Nepal aims for bigger chunk in US; to set-up Garment Processing Zone

In a bid to enhance the competitiveness in production of readymade garments, Nepalese Government is planning to develop a Garment Processing Zone (GPZ) within the Simara Special Economic Zone (SEZ) of Bara district.

The step is taken to further increase garment exports to the USA which has recently passed Duty Free Quota Free Bill, allowing zero tariff preference for 66 products that include apparels as well. The move also intends to bring down the rising production and export cost which is increasing faster than ever in Nepal.

Also Read – US allows duty-free access to Nepalese Garments

According to Chandi Prasad Aryal, Acting President, Garment Association Nepal, “A separate GPZ will also help lure foreign direct investment in the country.” Besides, Nepalese apparel entrepreneurs are excited with the development because the USA was a major export market for Nepalese apparels until Multi Fibre Agreement (MFA) phased out on January 1, 2005.

Also Read – Nepali Prime Minister welcomes US’ DQDF Bill

In the meanwhile, Nepal’s Ministry of Commerce has also urged various agencies of the Government to work collectively in export promotion and gear up to set up an ‘export promotion cell’ to better streamline export promotion activities in the county and deal with supply side constraints.