Nepalese Clothing Exports Are On The Decline

The garment and garment industry in Nepal is still declining month by month, and its market share is still declining in the US.

In the first 8 months of this year, clothing exports in Nepal fell by 49%.

In the first 8 months of this year, Nepalese clothing exports to the United States amounted to only $10 million 170 thousand, and exports amounted to $19 million 730 thousand during the same period last year.

In January 2008, clothing exports in Nepal fell by 2% over the same period last year.

However, in August, exports of garments and garments in Nepal dropped by 62% over the same period last year.

In August, Nepal exported $690 thousand in clothing, and exports amounted to $1 million 830 thousand in the same period last year.

The reason for the decline of Nepalese clothing exports is attributable to the deterioration of competitiveness, the political instability brought about by terrorist acts, and the shift of international orders to other countries.

The combined results of these domestic and foreign factors led to the export of Nepalese clothing to the United States to only 1/10 of its exports in 2003.

However, the Nepali clothing association is now hoping that these conditions can be improved because the new government has begun to normalcy.

However, a large number of undeveloped countries' export to the US has been granted tax exemption status.

These underdeveloped countries include African countries enjoying the status of African Growth and timing act and Caribbean countries under the Caribbean Basin act.

At present, Nepal is trying to get us approval to help get duty-free preferential treatment, which will reduce domestic prices by 18% compared with other competing countries, such as India, China, Bangladesh and Sri Lanka, thereby helping to increase exports.

In this regard, the president of Nepal's Ministry of Commerce and the Nepali clothing association also visited the United States and held meetings with members of the United States Senate and house of representatives to seek concessionary concessions to export to the US market.

Nepal is optimistic about the status of duty-free exports from January 2009, and the status of duty-free export will be directly reflected through exports. This position is sure to be signed in March 2009.

As part of these remedial measures, the business community calls on the Nepalese government to immediately implement the special economic zone development plan, including a garment processing area in Birgunj, approaching the problems of labor turbulence and high production costs.