Bangladesh needs enhanced negotiation skill to continue LDC benefits: Experts

As Bangladesh is set to graduate from its Least Developed Country (LDC) status in 2026, the country needs to increase its private sector involvement and enhance negotiation skills to sustain preferential treatment for LDCs, experts have said. 

"In the last 53 years, 60 countries have been promoted from LDCs to developing countries. Fifteen countries are at different stages of LDC graduation and 5 countries, including Bangladesh, have fixed time for LDC graduation," said Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, while addressing a roundtable on "The Outcome of 13th Ministerial Conference, Abu Dhabi, UAE" organised by the Institute of Chartered Accountants of Bangladesh today (24 March).

Addressing as the chief discussant, Prof Mustafizur further said being a less developed country, the benefits such as duty-free, quota-free and preferential treatment which are getting continued for some more time should be strongly negotiated. 

To continue the benefits, he recommended negotiations with countries such as Japan, Canada and South Korea who have been providing tariff benefits to LDCs.

To get flexibility in fisheries subsidies, Bangladesh needs to take steps to negotiate as well as enter into various agreements, he said, adding, "At present, no tariffs are imposed on e-commerce in LDCs. As a result, Bangladesh is avoiding around 40 million dollars in customs duties annually. It should also be discussed."

Mustafizur further said there are three issues in front of Bangladesh – a less developed country, developed from a less developed country, and a developing country. "Work should be done keeping in mind production, efficiency and a competitive market. With no market access after 2026, product diversification will be required to survive. Export trade should be diversified." 

He said the country needs to make more free and comprehensive trade agreements. 

ICAB President Mohammed Forkan Uddin delivered the welcoming speech at the roundtable. 

He said the country needs to consider the situation after its LDC graduation, in terms of preferential market access, preferential treatment for services and service suppliers and special treatment regarding obligations and flexibilities under World Trade Organisation (WTO) rules.

The Abu Dhabi Ministerial Conference approved a two-year extension of the e-commerce moratorium, which may help in implementing the government's Smart Bangladesh Vision by 2041, despite possible loss of some revenue, he added.

"Despite being a net importer of food and agricultural products, Bangladesh is yet to be included in the category of Net Food Importing Countries.

"There was no agreement on agriculture at the Abu Dhabi Ministerial Conference. Bangladesh also has concerns regarding export restrictions by other countries," he added.

In her speech, Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development, said, "Private sectors need more attention, especially concerning anti-dumping products. Trade discussions are becoming increasingly difficult."

She also called for increased collaboration among academia and industry. 

In his speech, FBCCI Advisor Manzur Ahmed said foreign trade should be integrated through regional bilateral and alternative commercial agreements. 

"In the future, Bangladesh needs to pay particular attention to the implementation of multilateral trade in terms of reality," he added