[Congressional Record Volume 161, Number 2 (Wednesday, January 7, 2015)]
[Senate]
[Page S61]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN:
  S. 81. A bill to authorize preferential treatment for certain imports 
from Nepal, and for other purposes; to the Committee on Finance.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce the Nepal 
Trade Preferences Act.
  This legislation is simple and straightforward. It grants duty-free 
status to imports of Nepalese garments for a ten year period.
  I have been a friend of Nepal and the Nepalese people for over 25 
years. I have witnessed its political struggle and sadly the 
deterioration of its ready-made garment industry.
  The Nepal Trade Preferences Act bill will promote much-needed 
economic development and contribute to lasting political stability in 
one of the world's poorest countries.
  Allow me to go over some basic facts of everyday life in Nepal.
  Nepal has a per capita income of $730.
  Approximately 25 percent of the Nepal's 24 million people live in 
poverty.
  The unemployment rate in Nepal stands at a staggering 47 percent; and 
most Nepalese live on $2 a day.
  The 2005 phase-out of the Micro-Fiber Arrangement, which established 
export quotas from developing nations, has deeply damaged Nepal's 
apparel industry.
  Instead of continuing to import garments from Nepal, U.S. importers 
have shifted their orders to China, Bangladesh and other low-cost labor 
markets.
  In fact, the number of people employed by the Nepalese garment 
industry dropped from over 90,000 people to less than 5,000 today; 
textile and apparel exports from Nepal to the United States fell from 
approximately $95 million in 2005 to $45 million in 2013; and the 
number of garment factories plummeted from 212 to 30.
  Despite Nepal's poverty and the near-collapse of the garment 
industry, Nepalese garment imports are still subject to an average U.S. 
tariff of 11.7 percent and can be as high as 32 percent.
  In essence, we are unfairly taxing the imports of a highly 
impoverished country that cannot afford it. Taxing textile and apparel 
imports from Nepal, which constitute .01 percent of all U.S. imports, 
makes no sense.
  I would point out that U.S. tariffs on Nepalese garments stand in 
contrast to the policies of the European Union, Canada, and Australia, 
which all allow Nepalese garments into their markets duty free.
  It should come as no surprise, then, that while the U.S. share of 
Nepalese garment exports has fallen, the European Union's share has 
risen from 18.14 percent in 2006 to 46 percent in 2010.
  The purpose of the ``Nepal Trade Preferences Act'' is to ensure that 
we provide Nepal with the same trade preferences afforded to it by 
other developed countries. No more, no less.
  Humanitarian and development assistance programs should be critical 
components of our efforts to help Nepal. I was proud to support the 
President's budget request of $77 million for Nepal in fiscal year 
2015.
  But assistance is no substitute for organic economic development. We 
should help the Nepalese people help themselves by reopening the U.S. 
market to a once thriving export industry.
  In the end, economic growth and prosperity can be best achieved when 
Nepal is given the chance to compete and grow in a free and open global 
marketplace.
  With this legislation, the United States can make a real difference 
now to help revitalize the garment industry in Nepal and promote 
economic growth and higher living standards.
  There is no doubt that Nepal has struggled to draft a new 
constitution and coalesce around a governing majority.
  While only Nepal can chart its political course, passing this measure 
would undoubtedly help regenerate Nepal's stagnant economy.
  Let us show our solidarity with the people of Nepal by passing this 
commonsense measure.
  I urge my colleagues to support the Nepal Trade Preferences Act.
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