Bangladesh faces potential $17.5 billion export risk after LDC graduation: Commerce Minister
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Bangladesh stands to lose preferential market access across multiple developed economies as it transitions out of the Least Developed Country (LDC) category — a shift that could put roughly $17.5 billion in export earnings at risk.
Commerce Minister Khandakar Abdul Muktadir, addressing parliament, warned that the move to developing country status will fundamentally reshape Bangladesh’s trade landscape. For decades, LDC-linked duty exemptions and trade concessions have been a cornerstone of the country’s export strategy, particularly for its dominant ready-made garment industry. Losing them without adequate replacement arrangements could leave exporters dangerously exposed.
The government says it is not waiting for graduation to act. Dhaka has already wrapped up negotiations on an Economic Partnership Agreement with Japan and is in active talks with South Korea on a broader Comprehensive Economic Partnership Agreement. On a wider front, Bangladesh is pursuing trade deals with the European Union, the UAE, Singapore, Indonesia, China, and the RCEP bloc — a sweeping diplomatic push aimed at locking in market access before preferential treatment expires.
Yet the scale of the challenge should not be understated. Preferential trade facilities were not merely helpful — they were structural. They shaped investment decisions, supply chains, and the entire competitive logic of Bangladesh’s export sector. Negotiated agreements, even when successfully concluded, rarely replicate the breadth or simplicity of LDC benefits, and they take time to deliver results on the ground.
Beyond trade talks, Dhaka is also looking to attract fresh investment, broaden its export base, and deepen economic ties with key partners. The ambition is a managed, smooth graduation — one that protects growth rather than disrupts it.
Whether the government’s diplomacy can move fast enough, and deliver agreements substantive enough, to cushion the blow remains the central question Bangladesh must answer before its LDC status expires.