The United States has been one of the best and biggest markets for Nepali Garments for decades. With ups and downs, garments have been exported to the United Stated at a different pace during different periods of time.
The reason that the Nepali Government requested further flexibility in the duty from the US? Free market access facility. The request was voiced by the Nepali Delegation to the US, during the joint Nepal – US Trade and Investment framework. There have been some previously recorded facilitation’s for 66 garments for Nepal, however as the country officials claim, most of the items listed were not produced in Nepal.
So, once again on June 10 Nepali Delegation voiced concerns of the manufacturers and asked for more favorable conditions to export goods.
The initial stand of the US was to advise Nepali officials to utilize an already in force facility: “They were of the view that there remains the possibility of resistance in the US if the product list was extended,” said the Nepali delegation member.
The existing facility entered into force in 2015 and will last till 2025. The facility provides duty free access to selected list of garments.
During the public hearing it was demonstrated that most of the 66 items listed in the agreement are not produced in Nepal, and Nepali officials requested further assistance to utilize the opportunities of the US market.
The US agreed to review and explore the possibility of reviewing the facility. There was a joint statement delivered after the public hearing.
However, as there is an election period coming, and the political situation in the country might change, it is highly likely that the authorities will wait until the new administration comes in, before taking any measures regarding the case.