After Bangladesh leaves the list of least developed countries (LDCs) in 2026, the Government will offer incentives to exporters to keep local exporters competitive in global markets.
As it is not possible to pay direct cash subsidies on export earnings after graduating to a developing country, the incentives will be provided in several forms, according to a statement made by State Minister for Commerce Ahsanul Islam Titu.
The State Minister added that the subsidies would be awarded in accordance with the guidelines set forth by the World Trade Organisation.
He added that export and import policies are being prepared to address challenges related to LDC graduation.
He would not, however, reveal how the subsidies will be given.
According to officials at the Ministry of Trade, subsidies might be given in the form of funding for talent development and technology advancement, or they could be applied to electricity costs.
The Minister added that despite being developed and developing countries, respectively, China and India have been giving exporters similar subsidies.
As of right now, the Government pays roughly US $ 1.0 billion in cash subsidies to 43 different sectors.
To combat the challenges after LDC graduation, the Government has been negotiating trade agreements with major trading partners to retain duty benefits after LDC graduation.
The Minister went on to say that to keep local exporters and domestic businesses competitive, the Commerce Ministry would identify the difficulties that different sectors might encounter following LDC graduation, and the relevant ministries will deal with those difficulties. For example, the Ministry of Fisheries and Livestock will act if there are problems in the poultry industry.
According to Titu, a powerful group operating within the cabinet division has been tasked with identifying problems and suggesting solutions.