| European Union | Everything But Arms (EBA) | 0% now 0% | 12% | Nepal is scheduled to leave the UN LDC category on 24 November 2026 and has asked the UN for a three-year deferral. The EU keeps Everything But Arms for three years after graduation actually takes effect, so EBA continues at least until the end of 2029 (later if graduation is deferred). After that, Nepal would move to standard GSP, which reduces but does not remove duty on garments, unless it qualifies for GSP+ under the new GSP Regulation (EU) 2026/1395 that applies from 1 January 2027. European Commission↗ (source: The EU’s renewed GSP scheme: key updates for 2027 (Regulation (EU) 2026/1395; EBA for 2026 graduates at least until end-2029), opens in a new tab) +2 |
| United Kingdom | Developing Countries Trading Scheme (DCTS) – Comprehensive Preferences | 0% now 0% | 12% | The DCTS keeps a graduating LDC in Comprehensive Preferences for three years after UN graduation (for a 24 November 2026 graduation, until November 2029), then moves it to Enhanced Preferences. Enhanced Preferences show 0% on these knitwear lines in the UK tariff, and since 1 January 2026 use the same single-transformation garment rules, so graduation is not expected to tighten the garment rule. Tier allocation is a UK decision, so we will confirm nearer the time. GOV.UK↗ (source: Preference tier graduation: Bhutan (three-year DCTS transition after UN LDC graduation), opens in a new tab) +3 |
| Canada | Least Developed Country Tariff (LDCT) | 0% now 0% | 18% | Canada now gives graduating LDCs an extra three years of full LDCT benefits after their UN status changes, so for a 24 November 2026 graduation LDCT would continue until about November 2029. The LDCT programme is renewed to 31 December 2034. After the transition, apparel is not duty-free under Canada’s GPT (the tariff lists LDCT, not GPT, as Free on these lines), so the 18% MFN rate would be expected unless Canada changes its schemes. Department of Finance Canada↗ (source: Canada’s unilateral tariff preference programs for imports from developing countries (LDCT renewed to 2034; three-year post-graduation transition), opens in a new tab) +2 |
| Japan | GSP – special preferential treatment for LDCs | 0% now 0% | 7.4% | Japan’s 2026 Trade Policy Review statement says Japan has extended the period that graduated LDCs keep LDC treatment from one year to up to three years after graduation. We have not yet found the implementing notice on Japan Customs’ site, so treat the exact end date as to be confirmed. After LDC treatment ends, these knitwear lines have no general-GSP rate in Japan’s tariff, so the WTO rate (7.4–10.9%) would apply. Ministry of Foreign Affairs of Japan↗ (source: Trade Policy Review of Japan 2026 – opening statement by Japan (GSP: LDC treatment extended to up to three years after graduation), opens in a new tab) +2 |
| India | Nepal–India Treaty of Trade | Conditional 0% basic customs duty if origin rules are met | 20% | The Treaty of Trade is bilateral and does not depend on Nepal’s LDC status, so graduation does not by itself change access to India. In September 2026 Nepal and India agreed to review the treaty, with a technical committee to be convened within six months; any change to the rules of origin would come through that review. Trade and Export Promotion Centre (TEPC), Government of Nepal↗ (source: Treaty of Trade between Nepal and India, with Protocol (Article V rules of origin), opens in a new tab) +1 |
| United States | No preference programme – MFN (column 1 general) rates | Standard duty MFN (16.5% cotton tees) | 16.5% | Nepal’s LDC graduation does not change US treatment because Nepal already pays MFN duty. The Nepal Trade Preference Program, which mainly covered items such as carpets, shawls, scarves, headgear and bags rather than knit basics, expired on 31 December 2025 and had not been renewed as of September 2026. The temporary 10% Section 122 tariff expired on 24 July 2026 and was replaced by Section 301 duties on 60 economies, which do not include Nepal. Office of the U.S. Trade Representative↗ (source: Nepal Trade Preference Program (NTPP), opens in a new tab) +3 |
| Australia | Australian System of Tariff Preferences – LDC rate | Conditional 0% if the 50% factory-cost rule is met | 5% | Australia applies the LDC rate to countries listed as, or treated as, LDCs in its Customs Tariff Regulations. We have not found a published Australian transition arrangement for Nepal after its scheduled 24 November 2026 graduation, so treat access after that date as to be confirmed. Even without the LDC rate, the general duty on these lines is 5%. Australian Border Force↗ (source: Preferential Rules of Origin – guide to claiming preferential rates under non-FTA arrangements (LDC rule, s153NA; 25% cap on non-LDC developing-country materials), opens in a new tab) +2 |