Bangladesh to extend incentives to exporters post-LDC period

17 Apr '24

1 min read

Bangladesh to extend incentives to exporters post-LDC period

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Insights

Government will provide incentives to exporters after Bangladesh graduates from least developed country (LDC) status so that local exporters do not lose their competitiveness.
The incentives could however be given in different forms since direct cash subsidy on export receipts will not be possible.
State minister for commerce underlined this recently.

After Bangladesh’s anticipated graduation from least developed country (LDC) status in 2026, the government pledged to extend incentives to exporters, ensuring their sustained competitiveness in the global markets even as state minister for commerce, Ahsanul Islam Titu, emphasised the necessity of the incentives.

He however underlined that direct cash subsidies on export receipts would not be possible once the country transitions to a developing nation and highlighted adherence to the World Trade Organization’s guidelines in deciding the framework for these subsidies, indicating a commitment to international trade standards.

While specifics about subsidy mechanisms were withheld, reports hinted at potential avenues such as subsidies on electricity bills or allocations for technology upgrades and skill development.

The minister also noted that even developed and developing nations offer similar support to exporters.

The Commerce Ministry is also proactively identifying sector-specific challenges post-graduation, ensuring targeted interventions.

The minister further disclosed the formation of a high-powered committee under the cabinet division tasked with identifying challenges while also recommending solutions.

This proactive approach underscores the government’s commitment to mitigating adverse effects on exporters post-graduation.

Fibre2Fashion News Desk (DR)

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