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Garment exports to US surge in July
Aug '09
Nepal's readymade garment exports to USA saw a sudden increase in the month of July this year. It had improved by 8 percent compared to the same month of the previous year.

This year, exports of garments in the month of July reached up to US$ 560,454 compared to $519,524 last year, revealed the Garment Association of Nepal (GAN). This spin in garment exports is just a change without any cause, said President GAN, Mr. Prashant Pokhrel.

Garment exporters cited this sudden surge as a normal fluctuation' even though garment exports witnessed an improvement after a continuous double-digit decrease for eight consecutive months.

The total exports during the last eight months slipped down by 56 percent to $4.1 million against last year's exports that totaled to $9.4 million. There was a noticeable decrease in exports to the USA, in recent history, in the month of June this year, which dropped by 80 percent to $188,622.

The Former GAN President Mr. Kiran Sakha said that improvement in exports is a good sign but this growth is just a fluke, as no way out had been planned to solve the problems related to the export or production of garments.

In order to continue with this marginal growth, the problems impacting the sector such as labour problems, blockades, protests and recession need to be defeated, added Mr. Sakha. GAN has been undertaking efforts to lobby the US Senate to pass the duty-free bill which will grant a duty-free status to readymade garments from Nepal.

Together with rest of the 13 Least Developed Countries (LDCs), Nepal is waiting for the result that would come after the World Trade Organization Ministerial Meeting in Geneva from Nov. 30 – Dec.2, 2009.

Fibre2fashion News Desk - India

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