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Nepali RMG sector pleads for free access in US market
Aug '10
Nepali readymade garment (RMG) exporters, in an endeavour to earn zero-tariff facility in the US for 10 garment and pashmina items; have forwarded a petition to the United States Trade Representatives (USTR) office, requesting them to grant the same by including the products in the generalized system of preferences (GSP)

US under the GSP system, assures duty-free market access to a series of commodities listed with USTR, and it revises this list after every 10 years. The system was mainly developed to assist trade creation in the countries that are least developed or are developing.

This year is the revision year for GSP list and thus, RMG exporters, taking advantage of the opportunity, have lodged a petition before USTR to comprise within the list 10 products that are manufactured by Nepal.

Though the country's export line includes over 60 varied kinds of garment products, but the association through its petition has mainly asked for including items like trousers for men and women, shirts and shorts in the list. Also, it has requested to include in the list, two usual pashmina lines that it exports across the globe.

Exporters are hoping that USTR would fulfil their request and are of the belief that, if it happens then the Nepali apparel industry will get a new ray of hope. As per estimates made by industry experts, the facility is likely to directly help the exporters double their exports to US. All this will then help bring back life to non-functional machines, encourage new investment and generate new job opportunities.

This is also seen to push forward the exports of pashmina. A one-time largest export income generator for the country and a source of livelihood for 100,000 persons, the RMG sector, has been tumbling for almost eight years now.

Fibre2Fashion News Desk - India

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