Recent approval of the ‘Trade Facilitation and Trade Enforcement Bill’ by the US Senate on December 9, 2015 opened duty-free-quota-free access of Nepali readymade garments, pashmina, and leather products into the US. The latest Bill, once gets the US President’s seal to transform it into an Act, is anticipated to boost trade prospects of the RMG industry of Nepal.

According to Chandi Prasad Aryal, Acting President of Garment Association Nepal, sighting the ensued opportunity the RMG industry must now focus on improving the industrial and investment climate to attract investment. Over 80 per cent of garment factories were forced to shut down after the quota system was abolished, which can now be revived. Momento Apparels and Cotton Comforts, for instance, once Nepal’s largest garment exporters, are looking at making a comeback.

Apart from political stability, the country also needs to tackle issues like load-shedding, well-managed transportation costs and labour unrest to ensure healthy business climate, which can attract investments in the garment sector. The duty free facility is also expected tp make the industry capable of competing with its rivals in Asia like Bangladesh and Cambodia.

Also to avoid situation like post-quota phase, Aryal is of the opinion that the country needs to create sustainable relations with trade partners by delivering orders on time at competitive rates and create strong raw material base, while the government should approach investors from developed countries and announce an incentive package for the development of the RMG sector.

Ganasso.org.np