Bangladesh's LDC graduation deferred by 3 years

The United Nations General Assembly (UNGA) has approved a proposal to extend Bangladesh's preparation period for graduating from the least developed country (LDC) group by three years.

As a result, the new deadline for graduation has been set at 24 November 2029, instead of 24 November 2026. The same three-year extension applies to Nepal as well, as per the vote cast at UNGA around 1:30am Friday in Bangladesh time.

With the extra three years, Bangladesh will be able to retain trade benefits for its exports for additional three years. In the meantime, it can address structural weaknesses in the economy, boost investment, and strengthen its competitiveness in international markets.

On Thursday, Uruguay moved the proposal at the UN General Assembly on Bangladesh's behalf. In a vote, the Group of 77 and China, who together form G77+China, backed the proposal. It is worth noting that the Group of 77 started with 77 founding member countries in 1964, but now includes 134 countries.

Afterwards, the European Union, Canada, Australia and New Zealand also explicitly voiced their support for deferring the graduation deadline for both Bangladesh and Nepal.

With their support, Bangladesh's request to extend the five-year preparation period for LDC graduation by another three years was approved at the UNGA, according to sources.

Bangladesh had sought the extension in view of global economic uncertainty, risks to energy supply, changing conditions in international trade, and domestic economic challenges.

The government aims to use the additional time to build the economy's capacity and complete the preparations needed for the post-LDC reality.

Commerce Minister Khandakar Abdul Muktadir said recently that a decision on Bangladesh's request to defer its graduation from the least developed country (LDC) category by three years is expected within October.

"The government has prepared a time-bound action plan to utilise the additional time for strengthening the country's preparedness for graduation. It also aims to conclude negotiations on a free trade agreement (FTA) with the European Union (EU) before Bangladesh graduates from the LDC category," he said.