[🇧🇩] LDC Graduation For Bangladesh

Saif · Nov 15, 2025

Setbacks LDCs are up against in global trade

For more than a decade, the global community has been working towards the goal of doubling the share of global exports from the Least Developed Countries (LDCs) to two per cent by 2020, up from one per cent a decade ago. There has been the United Nations (UN) Sustainable Development Goals (SDGs') c

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Setbacks LDCs are up against in global trade
Asjadul Kibria
Published :
Nov 15, 2025 22:50

For more than a decade, the global community has been working towards the goal of doubling the share of global exports from the Least Developed Countries (LDCs) to two per cent by 2020, up from one per cent a decade ago. There has been the United Nations (UN) Sustainable Development Goals (SDGs') call to 'significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries' share of global exports by 2020.' When the UN formally launched the SDGs a decade ago, in 2015, the share of LDCs in global trade was only one per cent in terms of exports. In this connection, two per cent of global exports in 2020 is determined as the indicator.

Nevertheless, a decade after setting the target and five years after the deadline, the LDCs' combined share in global trade remains below two per cent of global exports, reflecting disappointing progress. In 2024, LDCs accounted for just 1.03 per cent of global exports, up only marginally from 0.96 per cent in 2012. "These figures highlight the persistent structural barriers -- limited diversification, weak infrastructure and small productive bases -- that continue to constrain export growth in LDCs," observed the UN Trade and Development (UNCTAD) in a recent note.

A note prepared by the Secretariat of the World Trade Organisation (WTO) and submitted to the Sub-Committee on LDCs in the last month showed that between 2019 and 2024 LDCs' exports of goods and services grew at an average annual rate of 6.7 per cent. In 2024, the goods exports of LDCs increased by 5.0 per cent year-on-year. Exports of commercial services, however, registered a strong growth of 12.6 per cent. The note also mentioned that in 2024, the share of LDCs in world exports of goods and commercial services increased to 1.03 per cent, up from 1.01 per cent in 2023. LDCs' share in world imports increased to 1.41 per cent in 2024 from 1.37 per cent in 2023. Thus, the share of LDCs in total world trade of goods and commercial services increased from 1.19 per cent in 2023 to 1.22 per cent in 2024.

The target of doubling the LDCs' share in global exports in five years was ambitious. Earlier, the LDCs' share in global merchandise exports almost doubled in 15 years, from 0.6 per cent in 2000 to one per cent in 2015. The LDCs' share in global exports of commercial services also doubled within a decade, from 0.50 per cent in 2005 to 0.90 per cent in 2015.

Several factors drove the global community to set the ambitious non-binding target of doubling the LDCs' share in exports in five years. Initially, it was a commendable gesture of global cooperation under the UN SDGs framework for the five Ps: people, planet, prosperity, peace, and partnership. Second, it was presumed that the poorest nations of the world could significantly improve their socio-economic conditions by enhancing trade, especially exports. Therefore, supporting the exports of LDCs through multilateral trade benefits under the WTO umbrella will be beneficial in increasing their share in global exports. This increase in share could potentially lead to improved socio-economic conditions and a brighter future for the LDCs. Third, a persistent rise in global trade during the first two decades following the WTO's inception also widened expectations. Despite a significant drop in 2008 due to the global financial crisis, global trade surged by around fourfold between 1995 and 2014. UNCTAD-WTO estimates showed that global trade in goods and commercial services increased to $23.50 trillion in 2014 from $6 trillion in 2005 when the WTO formally came into effect.

At present, there are 44 LDCs on the United Nations (UN) list, 37 of which to date have become WTO members and six are in the process of joining the WTO as members. And 15 LDCs, both WTO members and non-members, are at the different stage of graduation.

Over the decades, developed and developing countries have offered preferential market accesses to the LDCs in various forms like duty-free quota-free access and relaxed rules of origins. The offers are made under bilateral, regional and multilateral arrangements to enhance the LDCs' exports. Australia, New Zealand, Norway and Switzerland offer 100 per cent duty-free market access to LDCs whereas Chile, the European Union (EU) and the United Kingdom (UK) offer over 99 per cent duty-free market access to LDCs. The WTO secretariat note also mentioned that duty-free coverage is 98.5 per cent for Canada and 97.8 per cent for Japan. Some other WTO members grant duty-free access to around 90 per cent or more of their tariff lines, including India, the Republic of Korea and Montenegro. In addition, Hong Kong, Macao, and Singapore grant duty-free market access to all or almost all of their tariff lines under their respective most-favoured-nation (MFN) scheme.

