FLOREAL, Mauritius — Nearly two years after the U.S. African Growth & Opportunity Act came into effect, the Mauritius textile industry is facing serious challenges.

Beset by escalating problems with imported labor, political upheavals in neighboring Madagascar, formidable competition from China and Southeast Asia, the fake-but-legal trade in Ralph Lauren and a series of credibility-damaging financial scandals, Mauritius is struggling to remain an attractive and viable manufacturing base for clothing companies throughout Europe and the U.S.

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