Bangladesh needs to adopt a proactive approach, rather than a defensive one, to trade preferences during the transition period after graduating from the least-developed-country club, according to economists.
This shift will help support the development of new and diversified industries, ultimately building a more competitive and prosperous economy, they argued at a dialogue in Dhaka on Monday.
After graduation, the analysts said, Bangladesh will truly need to rely on its skill development, productivity improvement, product diversification and competitiveness enhancement.
Local think-tank Centre for Policy Dialogue (CPD), in partnership with Friedrich-Ebert-Stiftung (FES) Bangladesh, organised the dialogue titled 'What did WTO-MC13 Deliver for the Graduating LDCs? Perspectives from Bangladesh' at the CIRDAP auditorium in the city.
Graduating least-developed countries (LDCs), including Bangladesh, will benefit from a three-year transition period regarding dispute settlement under the World Trade Organization (WTO).
This means other WTO members cannot challenge these countries for non-compliance with WTO rules and regulations during this period.
Graduating LDCs will also remain eligible for LDC-specific technical assistance and capacity building provided under the WTO's Technical Assistance and Training Plan for three years following graduation.
These decisions in favour of LDCs were made at the 13th Ministerial Conference (MC13) of the WTO, which took place from 26 February to 2 March in Abu Dhabi.
However, the conference did not provide a binding commitment on the continuation of preferential market access for the three-year transition period. Although the European Union and the United Kingdom offer such an extension on a bilateral basis.
As the chief guest at the CPD dialogue, State Minister for Commerce Ahasanul Islam (Titu) emphasised using the available time to prepare for the post-graduation challenges, as Bangladesh is set to graduate from the LDC club by the end of 2026.
"Let's not just focus on three years," the minister said. "2029 is five years from now. If we cannot effectively utilise this entire five-year window, the responsibility lies with us, not the WTO or any other entity."
The government is pursuing the negotiation of Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs), Comprehensive Economic Partnership Agreements (CEPAs) and other economic cooperation initiatives over these five years, the state minister added.
According to Mr Titu, negotiation involves compromise. He admitted that the WTO's MC13 was a partial success for Bangladesh, as it did not secure some of the clear commitments the country had sought.
He emphasised developing and diversifying leather, jute, pharmaceuticals and handicrafts as part of the transition from LDC status.
Senior Commerce Secretary Tapan Kanti Ghosh said there are some successes for graduating LDCs at the WTO's MC13.
He concurred that the country needs to focus on competitiveness, skills development, productivity improvement and product diversification. In this context, he stressed crucial reforms to achieve these goals.
CPD Distinguished Fellow Dr Debapriya Bhattacharya underscored the critical nature of how the country utilises its three-year transition period.
He argued that Bangladesh should shift from a reliance on incentives and preferences to a proactive approach that supports the development of new, diversified industries, ultimately building a more competitive and prosperous economy.
Dr Fahmida Khatun, executive director of CPD, chaired the session. Professor Mustafizur Rahman, another distinguished fellow at CPD, delivered the keynote presentation.
Professor Rahman pointed out that while the MC13 outcome document did address some of the concerns and demands of graduating LDCs, it partially and largely fell short of many expectations.
"Some were deferred for further discussions down the line, and for the next conference, MC14, to be held in Cameroon," he added.
The economist also said the country needs to decide on whether to participate in plurilateral trade initiatives.
He also suggested actively pursuing bilateral FTAs and CEPAs to secure the country's trade interests and address competitiveness losses due to reduced trade preferences.
However, he cautioned that these agreements will need to be negotiated on a basis of reciprocity, or at least with minimal concessions offered by Bangladesh, given its graduation from LDC status after 2029.
Taking part in the discussion, Dr Mostafa Abid Khan, a former member of the Bangladesh Trade and Tariff Commission (BTTC), argued that of the three decisions taken at the WTO's MC13, only the one related to LDCs represents a substantive outcome of the conference.
Ms Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development (BUILD), was a distinguished panellist at the event, while Richard Kaniweski, interim resident representative of FES Bangladesh, delivered the introductory remarks.
Among others, Mohammad Muslim Chowdhury, a former Comptroller and Auditor General of Bangladesh; Md Hafizur Rahman, a member of Bangladesh Competition Commission; Dr Md Jafar Uddin, CEO of Bangladesh Foreign Trade Institute (BFTI); and Munir Chowdhury, former head of the WTO cell in the commerce ministry, took part in the discussion.
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