| Sajha.com Archives | |
| Username | Post |
| Register_me | Posted
on 26-Mar-03 01:17 PM
Senator Feinstein Introduces Legislation to Help Promote Economic and Political Stability in Nepal March 19, 2003 Washington, DC - U.S. Senator Dianne Feinstein (D-Calif.) today introduced legislation to help Nepal -- one of the world's poorest countries -- sustain a vital export industry and promote political and economic stability following years of conflict. The legislation would grant duty free status to Nepalese textile and apparel imports in the United States for a two-year period beginning on October 1, 2003 and ending on September 30, 2005. This is the same status granted to participating countries under the African Growth and Opportunity Act. More Here..... |
| Puru Subedi | Posted
on 26-Mar-03 02:10 PM
Friends, I also received this via Sagar Onta of SEBS-NA. He encourges all Nepalese organizations to write her a thank you letter in appriciation for all her efforts on Nepal. I have passed this news to all DC metro organizations and requested them to write a letter. I suggest you to pass this to your local Nepalese organizations and request them to send a letter as well. -PS |
| Register_me | Posted
on 26-Mar-03 02:24 PM
Puru Ji, Can you please email that letter to me too. Thats indeed a good initiative. To acknowledge and appreciate. I will put the Thank you letter in Nepal USA site too. We should indeed send her emails on behalf of the network and also from individual Nepalese in the USA thanking her. Admin, http://www.nepal-usa.net |
| Puru Subedi | Posted
on 26-Mar-03 02:36 PM
I will be sure to e-mail the letter to you when it is ready. Yes. Nepal-USA Network should send one too. Please post a link to the letter here when you publish it on Nepal USA site so that others can use it. -PS |
| Dilasha | Posted
on 26-Mar-03 02:37 PM
That's a great news! I have forwarded it to all my friends and here's a direct link to her website. You can even sent her an email through her website. http://www.senate.gov/~feinstein/03Releases/r-nepal.htm |
| Logical Sense | Posted
on 26-Mar-03 03:06 PM
Thanks Dilasha for the URL and Register_me,puruji for starting the thread and the informatin. This is really a great news and we all should take a moment to write an email/fax/call to thank her for her effort. We should grab these kinds of opportunities to show what is the strength of of Nepalse diaspora. Friends, beleive me it really helps in democracy to let them know that we are in 100s of thousands here in US paying taxes but we also love our roots. From my part I have asked whole of my family/friends to individually FAX her. I heard fax is considered as having more weight than email or telephone. Interesting how it works in Politics. - iti |
| DWI | Posted
on 26-Mar-03 03:18 PM
Good job, indeed. Thanks Heart-hope (translate). Wouldn't it be encouraging for her to receive so many Nepali thank-you letters/email? Count me in, I am sending right away. |
| Paschim | Posted
on 26-Mar-03 07:09 PM
Ms. Feinstein's initiative needs to be appreciated. I thank her warmly. But it needs to be analyzed and contextualized with dispassion: Global trade in textiles and apparel has long been governed by a quota-based system under the Multi-fiber Agreement (MFA). Nepal actually benefited at first from this because investors (domestic and Indians) poured in to take advantage of our under-utilized quotas to the major markets in the EU and US. When WTO was set up in Marrakesh in 1994, the MFA (which violates the WTO principle of non-discrimination) was agreed to be phased out by 2005. This 10 year transitional agreement was called ATC -- Agreement on Textiles and Clothing. Although the rich countries are moving very slowly on phasing their quotas by the agreed date of 2005, the expectation is that they will, after which there would be no quotas for exports from any country, poor or rich. This is good news for countries like China and India who have the cheap labor as well as greater scale efficiency who will gain immensely from this unfettered access. Small country exporters (like Bangladesh, Cambodia, Nepal) will then need to compete with these big country exporters in the region. With the cover of quotas gone, how this will play out and affect the smaller players is quite clear. If we can produce and sell more than what our quota allows now, then Feinstein's 14 month window of unfettered access until 1 Jan 2005 (after that everyone will enjoy this) is great news. I do not know what our national ability is in this regard. The last I heard the industry had shrunk big time, if not collapsed. Can we resurrect this in one year, reap enough benefits, and diversify so as to move on to other sectors, just like East Asia