[🇧🇩] LDC Graduation For Bangladesh

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LDC graduation: WTO chief backs 'reasonable' transition time

Bangladesh's graduation from the least-developed-country (LDC) category should be viewed positively as it requires a reasonable transition period to adjust the changes to be unleashed. World Trade Organisation (WTO) Director-General Dr Ngozi Okonjo-Iweala made the observation Thursday, as Dhaka ha

thefinancialexpress.com.bd

LDC graduation: WTO chief backs 'reasonable' transition time

Dr Ngozi Okonjo

Bangladesh's graduation from the least-developed-country (LDC) category should be viewed positively as it requires a reasonable transition period to adjust the changes to be unleashed.

World Trade Organisation (WTO) Director-General Dr Ngozi Okonjo-Iweala made the observation Thursday, as Dhaka has petitioned the United Nations for extending the graduation process.

"First, I have to congratulate Bangladesh. Graduation is a good thing. It means that your economy is doing well and that you're coming out of the category of least developed," the WTO chief told The Financial Express at her office in the global-hub Swiss city.

"Nobody wants, I hope no country wants, to remain a least- developed country forever. So, it's a good thing. It should be seen in a positive light," the DG added.

The WTO chief, however, stressed that graduation should not result in an abrupt withdrawal of support and that graduating countries should be given adequate time to adjust.

In this connection, she notes that the WTO is not the only multilateral institution where countries graduate from special categories. "You also have graduation in other multilaterals, the World Bank, the IMF, UN and so on. So, I think we need to look at this issue in a broader light."

According to Okonjo-Iweala, it is appropriate for graduating countries or members to have a period during which they can transition gradually, rather than facing an immediate change in their treatment.

"It's absolutely appropriate that graduating countries or graduating members should have a period of time over which they are allowed to transition," the WTO chief said.

The purpose, the director-general explained, is to prevent a sudden change that could expose a graduating country to economic shocks.

"You don't graduate today and because of shocks you're back into the category the next day. So, it's appropriate."

The key issue, however, is determining the length of the transition period, according to the WTO chief.

"I think that that's the issue at the WTO," the director-general said, adding that LDCs are negotiating over how long the transition should last and under which agreements it should apply.

She also said the organisation has been working closely with LDCs to help streamline their requests concerning graduation while also engaging with other WTO members to encourage them to consider those demands.

"We've been working very hard with the LDCs. I'm a strong supporter to explain to them how to streamline their requests with respect to all the things they want for graduation," the director-general said.

"At the same time, we're also trying to talk to other members to be open to some of the LDC requests."

The world trade-body chief was of the view that a compromise could eventually be reached on the duration of the transition period.

"I think it's going to be some kind of compromise where LDCs will have a period of time. Some three years has been negotiated, and that's the normal -- that's the norm elsewhere in other organisations,."

LDCs have already requested the WTO members to allow at least six to maximum 12 years of transition period. In response, the General Council adopted a decision in October 2023 encouraging preference-granting members to provide a smooth transition period before withdrawing duty-free and quota-free market access for LDCs after graduation.

"If we can come to some agreement on this, then the transition period, I think, will be something that everybody can respect," the WTO DG added.

Bangladesh is scheduled to graduate from the world's poor-country club in November this year. The government has, however, submitted a formal request for deferring the gradation for three more years. If approved by the United Nations, the country will have a breathing space in troubled times to graduate in 2029.

Bangladesh's upcoming LDC graduation makes managing a smooth transition vital as it stands to lose special trade preferences and international support following the status change.

There are currently 44 LDCs, of which 14 are on the path to graduation. Of these, 12 are WTO members: Bangladesh, Cambodia, Comoros, Djibouti, Lao PDR, Myanmar, Nepal, Rwanda, Senegal, Solomon Islands, Tanzania and Uganda.

The 13th Ministerial Conference (MC13) has provided graduating LDCs additional time to align with WTO disciplines on dispute- settlement system and also be eligible for LDC-specific technical assistance and capacity building for three years.

