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EU emerges as leading importer of Nepali garments
Oct '11
The European Union has emerged as the leading importer of garments from Nepal accounting for a 46.13 percent share of the total garment exports from Nepal.

Over the past five years, Germany, Britain, Italy, France and Spain have become the leading importers of readymade garment (RMG) products from Nepal, the Trade and Export Promotion Centre stated.

The rising orders from the EU have provided great relief to the garment producers of Nepal, who were facing stagnation of imports by the United States.

Exports to the US, which once happened to be a key export destination for Nepal's RMG, have come down rapidly over the last five years, while exports to the EU have increased.

During 2005-06, around 55.16 percent of Nepal's garment exports were towards the US, and just 18.14 percent towards the EU. After five years, the position has changed and today the EU is the largest importer of Nepali RMG with a 46.13 percent share, while the US accounts for mere 21.49 percent.

From among the EU nations, France is the largest importer of Nepali garments, while Britain and Germany follow next.

EU has granted duty-free facility to 41 Least Developed Countries (LDCs), whereby it allows these countries to duty-free export textiles and garments to the EU.

However, while the other nations need to meet the rules of origin (RoO) criterion to earn the duty-free access, Nepal and Laos have been provided special exemption from fulfilling all the RoO norms under duty-free derogation facility.

Fibre2fashion News Desk - India

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