Bangladesh has asked for more time before it loses special trade privileges and has the backing of European allies and a large group of developing countries.
During high-level meetings at the United Nations Headquarters in New York, the European Union (EU) and the Group of 77 (G77) plus China promised to help Bangladesh make a safe and permanent transition out of the Least Developed Country (LDC) category. LDCs are a group of low-income countries defined by the UN that receive special trade rules to help them grow.
Bangladesh Commerce Minister Khandakar Abdul Muktadir explained that the country needs a three-year extension to its preparation time. Khandakar Abdul Muktadir said the extra time is necessary because of the country’s current political changes, problems with energy supplies, and unpredictable global markets.
The minister was joined in New York by a team of government officials, including State Minister for Planning Zonayed Saki, and business leaders from Bangladesh’s clothing and footwear export industries.
Moving out of the LDC group is a significant change, but it means Bangladesh will eventually lose the duty-free trade deals that have supported its massive garment industry. The government wants to make sure its banks, roads, and power systems are strong enough to compete globally before those safety nets disappear.
The Head of the EU Delegation to the UN, Ambassador Stavros Lambrinidis, praised the government’s focus on good governance. He also welcomed the start of talks for a future Bangladesh-EU Free Trade Agreement (FTA), which would protect trade after the transition. He added that the government and private businesses must work closely together to make the change work.
The chair of the G77 and China alliance, Ambassador Laura Dupuy Lasserre, agreed that Bangladesh has a strong case for more time. She invited the Bangladeshi team to give a special briefing to other member states about their economic plans.
After the meetings, Economic Relations Division Secretary Md Shahriar Kader Siddiky said the talks with Europe were highly productive and showed that global partners want Bangladesh’s economic future to be stable and successful.
