Bangladesh is actively seeking a three-year postponement of its transition from the LDC list to ease economic pressures, but prospects appear limited due to opposition from key countries including India, Turkey, Japan, and the United States, which maintain friendly relations with Bangladesh.
Commerce Secretary Mahbubur Rahman highlighted these developments during a workshop on US counter-tariffs and the LDC transition held at the CIRDAP auditorium in Dhaka on 16th September. He explained that Bangladesh has recently engaged in discussions with foreign teams regarding the delay; however, progress remains slow. The decision on postponement hinges on approval from the United Nations General Assembly, where a majority vote is required, making the outcome uncertain.
To mitigate opposition, Bangladesh is seeking technical assistance from these nations to present a compelling case. Rahman emphasised that a three-year delay would be beneficial for the country’s economy, allowing more time to prepare for the transition.
At the event, MA Razzak, Chairman of RAPID, noted that Bangladesh currently performs well across key indicators such as per capita income, human resource development, and climate-related economic vulnerabilities, which makes delaying the transition challenging. He added that securing support from more than half of the UN member states is necessary for approval, a difficult feat under current circumstances.
Razzak suggested that Bangladesh could strengthen its case by highlighting current economic challenges, political changes, and data limitations. He also pointed out that Nepal, which is also scheduled to exit the LDC list in 2026, faces similar issues. Diplomatic cooperation between Bangladesh and Nepal, coupled with efforts to appeal to the UN Committee for Development Policy (CDP), might influence a favorable outcome for Bangladesh.
The process of LDC graduation for Bangladesh began in 2018, with an original target of 2024. However, due to the COVID-19 pandemic, the deadline was extended by two years, with Bangladesh now expected to exit the LDC status on 24th November 2026.
Currently, LDC status grants Bangladesh duty-free and quota-free access to various global markets. After graduation, these benefits will cease, prompting concerns among business leaders. Consequently, trade organisations have called for a delay of three to six years, advocating for a postponement to safeguard economic interests. On 24th August, Bangladesh’s top 16 trade associations held a press conference emphasising the need to extend the transition timeline.
