Bangladesh is preparing to seek a binding 12-year transition period at the World Trade Organisation (WTO) to protect its export-led economy from trade disruptions following its graduation from least developed country (LDC) status. The strategy is set to be presented at the 14th WTO Ministerial Conference (MC14), scheduled to be held in Cameroon from 26th to 29th March.
Government officials said a comprehensive position paper has been finalised for submission at the ministerial meeting. The document outlines a negotiating strategy that seeks to balance the symbolic upgrade to “developing country” status with the practical need to shield Bangladesh’s export economy—valued at around $50 billion—from the risks associated with what policymakers describe as a potential “graduation shock”.
The Bangladeshi delegation, led by the Ministry of Commerce and supported by the Economic Relations Division, is expected to attend the meeting with a firm negotiating stance. According to officials, the delegation’s mandate is to avoid any agreement that could undermine the livelihoods of millions of workers in the ready-made garment sector and small-scale farmers.
Under the finalised position paper, Bangladesh plans to take a leadership role within the LDC group in demanding a structured graduation support package. Central to this proposal is the extension of LDC-specific Special and Differential Treatment (S&DT) provisions for a period of 12 years, aimed at ensuring a smoother and more sustainable transition into developing country status. The country is also seeking a longer 12-year window for continued Duty-Free Quota-Free (DFQF) market access.
An official involved in the preparations said that without a transition period of at least a decade, Bangladesh’s ready-made garment sector—which accounts for more than 80% of national exports—could face immediate tariff increases of around 12% in key markets, significantly eroding its competitiveness against regional rivals.
According to sources, LDC graduation would result in tariffs rising from zero to between 9% and 12% in the European Union, and to 16%–18% in Canada. Bangladesh is therefore seeking greater flexibility in Rules of Origin negotiations, including a move away from strict “double transformation” requirements, in order to preserve export competitiveness.
The strategy also involves leveraging the G-90 coalition to press developed trading partners, including the European Union, the United Kingdom, China and Japan, to honour existing three-year post-graduation grace periods between 2026 and 2029. Dhaka is expected to argue for these arrangements to be made permanent under schemes such as GSP+ or similar preferential trade frameworks.
