LDC graduation : Challenges and prospects
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Bangladesh has qualified all three indicators of graduation from LDC status for the third time in a row in the triennial evaluation report of the 26th session of the United Nations Economic and Social Council's Committee on Development Policy (CDP).
The CDP session was held at the UN headquarters from March 4 to 8 this year.
It predicts that Bangladesh will graduate from Least Developed Countries (LDC) to become a developing country.
Both challenges and possibilities await for the country as Bangladesh has taken another step out of the list of LDC to become a developing country.
Bangladesh was included in the LDC group in 1975 by the United Nations, with the country languishing from the havoc wreaked by the Pakistani army during the Liberation War of 1971.
Since Bangladesh was included in the LDC group in 1975 by the United Nations, the country is the only member state among the seven countries which is nominated for graduation from the LDC and the six countries in the process of graduation.
Bangladesh have passed all the indicators in three consecutive assessments. The United Nations has already announced the final date of Bangladesh's graduation from LDC. In november 24, 2026 UN will officially announce the matter.
As such, the European Union (EU) and the United Kingdom (UK) will continue their preferential trade access (PTA) until 2029, but many other countries will withdraw duty free trade benefits. it indicates that local exporters and traders will face difficulties in the world trade system.
Challenges
The export sector will the most affected sector if Bangladesh graduated from from the LDC. As an LDC, Bangladesh gets duty-free trade benefits under the World Trade Organization (WTO). The European Union also has such tariff benefits on a regional or bilateral basis (such as India, China). According to the existing rules, these facilities will be closed in 2026. However, the tariff benefits under the GSP in the European Union will remain until 2029.
A WTO report says, Bangladesh's exports could be reduced by $ 5.37 billion or Tk 45,500 crore annually due to additional tariffs.
Immense potential for Bangladesh
Graduation from LDC will open the door of immense possibilities for Bangladesh. The biggest achievement in this regard is the positive change in the country's image in the world arena. The country's position in the international arena will be strengthened. There will be global recognition of development. We will go one step further to materialize the dream of Bangladesh to build a 'Sonar Bangla' under the leadership of Bangabandhu Sheikh Mujibur Rahman.
One of the conditions for graduating from LDC is to pass the index of economic and environmental fragility. Bangladesh has successfully passed this index in three consecutive triennial assessments. This proves that Bangladesh's economy is comparatively less at risk, which is one of the key factors to attract foreign investors. This will increase the scope of industrialization in the country by setting up new industries and more employment opportunities will be created.
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