The World Trade Organization (WTO) has called on Least Developed Countries (LDCs) approaching graduation, including Bangladesh, to use any extended transition period to strengthen productive capacity, improve competitiveness and prepare for operating under standard WTO rules.
Speaking on the issue, WTO Deputy Director-General Xiangchen Zhang said WTO members had already introduced measures to support graduating LDCs and facilitate a smooth and sustainable transition process. He pointed to decisions adopted during the WTO’s 13th Ministerial Conference, which provide graduating countries with additional time to align with WTO disciplines and obligations.
According to Zhang, had Bangladesh graduated under the original 2026 timeline, the country would have been granted until 2029 to complete its alignment with WTO requirements. He emphasised that, irrespective of the final graduation schedule, the transition period should be utilised to enhance productive capacity, strengthen competitiveness and improve the overall investment and business environment.
The WTO official noted that Bangladesh has demonstrated strong economic progress over recent years and remains well positioned to manage the adjustments required during the graduation process. He also highlighted the importance of export diversification and building greater economic resilience, particularly in sectors that could face increased competition or market-related challenges after graduation.
The comments come as Bangladesh seeks a three-year extension to its LDC graduation timeline until November 2029. The request has received backing from the United Nations Committee for Development Policy (CDP).
In a communication to the Bangladesh government, CDP Chair Professor José Antonio Ocampo stated that the committee considered the extension request appropriate and had recommended its approval by the United Nations General Assembly.
The CDP noted that Bangladesh has surpassed the graduation thresholds under all three eligibility criteria by a considerable margin and faces a low risk of falling below them in the near to medium term. However, the committee stressed that the additional time should be dedicated to addressing structural challenges through domestic reforms.
Among the priority areas identified by the CDP are strengthening financial sector stability, increasing tax revenue collection, enhancing domestic resource mobilisation, expanding productive capacity, diversifying the economy and preparing businesses for the challenges associated with post-graduation trade conditions.
The committee also pointed to external risks that could affect Bangladesh’s preparedness, including global economic uncertainty, supply chain disruptions, volatility in energy markets and shifts in international trade dynamics.
According to the CDP, the proposed extension should be viewed as an opportunity to accelerate reform efforts rather than postpone them, thereby ensuring a smooth and sustainable transition from LDC status while preserving long-term economic competitiveness.
Bharat Tex Special Report 2026 
