Bangladesh seeks EU support for LDC graduation deferment

Bangladesh today sought the European Union's (EU) support for deferring its graduation from the group of least developed countries (LDCs).

Commerce Minister Khandakar Abdul Muktadir raised the issue at a bilateral meeting with Maros Sefcovic, EU Trade Commissioner, on the sidelines of the 14th WTO Ministerial Conference in Yaounde, Cameroon.

"We have sought EU support for the deferment as we need it," Muktadir told The Daily Star after the meeting.

Bangladesh will need backing from a majority of UN member countries at the upcoming General Assembly in September in New York to secure a three-year deferment.

"We are hopeful that not only the EU but other countries will support us for the deferment," the minister said.

Last month, the UN Committee for Development Policy (CDP) initiated a process to assess Bangladesh's request to defer its LDC graduation, currently slated for later this year, to 2029. If not resolved through discussion, the plea will be put to a vote at the UN General Assembly.

The minister also urged the EU trade commissioner to begin negotiations on a free trade agreement (FTA), following a proposal Bangladesh submitted to the EU several months ago.

According to Muktadir, the EU commissioner raised questions about labour conditions, to which the minister replied that Bangladesh had already amended its labour law in line with International Labour Organisation (ILO) recommendations.

The minister further called for expanding bilateral trade between Bangladesh and the 27-nation EU bloc. Currently, Bangladesh exports goods worth over $25 billion annually to the EU, predominantly garments, while importing around $6 billion in return.

Bangladesh is seeking the deferment amid concerns from the business community that it is unprepared to face the challenges of graduation.  Immediate graduation could trigger significant export loss due to the withdrawal of preferential trade benefits.