The export of readymade garments to United States nosedived by 81 percent in August this year although it had gone up by 8 percent in July against the same months last year.
The exports however nosedived in every consecutive month from January to June in 2009, according to data released by Garment Association of Nepal (GAN). Exports tumbled 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.
After the preferential treatment of Nepali garments by the US ended from Jan. 1, 2005, exports of Nepali readymade garments have been decreasing every year. According to GAN data, 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 was US$ 692,883 in corresponding month last year. The exports went down 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.
The GAN said that the garments exports to USA had tumbled by 84 percent in 2008 against the figure of 2004 which was the last year the prefernatila quota system existed in the world.
