Bangladesh’s LDC graduation deferred by 3 years
The United Nations has finalised the process to defer Bangladesh’s graduation from the group of least developed countries, or LDCs, by three years.
The UN General Assembly adopted a resolution at a plenary meeting on Thursday, New York time, granting the same extension to Nepal alongside Bangladesh, which has been on the LDC list since 1975.
The additional time came in response to Bangladesh’s request to extend its preparatory period for LDC graduation from Nov 24 this year to Nov 24, 2029.
Uruguay’s representative, on behalf of the Group of 77 and China, introduced the draft resolution seeking to defer the graduation of the two South Asian nations from LDC status.
The resolution was subsequently adopted by a voice vote. The session was chaired by the president of the 81st session of the UN General Assembly, Bangladesh Foreign Minister Khalilur Rahman.
No country took the floor to comment on Bangladesh’s request or oppose the proposal.
Representatives of France, Canada and Ireland, the latter speaking on behalf of the European Union, voiced support for deferring the LDC graduation of Bangladesh and Nepal.
They, however, also stressed the need for Bangladesh to press ahead with its reform agenda.
A day after taking office on Feb 17, the new BNP-led government sent a letter to the United Nations requesting a three-year extension of the preparatory period for LDC graduation.
Bangladesh’s graduation process began in 2018, with the preparatory period initially scheduled to end in 2024.
But the country was granted an additional two years because of the COVID-19 pandemic. Bangladesh had therefore been scheduled to leave the LDC category on Nov 24, 2026.
With the latest extension, Bangladesh will continue to enjoy its existing LDC benefits until 2029.
As an LDC, Bangladesh enjoys duty-free and quota-free access to European export markets. Those benefits are not expected to continue in the same form once the country graduates to developing-country status.
Businesses had also been calling for additional time to prepare for the loss of duty-free trade benefits after graduation, address potential challenges facing the pharmaceutical and readymade garment industries, and navigate the country’s current economic difficulties.
Following the change in government, Prime Minister Tarique Rahman wrote to the UN secretary-general on Apr 6 seeking his personal support for the extension, after the BNP-led government submitted its request on Feb 18.
The finance ministry said in a statement on Jun 2 that the UN Committee for Development Policy, or CDP, had responded positively to Bangladesh’s request.
The UN Economic and Social Council, or ECOSOC, then recommended on Jul 21 that the General Assembly take a final decision on Bangladesh’s request for an extension of its LDC graduation preparatory period.
The adoption of the resolution by the General Assembly on Thursday finalised the decision.
If all goes according to plan, Bangladesh and Nepal will now graduate to developing-country status on Nov 24, 2029.
