A proposal to defer Bangladesh's graduation from least developed country (LDC) status by three years will be placed before the United Nations General Assembly on Thursday, October 29, The Business Standard (TBS) reported. Uruguay will table the resolution, backed by 77 nations and China, seeking to extend the graduation deadline for both Bangladesh and Nepal, which would allow them to retain crucial trade preferences until 24 November 2029.
Source: The Business Standard
The proposal follows recommendations from the UN Committee for Development Policy (CDP) and the Economic and Social Council (ECOSOC), TBS said. It requires majority support from General Assembly member states, which have until November 24 — the date Bangladesh and Nepal are currently scheduled to graduate — to decide. Bangladesh has been on the LDC list since 1975 and met all three graduation criteria in the UN's 2018 and 2021 reviews, according to BD Digest's account of the process.
Source: BD Digest
Yaani: what is at stake is the trade cushion. Graduation ends LDC benefits such as duty-free market access, special treatment under trade arrangements, concessional financing and technical assistance. A February assessment reported by Industry Insider BD cited expert warnings that immediate graduation could cost Bangladesh around 14 per cent of exports — about US$8 billion a year, yaani 800 crore dollars a year — although the continuation of individual benefits after graduation would depend on each trading partner's rules.
Why Dhaka asked for more time
The BNP government, which came to power through the general election in February, wants the three-year extension to address economic uncertainty, external shocks and longstanding structural weaknesses before the benefits are withdrawn, TBS reported. The draft resolution cites disruptions to global energy supplies and trade flows caused by conflicts, along with lingering economic shocks and uncertainty in international commerce.
The resolution also recognises Bangladesh's political transition. Although political changes do not normally justify extending the preparatory period, the CDP considered the country's changeover relevant to its recommendation, TBS reported. The European Union is a particular concern for Dhaka: it is Bangladesh's largest apparel export market, accounting for nearly half of the country's garment exports.
Nepal is in the same position. Both countries have requested more time to prepare for the loss of trade preferences and other LDC-specific support measures, and commerce officials in Dhaka have said they expect the General Assembly's decision this month, before the November 24 deadline takes effect.