Currently, the US government is imposing 16.5 percent tariff on import of cotton apparels.
The Bill was introduced in the US House on February 2, 2015 and it garnered positive response after the devastating earthquakes — of April 25 and May 12 — shattered Nepal’s economy.
According to GAN, there were over 400 apparel factories across the country in 2001 with investment of around Rs 6 billion. The garment industry was employing 450,000 people. But the industry collapsed after phase out of MFA coupled with deteriorating industrial environment in the country, power shortage, labor unrest, Maoist insurgency and higher interest rate. As a result, Nepali RMG lost competitive advantages over Bangladeshi and Vietnamese garment industries in the global market. “Once the country’s top exporter and one of the large employment providers, the garment industry can revive again and attract more investment,” the release said, adding that only around 50 factories are in operation at present.
Export of RMG accounted for 20 percent of country’s total export trade in 2001. But exports plunged to Rs 5.29 billion in Fiscal Year 2014/15, according to GAN figures.