BD eyes 3-year LDC graduation deferment decision

Bangladesh expects a decision this month on its proposal to defer graduation from the least developed country (LDC) category by three years, Commerce, Industries and Textiles and Jute Minister Khandaker Abdul Muktadir said on Monday (October 19).

Speaking at a seminar on Bangladesh's LDC graduation challenges, the minister said he was optimistic that a decision would come before the November 24 deadline, giving the country additional time to prepare for post-graduation economic challenges.

“I am very optimistic that we will see a resolution in the coming week or the week after,” he said, adding that the government had prepared a time-bound action plan to make effective use of the proposed extension.

Muktadir said Bangladesh had completed the relevant stage of the United Nations Committee for Development Policy (CDP) process, and a proposal to defer graduation by three years had been submitted to the UN Economic and Social Council (ECOSOC).

He acknowledged that the country had not been adequately prepared to manage the challenges of LDC graduation, particularly in maximising the benefits and strengthening capacity to address potential setbacks.

The government has discussed a time-bound action plan with the European Union (EU) to use the additional preparation period if the extension is approved, he said.

To safeguard export competitiveness and sustain market access for Bangladeshi goods and services, the government aims to conclude comprehensive economic partnership agreements (CEPAs) or free trade agreements (FTAs) with eight to 10 countries in 2026 and 2027.

Regarding trade relations with the EU, Muktadir said Bangladesh hoped to conclude an FTA with the bloc before needing to seek benefits under the Generalised Scheme of Preferences Plus (GSP+) facility.

He also underscored the need for uninterrupted energy supplies, streamlined business procedures and a transparent legal framework for dispute resolution to attract domestic and foreign investment and strengthen investor confidence.