Jehangir Hussain :
In the wake of the United Nations General Assembly (UNGA) adopting a resolution unanimously allowing Bangladesh to move into the group of developing countries from the least developed country (LDC) category, Bangladesh needs to take prompt measures to meet the new trade challenges..
In 2026, Bangladesh will leave the group of the least developed countries (LDCs) to be a developing country.
The UNGA has given Bangladesh five years, instead of three, to take the preparations for the graduation.
At its 40th plenary meeting of the 76th session ,the UNGA adopted the unanimous resolution n following a recommendation of the Committee for Development Policy (CDP) for Bangladesh’s graduation from LDC.
At the same meeting, Nepal and the Lao People’s Democratic Republic -also got the clearance for the LDC graduation.
Bangladesh has been an LDC for over four decades.
Now Bangladesh needs to do the homework including increasing productivity and marketing skills to meet the post-LDC graduation challenges.
Economists, businessmen and analysts have called for taking prompt measures to prepare for post-transition trade challenges.
Bangladesh, as an LDC member is due to attend the 12th Ministerial conference of the World Trade Organisation scheduled for Tuesday, November 30, to press the proposal to enjoy the generalised system of preferences (GSP) facility for six to nine years after its graduation to the group of developing countries and to let it continue to enjoy the facilities enjoyed by LDCs for 12 years or for a fixed period post-LDC graduation.
In the event of the WTO conference not yielding positive results, economists said Bangladesh must look for ways to increase exports despite various obstacles, including the loss of duty-free access to various markets following its graduation to the developing group, the reduction of import duties in the context of signing free trade agreements and the shrinking of opportunities to provide cash incentives on exports.
In order to retain competitiveness in post-graduation export trades, it is necessary to facilitate imports, diversify export products as well as attract foreign direct investment by improving domestic business environment.
Bangladesh needs to make efforts to continue enjoy the tariff facility on garment exports as well as the WTO drugs patent waiver until 2033 , diversify export products and markets, attracting FDI and strengthen domestic industries.
Bangladesh ought to pay greater attention to diversify its economy, enhance labour productivity and reduce the cost of business.
It also ought to take concrete policy decisions to achieve the sustainable development goals (SDGs) by 2030 and to move into a higher income country by 2041.
Economists said that retaining market access will be the major challenge for Bangladesh in the post LDC graduation era for which it ought to improve its trade skills.
To meet the post-LDC graduation challenges, Bangladesh needs to ensure quality education, remove infrastructural bottlenecks, rationalise the tariff structure and attract foreign direct investments (FDI) through business facilitation as the graduation will open up new opportunities besides bringing new challenges.
To address the challenges Bangladesh has to increase export diversification and investment opportunities. For apparel products, Bangladesh needs to develop backward linkage industries and technologies.
It needs to reduce dependence foreign senior and mid-level management experts and executives, now manning export-oriented garment industry.
By diversifying export commodities Bangladesh ought to reduce dependence on apparel exports, now making up 80 per cent of its export earnings.
(Jehanfir Hussain is a senior journalist. Email: [email protected])
