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This book seeks to quantify the extent to which Egypt has a comparative advantage in the textiles and clothing industry and how this has changed over the period (2001-2009) in the EU markets under the agreement between Egypt and the EU, Which aims to establish free trade zone, between Egypt and the EU in industrial goods, with the increase in export quotas for Egyptian agricultural exports entering the EU market. In order to measure Egypt's competitiveness and progress, the revealed comparative advantage index (RCA) will be used. Furthermore, this paper consists of five chapters; chapter one is introduction this part including methodology, the second Chapter is the Literature review. The third chapter will present a brief explanation of Egyptian-European relations starting from the cooperation agreement in 1977 and until the partnership agreement, which was signed in 2004. . The fourth chapter reviews the competitive advantage in economic thought, and reviews approaches to measure competitiveness, and will then determine the competitive advantage of the Egyptian textiles and clothing during the period (2001-2010). finally the finding, conclude and policy recommendations