Garment Association – Nepal was established in the year B.S. 2043 with an aim of protecting the interest of entrepreneurs engaged in the production and exports of Readymade garments(RMG) and thereby contributing towards the national economy. GAN is basically a Non-Profit umbrella organization of the garment industries centered on production as well as the exports of the apparels which acts as an umbrella organization to deal with the government as well as all other stakeholder organizations in advocating policy measures for the overall development of the industry and lobbies to better working environment of member industries. GAN is represented in various committees of Government of Nepal (GoN) and other leading chamber organizations in the Nepalese private sector and raised voices at the necessity of bringing up matters of promotion and other incentives towards the enhancement of RMG exports.
The RMG manufacturing started in Nepal early 1980s. Initially, promoted by the business people from neighbouring countries to take an advantage of quota free access to the United States of America. RMG manufacturing and exports registered a historical high amounting to NRs 12 billion in the year 2001-02. Further, this sector had generated employment to around 400000 people directly and indirectly. However, the RMG exports started to decline following the expiry of Multi Fibre Agreement (MFA) in early 2005. Currently, the RMG exports is around NRs 5 billion per annum.
Nepal has been advocating for the duty free access to the RMG exports to the United States as the latter occupied an important share in its overall export volume. Very recently, the United States government has approved the bill facilitating Trade Preferences for Nepal and allowed duty free access to Sixty Six different items including the carpets, travel goods and other apparels. However, RMG articles under Chapter 61 & 62, in which Nepal has core competence are not included in this list. GAN would take this opportunity to express sincere gratitude and appreciations to the US Law Makers and Administration for the bill facilitating Trade Preferences for Nepal.
In GAN’s view this Bill was conceptualized by the Hon American Law Makers, with an objective of providing immediate impetus for revival of Nepalese Economy devastated by Earthquake and long insurgency and political transition. This objective would not be met with the currently listed 66 Eligible Articles mentioned in the bill in either short term or medium term, as these are not the products in which Nepalese industries have either core competence or comparative advantages.
Chandi Prasad Aryal