A study on 'addressing impact of phasing out of textile and clothing quota' has ben initiated by UNDP Regional Center in Colombo in the four garment producing LDCs of Asia-Pacific region - Nepal, Bangladesh, Laos and Cambodia. Dr Manuel F Montes, UNDP regional coordinator launched the project in Nepal amid a function on Tuesday. “As textile is an important sector for Nepal and cannot be given up, the study is being undertaken to help the country overcome challenges posed by phasing out of textile and clothing quotas at the WTO,” said he. The regional center has selected South Asia Watch on Trade, Economics and Environment and Action aid Nepal for jointly conducting the study. The study, among others, would assess impact of quota phase out on human development, export diversification and value addition, existing trade and industrial policy environment; and trade negotiations. Mr. Sri Ram Pande, Deputy Resident Representative of UNDP Nepal said that the project would last for 18 months during which studies will be conducted on key areas of human development concerns. Mr Pande said, “It will also focus on advocacy, which will help to create policy environment conducive to
|
| employment and exports growth.” Mr. Kiran Saakha, President of Garment Association of Nepal (GAN) said that Nepali garment industry is in a fragile state said “Of late, quota safeguards and restrictions imposed by the US and the EU on China has forced buyers to spread risk, creating new opportunities to countries like Nepal. But, we must put conducive procedural and policy measures to exploit it.” He urged the Government to expedite development of Garment Processing Zone, intensify lobbying for duty free market access in the US and remove obstacles in trading to enable private entrepreneurs to tap new opportunities. Mr. Ratnakar Adhikari, specialist at UNDP regional center suggested to the LDCs to focus on the enhancement of competitiveness at domestic front and advocacy for duty free market access and meaningful ‘aid for trade package’ to revive the industry. Presenting a paper on 'experience of a year of quota phase out', he said “Nepal and Laos were worst hit by the MFA phase out, while Bangladesh and Cambodia performed moderately. This is feared to augment problems for LDCs because they lack alternate employment opportunities, lack social security and loss of jobs leads to loss in remittance to rural areas, accentuating rural poverty.” 
|
|
