Bangladesh mulls taking reasonable time for its scheduled graduation to a developing nation from the status of least developed countries (LDCs) in 2026.
"Bangladesh will not go for graduation hurriedly. Instead, it would take some more time," said Finance and Commerce Adviser Dr. Salehuddin Ahmed, as he was responding to a question from the media after holding a introductory discussion on Free Trade Agreement (FTA) between Bangladesh and Singapore at the commerce ministry on Sunday.
Chief Adviser's Special Envoy on International Affairs Lutfey Siddiqui, BIDA Chairman Chowdhury Ashik Mahmud Bin Harun, Commerce Secretary Md. Selim Uddin, and High Commissioner of Singapore in Dhaka Derek Loh spoke at the meeting. Seniors officials of the ministry and visiting delegation members of Singapore were also present at the event.
The government has formally started negotiations to sign an FTA with Singapore to help boost bilateral trade between the two nations. Both Bangladesh and Singapore expect that the trade of the two countries will grow once the FTA gets through.
Salehuddin further said that the country's businessmen are concerned about their trade future, as the LDC graduation will cut the preferential trade facilities in different developed countries.
About the FTA, the commerce adviser said the government will continue negotiations for signing the FTAs with different countries including Japan, Malaysia Indonesia and India.
Commerce Secretary Md. Selim Uddin mentioned that the government has actively been engaged in negotiating with some countries and regions to sign the FTAs.
Speaking on the occasion, Derek Loh said the issue of signing the FTA between Bangladesh and Singapore was raised in June 2021. Both nations will benefit from the signing, he said.
The FTA promises bilateral trade much more in the areas including infrastructure, trade, power, economic development, investment, logistics and transportation, the envoy said.
In 2022, both countries signed a Memorandum of Cooperation (MoC) in order to boost trade and commerce.
In his speech, Lutfey Siddiqui said the government has been continuing reforms to create a congenial investment environment. The FTA signing will also contribute to an increase in the FDI, technical cooperation and trade and cooperation between the two countries, he said.
Bangladesh is scheduled to be graduated from the LDC to a developing nation in November 2026, but businessmen are worried, as they will lose preferential trade benefits due to the sudden graduation, which could adversely affect businesses.
In the last Ministerial Conference of the World Trade Organization (WTO), the ministers decided to allow the continuation of the LDC trade benefits to the graduating LDCs for three more years, but the LDCs will have to negotiate bilaterally to obtain the benefits.
The European Union will continue the LDC trade benefit for Bangladesh up to 2029 as it offers three years of grace period to the graduating LDCs. Few other countries like Canada, the UK and Australia will also continue the LDC trade benefits for Bangladesh even after the graduation.
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