Home / Knowledge / News / Apparel/Garments / Nepalese commerce dept calls for garment EPZ
Nepalese commerce dept calls for garment EPZ
22
Dec '15
With a new ray of hope for Nepal's tottering readymade garment industry, the Government's Department of Commerce and Supply Management (DoCSM) has backed calls for establishment of Garment Export Processing Zone to revive the RMG industry, a leading Nepalese newspaper has reported.

This follows the US Senate endorsing a Bill that paves the way for duty-free entry of 66 Nepali goods, including readymade garments, into the world's largest economy.

“To take advantage from the Bill, Garment Export Processing Zone (GEPZ) should be established, as it would help resurrect the readymade garment industry,” DoCSM Director General Shambhu Koirala told reporters in Kathmandu.

The GEPZ would also help address the issue of 'labour flexibility', which the garment sector has been raising, said Shankar Sharma, former vice chairman of the National Planning Commission and ex-Nepali ambassador to the US.

“But along with flexible labour laws, training for people working in the garment sector is also essential so as to churn out quality human resources,” Sharma said, adding focus must be laid on designing and marketing.

Nepal's readymade garment industry has been on the verge of collapse since the expiry of Multi Fibre Agreement (MFA) in January 2005, which provided duty free access for Nepali garments into the US.

Prior to the phasing out of the quota system, Nepal was exporting Rs 12 billion worth of garments and was generating around 500,000 jobs in the sector. During that time, the sector had drawn investment to the tune of Rs six billion.

Since then, over 85 per cent of garment factories have pulled down their shutters and in the last fiscal year exports fell to Rs 4.26 billion. Currently, only 50 readymade garment factories are in operation, according to Garment Association Nepal (GAN).

But endorsement of Trade Facilitation and Trade Enforcement Bill by the US House and Senate has once again generated hopes for revival of the dying industry. This is because transformation of the Bill into an Act will make Nepali garments 17 per cent cheaper for buyers in the US.

“This arrangement definitely provides us an advantage. But to capitalise on it, we also need the government's assistance,” said GAN Acting President Chandi Prasad Aryal. “In this regard, the government must provide us income tax rebate for five years, provide 10 per cent cash incentive on garment exports, help us obtain cheaper loans and address labour-related issues.” (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: European Commission/European Union

Textiles | On 26th May 2018

EU set to negotiate FTAs with Australia & New Zealand

The European Union is all set to begin negotiations for free trade...

US bans import of cotton goods from Turkmenistan

Textiles | On 26th May 2018

US bans import of cotton goods from Turkmenistan

The US Customs and Border Protection (CBP) has issued a Withhold...

FPCCI prepares report on Pakistan's export issues

Textiles | On 26th May 2018

FPCCI prepares report on Pakistan's export issues

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search