Bangladesh has the capability to extend trade facilities to least-developed countries after its graduation from the group to a developing nation in 2026, said Commerce Secretary Tapan Kanti Ghosh yesterday.

As an LDC, Bangladesh has been enjoying trade privileges in the markets of the developing and developed countries since its independence.

"Bangladesh will have to give the same trade benefit to other LDCs after graduation. And Bangladesh has the capability," he said, citing the recent examples of the government's loans and debt relief respectively to Sri Lanka and Somalia.

Ghosh made the comments at a workshop on WTO Ministerial Conference organised by the Economic Reporters' Forum in Dhaka.

The secretary said Bangladesh's economy had grown over the last 50 years to a level that made it capable of giving the trade benefit to other poor countries.

Currently, Bangladesh is demanding trade benefits from other countries for the post-graduation era and is in talks with major trading partners to sign deals, including free trade agreements, to retain the duty benefit after 2026.

It is expected that the export from Bangladesh will not face any negative impacts up to 2029 in the European Union, where 67 per cent of the garment item is shipped, as the bloc will keep granting the preferential trade treatment for three more years.

"We have eight years to take preparations to compete after graduation," Ghosh said.

"By this time, the local exporters, especially the backward linkage industries of the garment sector, will be capable of supplying raw materials to the local garment sector," Ghosh said.

Local garment exporters would be able to compete with other countries after graduation, he said. Of the total garment exports, 73 per cent is shipped under the LDC category.

The members of the World Trade Organisation may extend the LDC facility to the graduating countries for six or nine years. "The negotiation is underway," Ghosh said.

Bangladesh is also negotiating to obtain the GSP Plus status in the EU market. The UK will continue the same duty benefit as the EU.

The commerce secretary said the proposed EU GSP regulation had a lot of good sides for Bangladesh.

The new GSP will come into effect from January 2024 and will continue up to 2034.

Although Bangladesh's economy is well-diversified, the export items have not reached that level, he said.

"Other sectors will also grow in the future as the government will give incentives and provide policy support to the emerging industries."

Hafizur Rahman, director-general of the WTO Cell under the commerce ministry, said the negotiation on the continuation of the fisheries subsidy was at the final stage as the member countries agreed on it.

Apart from seeking extension of the trade benefit for nine years, the LDC group will also demand special and differential measures at the ministerial conference. The negotiation is going on for the development of micro, small and medium enterprises and women entrepreneurship.