Defer LDC graduation by 3-5 years, demand Bangladesh trade bodies

In a press conference organised yesterday by the International Chamber of Commerce (ICC) Bangladesh and 15 other trade bodies, ICC Bangladesh president Mahbubur Rahman said: “Our entrepreneurs and business chambers strongly support graduation. However, we stress the need for a three- to five-year extension.”

Though Bangladesh has fulfilled all three UN criteria—gross national income, human assets index and economic vulnerability index—in two consecutive reviews, such a graduation will bring with it new responsibilities and risks, and therefore, careful preparation is needed to ensure the transition leads to lasting success, Rahman said.

Risks include the possible loss of duty-free market access in key export destinations where tariffs of up to 12 per cent could be imposed, and that may lead to a 6-14 per cent drop in exports, he said.

“The press conference expressed optimism that the extended period would provide greater scope for export diversification, development of skilled manpower in automation and artificial intelligence (AI), and building capacity to face future challenges, thereby ensuring sustainable competitiveness in the global market,” the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) posted on Facebook.

The business leaders also raised concerns over the end of special and differential treatment by the World Trade Organization (WTO). “This will make patent rules stricter for the pharmaceutical sector and increase compliance costs,” Rahman cautioned.

Rahman noted that several countries had deferred their LDC graduation in the last.

The proposed five- to six-year deferment would offer Bangladesh the time to secure trade deals with several countries and economic blocs, he added.

ALCHEMPro News Desk (DS)