climbed the ladder of textiles to assembling to high tech over 30 years? What do our Wharton MBAs say? Or even we stick to textiles after the tough times begin, will we be able to differentiate our products enough to establish Nepali niche markets? I hope we will. Long live exotica that we can market. But of course, Nepal is not yet a WTO member to avail of the ATC. And it is unlikely we will have joined by next year. So this proposal is also more useful from that angle. For the US, this costs nothing. But as a gesture, this is great. As I speak, poor Cambodia which is about to accede to the WTO is being given a very hard time by US negotiators in Geneva on this exact topic. If the Feinstein proposal goes through, it will be a low-calorie sweetener handed to us on a silver platter. These are indeed times to be grateful for small mercies. |
| Biswo | Posted
on 26-Mar-03 08:24 PM
Paschim, Thanks for the new perspective. In mid 90s, Chitwan saw some kind of economic boom. I knew there were some people around Tandi who went on to establish new textile mills. Some more relatively bigger mills were established in Western Chitwan. The last time I heard about those mills, they were in moribund condition, and one of the mill operators even closed the mills and opted to work in USA in some grocery store or gift shop.[In the last two years,a lot of small time businessmen in Chitwan have lost their money in industries like milk industry, poultry farming, restaurant and lodging, but that would be a new story.] In this perspective, do we have capacity to fulfill the quota? It looks obvious that we can produce more than what we are producing rightnow. But do we have competence to attract big demand commensurate with increased quota? I don't know. Last time we had this kind of opportunity [ I think there were no restriction in export], India-made textiles were labelled "Made in Nepal" and sold abroad. Finally, a Nepali friend of mine from Shanghai days works in an Israeli textile trading company there. Guess what they do? They send their textiles to Mexico, and then from there to USA after labelling 'made in Mexico'. I guess such malpractices are worldwide phenomena. -- Btw, I think senator Feinstein is a great lady, who really loves Nepal, and she is doing this because she really hopes that Nepal will benefit from this, and she deserves our heartfelt compliment. Each year , 3,00,000(?) Nepali enter labor force, there are limited land resources to accomodate them in agriculture sector, and a huge challenge lies ahead for us in terms of finding jobs, and reducing overall poverty level[Also, I don't think job in agriculture sector can reduce poverty]. These jobless people are the source of almost all social crises, including Maoist problem. |
| Paschim | Posted
on 26-Mar-03 09:10 PM
Thanks for your inputs Biswo. Nepali exports have availed of what is called the Generalized System of Preferences or GSP which rich countries use to grant preferential access to their markets, but textile exports to the US are an exception in that it is governed by a bilateral agreement involving quotas. I have yet to update myself on the exact status though. Even importantly, and I didn't mention this above, it is the duty-free access that will be more appreciated. Because even after the quotas go away (after 2005) other WTO members will still face tariffs, which the US is certain to maintain at a relatively high rate. If, like sub-Saharan Africa, we are also extended this duty free provision, it will be helpful, beginning now. Of course, to what extent we are flexibly able to tap these opportunities is up to us, but still, incentives, benign provisions, and goodwill such as that of Ms. Feinstein are always welcome. But the intricacies of global trade negotiations are complex and technical...I am not an expert in these though...just general stuff that I'm picking up in the run up to the Fifth WTO Ministerial in Mexico this fall (I'll see if I can cross the border into Texas). |
| Biswo | Posted
on 26-Mar-03 09:39 PM
>I'll see if I can cross the border into Texas. That will be wonderful. Please try! |
| Deep | Posted
on 27-Mar-03 05:53 AM
I enjoyed Paschim's POV. Truely, from my personal perspective, I believe the role senator Feinstein's proposal plays is more of a symbolic than concrete advantage. I doubt Nepali industries will be swift and prompt enough to reap the advantage to a considerable extent in the given short time frame. "If we can produce and sell more than what our quota allows now, then Feinstein's 14 month window of unfettered access until 1 Jan 2005 (after that everyone will enjoy this) is great news." Absolutely, Paschim. This is a key point, to me at least. "But do we have competence to attract big demand commensurate with increased quota? I don't know." I also don't know but I doubt, Biswoji. Nevertheless, Senator Feinstein deserves our thanks. |
