LDC graduation: Govt to form body to pursue trade deals

Highlights

• The committee will be similar to Jetro or USTR
• It will be comprised of experienced professionals
• Bangladesh to graduate from LDC status in 2026
• No immediate negative impact on RMG exports
• FTAs with potential countries deemed essential

To ensure constant supervision of all LDC graduation-related activities, the government has decided to establish a permanent trade negotiating committee similar to the Japan External Trade Organisation (Jetro) or the United States Trade Representative (USTR).

The decision came at a high-level meeting on LDC graduation chaired by Chief Adviser Muhammad Yunus as the government affirmed that there is no possibility of reversing the country's LDC graduation.

Bangladesh is scheduled to graduate from the Least Developed Country status in November 2026.

At the meeting the chief adviser directed the officials concerned to take all necessary precautionary measures so that no sector of the country is affected after its LDC graduation, CA's Press Secretary Shafiqul Alam said at a press conference after the meeting.

"We have already taken the decision [over LDC graduation]. Now we have to move at full speed," Shafiqul quoted Yunus as saying.

Yunus mentioned that Bangladesh would be a manufacturing and economic hub in the region and discussed how this hub could be made in a better way after the graduation.

Yunus termed the constant monitoring by a dedicated team so that no turbulence is seen in this journey "very critical part".

Briefing the media at the Foreign Service Academy, Anisuzzaman Chowdhury, special assistant to the chief adviser, said the chief adviser has instructed that necessary steps be taken promptly to secure GSP Plus in the EU.

He said the permanent trade negotiating committee will not only monitor issues related to LDC graduation on a continuous basis but will also conduct trade negotiations with various countries.

"This body will not consist of only government officials; experienced Bangladeshis residing abroad, as well as experts from the private sector, will also be appointed. Those with experience from business sectors, which fear potential losses due to LDC graduation, will be included in this body," he said.

Anisuzzaman said at present, officials from the commerce and foreign affairs ministries are conducting trade negotiations with various countries. "But these officials are usually transferred after two to three years. In contrast, those appointed to the newly formed body will not be subject to transfers. The search for experienced professionals for recruitment has already begun."

'Good governance key challenge'

Highlighting the lack of good governance as Bangladesh's main challenge in the LDC graduation process, he said, "The level of corruption we experience has already significantly increased the cost of doing business. The government has taken initiatives to ensure good governance through reforms. To reduce harassment by customs, a National Single Window is being implemented. One-stop service centres and digitisation are also being introduced in various sectors."

Stating that the European Union, Canada, the United Kingdom, Australia and China will continue to offer GSP facilities to Bangladesh even after LDC graduation, Anisuzzaman said there will be no negative impact on garment exports after the graduation as the country will continue to receive the same benefits in key markets, including the EU, for another three years.

"If other countries do not offer similar facilities and if we fail to sign FTAs with potential countries, there could be a negative impact on our exports," he said.

Anisuzzaman said due to LDC graduation, there could be pressure on the country's private sector and employment. "In this context, the meeting discussed the necessary actions to be taken. A list has been prepared outlining the possible challenges that may arise from graduation, and a high-level committee has been formed to address and manage those challenges."

Pointing out the lack of preparation for LDC graduation, he addressed those claiming credit for achieving graduation and said, "When you received the signal for LDC graduation in 2018, why didn't you start preparing then?"

Acknowledging the LDC graduation impact he said, "We are not saying there will be no turbulence during the graduation process. What we are aiming for is to overcome as much of it as possible."

Anisuzzaman further said, "Despite challenges such as Donald Trump's tariff storm, capital flight from Bangladesh, and our flawed statistics, we remain confident that we can successfully navigate the graduation process. Instead of relying on a mentality of seeking aid, we will create our own opportunities."