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Experts on Monday at a discussion suggested delaying the country's LDC graduation until it is ready to absorb the shock after the graduation happens.
Giving instances of some other countries, they also said Bangladesh can delay the deadline for its transition from a least developed country (LDC) to a developing one, as this is not a difficult process.
Bangladesh’s major export destinations are the US and EU countries, which would face higher tariffs if the country is graduated.
They made the suggestions at the discussion styled “the impact and challenges of Bangladesh's transition from the LDC list” at the Press Institute (PIB) in the city, jointly organised by an international research organisation Third World Network (TWN) and Nagorik Uddyog (The Citizen's Initiative).
Senior researchers of TWN Sanya Reid Smith and Ranja Sengupta, Taslima Jahan, a lawyer and intellectual property law expert at the Supreme Court, spoke at the event, among others.
They said Bangladesh can submit a delay request at any point before the final approval stage at the General Assembly in the LDC transition process.
Sanya Reid Smith said many countries have extended the deadline for LDC graduations, with some having a longer pause.
Countries like Myanmar and Timor have delayed the graduation, citing political or economic reasons despite meeting the criteria at the UN committee level, she stated.
Bangladesh has seen some major events that affected the local economy, while there have been changes in domestic and international politics and trade, she added.
The decision to graduate was taken during the previous government. Subsequently, there have been major changes in the local politics and economics, the experts highlighted.
Furthermore, the US President Donald Trump's tariff policy has created the biggest global trade shock in the last 200 years. These issues were not known when the decision was made on Bangladesh's LDC graduation, Ms Smith underlined, adding that “all those changes create a rationale for Bangladesh to delay the LDC. Now the Bangladesh government has to decide whether they want this.”
The experts also said Bangladesh will lose some important economic benefits with the LDC transition. Bangladesh can now produce and export new drugs without intellectual property restrictions in the pharmaceutical industry.
After the transition, patents will be mandatory on these drugs, which may reduce investment and make the drug costlier.
Sengupta said at least nine countries have postponed the LDC transition deadline in the past decade.
“Transition does not only mean meeting the per capita income criteria; rather, it is important to consider whether it can survive in the competition after losing duty-free benefits in the international market. Therefore, it is risky to rush if you are not prepared,” she added.
Taslima Jahan said that as an LDC, Bangladesh used to enjoy some special relaxations or exemptions in intellectual property rights (IPR). After the LDC transition, these benefits will gradually be limited or discontinued.