Business News

Garment exports to US continue to go downhill

The export of readymade garments to United States plunged by a whopping 81 percent in August this year against the same month last year.

According to statistics released by Garment Association of Nepal (GAN), the exports have witnessed a downward spiral in every consecutive month from January to June in 2009.

Exports nosedived by 73 percent in January, 55 percent in February, 32 percent in March, 58 percent in April, 49 percent in May and 80 percent in June.

The ceaseless decline in exports of readymade garments has been ascribed to the end of the preferential treatment of Nepali garments by the US from Jan. 1, 2005.

The exports declined by 45 percent in 2008 and 48 percent in 2007. The decline was 6 percent in 2006 and 41 percent in 2005.

Nepal exported garments worth US$ 134,749 in August whereas the figure stood at US$ 692,883 in corresponding month last year. The exports decreased by 57.88 percent over the last eight months with exports declining to US$ 4.28 million from US$ 10.17 million in the same period last year.

According to GAN, the garments exports to USA had nosedived by 84 percent in 2008 against the figure of 2004 which was the last year the preferential quota system was in effect.