US recently approached WTO with a new proposal for LDC's access to textile market. When contacted by Fibre2fashion, General Secretary of Garment Association Nepal (GAN) Uday Raj Pandey explained the details of this proposal. He said, “In the US senate on February 15, 2007 this proposal was put down, in which 14 LDCs including Nepal, Sri Lanka and Bangladesh will get 100 percent duty free market from January 2008. This would be same as African countries that are presently getting these facilities.”
He adds, “If this bill passes then Nepal's products will be 16 percent cheaper and will attract larger markets. He also said that they are trying pushing Nepal Government as well as other LDC's to help in pass this bill.”
As for rules of origin, Pandey said “In last WTO meeting in Hong Kong it was announced that US will give 98 percent duty free market. Nepal and other countries are requesting for the flexible rules of origin, which will help the 3rd country from where they export their materials. Nepal still relies on imports for the production.”
Regarding the advantages of this proposal, Pandey said “Yes, this proposal has many positive sides. The US has committed in the WTO meeting to help LDCs and has already taken steps for the same. Now, except for garment everything is duty free. Once this proposal is passed Nepal economy will see full-fledged growth.”
He says that RMG and Pashmina industry will get duty free market, which will reduce itscosts, inturn, grabbing larger market share.
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