Once Bangladesh graduates from LDC status, new challenges will arise. What can we do to meet these challenges head-on?
Bangladesh will experience a new economic reality from 2026 as we are on the verge of graduating from the Least Developed Country (LDC) category in that year. The economic and trade ecosystem will be very different due to the erosion of Bangladeshi export preferences. New prices ranging from 8% to 15% Craft bangladesh exports more expensive and may result in losses for exporters.
Bangladesh needs to adapt to the transition by expanding into new markets and development of a quality and profitable export basket. Economic blocs like MERCOSUR, GCC etc should be explored for offset potential trades loss.
In addition, there is the question of meeting the standards of export markets such as the EU and the United States. A handset Government and private sector efforts are needed to ensure compliance with these standards. The PMO initiative at form a committee to meet the challenges (for example diversification of export markets) that Bangladesh will face following its transition from a least developed country (LDC) to a developing country nation is timely.
The Ggovernment and the private sector should work together on development New markets. To develop export markets, we should foccupied on economic diplomacy. Bangladesh Foreign Missions can play a vital role here by initiating Discussion at G2G level.
We need to identify competitive advantages and design action limited in time plans to develop new markets. We can learn from how other countries have acted in similar situations. Instead of opting for the same overall strategy, the government can take different paths such as Free Jroadstead Aagreements (FTA), Preferential Trade Arrangements (ACP), or global economic partnership Agreements (CEPA) with different savings after making a good market assessment.
Custom political measures will also be necessary for these new exports markets. The government box edit industrial infrastructure, trade regulations (including export, import, industry and foreign exchange regulations), prices, and income fee for a export-friendly atmosphere. Implementation of the WTO Trade Facilitation Agreement business expenses is necessary.
The EFA National Committee involving all ministries concerned and private sector representatives, led by the Ministry of Commerce, can guide FTA strategies. Weak global recovery of VSovide– recession caused and geo-economic unrest have affected all savings, including ours. These circumstances could make our transition to a developing country more difficult. The government can ask the WTO to extendyour transition period to a developing country until 2029.
The UK and EU have extended the Duty Free Quota Free (DFQF) market facility until 2029. The years 2026 to 2029 are essential for us to carry out major trade negotiations with potential economic blocs and action plans for the development of export markets. By 2026, all assessments, research findings and strategies should be ready. CEPAs should be signed with countries with higher tariffs and export potential, and when it comes to African and Middle Eastern economies, we can opt for FTAs.
FTAs should be signed progressively with all potential countries. Lessons learned from an FTA can help us improve others. Discussions with countries extending the DFQF facility until 2029 may continue for a new business model.
Bangladesh’s economic performance has been remarkable worldwide, thanks to its ever-evolving private sector.
The private sector cannot make all the investments necessary to remain competitive; therefore, PPP initiatives in market development and country branding are needed. Export-oriented industries have identified policy problems and their solutions through various discussions. The private sector seeks a predictable environment to perform well in an open global economy.
A strong, long-term policy roadmap addressing sectoral needs and a predictable tariff structure can help. Linking SMEs to value chains should be a priority. The government can provide the private sector with a competitive and regulatory environment to better address the challenges that will arise after the graduation of LDCs.
Improving soft skills, including negotiation skills, technology adoption, intelligence, and market dynamics will also be necessary to win business negotiations. Because the private sector follows the ideal: “act locally and think globally”. We strive to reach new markets through B2B meetings, exhibitions, summits and business delegations with partners.
Once upon a time, Bangladesh was known as a low-cost procurement hub; we could make it an innovative and competitive hub. The private and public sectors must work hand in hand to bring the export market into this new era.