Experts have urged the government to consider delaying Bangladesh’s graduation from Least-Developed Country (LDC) status until the country is better prepared to manage the economic challenges that may arise 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 the capital, experts highlighted examples of other countries that have successfully delayed their graduation deadlines.
They emphasised that Bangladesh can similarly seek an extension, as the process to request a delay is not complicated.
The event, jointly organised by the International research organisation Third World Network (TWN) and Nagorik Uddyog (The Citizen’s Initiative), featured senior researchers Sanya Reid Smith and Ranja Sengupta from TWN, alongside lawyer and intellectual property expert Taslima Jahan.
They noted that Bangladesh’s primary export markets, including the United States and European Union, may impose higher tariffs on goods once the country graduates from LDC status, which could impact trade competitiveness.
Sanya Reid Smith pointed out that several countries, such as Myanmar and Timor-Leste, have delayed their LDC graduations citing political and economic reasons, despite meeting the UN’s eligibility criteria.
“Bangladesh has faced significant political and economic shifts since the decision to graduate was made by the previous government. Moreover, global trade shocks, including the tariff policies under US President Donald Trump, were not foreseen during the initial decision,” she said.
She stressed that these developments provide a strong case for Bangladesh to reconsider and potentially delay the graduation, leaving the decision ultimately to the government.
The experts also raised concerns about losing key economic advantages linked to LDC status. For instance, Bangladesh currently benefits from exemptions on intellectual property rights (IPR) in the pharmaceutical sector, allowing the production and export of new drugs without patent restrictions. Post-graduation, such protections will be mandatory, which may deter investment and increase drug prices.
Ranja Sengupta highlighted that nine countries have deferred their LDC transition deadlines in the past decade.
“Graduation is not only about meeting income criteria; it is crucial to assess whether a country can remain competitive internationally after losing duty-free trade benefits. Rushing into graduation unprepared is risky,” she said.
Taslima Jahan added that as an LDC, Bangladesh currently enjoys certain special relaxations or exemptions in intellectual property rights (IPR), but these benefits will gradually be reduced or discontinued after the LDC transition.
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