Nepal's exports of readymade apparel to US still remain miserable owing to six percent drop in 2006 as against the previous year. However, this decline is less compared to the tough years of 2005 and 2004, when RMG export decrease was 41 and 30 percent respectively.
US accounts for nearly 85 percent of garment exports from Nepal. Excluding a small surge in February, May and June, apparel exports to US during last year were down.
Non-tariff barriers including procedural complications, long customs processes and documenting are the prime internal reasons responsible for slump in apparel exports and decrease in competition.
As per statistics of Garment Association of Nepal (GAN), apparel exports to US in 2006 stood at $47.77 million compared to $50.72 million in 2005. With markets being opened for competitors and no quota restrictions, Nepali garment producers and exporters will be facing tough times.
Exports have been diminishing since 2003. Quota phase-out in January 2006 hit a blow to apparel sector. Value of exports went down 22 percent and volume dropped 28 percent in 2005 as a consequence of cancellation of multi-fibre agreement.
Apparel makers and exporters are experiencing a sense of relief due to rise in exports to Canada and EU.
marketing@alchempro.com
