The Dominican Republic’s apparel industry is facing many challenges at home and in the global economy. When global quotas are eliminated in January 2005, the country will lose an important shield from open competition in the United States, its main market for apparel exports. The elimination of quotas is expected to reduce employment and shipments in the Dominican apparel industry by nearly one-third, while peso devaluation has eroded Dominican producers’ competitiveness. In this report, we explore the practical steps that Dominican apparel producers and policymakers can take to mitigate the effects of quota elimination and improve the competitive position of Dominican producers in the U.S.market.