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Export of readymade garments to US declines by 17 percent

The export of Nepali readymade garments (RMG) to the United States (US) suffered a whopping loss of 17 percent in July, compared to the same period of the last year.

The export of readymade garments, one of the largest foreign currency earners of the country has continued to decline, following the termination of multi-fibre arrangement (MFA) earlier last year ending quota free excess to Nepali garments.

According to the data released by the Garment Association of Nepal, Nepal exported garment and apparel products worth over $3.90 million to the US, the largest market of the Nepali readymade garment in July as compared to $4.67 million of the same period of the last year.

The exports had partially recovered the last two months with 33 percent and 28 percent rise in May and June respectively.

The exports of readymade garment declined by 30 percent in the year 2004 and further declined by 41 percent in the year 2005.

According to officials at the Garment Association of Nepal, various factors like non-tariff barriers, social compliances, procedural complications, lengthy customs process and documentations are some of the setbacks for the export of Nepali garments.

According to them, if the ‘Trade Act 2000,’ a bill that is pending at the US Senate is passed, it would help to boost the export of goods of Least Developed Countries (LCD) like Nepal to the American market.

The bill provides duty free access to the goods of LDCs’ like Nepal to American market, which will reduce the price of goods by 17 percent. nepalnews.com pb Aug 07 06