We really commend the government’s move to kick off the formal beginning of negotiations to sign an Economic Partnership Agreement (EPA) with Japan, one of our strongest allies in terms of bilateral trade and investments. This step brings to the fore a very pertinent issue – what will happen to all the benefits we are enjoying now as a Least Developed Country (LDC) when we graduate from LDC status in 2026?
Bangladesh is taking great strides in different sectors and the country has successfully ridden out the gloomy economic prognosis, steering ahead in full force. The country is on its due course to graduate from LDC status in 2026. But the real blow will come after LDC graduation. The question is how prepared are we as an economy to tackle the challenges that will arise after LDC graduation?

We have to remember that immediately after LDC graduation, a number of benefits the country is availing now will go away. To name a few, the country will no longer be eligible to receive preferential market benefits such as Duty-Free and Quota-Free (DFQF) access under the Generalised System of Preferences (GSP), LDC-specific special treatments available under the World Trade Organisation (WTO), grants and soft loans under the official development aid (ODA), and Green Climate Fund (GCF).  
If all these benefits just vanish into thin air, it will have serious impacts on our economic development. For example – if the EPA is not signed, Bangladesh will have to pay an 18% export duty to the Japanese market after LDC graduation. But the good news is that when the going gets tough, the tough gets going. Keeping that in mind, we suggest the government should map out a detailed plan right away taking the challenges into account and then start working on its implementation.

An endeavour to sign an EPA is a very good move in this regard. This kind of step needs to be replicated and the country will have to start negotiating trade deals with other nations with a concentrated focus on regional partners. In addition, Bangladesh must have plans to bring necessary changes to its import-export policies in order to deal with the sudden shock and keep our economy buoyant. As LDC graduation will usher in new era, the country should also focus on creating business-friendly environment that will help lure in more FDI in the coming years.