So far, the market access benefits have not been optimal for the LDCs mainly due to discriminatory treatment by the preference giving countries to a number of LDCs. For instance, the United States (US) offers Generalised System of Preference (GSP) for least-developed beneficiary developing countries (LDBDC) covering 82.7 per cent of tariff line as duty-free. The preferential benefit excludes apparel and clothing, cotton, fibres, footwear, dairy and other animal products. That means critical and major exportable items of LDCs are subject to higher tariff. The US also scraped the GSP for Bangladesh more than a decade ago.

The tariff blitz by the United States (US) President Donald Trump is the latest blow to the LDCs' trade. UNCTAD, in an analytical note released last month, said: "Tariffs on LDCs' exports to the US market have recently tripled -- and they are twice as high as those faced by developed countries." UNCTAD also estimated that the competitiveness of the 44 LDCs would be eroded in the market, which represents nearly 10 per cent of their exports.

Just before Trump formally took office as the President of the US in January this year, LDCs on average faced less than 10 per cent tariff in the US market. In October, the rate stood at 28.30 per cent. The average rate of applied US tariff on developed countries stood at 14.20 per cent and on developing countries (excluding China), 19.20 per cent.

In 2024, Bangladesh was the top merchandise exporter among the LDCs, covering 17 per cent of all LDCs' exports, followed by Angola, the Democratic Republic of the Congo, Cambodia, and Myanmar. Ethiopia was the largest exporter of LDCs' commercial services (17 per cent), followed by Tanzania (15 per cent), and Bangladesh (11 per cent) in the last year.

What is most alarming is that the graduating LDCs, especially in Asia, face steep surges in US tariffs. At present, four Asian countries, namely Bangladesh, Cambodia, Lao PDR, and Nepal, are on the path of graduation from the LDC category by 2030. Of these, Bangladesh, Lao and Nepal are scheduled to strip off the LDC tag in November next year. The high US tariffs have definitely made the smooth graduation difficult for these countries, posing a significant challenge to their development.

Saif · Nov 18, 2025

LDC graduation an opportunity to match growth with dignity: Lutfey Siddiqi

Special Envoy for International Affairs Lutfey Siddiqi on Tuesday said Bangladesh’s graduation from LDC status is a chance to build a new kind of competitiveness, one based on value, skills, quality and fairness. “This platform connects government, private sector and partners to shape

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LDC graduation an opportunity to match growth with dignity: Lutfey Siddiqi

UNB
Published :
Nov 18, 2025 19:05

Special Envoy for International Affairs Lutfey Siddiqi on Tuesday said Bangladesh’s graduation from LDC status is a chance to build a new kind of competitiveness, one based on value, skills, quality and fairness.

“This platform connects government, private sector and partners to shape the next chapter of our economic development, matching growth with dignity and sustainability,” he said while speaking as the chief guest at a programme.

The Ministry of Commerce, Bangladesh Investment Development Authority (BIDA), International Labour Organisation (ILO) and United Nations Development Programme (UNDP) launched the Resilient Supply Chains for Sustainable Trade and Investments Platform at the BIDA auditorium.

The platform aims to strengthen Bangladesh’s trade and investment ecosystem, ensuring sustainable, inclusive growth as the country prepares for graduation from Least Developed Country (LDC) status.

BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun said, “Let’s set a clear roadmap and hold ourselves accountable, so by the end of 2026, we know exactly where we stand. This platform is about real progress, not just conversation.”

Commerce Secretary Mahbubur Rahman as Bangladesh prepares for LDC graduation; they are advancing regulatory reforms and aligning the trade and investment policies with global best practices.

“Our goal is to create a stronger, more competitive environment for both domestic and cross-border investment, ensuring sustainable growth and decent work for all,” he said.

Country Director, ILO Bangladesh Max Tuñón said supply chains are ultimately about people, the workers and entrepreneurs who drive Bangladesh’s economy forward. “This platform is our opportunity to build joint solutions that put dignity and opportunity at the centre, making a real difference in everyday lives as Bangladesh transitions beyond LDC status.”

Resident Representative UNDP Bangladesh Stefan Liller said they are now poised to formally launch a platform for pooling their efforts to make the future growth of Bangladesh greener and more inclusive. “This platform will serve as a hub for collaboration and knowledge sharing. It will help in aligning investments, production and trade to environmental sustainability and social safeguards.”

Both UN agencies emphasised their appreciation for the close partnership with BIDA and the Ministry of Commerce, and called for more actors, including other UN agencies to join the platform network.

The UN agencies acknowledged the major support received from the country’s development partners, including Team Europe and Global Affairs Canada.

The platform will act as a hub for policy dialogue, capacity building, and knowledge sharing, driving policy coherence, supply chain development, and public-private partnerships.

This initiative supports Bangladesh’s LDC graduation by promoting international labour standards, inclusive growth and decent work.

Saif · Nov 23, 2025

Industries adviser leads delegation to LDCs ministerial conference

Industries adviser Adilur Rahman Khan led a four member Bangladesh delegation to the 11th Ministerial Conference of the Least Developed Countries (LDCs)...

