Govt Boosts Trade Transition Efforts Post-LDC Graduation: Bashir

"We are leveraging all available capacities and taking comprehensive measures to ensure no gaps in trade initiatives, particularly in our Smooth Transition Strategy (STS)," Bashir said in an interview with the national news agency BSS.

Bashir's comments come as Bangladesh negotiates various trade agreements, including Economic Partnership Agreements (EPAs), Free Trade Agreements (FTAs), and Preferential Trade Agreements (PTAs) with several countries. He highlighted that the Ministry of Commerce's FTA, WTO, and Export Wings are working in tandem to address these challenges. "I have also engaged with economists, think tanks, and trade advisers in countries like Korea and Japan to better understand and navigate these complexities," he added.

While acknowledging that negotiating such agreements is difficult due to conflicting bilateral interests, Bashir stressed that the interim government is working diligently to address these issues. He noted that critical preparatory steps were delayed over the past five years, putting the economy at a disadvantage.

“The current government is working tirelessly to correct this and ensure that trade liberalization benefits are balanced with local investments and their potential consequences,” he said.

As Bangladesh is set to graduate from LDC status in November 2026, Bashir pointed out the country will lose its preferential trade benefits. "Unfortunately, we squandered five years when we could have prepared for this transition," he lamented.

Reflecting on the Preferential Trade Agreement (PTA) with Bhutan, signed in 2020 and implemented in 2022, Bashir described it as ineffective. "The agreement was essentially symbolic. The trade volume with Bhutan has actually declined, with no tangible changes in the tariff structure," he remarked.

Now, Bashir said, dealing with PTAs and FTAs is one of the government’s top priorities. He explained that Bangladesh’s trade volume typically reaches over $150 billion annually, with imports outpacing exports. "Our goal is not only to boost exports but also to ensure we can import at competitive prices," he said.

To manage this large trade volume, Bashir emphasized the need to streamline the tariff structure, customs duties, and encourage both local and foreign investments. "Only through these investments can we create sustainable employment opportunities and ensure economic growth," he added.

As Bangladesh prepares for a liberalized trade economy in 2026, Bashir expressed concern about the lack of planning in recent years, which he believes jeopardizes local investments. "Now, as we approach this critical phase, we need to ensure that the country is prepared for potential risks to local investments," he cautioned.

Despite progress in negotiating EPAs with Japan and South Korea, discussions with other key partners, including India, Thailand, Malaysia, and China, have yet to gain significant momentum. "To secure preferential trade benefits after LDC graduation, we must expedite these negotiations," Bashir stressed.

With Bangladesh’s graduation from LDC status set for November 2026, Bashir underlined the importance of signing bilateral trade deals. "These agreements will be crucial to retaining trade benefits even after graduation," he concluded.

In addition to the existing trade benefits from regional agreements like SAFTA and APTA, Bangladesh’s ability to secure favorable trade deals with global partners will be vital to its post-graduation economic strategy.