The United Nations Committee for Development Policy (UN CDP) has proposed Bangladesh’s graduation from Least Developed Country (LDC) be postponed for three years until November 24, 2029.
This will help the second biggest garment exporting country in the world to continue to receive preferential trade benefits for three more years as against the graduation date of November 2026.
“The extension of the preparatory period should not be viewed as an opportunity to delay reforms — rather, it should serve as a catalyst for accelerating them,” the CDP said in its critical assessment report.
Bangladesh has exceeded the graduation thresholds by a significant margin under all three LDC graduation criteria and faces a very low risk of falling below these thresholds in the near to medium term.
But the recent crisis in the Middle East, uncertainties in global energy and supply chains, changes in the international trading environment, and global challenges could affect the country’s graduation preparedness and transition process, the CDP said.
Bangladesh formally requested the CDP to extend the preparatory period on February 18, with Prime Minister Tarique Rahman writing to the UN Secretary-General seeking his personal support on the matter.
The extension could be approved at the United Nations General Assembly (UNGA) in September.
The UN CDP’s positive note on the extension of the graduation of Bangladesh will be sent to the UNGA through the United Nations Economic and Social Council (UN ECOSOC) for its final approval by the member countries.
Now, Bangladesh will have to maintain better engagement with the major trading partners such as India, China and the EU so that the extension is approved by the member countries in the upcoming UNGA.
“The reason being Bangladesh is the highest user of the LDC benefits given by the developed and developing nations,” Daily Star reported.
Bangladesh alone utilises 67% of the benefits given to all 44 LDCs by the other countries and 73% of its exports is because of its LDC status.
Different studies suggest that Bangladesh may lose $17.5 billion in export earnings in a year because of LDC graduation.
Image courtesy: Freepik