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Industries adviser leads delegation to LDCs ministerial conference
Bangladesh Sangbad Sangstha . Dhaka 23 November, 2025, 23:17

Industries adviser Adilur Rahman Khan led a four member Bangladesh delegation to the 11th Ministerial Conference of the Least Developed Countries (LDCs).

The United Nations Industrial Development Organization (UNIDO) organized the conference hosted by the Government of the Kingdom of Saudi Arabia on 22 November 2025 in Riyadh.

This year’s ministerial conference took place under the theme ‘Driving inclusive industrialization in LDCs: Investment, Innovation and Partnerships’ which featured two high-level thematic panels addressing key issues, including the mobilization of investment and financing for sustainable industrial development, and the formulation of transformative industrial policies to achieve irreversible graduation from LDC status.

The 11th ministerial conference was well attended by the ministers of LDCs, ambassadors and Permanent Representatives and representatives and partners from private sector, said a press release here.

The adviser participated as one of the panelists in the High-Level Ministerial Dialogue titled ‘Shaping LDCs Industrialization Agenda: Ministerial Dialogue on Investment, Innovation and Partnership.’

While sharing Bangladesh’s journey towards graduation from LDC category, he underscored the three zeros- zero carbon emission, zero employment and zero poverty, prioritized by the chief adviser of the Interim Government of Bangladesh Professor Muhammad Yunus.

Adilur also highlighted how Bangladesh is shifting towards smart manufacturing and value chain integration in line with the National Industrial Policy 2022.

However, he emphasized on investment, innovation and partnerships that are essential drivers for sustainable industrialization to attain inclusive growth for the LDCs.

He also highlighted the important role of the SMEs as the backbone of the industrial development as well as a strategic priority for the sustainable development of the LDCs

He also moderated the informal session on the Ministerial Declaration for LDC Member States as Vice Chairman.

The Ministerial Declaration is an outcome document of the conference which will be adopted during the 21st Session of the General Conference (GC) of UNIDO to be held on 23-27 November 2025 in Riyadh.

Overall, the conference created an important opportunity for the Industries Adviser to engage with counterparts of the LDCs including developed countries, and partners on vital issues and to contribute directly to the deliberations in Riyadh.

Ambassador and PR of Bangladesh to UNIDO in Vienna Toufique Hasan also attended the event as a delegate.

Saif · Nov 24, 2025

Tarique warns against unchecked push for Bangladesh’s LDC graduation

BNP Acting Chairman Tarique Rahman has warned that Bangladesh’s planned graduation from Least Developed Country (LDC) status in 2026 should not proceed without open debate, warning that such a major decision carries long-term economic consequences In a detailed Facebook post from London on M

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Tarique warns against unchecked push for Bangladesh’s LDC graduation

UNB
Published :
Nov 24, 2025 23:55
Updated :
Nov 24, 2025 23:55

BNP Acting Chairman Tarique Rahman has warned that Bangladesh’s planned graduation from Least Developed Country (LDC) status in 2026 should not proceed without open debate, warning that such a major decision carries long-term economic consequences

In a detailed Facebook post from London on Monday, he said the impact of losing tariff benefits will fall hardest on ordinary families, small factory owners and workers—people who were never consulted but will bear the real cost.

Using examples of a garment factory owner in Gazipur and a young woman in Narayanganj whose family depends on overtime income, Tarique said these “silent crises inside ordinary homes” show why the timeline needs reconsideration.

“Picture a small garment factory owner in Gazipur. He has spent more than a decade building his business, employing over a hundred workers, managing tight margins, and competing in an unforgiving global market. One day, without any visible ceremony, the tariff advantages that once kept his prices competitive quietly disappear. It leads to his orders slowing down and the pressure rises to keep his factory open, his employees paid, and his family safe,” he said.

“Now picture a young graduate in Narayanganj, watching her family disappear into uncertainty. Her father works in a factory. He depends on overtime to make ends meet. When export pressure builds, overtime disappears first. Then shifts are cut. Then jobs. These are not headlines. These are silent crises inside ordinary homes.They never voted on that decision. They were never asked. They were never shown the real numbers,” Tarique added.

He said that is why the debate around Bangladesh’s LDC graduation matteres far more than official statements make it seem.

Tarique said the BNP has stated this before that moving ahead with the 2026 graduation timeline without keeping the option of deferral alive is purely a political decision, being taken by an interim government that does not carry an electoral mandate.

“And yet, is making long-term commitments that will shape the country’s economic future for decades. We are told that delay is ‘impossible', that even asking for it to be deferred would be a ‘humiliation’ which the United Nations (UN) would not even consider. But if we all look closer, history tells a more complex story,” he observed.

The BNP leader said countries such as Angola and Samoa have had their graduation timelines adjusted.

