KATHMANDU, Nov. 4 (Xinhua) -- Export of readymade garment to the United States has plunged by a whopping 46 percent in the first 10 months of 2007 compared to same period last year, as companies hit by labor stir and eroding competitiveness failed to lure international buyers, local media reported on Sunday.

    According to the statistics of Garment Association Nepal (GAN),Nepali readymade garment exports valued mere 22.92 million U.S. dollars over the first 10 months of the year, whereas it was 42.41million dollars in the same period last year.

    Breakdown of the monthly export data shows that exports to the largest apparel market slid by about 31 percent to about 1 million dollars in October 2007. It was a decline for 15 straight months, said GAN officials, eKantipur.com website reported.

    Entrepreneurs attributed the decline to fast losing of orders over the past one year due mainly to internal problems such as labor stir and unrest in southern Nepal.

    They said most of the manufacturing units still remain closed due to internal problems. Even those who have managed to overcome the problem are also operating with meager orders.

    The decline in export has dragged the industry down to the second position from the largest foreign currency earning export of the country. And entrepreneurs said lack of committed support from the government and the parties in resolving labor stir and providing investment friendly environment has forced the industry to spiral downwards.

    Nepali readymade garment industry has been going through a declining trend since 2002, when it lost to Sub-Saharan and Caribbean competitors, after the U.S. provided duty-free market access to those countries.

    The industry received another blow after the quota system in global trading of textiles expired in 2005.

    As a result, Nepali readymade garment export, which totaled to 136.49 million dollars in 2001, rapidly shrunk to 47.77 million dollars in 2006.