| Dilasha | Posted
on 27-Mar-03 11:23 AM
hmmm....interesting! |
| shanti_priya | Posted
on 27-Mar-03 01:43 PM
different POV's in this thread too... http://www.sebsonline.org/forum/forum_view.aspx?F=1&T=33063 I think this move should be welcomed |
| Register_me | Posted
on 28-Mar-03 05:47 PM
A sample template that can be sent to Senator Feinstein: Thank you letter for US Senator Dianne Feinstein : Showing Our Appreciation [Date] Honorable Senator Dianne Feinstein United States Senate 331 Hart Senate Office Building Washington, DC 20510 Dear Senator Feinstein, On behalf of all your friends from Nepal, we want to thank you for "Introducing Legislation to Help Promote Economic and Political Stability in Nepal." Passing of this important legislation would help alleviate socio-economic difficulties and hardships currently being faced by the Nepalese economy. It would also help Nepal avoid a total collapse of the garment industries that heavily depends on export of the Nepalese ready made garments to the Unites States. As 47 percent of the Nepal's 24 million people are currently unemployed, this legislation would bring about much awaited good news to those whose livelihoods directly depend on garment industries. Nepalese community is also hopeful of the current negotiation process between the Maoists and the government. Your introduction of this legislative gives all the Nepalese assurance of your unwavering support for the negotiated peaceful resolution amongst the concerned parties in Nepal and for this we are grateful. Nepal is very proud and honored to have a friend like you. We appreciate your action oriented leadership in introducing this crucial legislation. We are looking forward to the expedited approval of this bill in the United States Senate with the help of your colleagues. We hope you will let us know how we may be of assistance to you. Cordially, [Your Name] [Include Your Information As You See Suitable]. Contact Senator Feinstein Phone: (202) 224-3841 Fax: (202) 228-3954 TTY/TDD: (202) 224-2501 You can Send An Email To Senator Feinstein Directly From Here. Link: http://www.senate.gov/~feinstein/email.html It would be great to acknowledge and appreciate and send her letters on behalf of Nepalese communities and also from individuals thanking her. Thanks to Mr Kiran Sitoula and Puru Subedi for providing the sample. Feel free to modify it as you see fit. Thanks. Admin, Nepal USA Network |
| ashu | Posted
on 29-Mar-03 06:34 PM
Senator Feinstein's husband is Richard Blum, who happens to be a long-time Nepal lover. He currently serves as Nepal's honorary consul general in California. Senator Feinstein's gesture is a personal one, and needs to be appreciated. That said, while doing my own little research on this, I came upon this at Emerging Textiles.com. This says that there is NO guarantee that Nepal, despite being poor, will actually be given a preferental treatment. All said and done, I think the Garment Association of Nepal should look for ways to survive in the post-quota world while investing on technlogy and contacts to increase shipment (as it already -- surprise, surprise-- seems to happen) all the more. http://www.emergingtextiles.com/?q=art&s=030327-trad&r=free&n=1 There's also a graph at the end. oohi ashu ktm,nepal ************************** "Bill introduced by US Senator Nepal looking for US duty-free status 27 March 2003 - Nepal would benefit from duty-free and quota-free access to the US market if US Congress approves a bill last week introduced by US Senator Feinstein. After falling in the last two years, US apparel imports from Nepal are now sharply rebounding in US$ terms. US Senator Dianne Feinstein from California last week introduced a new legislation which would grant duty free and quota free status to Nepalese apparel imports in the United States. Under the new bill, Nepal would be granted the same preferential treatment already offered to Sub-Saharan Africa with the African Growth and Opportunity Act (AGOA). "Nepal is the 12th poorest country in the world with a per capita income of US$240," Ms Feinstein said in a statement. "Approximately 42 percent of Nepal's 24 million people live in poverty and 47 percent of the Nepalese people are unemployed," she added. The Kingdom is also confronted with a Maoist rebellion since 1996 wich resulted in killing of thousands of inhabitants and added to usual economic difficulties. About 40% of total exports Nepal's garment industry is 100% export-oriented, accounting for 40% of the kingdom's export earnings and employing about 100,000 workers. Apparel