Garment entrepreneurs unclear of duty-free facility provided by US
Kathmandu, March 6
Garment entrepreneurs in the country are keenly waiting for the visit of Deputy Assistant Trade Representative Dawn Shacklefor from the United States, which is scheduled from March 11.
During the visit, Nepali entrepreneurs will be able to know about the items that will receive preferential treatment in the market of the world’s largest economy through the recently enacted Trade Facilitation and Trade Enforcement Act.
Through this Act, the United States has extended duty-free access for 66 Nepali items to its market including apparels to support higher and sustainable economic growth to help Nepal achieve its aspiration to graduate to the league
of developing nations from its least developed status. However, the law has excluded a majority of apparel items which were exported to the US market during the period of quota system.
Nepali entrepreneurs are still hopeful that a majority of apparel items will be incorporated in the law. They hope that the recently ratified Act is like the African Growth Opportunity Act (AGOA), which deals with preferential treatment in export to the US market from African countries.
“The United States has been extending duty-free facility to all apparel items exported from African countries to the US market under the same provision that has been extended to Nepal,” said Chandi Aryal, acting president of the Garment Association Nepal.
AGOA has incorporated around 1,800 products under duty-free facility, however, Nepal received such facility for only 66 products.
Garment Association Nepal has also approached lawyers in the United States to interpret the recent law. Lawyers in the US are also confused on whether major garment items have been incorporated or not, as per Aryal. “We are waiting for the Deputy Assistant Trade Representative’s visit to be clear about the facility.”
Deputy Assistant Trade Representative Shacklefor is scheduled to visit Nepal to assess the capacity of the industries of the related products incorporated in the law.