Biz leaders for delaying LDC graduation by 5 to 6 years

Leaders of the country’s top business and trade bodies today (Sunday) jointly stressed the need to delay Bangladesh’s scheduled LDC graduation by five to six years.

“Our entrepreneurs and business chambers strongly support graduation,” said Mahbubur Rahman, president of the International Chamber of Commerce (ICC) Bangladesh. “However, we stress the need for a three- to five-year extension,” he added while delivering his introductory speech at a press briefing in Dhaka. 

The press conference, titled “LDC Graduation: Challenges Ahead,” was organised by ICC Bangladesh along with FBCCI, DCCI, MCCI, CCCI, FICCI, BCI, BAB, BIA, BGMEA, BKMEA, BTMA, BAPI, BAPLC, BSIA, and LFMEAB.

Mr Rahman said Bangladesh has already fulfilled all three UN criteria, GNI, Human Assets Index, and Economic Vulnerability Index, through two consecutive reviews, putting the country on track to officially graduate from the Least Developed Country (LDC) category in November 2026.

“This achievement is a matter of national pride, reflecting Bangladesh’s 50 years of resilience, growth, and industrial progress,” he noted.

However, Mr Rahman underscored that the business community welcomed the graduation but urged careful preparation to ensure the transition leads to lasting success.

“Graduation will bring new responsibilities and risks,” he added. 

He outlined a series of risk factors, including the possible loss of duty-free market access in key export destinations, where tariffs of up to 12 per cent could be imposed. This may result in a 6–14 per cent drop in exports, he said.

The senior business leaders also raised concerns over the end of WTO special and differential treatment, such as export subsidies and relaxed TRIPS rules. “This will make patent rules stricter for the pharmaceutical sector and increase compliance costs,” Rahman cautioned.

He explained that Bangladesh’s pharmaceutical industry currently supplies 98 per cent of local demand and exports to more than 150 countries, but it urgently needs a TRIPS waiver extension. “Without at least six more years to prepare, patent drugs like cancer and antiviral medicines will become unaffordable, harming both public health and export competitiveness,” he said.

Citing precedents, Rahman noted that several countries had previously deferred their LDC graduation. “These examples show it’s not uncommon to seek more time to prepare for post-LDC challenges—especially when facing political and external shocks or lacking the reforms and infrastructure needed for a sustainable transition,” he explained.

He further added that the proposed five- to six-year deferment would give Bangladesh the time to secure trade deals with the EU, UK, ASEAN, and Gulf countries to offset potential US tariff shocks.

In response to a question, Rahman said the business bodies would jointly submit their proposal on deferring the LDC graduation. He emphasised that the current debate is not about “if” Bangladesh graduates, but “how” it graduates.

Successful graduation, he said, requires defending market access through smart trade diplomacy; building competitiveness through technology, skills, and infrastructure; acting with urgency - moving from planning to execution; branding Bangladesh globally; financial sector reform; improving the ease of doing business; ensuring diversified and reliable energy through exploration, renewables, efficiency, and regional power networks.

“We believe if managed properly, Bangladesh can transform LDC graduation from a challenge into an opportunity, positioning itself as a strong and competitive middle-income economy by 2031,” Mr Rahman added.

“Graduation is certain, but success is not guaranteed. It depends on how urgently and collectively we act,” he said. 

BAPLC Member Mohammad Iqbal Chowdhury; LFMEAB SVP Mohammed Nazmul Hassan; BCI President Anwar-ul Alam Chowdhury (Parvez); BIA President Sayeed Ahmed; BKMEA President Mohammad Hatem; ICCB Vice Presidents Naser Ezaz Bijoy & A. K. Azad;  MCCI President Kamran T Rahman; BAB Chairman Abdul Hai Sarker; BGMEA President Mahmud Hasan Khan; DCCI SVP Razeev H Chowdhury; FICCI Director Rubaba Dowla; BAPI President Abdul Muktadir and BSIA SVP M. E. Chowdhury Shameem, were present at the event, among other business leaders.