The garment sector is one of the first industries where debates on supply chain responsibility and labour rights have resulted in a few marked improvements for workers. Civil society organisations such as the Clean Clothes Campaign (CCC) engaged in dialogues with multinationals and set up campaigns to coerce companies into improving working conditions in their supply chains. In spite of these improvements, many issues remain unresolved. Except for a few pioneers in CSR, many multinationals are reluctant to cooperate.

Companies in the garment supply chain often make use of informal sweatshops to satisfy demands for cheap clothing and short delivery periods. This practice undermines the transparency of the production chain, thereby severely hampering the possibility of union work and monitoring. Large retailers put immense pressure on pricing, forcing garment producers to lower wages and fringe benefits. The key-strategy is to change the purchasing practises of these retailers.

In Latin America, some producing countries have developed strong consumer markets, such as Brazil, Mexico and Argentina. Consumers in these countries do not have access to information on working conditions in the garment industry. As a result, the level of consumer awareness is low. The maquilas (export processing zones) in Mexico and Central America are closing down due to lower production costs in Asian countries, notably China. Many garment workers are laid off without obtaining any redress or compensation. The workers in sweatshops in Argentina and Brazil are usually migrants who suffer extremely poor working conditions.

In Africa, many countries with local garment production face fierce competition from Asian countries, which easily leads to lower labour standards. At the same time, many Asian companies have started to produce garments in African countries. Trade and investment agreements in many ways harm the development of local garment industries in Africa. In some African countries with considerable garment production, such as Madagascar, knowledge on core labour standards and gender issues is lacking among grassroots organisations and workers.

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