As Nepal approaches its graduation from Least Developed Country (LDC) status in November 2026, the textile and garment sector faces growing pressure to meet evolving global market expectations. The industry, a key source of exports and women’s employment, must now comply with stricter labour rights standards and human rights due diligence, making social compliance essential for continued access to international markets.
To support this transition, a five-day training programme on Responsible Business Conduct (RBC) and Social Compliance for Export Readiness was organized in Kathmandu. Facilitated by the International Training Centre of the ILO under its project for Nepal’s LDC Graduation, the programme brought together 35 representatives from the Garment Association of Nepal, Nepal Carpet Manufacturers & Exporters Association, textile start-ups, trade unions, chambers of commerce, and relevant government institutions.
The training equipped participants with practical knowledge and tools to promote responsible business conduct, decent work, social dialogue, and enterprise formalization. These measures aim to improve working conditions, ensure global market compliance, enhance productivity, and foster a competitive and sustainable textile sector.
ILO Country Director Numan Özcan emphasized that LDC graduation offers an opportunity to build a sector that is competitive, responsible, and grounded in decent work. The initiative is designed to translate international standards into practical actions for enterprises, policies, and workplaces across Nepal’s textile and garment industries.
Addressing challenges such as informality, compliance gaps, and limited access to social protections, the programme encourages gradual formalization and adoption of global standards. Training content drew on the ILO Fundamental Principles and Rights at Work, the UN Guiding Principles on Business and Human Rights, and OECD Guidelines, providing context-specific guidance for Nepalese enterprises.
Strengthening responsible business conduct is critical for maintaining competitiveness as trade preferences linked to LDC status phase out. By fostering collaboration among government, employers, and workers, the initiative supports a more resilient, inclusive, and internationally competitive textile and garment sector, underpinning Nepal’s broader transition toward sustainable economic growth.
