Garment leaders seek three-year LDC graduation extension to prepare for new rules

Tariffs are set to rise, global compliance standards are tightening, and supply chains are becoming more digitised and diversified.

Bangladesh will form an expert panel for negotiations as the country seeks to sign deals with major trading partners ahead of its graduation to a developing nation from the least developed country (LDC) category.

As Bangladesh approaches its scheduled graduation from the least developed country (LDC) category in November 2026, a sense of unpreparedness hangs over both the government and the private sector.

The least developed countries (LDCs) have been struggling to graduate to developing nations for years. But at the same time, these countries fear losing preferential trade, exports, and employment. So, they hesitate and step back even after becoming eligible for graduation.

Monzur Hossain, a member of the General Economics Division, says at DCCI event

Postponing LDC graduation needs careful deliberation by all stakeholders.

Graduating from the least developed country (LDC) category will be a challenge for Bangladesh and there are many debates surrounding it, but the country has to graduate by 2026, Finance Adviser Salehuddin Ahmed said yesterday.

Chief Adviser to the interim government Professor Muhammad Yunus yesterday called for urgent and coordinated action from all relevant agencies to ensure Bangladesh's smooth and timely graduation from the least developed country (LDC) status.

There is no possibility of reversing the decision to graduate from LDC status, as the chief adviser has instructed all officials to ensure strong monitoring so that every sector remains unaffected, and the maximum benefits are reaped from the transition.

The monster of lawlessness, once unleashed, is not easily contained.

Bangladesh needs effective economic diplomacy to navigate global challenges post-LDC graduation.

The government has proposed removing and reducing import duties and supplementary duties on 282 products in fiscal year 2024-25 as it continues its efforts to prepare the nation for its graduation out of the Least Developed Country grouping.

In light of the upcoming LDC graduation, exporters need to proactively prepare for changes.

The World Trade Organisation’s (WTO) decision to continue LDC-linked trade benefits for graduating least-developed countries will not only help Bangladesh avoid potential export losses for several years beyond 2026 but also allow it to attract much-needed investments, experts said.

Munshi made the comments after a meeting of the commerce ministers of the Commonwealth nations at the Marlborough House in London between June 5 and 6.

Experts say at a seminar

Self-contradictory is what best describes Finance Minister AHM Mustafa Kamal’s fifth budget, and the last of the Awami League-led government’s current term.

The government will soon find an alternative for cash subsidies on export so that local exporters can remain competitive even after Bangladesh graduates from the list of least developed countries (LDCs) in 2026, according to experts.

The lobbying will start from next month