The government has formally requested a three-year postponement of the Least Developed Country (LDC) transition process. A letter has been sent to the UN Committee for Development Policy (CDP) in this regard.
The letter, signed by Economic Relations Division (ERD) Secretary Md. Shahriar Quader Siddiqui, was sent to the CDP on Wednesday (February 18).
The letter states that the five-year preparatory period available for LDC transition has been “seriously disrupted” by global shocks such as the lingering impact of the Covid-19 pandemic, the Russia-Ukraine war, global tight monetary policy and supply chain disruptions. In addition, challenges such as reduced domestic investment, low revenue growth, political reversals in the 2024 popular uprising and the Rohingya crisis have put pressure on the macroeconomic environment.
The government said that if the LDC transition process is taken forward in the current situation, significant risks may arise in terms of exports, employment and poverty reduction. In particular, uncertainty over the availability of GSP Plus benefits in the European market and policy changes in major trading partners are putting additional pressure on Bangladesh's competitiveness. Additional time is needed to address these risks and complete structural reforms.
Khandaker Abdul Muktadir, who took charge of the Ministry of Commerce, told the media in this regard that whatever is necessary to delay the transition from LDC will be done. This work will be taken forward in rapid coordination with the ERD.
According to the previous decision, Bangladesh was supposed to finally graduate from LDC on November 24, 2026. In view of the current application, the government has requested to extend this deadline until November 24, 2029.
