength | EU access depends on GSP+ staying in place |
Choose Pakistan if
You sell mainly in the EU, your range is denim or knitwear, and unit price is the deciding number. GSP+ removes EU duty on most garments, so into Europe the two countries are level on duty and the decision comes down to price, transit and supplier fit.
Choose Egypt if
You sell in the US, or in both markets. Clothing from QIZ-registered factories enters the US duty-free, which Pakistan cannot offer, and the same run can enter the EU at 0% with a EUR.1 when the fabric is made in Egypt. Egypt is also closer to Europe and the US East Coast.
Check the EU preference before you plan
GSP+ is conditional. The EU monitors each beneficiary against labour, human-rights, environmental and governance conventions, and a new GSP regulation applies from 1 January 2027. Check Pakistan's status for your delivery dates.
Ask either supplier the same questions
- Landed cost into your market, for your exact HS code, with the date the duty rate was checked
- Which origin document proves the preference: EUR.1, GSP+ statement of origin or QIZ papers
- Where the yarn was spun and the cotton ginned
- The real minimum per colour on stock and custom fabric
Questions
Is Pakistan cheaper than Egypt?
Often on FOB price for large knit and denim orders. Compare landed cost: into the US, Egypt's QIZ route removes the duty Pakistani goods pay.
Do both have duty-free access to the EU?
Yes, by different routes: Pakistan through GSP+, Egypt through the EU–Egypt agreement with a EUR.1. Both depend on meeting the origin rules.
Which is better for a small US brand?
Egypt, in most cases: duty-free US entry from QIZ factories and a 50-piece minimum per colour with us.
Products in this guide
