Posted by: lootekukur April 6, 2007
Garment export declines by 47 percent in March
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Hey AntiSPAM, You're very entertaining. You've been yapping the same ol' saga of antispam sentiments for a year or so. Agreed --things are not very rosy in our homeland, but do some researching before attributing each and every debacle that we are going through to the government. Political instability is surely a factor for the decline in the Garment export. But it is just ONE of many reasons. The termination of quota system due to a provision made by the World Trade Organization (WTO) in Jan '05 is one of the major reasons for the decline. The countervailing duty imposed on the maximum retail price on goods exported from Nepal by the Indian government and the dilly-dallying in the payment of duty drawback to exporters by the Nepalese government are set to enfeeble a sector already plagued by limited markets and products. Here's an old article but relevant nonetheless. it may give you and others some idea on what's happening behind the export market of Nepal. Export Slowdown What Went Wrong? In recent months, the political situation in the country has been growing increasingly adverse to trade. Industrial insecurity coupled with growing political uncertainty has hit virtually all sectors of economy. That apart, some very specific problems such as the drastic fall in the sale of pashmina and carpets, the Indian government's imposition of Countervailing Duty (CVD) on the Maximum Retail Price (MRP) of Nepalese goods and the dilly-dallying by the Nepalese government in the payment of duty drawback to the exporting industries are set to halt, if not reverse, the growth curve. Just as suddenly as it rose, pashmina exports are tumbling because of various factors, including the unethical practice by some Nepalese manufacturers who exported sub-standard products and the gradual erosion in demand in the European markets. In a bid to earn quick money, a handful of exporters tried to kill the goose that laid golden eggs. "As there was no regulation of the quality of pashmina, not only Nepalese entrepreneurs but also some spurious businessmen from the neighboring country exploited the name of Nepal," says Khanal. While the government failed to check such adverse trends, the bigger blame lies squarely with the private sector, which went to the extent of exporting anything in the name of pashmina.
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