Kathmandu, Jan. 29 -- India's free trade agreement (FTA) with the European Union, concluded on Tuesday in New Delhi, could pose additional challenges for Nepal-particularly as the nation prepares to graduate from its least developed country (LDC) status-according to the Garment Association of Nepal.

FTA is an agreement between countries or regional blocs to reduce or eliminate trade barriers through mutual negotiations with the aim of boosting trade.

Speaking at a policy dialogue titled "Apparel Export: Competitiveness, Critical Challenges and the Way Forward", organised by the South Asia Watch on Trade, Economics and Environment (SAWTEE) in Kathmandu on Wednesday, the association said the India-EU deal could further trim Nepal's ready-...