Bangladesh is attempting to secure a three-year extension to its scheduled graduation from the Least Developed Country category, but the effort faces significant resistance from key trading partners, Commerce Secretary Mahbubur Rahman said.
Speaking at a workshop on US reciprocal tariffs and LDC graduation, organised by the Research and Policy Integration for Development (RAPID) at the CIRDAP auditorium in Dhaka, Rahman acknowledged the difficulty of the task. “We are trying to bring the issue to a UN resolution so that we can defer the graduation,” he noted, adding that countries including India, the United States, Japan, and Turkey have historically opposed such postponements.
Bangladesh is currently set to graduate from LDC status in November 2026, ending preferential trade benefits such as duty-free, quota-free market access in developed economies. Local businesses and trade bodies have repeatedly urged the government to push for a deferral, citing concerns about export competitiveness, tariff shocks, and inadequate preparedness in diversifying markets.
The workshop also highlighted the broader impact of reciprocal tariffs on Bangladesh’s exports. A research presentation by RAPID Chairman M.A. Razzaque projected that Bangladesh’s shipments to the US market could fall by 14% over the next year, equivalent to more than $1 billion in lost earnings. He noted that while Bangladesh would be hit, other competitors also face steep declines: China (–58%), India (–48%), Vietnam (–28%), and Indonesia (–27%).
RAPID’s Executive Director M. Abu Eusuf moderated the discussion, while Economic Reporters Forum (ERF) President Doulat Akter Mala attended as guest of honour. Experts at the event stressed that Bangladesh must simultaneously prepare for a post-LDC era by pursuing free trade agreements (FTAs), expanding export incentives, and exploring investment-friendly reforms. They warned that the loss of domestic export subsidies after graduation could pose an even bigger challenge than the removal of preferential trade access.