exports to the United States account for about 80% of total shipments. They sharply decreased in the recent past as a result of political troubles after king Gynendra and a good part of its relatives were murdered in June 2001 by crown prince Dipendra who apparently killed himself a few minutes later. As a result, a new king came to power who dissolved parliament and postponed elections. Although a cease-fire was concluded in January, observers fear terrorism to resume in the coming months. The fall in apparel exports to the United States is mainly due to US preferential treatments offered to Africa and Caribbean nations, Nepal's Garment Association last January explained to Senator Feinstein when visiting the United States. Nepalese visitors also met US trade officials, requesting the duty-free quota-free status as a least-developed country (LDC). Although the European Union and Canada already offered such a treatment to poorest countries of the world, Washington preferred granting concessions to regional entities until now. Far from being adopted The US Congress is not expected granting any preferential treatment to Nepal as a consequence. For the same reason, Bangladesh was already refused duty-free and quota-free access to the US although being one of the poorest LDCs. In addition, US imports from Nepal sharply rebounded since last July. According to local surces, shipments were up no less than 72% in February at US$16.87 million after already rising 48% in January at US$16.33 million, compared with the same month of 2002. According to US official data, apparel imports were only up 4.5% in volume terms in January but increased by 22.54% in value terms at US$13 million. Shipments surged in very sensitive categories 339 (W&G T-shirts) and 348 (W&G cotton trousers, including jeans). Imports rose 323% in US$ terms in category 339 while increasing 89% in category 348. As a result, the US limit of 1.08 million dozens is already 55% filled in merged categories 347/348 after being saturated in 2002. US importers were confronted with a series of Asian quotas in these categories last year. Nepal clearly benefits from the low level in limits imposed to other low-cost nations. With or without duty-free access, sales to the United States could therefore sharply fall after the removal in quotas after 2004. |
| ashu | Posted
on 29-Mar-03 07:19 PM
Logical Sense wrote: "We should grab these kinds of opportunities to show what is the strength of of Nepalse diaspora. From my part I have asked whole of my family/friends to individually FAX her. I heard fax is considered as having more weight than email or telephone. Interesting how it works in Politics." Though I applaud Logical Sense's and others' enthusiasm on this matter, I cannot help but wonder -- as a matter of pure STRATEGY: Why on earth would you want to fax Senator Feinstein (SF)? I mean, it makes NO sense to fax/email her. My 'counter-intuitive' reasoning -- assuming you want this bill to deliver the goods-- goes like this. SF is ALREADY a convert to this cause. This is clear from her introducing this bill. Now her challenge is: She needs to convince her COLLEAGUES too . . . her colleagues who may have their own questions, doubts and concerns, ignorance and who may, at the end, vote against the bill and defeat it. To overcome this challenge and to be of help to Nepal, this is where -- i.e. convincing her colleagues to vote in support of the bill -- that SF needs all the help she can get from everyone, including the Nepali diaspora. [I mean, rah-rah/wah-wah thank-you letters can wait for now!] So, forget about faxing SF for now. Instead concentrate your time and resources faxing/phoning/emailing strong letters of support (of the Feinstein Bill) to other 99 Senators of the 50 states. And when communicting to them, explain clearly why their support matters for Nepali garment industry. [And this where leaders such as Kiran, Puru and others can make templates that make (economic) arguments in support of Feinstein's initiative] Remember, SF has done her job. Now let's help the 99 other Senators do theirs on this. And that's because at the end of the day, assuming we want to win, only their collective "yes" matters, not SF's goodwill alone. oohi "still thinking that the Garment Industry is trying to take an easy way out by postponing to think hard about doing business in the post-quota world, but never mind" ashu ktm,nepal |
| isolated freak | Posted
on 31-Mar-03 06:12 AM
The bill has been introduced, not yet ratified. So, there's no reason to cheer up. Instead, like ashu wrote, its time to persuade the other senate members. |
| Puru Subedi | Posted
on 31-Mar-03 07:57 AM
