Nepal’s Prime Minister K P Sharma Oli on Tuesday assured garment makers that the government would lobby the US government to gain duty-free, quota-free access to the American market for all types of readymade garments.
Currently, the benefit is applicable to only 40 per cent of the country’s garment products exported to the US.
Speaking at the 65th annual general meeting of the Nepal Chamber of Commerce (NCC), Oli urged the garment producers to increase their manufacturing capacity so as to ensure smooth and regular supplies to the American market.
According to a US legislation signed on February 24, special trade preferences wee given to Nepal, under which Nepali garment exporters could avail duty-free tariff benefits for up to 66 types of garment items like carpets, headgear, shawls, scarves and travel goods. However, this duty-free facility, which will be in effect till 2025, is applicable to only 40 per cent of the Nepali garments being exported to the US. Several garment producers were disappointed to hear that their products are not currently included in the duty-free list, to which Oli assured them that he would lobby to gain duty-free, quota-free access to the American market for all types of readymade garments.
Further, Oli urged the private sector to come up with rational demands for the economic development of the country. Concerned over the overall development of Nepal, he said, “The government will try to address the genuine demands through its policy and programmes, and the upcoming budget.”
Stressing on the need for industrialisation, Industry Minister Som Prasad Pandey said, “For the purpose, industries based on domestically available raw materials are necessary.”