Bangladesh Defense Forum- Copy to clipboard
- Thread starter
- #16
CA confirms scheduled LDC graduation
Professor Muhammad Yunus, chief adviser of the interim government, yesterday instructed his cabinet colleagues to prepare for Bangladesh’s status graduation from a least developed country (LDC) to a developing nation in November 2026, effectively doing away with all speculation.
CA confirms scheduled LDC graduation
Professor Muhammad Yunus, chief adviser of the interim government, yesterday instructed his cabinet colleagues to prepare for Bangladesh's status graduation from a least developed country (LDC) to a developing nation in November 2026, effectively doing away with all speculation.
Many, including a section of economists and businesspeople, were in favour of a deferment by a couple of years.
They reasoned that the economy needed time to cope with the severe fallout of the pandemic, the Russia-Ukraine war, and high global inflationary pressure over the last few years. Even some cabinet members had spoken out on several occasions recently about their doubts.
Shafiqul Alam, the chief adviser's press secretary, yesterday said the interim government had decided to keep to the schedule for availing the United Nations status graduation.
"The government has taken into consideration opinions from experts on whether the process would impact industries and settled on going for it," he said at a briefing at the Foreign Service Academy.
If any detrimental impact is identified, preparations will be made to overcome it, he said.
Besides, he said, benefits provided to Bangladesh for being an LDC would prevail for three years past the graduation.
"I think we have the ability to show our global competitiveness," Alam added.
Replying to a question, the press secretary said the pharmaceutical industry would also face no disruption in availing intellectual property rights.
Bangladesh has met all three preconditions for graduation, thanks to its economic development since the country attained independence in 1971.
The country was listed in the LDC grouping in 1975 to avail different benefits, such as zero-tariff and quota access to different countries, as the economy was on the verge of collapse following the Liberation War.
Such benefits have enabled Bangladesh to currently stand out as the second-largest garment exporter after China.
Bangladesh will lose trade worth over $8 billion annually due to the withdrawal of post-LDC preferential trade benefits, for which the country would have to pay at least 12 percent duty on goods shipments.
Currently, 78 percent of the country's exports avail LDC benefits in 38 countries.
The European Union has already assured that it will continue the LDC trade benefits for Bangladesh for three more years, up to 2029, as a grace period meant to enable a smooth transition.
The UK, Canada, and Australia have given similar commitments, except for some conditions.
Moreover, the World Trade Organization has also decided to grant the same grace period following Bangladesh's appeal for 12 years.
Professor Muhammad Yunus, chief adviser of the interim government, yesterday instructed his cabinet colleagues to prepare for Bangladesh's status graduation from a least developed country (LDC) to a developing nation in November 2026, effectively doing away with all speculation.
Many, including a section of economists and businesspeople, were in favour of a deferment by a couple of years.
They reasoned that the economy needed time to cope with the severe fallout of the pandemic, the Russia-Ukraine war, and high global inflationary pressure over the last few years. Even some cabinet members had spoken out on several occasions recently about their doubts.
Shafiqul Alam, the chief adviser's press secretary, yesterday said the interim government had decided to keep to the schedule for availing the United Nations status graduation.
"The government has taken into consideration opinions from experts on whether the process would impact industries and settled on going for it," he said at a briefing at the Foreign Service Academy.
If any detrimental impact is identified, preparations will be made to overcome it, he said.
Besides, he said, benefits provided to Bangladesh for being an LDC would prevail for three years past the graduation.
"I think we have the ability to show our global competitiveness," Alam added.
Replying to a question, the press secretary said the pharmaceutical industry would also face no disruption in availing intellectual property rights.
Bangladesh has met all three preconditions for graduation, thanks to its economic development since the country attained independence in 1971.
The country was listed in the LDC grouping in 1975 to avail different benefits, such as zero-tariff and quota access to different countries, as the economy was on the verge of collapse following the Liberation War.
Such benefits have enabled Bangladesh to currently stand out as the second-largest garment exporter after China.
Bangladesh will lose trade worth over $8 billion annually due to the withdrawal of post-LDC preferential trade benefits, for which the country would have to pay at least 12 percent duty on goods shipments.
Currently, 78 percent of the country's exports avail LDC benefits in 38 countries.
The European Union has already assured that it will continue the LDC trade benefits for Bangladesh for three more years, up to 2029, as a grace period meant to enable a smooth transition.
The UK, Canada, and Australia have given similar commitments, except for some conditions.
Moreover, the World Trade Organization has also decided to grant the same grace period following Bangladesh's appeal for 12 years.
