With less than 11 months left before Bangladesh’s LDC graduation in November 2026, businesses warn they remain unprepared for a post-LDC reality.
Exporters fear losing preferential market access due to a lack of trade agreements, while domestic challenges—weak infrastructure, logistics bottlenecks, limited product diversification, and high production costs—continue to erode competitiveness.
Manufacturers caution that without adequate preparation, Bangladesh could lose around $8 billion annually, nearly 14% of export earnings, as preferential treatment fades. Currently, 73% of exports benefit from duty-free or preferential access across 38 countries and trade blocs.
Despite adopting a Smooth Transition Strategy, progress on trade deals has been slow—only one FTA (with Bhutan) is in effect, while negotiations with the EU, Japan, South Korea, UAE, ASEAN, and others remain ongoing.
Business leaders now plan to urge the next government to defer LDC graduation by at least six years, citing heavy reliance on the garment
Source: https://www.thedailystar.net
Businesses under-prepared as LDC graduation clock ticks
