LDC graduation: Bangladesh to get duty benefits beyond 2026
Bangladesh is set to enjoy duty-free market access beyond its graduation from the least-developed country bracket in November 2026 after the World Trade Organisation yesterday decided to extend support measures for graduating countries.
The decision, which was taken with the view to providing a smooth and sustainable transition period for LDCs, came at a General Council aimed at making preparations for the 13th WTO Ministerial Conference scheduled for February 2024 in Abu Dhabi.
Previously, Bangladesh was supposed to lose duty-free and quote-free market access upon LDC graduation to all regions save for the EU in 2026.
Now, Bangladesh will continue to enjoy the duty-free benefit for a certain period as the WTO has not given a specific timeframe yet.
"LDC graduation is an important sign of development progress. Today, WTO members reaffirmed their commitment to helping smooth this process for graduating LDCs to prevent any loss of the economic growth and development momentum that had propelled them to graduation," said Ngozi Okonjo-Iweala, the director-general of the WTO.
This decision is a significant step towards addressing the particular challenges graduating LDCs face, and will help people from these countries tap into the opportunities that international trade brings, he added.
Bangladesh along with other LDCs, however, have been negotiating with developing and developed countries and different international organisations like the WTO for an extension of the trade benefits for six more years after graduation due to the economic hits taken for the pandemic and the Ukraine war.
At present, Bangladesh is a top user of duty benefits among the 48 LDCS, using up to 67 percent of the trade privileges.
More than 73 percent of Bangladesh's exports are under trade benefits.
In 2017, the LDC Ministerial Declaration requested WTO Members to assist in meeting the challenges the LDCs are to face in the post-graduation phase. Following this, the LDC Group presented a formal proposal to the WTO in 2020.
From the initial stages of drafting, submitting and finalising this decision, the Permanent Mission of Bangladesh in Geneva has been leading the LDC group throughout the complex and extensive process of generating traction and multilateral negotiation as the LDC focal point on graduation.
Discussions are currently going on in the LDC sub-committee for the extension of WTO's existing LDC-specific special provisions after graduation. Members of the LDC group, including Bangladesh, are actively working towards a decision in this regard at the 13th Ministerial Conference.