The imposition of quota safeguards and restrictions by the US on Chinese textile products because of import surge has thrown open a window of opportunity for small garment exporters like Nepal. No doubt, the impact of the phasing out of the textile and apparel quotas in the context of Nepal’s WTO membership almost a year ago has also had an adverse impact on Nepal’s own garment exports which have been on a rapid slide. This calls for concerted efforts to give this declining industry a shot in the arm. In order to exploit the new potential and compete in the free global market, Nepali products will have to be cost-effective, competitive in price and of international quality — the lack of which is the major reason for the current plight of the garment industry, which for years has been one of the three top earners of hard currency for the country.

The present infrastructure is far from satisfactory and there is a need to develop skilled manpower along with taking care of a host of other factors like a favourable and long-term export policy with simplified procedures aimed at encouraging exports. Then would arise the need to put in place an effective lobbying strategy for boosting exports not only to the international market but to Asian countries as well. Business experts have often recommended the removal of other trading hindrances and developing a garment processing zone. How can Nepal lobby for duty-free market access in the US when it is still struggling to produce quality products? Experts in Kathmandu have launched a study to examine the implications of the quota phase-out. Merely harping on its newfound status of the WTO membership is not enough for Nepal.

Realising the myriad advantages to the economy and to individual entrepreneurs and workers in terms of profit sharing and employment generation, the government and the private sector should seriously look for ways of giving this sick industry a new lease of life.