Home / Knowledge / News / Apparel/Garments / US set to allow duty free access for Nepalese garments
US set to allow duty free access for Nepalese garments
14
Dec '15
There is a new ray of hope for the Nepal's embattled garment industry. The country has once again received an opportunity to ramp up exports of readymade garments, pashmina and leather products, as the US Senate has endorsed a Bill for duty-free quota-free (DFQF) entry of these goods into the world's largest economy.

The latest Bill, which will now require the US President's seal to become law, is expected to give a new lease of life to the readymade garment industry, which has virtually collapsed over the past decade the Multi Fibre Agreement (MFA) expired in January 2005, a Nepalese newspaper has reported.

Once the new Bill comes into force, Nepali products, such as readymade garments, pashmina and leather products, will get zero-tariff access into the US market. Currently, the US government is imposing 16.5 per cent tariff on import of cotton apparels. Nepal can enjoy duty free facility till December 9, 2025.

“It would be a golden opportunity for the revival of the garment industry, which was the country's top exporter one-and-a-half decades back,” said Shankar Sharma, former ambassador to the US. “We can expect more investment and employment in garment sector and factories that manufacture ancillary products.”

Sharma further added that the Bill introduced in the US House on February 2, 2015, received momentum after the devastating earthquakes shattered the Nepali economy earlier this year.

There were over 400 apparel factories across the country that provided employment to 450,000 individuals when garment export was at its peak in 2001. Investment in this sector reportedly exceeded Rs six billion at that time.

The downfall of the garment industry can be traced back to the time when MFA was phased out. Till that time, about 90 per cent of readymade garments produced in Nepal, amounting to about Rs 10 billion, were exported to the US. Readymade garments then had 20 per cent share in total export. Its ranking slipped to fifth position in overall exports of 2014-15, amounting to Rs 5.29 billion.

Nepali apparel entrepreneurs believe that the US market could help resurrect the garment industry. However, there are some challenges in reviving the sector. Along with the quota phase-out, over 85 per cent of garment factories had pulled down their shutters. According to Garment Association Nepal (GAN) — umbrella association of apparel entrepreneurs in Nepal — only 50 factories are in operation now.

“The decline was not only due to quota phase-out, but also the deteriorating industrial environment in country with problems of power shortage, labour unrest, conflict and higher interest rate charged by banks and financial institutions,” said Chandi Prasad Aryal, acting president of GAN.


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 21st Feb 2020

France unveils environment score system for apparel

France has launched a system under which apparel may now display a...

Pic: Shutterstock

Textiles | On 21st Feb 2020

Indian textiles ministry to back small-scale firms

The Indian textiles ministry will contact small-scale manufacturers...

Pic: Shutterstock

Fashion | On 21st Feb 2020

Sycamore Partners buys 55% stake in Victoria's Secret

Sycamore Partners has acquired a 55 per cent stake in Victoria's...

Interviews View All

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Textile industry, Head honchos

Textile industry
Head honchos

Quality should be the #1 priority

Dharmendra Shah, Ozone PB Spintex Limited

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Luca Formentini,

Luca Formentini

From the very beginning, Loris Bellini's aim was to produce dyeing...

Atul Mittal,

Atul Mittal

Established in 1997, Pratibha Syntex produces over 60 million pieces of...

Yogesh Kanani,

Yogesh Kanani

Incorporated in 1999, Purani Textiless Private Limited is a leading...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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


February 2020

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


Advanced Search