Bangladesh urged to capitalise on extended LDC duty perks

Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD), stressed the importance of Bangladesh capitalising on this extension even as he cautioned that relying on traditional approaches would hinder Bangladesh’s ability to seize this opportunity.

It may be mentioned here that at the 13th Ministerial Conference in Abu Dhabi, member countries agreed to continue trade benefits for graduating LDCs for three years post-graduation, which means Bangladesh will maintain duty-free market access upon becoming a developing nation in 2026.

However, the CPD distinguished fellow voiced concerns that Bangladesh, being a major beneficiary of these benefits, could incur substantial trade losses, highlighting the need for structural transformation to offset these losses.

He stressed the necessity of transitioning towards a more diversified and competitive economy, reducing dependence on garment exports to mitigate risks associated with over-reliance on a single sector.

Meanwhile, senior commerce Secretary Tapan Kanti Ghosh hailed MC13 as successful for graduating LDCs, including Bangladesh, as the ministers approved the three-year extension.  

He highlighted the importance of Bangladesh utilising this period effectively and mentioned a national committee working on sustainable LDC graduation.

Mustafizur Rahman, another distinguished fellow of CPD, echoed the sentiment, regarding the extension positively, emphasising the benefits of a rules-based, multilateral trading system for weaker economies like Bangladesh. 

Fibre2Fashion News Desk (DR)