Nepal Apparel Association (GAN), the main organization representing Nepalese clothing manufacturers and exporters, urged the government to promote Nepal's clothing tax free access to the US market.

The negotiations on Trade and investment and framework agreements between the two sides will be held in December 2011.

The Nepali clothing association has submitted a eight point proposal to the Ministry of Commerce, asking the government to use the bilateral trade and investment and framework agreement forums to incorporate Nepal products into the United States GSP list and promote the US investment in Nepal.

Nepal

Since 2004, the export of Nepal to the US has begun to decline. At that time, the United States accepted the treatment of Nepal's duty-free and quota free access to the US market.

Therefore, the Nepali clothing association has put forward some suggestions to urge the government to take actions to increase Nepalese commodity exports, especially clothing exports to the United States.

The first recommendation is to promote Nepal's export to the US, which in turn promotes the investment of the Nepal in the United States, said Pandey, President of the Nepali clothing association.

The second suggestion is that although Nepal is an underdeveloped country, it does not enjoy the GSP in the United States.

Nepalese clothing and shawls still need to pay tariffs in the United States, so we ask the government to focus on this problem and incorporate these items into the GSP.

Pandey said the Nepali Clothing Association presented to the United States a year ago.

Clothing is a major export item in Nepal. In the past few years, Nepalese clothing exports have declined.

Therefore, Nepalese clothing and shawls are either tax-free to enter the US market or get the GSP status, so that Nepal can get more foreign exchange earnings, which will generate employment and save the country's ailing clothing industry.

Carpets and handicrafts are other major export items in Nepal, which enjoy duty-free access to US exports.