Govt to rally support to defer LDC graduation

Bangladesh will use the World Trade Organization’s (WTO) 14th ministerial conference in Cameroon next week to garner support for deferring its graduation from the group of least developed countries (LDCs), said officials familiar with the matter.

The government last month asked the UN Committee for Development Policy (UN CDP) to extend the preparatory period for LDC graduation until November 2029. The committee discussed Bangladesh’s request at its annual meeting in New York last month and has set up a process to evaluate the application.

“We will seek support from other countries at the WTO ministerial conference for the deferment of the country’s LDC graduation,” Commerce Secretary Mahbubur Rahman told The Daily Star over the phone yesterday.

Meanwhile, Bangladesh will also use the sidelines of the March 25-31 WTO conference in the Cameroonian capital of Yaoundé to pursue membership of the China-led Regional Comprehensive Economic Partnership (RCEP) with cooperation from other countries.

Bangladesh has been trying to join the mega free trade agreement among Asia-Pacific countries for some years now.

Other priorities on Bangladesh’s agenda for the conference include e-commerce, foreign direct investment, and fisheries subsidies. On the last item, Bangladesh has agreed to reduce funding for the fishing of rare and endangered species, Rahman said.

The secretary also informed that while the US reciprocal trade deal will be widely discussed at the conference, it is not on Bangladesh’s formal agenda. “If any country wants to discuss this issue, then Bangladesh can participate in the discussion.”

WTO reform is expected to dominate this year’s ministerial, an area where Bangladesh may have limited involvement.

SUPPORT FOR GRADUATING LDCS

While Bangladesh is looking to get international support for its LDC deferment agenda, economists say it might be easier said than done.

The WTO does not have a separate, recognised group for graduating LDCs, according to a paper by Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue, and Tanbin Alam Chowdhury.

Bangladesh will need to work within the LDC group, which is generally supportive of graduating members since all current LDCs will eventually transition out, the paper said.

It also recommended that Bangladesh take the lead in pursuing graduating LDC agendas at the conference.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), said it is difficult to predict how much support Bangladesh can secure for deferring graduation.

Gambia, as LDC coordinator, has proposed allowing LDCs and graduating LDCs with per capita real income below $1,000 -- measured using 1990 US dollar exchange rates -- to continue providing subsidies.

Under that criterion, Bangladesh would qualify to maintain subsidies in various sectors, Razzaque said.

Gambia has also sought an extension of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) for graduating LDCs, which would benefit Bangladesh by preserving its patent waiver facility on goods such as medicines beyond graduation.

But concrete decisions at the ministerial conference will be difficult given fragmentation in global trade caused by US reciprocal tariffs and the US-Israel war on Iran, Razzaque said.

“If all the LDCs and graduating LDCs can raise their voice collectively, a few good decisions may come from the conference, because the WTO also has an agenda for LDCs,” he added.