Gopal Tiwari

Kathmandu, February 23:

Despite the Nepali garment sector being considered as one of the best sectors in terms of foreign currency earning and employment generation in the country, it has been gradually losing its space in Nepal’s economic setting, due to increased global competition and quota phase-out by the US government from January 1, 2005.

Currently, 14 least developed countries, including Nepal are urging US for duty-free access to US markets.

All 14 countries have submitted their Asia Pacific Bill (Joint Bill) recently, which is under consideration in the Finance Committee of the US Senate.

Due to political change and quota phase-out by US on readymade garments, there are only 25 garment units operational in Nepal now, revealed factory owners. “About 35,000 people have already lost their jobs in a year which has been simply terrible,” industry sources said.

To exert pressure on US government, five countries namely Nepal, Bangladesh, Cambodia, Afghanistan and Yemen, which are the active members of Global Alliance for Fair Textile Trade (GAFFTT), had held special meetings in US recently.

GAFFTT is an alliance of 54 LDCs including Nepal.

On behalf of Nepal, Kiran Sakha, president of Garment Association of Nepal (GAN), had attended the meeting. Sakha informed that US-based Sandler, Travis and Rosenberg is lobbying for the Joint Bill submitted by 14 LDCs in the US Senate. He also said that more than 25 big stores and other domestic associations in US are in favour of the 14 LDCs.

After meeting with the US lobby firm, Sakha said that the company seemed able to get the Bill passed through the US Senate on behalf of the LDCs and put a stop on the excessive domination of Chinese goods in US market.

US is already seeking measures safeguarding its domestic industry from excessive goods being imported into the US market from China, informed Sakha.

“There is an increased US obligation for allowing duty-free access to LDCs, as European Union, Canada and Japan have already granted that facility,” Sakha said.

Chinese companies, accused of violation of child labour and human rights, are also selling goods in US, Sakha said, quoting Chief of Compliance Department of US-based Sears and Rebok.

In China, more than 95 per cent companies do not comply with US standards on social compliance, human rights and child labour issues, said Sakha quoting US experts.

US experts visit Nepal from time to time to monitor standards that are mandatory for exporting goods to US.

Uday Raj Pandey who owns Siren Garments said that due to transportation and political problems, the garment sector has been trapped into a crisis. Pandey said that currently 25 textiles/garments units are using only 50 per cent of their production capacity.

He is worried that the garment sector is losing over $1500,000 worth of goods daily, due to blockade. Rescheduling of banks’ interest rates, improving environment for garment manufacturers and easy access to US market can only help to Nepali garment sector survive, businesspersons said.