Ashu and Friends, Thank you for your critical analysis and suggestions. I have received confirmation from two national level organizations in the US (NAC and NAPAC) that they will be sending appreciation letter to all the sponsors of the bill. I have requested ANA but have not received confirmation yet. Representatives from all DC Metro organizations will be meeting soon to sign a joint appreciation letter. A meeting has already been scheduled. We will now focus on requesting support from other Senators as suggested by Ashu. Will keep you posted. -PS |
| Puru Subedi | Posted
on 02-Apr-03 08:52 AM
Here are set of letters shared by Robin Pandey ji in New York. DC Metro community is also working on inviting Senator Feinstein to a function and sending letters to other Senators who can help pass the bill: The Honorable Dianne Feinstein United States Senate Washington, DC 20510 VIA FAX: 202-228-3954 Dear Senator Feinstein: April 2, 2003 On behalf of Nepalese living in New York, I want to thank you for Introducing Legislation to Help Promote Economic and Political Stability in Nepal. In my recent visit to Nepal people were enjoying peace and I am hopeful that peace will last in Nepal. Peace lays the foundation for economic development and your Legislation will enhance her economic development. Since you have visited Nepal and are aware of situation in Nepal, I do not want to go into more information about Nepal. However, I salute you and I applaud you for your love for rich culture, beautiful landscape and warm friendly people, and taking leadership to help distressed Nepal due to Maoist insurgency. I also asked fellow Nepali Americans and Nepali natives in the US to write to their Senators to support your Legislation and I am writing to Honorable Hillary Clinton and Honorable Charles Schumacher for their support. Thank you for your help. Sincerely, Robin Pandey Nepali American, New York City ===== The Honorable Hillary Clinton United States Senate Washington, DC 20510 Dear Senator Clinton: April 2, 2003 On behalf of Nepalese living in New York, I want to ask you to support Legislation to Help Promote Economic and Political Stability in Nepal introduced by Honorable Diane Feinstein. In my recent visit to Nepal people were enjoying peace and I am hopeful that peace will last in Nepal. Peace lays the foundation for economic development and your Legislation will enhance her economic development. Since you have visited Nepal and are aware of situation in Nepal, I do not want to give you detail information; just the basic data. Nepal is the 12th poorest country in the world, with a per capita income of $240. Approximately 42 percent of Nepal's 24 million people live in poverty, and 47 percent of the Nepalese people are unemployed and Maoist insurgency that claimed around 8000 lives since 1996 did not help any regarding socio and economic development. I am proud of you to have you as an Honorable Senator of New York State. Thank you for your help. Sincerely, Robin Pandey |
| ashu | Posted
on 02-Apr-03 10:06 AM
Puru-ji, Great work. Thanks for keeping us informed. I wish you and other community leaders all the best with your letters to Senators. Robin, Great to see you doing what you said you would be doing on behalf of Nepal and Nepalis in the US. Keep up the good work, man!! oohi ashu ktm,nepal |
| salakjith | Posted
on 14-Jun-03 09:05 AM
This is what has come to the whole thing.. pretty sad:: S Senator threatens to retract preferential bill By Bhaskar Sharma KATHMANDU, June 13: Citing some of Nepals recent actions as being "against the US interests", the United States Senator Dianne Feinstein has threatened to retract a preferential trading bill that she had tabled in the Finance Committee of the US Senate. The bill sought to provide duty-and-quota-free market access to Nepali garments in the US. A highly placed source disclosed to The Kathmandu Post that Feinstein, in a letter sent to the Royal Nepalese Embassy in Washington recently, expressed grave concern over Nepals recent deportation of the eighteen Tibetans to China. The letter was promptly forwarded to the Ministry of Foreign Affairs (MoFA) here in Kathmandu. An official at the MoFA admitted having received the letter. Besides the deportation issue, the long-standing payment row between Nepal Electricity Authority (NEA) and Panda Energy International (PEI) has also influenced Feinsteins desire to revoke the bill, said the official. PEI, in consortium with others, has invested US$ 98 million in Nepals Bhote Koshi Project. The PEI had earlier threatened to use its political clout in the US government to block the passage of the bill through the Congress. Subsequently, some of the US Senators had recently gone as far as asking Nepal to settle NEAs payment row with PEI as a precondition