EU'S Revision Of Rules Of Origin Is Beneficial To Nepal'S Textile Exports

The revised rules are expected to improve.

Similarly, if the new rules of origin come into force, it will create a friendly atmosphere for the textile factories, which is conducive to the healthy and smooth growth of the factories.

At the same time, it will create more job opportunities.

The current rules of origin are more complex than the revised rules of origin. The revised rules of origin make rules and regulations more flexible, especially for the least developed economies, and they hope to make use of the advantages offered by the EU preferential trade arrangement.

Under the current rules of origin, exports from Nepal, Laos and Kampuchea are affected, as they must purchase raw materials from SAARC, ASEAN and several African countries.

But the revised rules are simpler, and it does not require that these countries be forced to purchase raw materials from specific locations.

Now, the main challenge facing Nepalese countries is to compete with several other least developed economies, though it is free to decide where to purchase raw materials.

If raw materials are imported from China and Taiwan, the cost of production may be greatly reduced.