Graduation to developing country
Industry Desk: Almost 90 percent export loss will be on account on Bangladesh among 12 countries after graduating to developing country from LDCs, according to World Trade Organization (WTO) Secretariat estimates. Bangladesh’s export loss will be equivalent to about 14.3 percent of the country’s global export.
After graduation to developing countries from LDC group, Bangladesh will no longer be eligible for duty free and quota free market access beyond 2026. However, this will not be applicable for Bangladesh in EU till 2029. The information was made in a Dialogue on “Moving out from the LDC group: Strategies for graduation with momentum” of Centre for Police Dialogue on Thursday by CPD Fellow Mustafizur Rahman.
Bangladesh was among very few LDCs which has been able to reap most benefits originating from preferential market access offered by developed countries. Consequently, it has the most to lose. Seventy per cent of Bangladesh’s global exports are covered by preferential access, one of the highest in the world.
Among the 12 candidate graduating LDCs, Bangladesh is going to face the highest rise in tariffs. However, for Nepal and Bhutan, for example, since they have bilateral FTAs with India, their key trading partner, effective tariff rise will be much lower. The impact of loss of preferential access will be significant for Bangladesh. A time line, 2026, has been fixed for Bangladesh’s graduation from the group of LDCs to a non-LDC developing country. The journey of four and half decades (Bangladesh was included in LDC group in 1975) will come to an end in 2026, after five decades. Meanwhile, CPD also recommended strategies for graduation with momentum.