Bangladesh has already prepared a smooth transition strategy to cope with the post-graduation challenges.​

 

[Saif]

Smooth transition legitimate request from Bangladesh

Bangladesh's request for a smooth-transition mechanism after the graduation from the least-developed-country (LDC) category is "legitimate", says WTO deputy chief Xiangchen Zhang about the country's move for getting the process deferred. The country will face changes in preferential treatment and

thefinancialexpress.com.bd

Smooth transition legitimate request from Bangladesh

Bangladesh's request for a smooth-transition mechanism after the graduation from the least-developed-country (LDC) category is "legitimate", says WTO deputy chief Xiangchen Zhang about the country's move for getting the process deferred.

The country will face changes in preferential treatment and new obligations under World Trade Organisation (WTO) rules after the graduation.

The Deputy Director-General (DDG) of the global trade body expressed his opinion here Wednesday at a training session titled 'The WTO's Work on Trade and development' held at the WTO headquarters in Geneva with participation of journalists from different countries. The session was organised under the Journalist Programme on Global Trade Polices in the context of the WTO Public Forum 2026.

"LDC graduation is an important subject in the WTO. Bangladesh, together with some other LDCs like Cambodia and Nepal, will graduate from the group. First of all, it is a subject for celebration. It is a demonstration of the progress you have made," Zhang said.

At the same time, he noted, graduating LDCs have legitimate grounds to seek a smooth transition to help them adjust to the changes arising from the loss of LDC-specific trade benefits.

Eligibility for LDC-specific support measures for a period beyond graduation is referred to as a smooth-transition period.

Bangladesh is scheduled to graduate from the world's poor-country club in November this year. The government has, however, submitted a formal request for deferring the gradation for three more years. If approved by the United Nations, the country will graduate in 2029.

Zhang drew an analogy with policies in China, saying that some regions below a certain poverty line receive additional government support and preferential treatment. When those regions move above the threshold, the benefits are withdrawn, which is a sign of progress but can also justify a transitional period.

"In China, our policy is that we give those countries some transitional period of time -- five years -- to continue to enjoy the preferential treatment," he told the journalists.

He said some WTO members had already responded positively to calls for extending preferential treatment for graduating LDCs for an additional three years. He mentions the European Union, the United Kingdom, Australia and Japan. "Not all the countries did the same," Zhang said, adding that the LDC Group, led by Bangladesh, is continuing to push for a smooth transition while the WTO is facilitating discussions among members.

There are currently 44 LDCs on the United Nations (UN) list of which 37, including Bangladesh, have become WTO members to date. Four LDCs are negotiating to join the WTO now.

The 13th Ministerial Conference (MC13) has provided graduating LDCs additional time to align with WTO disciplines on dispute- settlement system and also be eligible for LDC-specific technical assistance and capacity building.

Referring to his visit to Bangladesh two years ago, Zhang said he had witnessed the country's economic progress and the development of emerging industries, including the pharmaceutical sector.

He said graduating LDCs should also focus on specific areas where the impact of graduation could be significant, particularly emerging industries.

Bangladesh needs to understand the implications of new obligations arising from graduation, particularly those relating to the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), he said.

"The TRIPS obligations are important for this new emerging industry," Zhang said, referring to Bangladesh's pharmaceutical sector.

He notes that Bangladesh had requested WTO assistance and training on intellectual-property rules for both government officials and entrepreneurs.

"I think it is the right approach."

In 2026, the organisation has conducted training on the TRIPS Agreement and Bangladesh's LDC graduation, focusing on intellectual property-related issues and the obligations that will become relevant after graduation.

Zhang has previously highlighted the need for graduating LDCs to prepare for changes in areas that include TRIPS, agricultural policies and non-agricultural subsidies, while stressing the role of WTO technical assistance in supporting the transition.

Meanwhile, Wednesday was the second day of the public forum, WTO's biggest annual outreach event. This year forum focuses on the fast-growing diversification of the trade in services.​