Himalayan News Service

Kathmandu, July 7:

Export of readymade garments to US market in the month of June has declined by 16 per cent because of a phase out of quota provided by the US government for readymade garments, beginning January 2005. The decline rate of export in May was higher than June. Export of such items to US in May declined by 50 per cent, reveal statistics produced by Garment Association of Nepal (GAN). In the month of June last year, readymade garment export had declined by 46 per cent. The declining rate of export this year has been quite less compared to last year as well as in May this fiscal year. Readymade garment worth $43,59,945.94 was exported to US in June last month compared to $42,-04,902.01 in May this year. There is a continuous decline in garment export, from August 2003 to June 2005 except in October 2004. In March this year, export declined by 41 per cent and 15 per cent in April 2005. There is an alarming decline of over 65 per cent in readymade garment export to Canada in June this year.

Due to quota phase out by the US, there has been an immense impact on LDCs like Nepal and Bangladesh. However, India and China have benefited much, according to exporters. Asia and Pacific regions have been putting pressure on US for getting duty-free access to the US market for which LDCs have recently passed a Dhaka Declaration. In the declaration, Asia and Pacific nations have made an unanimous demand for duty free access for 14 LDCs to the US market. The 14 LDCs, including Nepal, have already submitted a Trade Act 2005 in the US senate and House of Representatives for the provision of duty free access. However, it is still under consideration despite US having already granted duty-free access to African and Caribbean nations.