He said the UN rules themselves allow flexibility when countries face economic shocks and asking for time on country shaping consequences is just responsible governance by an interim government.

“But why are we pretending that there is no choice? Why are we limiting our future? By publicly removing the option of deferral, we weaken our own negotiating power. We enter international discussions with our hands already exposed, giving away leverage before we even sit at the table,” the BNP leader said.

Even, he said the government’s own documents acknowledge the business community in Bangladesh already feeling the pressure on the banking sector, stress on foreign exchange, rising debt risk, slowing exports.

Tarique said it is not an argument against graduation, as Bangladesh has earned the right to move forward, but having the “right” to graduate is not the same as being “ready” to graduate.

He added that, in his view, real national strength does not lie in the absence of doubt in decision-making, but in the discipline to ask hard questions before the cost became irreversible.

“Now look at Chattogram Port, the gateway to Bangladesh’s economy. What happens there shapes the lives of millions more than any political speech ever will,” the BNP leader said.

He said recent long-term decisions about the port are not routine but strategic commitments involving a national asset, being pushed forward by an interim government without a democratic mandate to make decisions that bind future generations.

Tarique said what is happening at Chattogram Port mirrors the same pattern seen in the LDC graduation process, where strategic options are being closed, public debate is treated as an inconvenience, and legitimate concerns are brushed aside in the name of speed and “inevitability.”

“Let me be very clear: this is not about personalities or attacking individuals. It is about protecting institutions and the principle that decisions which shape decades of national life should be made by governments that are accountable to the people,” he said.

The BNP leader said no one is arguing against LDC graduation or port reforms.

“The argument is simpler, and more fundamental: the future of a nation should not be locked in by a government that the nation did not elect. Strategic patience is not weakness. Public consultation is not obstruction. Democratic legitimacy is not delay. And in my opinion, perhaps this is the most important truth beneath all of this,” he said.

Tarique said the people of Bangladesh have never been passive about their future as they have endured hardship and sacrifice because they believe in dignity, voice, and choice.

“Their ask is simple: to be heard, to participate, to be respected. That is why so many of us look ahead to the national elections scheduled for February 2026, a chance for the people of Bangladesh to speak, to choose, and to reaffirm a simple truth: The future of this country must be shaped by those who live in it, believing in Shobar age Bangladesh,” he concluded.

Saif · Nov 26, 2025

UN panel queries Bangladesh’s economic readiness for LDC exit

The United Nations Committee for Development Policy (UN CDP) has asked Bangladesh to provide clarification on its economic situation ahead of the country’s scheduled graduation from least developed country (LDC) status.

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UN panel queries Bangladesh’s economic readiness for LDC exit

The United Nations Committee for Development Policy (UN CDP) has asked Bangladesh to provide clarification on its economic situation ahead of the country's scheduled graduation from least developed country (LDC) status.

During a virtual meeting with senior government officials Tuesday, the panel inquired about Bangladesh's readiness for graduation and its progress in implementing the Smooth Transition Strategy (STS), a guideline designed to ensure a sustainable transition from the LDC category.

The meeting followed Bangladesh's submission of its 2025 annual country report to the UN panel, which evaluates LDC graduation against established thresholds. The report was submitted on November 10. Bangladesh is scheduled to graduate from LDC status in November 2026.

Anisuzzaman Chowdhury, special assistant to the chief adviser, led the Bangladesh delegation, while senior UN CDP officials and representatives from other UN bodies participated.

"The UN CDP team and other UN officials focused mainly on the government's report," said a meeting participant, speaking on condition of anonymity.

"They sought information on macroeconomic stability, foreign currency reserves with the central bank, balance of payments, private sector investment, and the tax-to-GDP ratio. The officials also discussed various other economic issues highlighted in the report," the participant added.

"The committee has been reviewing Bangladesh's economic position to provide feedback in February, ahead of the country's scheduled graduation to a developing nation on November 24 next year," the participant said.

"They also requested updates on Bangladesh's preparations to obtain EU Generalised System of Preferences Plus (GSP+) status," they added.

Another participant, speaking anonymously, said the UN CDP team also sought information on Bangladesh's current economic situation, including employment, exports, and imports. "The meeting also covered the private sector's recent performance in trade, business, and the economy," they added.

Earlier, on November 10, a team led by Roland Mollerus, acting director of the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States, met with business leaders, independent economists, senior government officials, and labour union representatives.

They discussed the country's macroeconomic stability, while business leaders urged a deferment of graduation by at least six years, citing insufficient readiness.

Despite these calls, the interim government has repeatedly affirmed its intention to maintain the graduation timeline. The independent UN commission is preparing a report on the visit, which will be submitted to the UN CDP soon.

The UN panel is scheduled to review both Bangladesh's 2025 annual report and the commission's findings in February before finalising decisions on the country's LDC graduation or any possible deferment.