Drop in exports to US, punitive move against Nepali Maoists

The country's garment industry, Nepal's main foreign exchange earner, suffers a drastic cut. The jobs of some 50,000 workers are threatened. For analysts, the move is a warning to the Nepali government which wants to include Maoists before disarming them.

by Prakash Dubey

Kathmandu (AsiaNews) – The United States has "drastically" cut garment imports from Nepal. In the Asian country the move, it is feared, might have serious repercussion on employment levels in the garment industry, whilst analysts wonder whether it is a punitive move against the authorities in Kathmandu for their willingness to let former Maoist rebels join the current provisional government without disarming them.

According to the Garment Association of Nepal, exports to the United States declined by 17 per cent in July over last year, with the monthly value dropping to US$ 3.9 million from US$ 4.67 a year ago.

The US represents Nepal's major export market and the garment industry is the mountain kingdom's largest foreign exchange earners.

Nepali exporters warn that the decline in exports to US could threaten the jobs of some 50,000 workers who would have otherwise no other way of making a living.

For some political analysts US opposition to Maoist presence in the government before the former rebels are disarmed is the main explanation.

Last month US envoy to Nepal, James Moiarty, warned Kathmandu to be cautious. He told the government that without prior disarmament of the Maoists the United States would cut off aid to the country.

He explicitly said the US still considered the Maoists as terrorists and would never approve their inclusion in the government if they did not hand in their weapons.

Ramekbal Choudhary, a political and social analyst, told AsiaNews that the drop in Nepali garment exports to the US in July "is an obvious signal that US won't swallow the inclusion of Maoists in government as long as they don't give up arms. "

He added that "more economic punitive measures could follow if the US's warning is not duly heeded."

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