to move ahead the bill. According to the MoFA source, though Feinstein has not set a deadline for retraction of the bill, it could come as early as next week. The latest development comes as a serious setback to Nepals fledging garment industry. Garment entrepreneurs for over two years had been demanding market access to the US on a par with the Caribbean and the Sub-Saharan African countries that are receiving such facilities since late 2000. Nepali garment entrepreneurs expressed concern over Feinsteins statement. "Everything seemed going well for Nepals garment industry. We were hoping that the bill would get through the Senate and the Congress. Now that seems almost impossible," said Kiran Saakha, President of Garment Association of Nepal (GAN). Entrepreneurs are now pressing the government, especially the MoFA, to immediately communicate with Feinstein to defer the bills removal from the Senate. Saakha alleged that there has been a lack of diplomatic and political follow-up for the clearance of the bill. The NEA-PEI controversy and Tibetans deportation is proving costly. "If action is not immediately taken to keep the bill afloat in the Senate, the garment sector will suffer a huge setback," added Saakha. The Nepali garments exported to the US without any preferential treatment are subjected to an approximate tariff level of 18 percent. Garment entrepreneurs estimate that free market access to the US could potentially lead to a huge surge in garment exports from Nepal. Garment exports can easily cross US$ 400 million, from US$ 106 million last year, say entrepreneurs. The garments industry in Nepal with around Rs 6 billion investment is entirely export oriented and accounts for 40 percent of the foreign exchange earnings through exports. The industry employs over 100,000 workers - half of them women - and sustains the livelihood of over 350,000 people. http://www.nepalnews.com.np/contents/englishdaily/ktmpost/2003/jun/jun14/index.htm |
| Bhunte | Posted
on 14-Jun-03 09:58 AM
The original news says: >>>>>>>The legislation would grant duty free status to Nepalese textile and apparel imports in the United States for a two-year period beginning on October 1, 2003 and ending on September 30, 2005. <<<<<<<< It is definitely a very good support for Nepal, but what will happen after two years? renewed after each two year term?? |
| suva chintak | Posted
on 14-Jun-03 12:54 PM
As per the news posted from TKP by salakjith above, does it means all our collective bending over backwards to show our gratitude to the senator lady has been for nothing? The kind lady seems to have taken an issue with the Panda energy controversy and the 18 Tibetan refugees to withhold the trade facility. So much for her kindness to Nepal! |
| Paschim | Posted
on 14-Jun-03 06:48 PM
Bhunte says: "It is definitely a very good support for Nepal, but what will happen after two years?" As I cautiously wrote on the 23rd of March above, this initiative was more symbolic than anything else. The rich world has repeatedly committed to "duty-free and quota-free" access for LDC products. The EU's "Everything but Arms" initiative is in force, and people are now looking to the US to make a similar pledge for all LDCs (it already has done so for Africa and the Caribbean). This came up in the WTO Conference in Doha in 2001, and will do so more decisively in Mexico this year. As for this one subject of textiles, the transitional WTO Agreement on Textiles and Clothing (ATC) is set to expire on 1 Jan 2005, phasing out all discriminatory quota restraints under the existing Multi-fiber Arrangement for all. But duties will still prevail. So, while the world is fast moving to a quota-free trading bloc, removal of duties will mean that the poorest countries like Nepal and Cambodia can have a margin of competitiveness from the removal of duty (say 15-20%), and not be forced to compete immediately with the giants like China, and India (on whom the US is certain to levy a duty). There is though one tricky roadblock. Nepal is not yet a WTO member and the ATC will not apply to it automatically. Even if it accedes soon (a faint possibility that it will do so 10-14 September), because the terms of accession are actually negotiated, and not granted, much depends on how our negotiating team is handling the issue of the ATC as we speak, as our team has been shuttling between geneva nd Kathmandu (I ran into them at Bangkok airport on May 17!) But no matter of charity will help us in the long run, if we don't pull up our socks, and advance strategically in view of the upcoming global rules in trade. Much of the onus is on us; but always better to pin our hopes on binding international rules and commitments, than whims of a lady. |