Written by The Banking Post
Experts have urged the government to consider postponing Bangladesh’s graduation from Least-Developed Country (LDC) status until it is better prepared to manage the potential economic shocks following the transition.
Speaking at a seminar titled “The Impact and Challenges of Bangladesh’s Transition from the LDC List” at the Press Institute of Bangladesh (PIB) in Dhaka, they cited examples of other nations that successfully deferred their LDC graduation deadlines, noting that the process to request an extension is relatively straightforward.
The event was jointly organised by international research organisation Third World Network (TWN) and rights group Nagorik Uddyog. Senior TWN researchers Sanya Reid Smith and Ranja Sengupta, along with lawyer and intellectual property rights (IPR) expert Taslima Jahan, addressed the discussion.
The speakers warned that Bangladesh’s key export markets — including the United States and the European Union — could impose higher tariffs on its goods post-graduation, undermining trade competitiveness.
Sanya Reid Smith noted that countries such as Myanmar and Timor-Leste had delayed their LDC graduation despite meeting the UN’s eligibility criteria, citing political and economic challenges.
“Since the decision to graduate was made by the previous government, Bangladesh has faced major political and economic changes. Global trade disruptions, including tariff policies introduced under former US President Donald Trump, were not foreseen at the time,” she said, adding that these developments strengthened the case for delaying the move.
The experts also cautioned about the loss of crucial LDC-linked economic advantages. For example, Bangladesh’s pharmaceutical industry currently enjoys IPR exemptions, enabling the production and export of new drugs without patent restrictions. These protections will be phased out after graduation, potentially deterring investment and raising medicine prices.
Ranja Sengupta pointed out that nine countries have deferred LDC graduation in the past decade, stressing that the decision should not be based solely on meeting income thresholds. “The real question is whether a country can stay competitive internationally after losing duty-free benefits. Rushing into graduation without preparation is risky,” she said.
Taslima Jahan added that as an LDC, Bangladesh benefits from multiple IPR relaxations, which will gradually diminish or be withdrawn entirely post-transition.
