A government document states that Bangladesh will have to deal with issues like losing duty- and quota-free access, unilaterally gaining preferential market access, having fewer options for receiving low-interest loans from international and bilateral development partners, preference erosion, and strict adherence to high standards.
To prepare for any difficulties Bangladesh might have as a result of moving from a least developed to a developing country, the government established a committee with the Principal Secretary of the Prime Minister’s Office as its chairman.
According to the draft, this committee will have seven subcommittees. Members of the private sector and development researchers make up each subcommittee. In light of probable trade issues brought on by LDC graduation, the document stated that the current administration has chosen the strategy of implementing bilateral Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs).
To overcome these difficulties, strategies for preferential market access and trade agreements have been developed.
In this regard, Bangladesh and Bhutan have signed a PTA, according to which 100 products from Bangladesh would be duty-free in Bhutan and 34 products from Bhutan will be duty-free in Bangladesh. Bangladesh’s transformation will go into force in 2026, as recommended by the United Nations Capital Development Fund (UNCDP). Bangladesh will therefore be able to make use of all the LDC benefits up until 2026.
