Working to delay LDC graduation by 3 years: Commerce secretary
'We are trying to bring the issue to a UN resolution so that we can defer LDC graduation by three years,' says Mahbubur Rahman
Highlights
- Bangladesh seeking a 3-year deferral of LDC graduation via UN resolution
- Chief Adviser's Special Assistant Anisuzzaman Chowdhury says no delay is possible despite business concerns.
- Japan, Turkey, and others opposed deferments before
- Bangladesh, on LDC list since 1975, is set to graduate in Nov 2026
Bangladesh is working to defer its graduation from a least developed country (LDC) to a developing country by three years, Commerce Secretary Mahbubur Rahman said today (16 September).
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"We are trying to bring the issue to a UN resolution so that we can defer the graduation," he said while addressing a workshop titled "RAPID Workshop for Journalists on Implications of US Tariffs and LDC Graduation: Concerns and Options for Bangladesh".
However, cautioning against being overly optimistic on this issue, he added, "When we make such proposals, friendly countries like Japan, Turkey, India and the United States, often oppose them. This time, we are trying to secure their cooperation."
The workshop was organised by the Research and Policy Integration for Development (RAPID) at the CIRDAP auditorium in Dhaka. It was also addressed by RAPID Chairman MA Razzaque, Executive Director Prof Abu Eusuf, and Economic Reporters Forum President Doulot Akter Mala, among others.
The commerce secretary, while answering questions from journalists after the event, further mentioned that Bangladesh has long been trying to delay the transition.
But, for the past few months, government officials have been saying that Bangladesh has no plan to apply for a deferral of its LDC graduation.
As recently as last Saturday, two senior officials from the government reiterated the same stance at a discussion organised by the Economic Reporters Forum.
On 13 September, Chief Adviser's Special Assistant Anisuzzaman Chowdhury, at a seminar, categorically said it is not possible to defer Bangladesh's graduation from the LDC category, despite concerns voiced by business leaders and experts about the country's readiness.
"The interim government has no intention of delaying the LDC graduation process, nor does it have the scope to do so," he said.
Businesses and experts at that event, however, argued that the country is not ready for the transition and that proceeding without adequate preparation will expose the country to major new challenges in the global market.
Although Bangladesh is on track to graduate from LDC status in November next year, confusion is deepening over whether it should defer the graduation, citing political upheaval that toppled the previous government and its overall impact on the country's economic and business landscape.
The Do's for Bangladesh
Meanwhile, speaking at today 's workshop, Mahbubur Rahman also outlined what Bangladesh should do to cope after graduating from LDC status.
In particular, he stressed the need to find alternative ways to boost investment, saying, "Alternative incentives must be streamlined."
Citing neighbouring India as an example, he said, "In some cases, they provide a direct 25% incentive on investment. Under the RoDTEP scheme, they are also offering various forms of export support."
He, however, warned that exporters could face bigger losses from the withdrawal of incentives than from losing preferential market access.
"Due to LDC graduation, there will be losses from losing market access, but the bigger impact will come from exporters losing incentives. This needs to be taken into account," he said.
He also noted that signing free trade agreements (FTAs) with all countries will not be favourable for Bangladesh. "Talks are ongoing with some countries. Negotiations with Japan will be completed within the next two months, followed by the signing," he added.
