The Policy Research Institute (PRI) has highlighted the urgent need for comprehensive trade policy reforms as Bangladesh prepares for its graduation from Least Developed Country (LDC) status in November 2026. Economic experts emphasize that proactive policy changes will help the country maintain its competitive edge in global markets while transitioning to a new economic phase. Two key external pressures are driving the urgency for reform, according to PRI analysis. The LDC graduation will expose Bangladeshi exports to higher tariffs globally unless the country can secure preferential trade agreements. This transition presents both challenges and opportunities for Bangladesh’s economy as it moves toward becoming a middle-income nation. The graduation process requires careful planning and strategic preparation. Bangladesh is scheduled to graduate on November 24, 2026, marking a significant milestone in the country’s economic development journey. This achievement reflects the nation’s progress in income levels, human development, and economic vulnerability reduction over the past decades. Current trade policies need modernization to address changing global dynamics. Bangladesh’s average import tariff is almost triple the global average, creating room for improvement in trade competitiveness. Reducing these tariffs strategically could help local industries become more efficient while maintaining necessary protections for emerging sectors. The government has recognized the importance of this transition period. The 8th Five-Year Plan (2021-2025) has been designed to cater to the needs of smooth graduation, with a high-level committee established at the Prime Minister’s Office to devise appropriate strategies. Seven subcommittees have been set up to address various aspects of the graduation process. The transition brings both opportunities and responsibilities. After graduation, Bangladesh will need to comply with substantive provisions of international trade agreements, including TRIPS, which will affect intellectual property regulations. However, the country will also gain access to new markets and investment opportunities previously unavailable to LDCs. Trade policy reforms must balance multiple objectives. The graduation from LDC status necessitates a critical balancing act between protecting domestic industries and conforming to a liberalized global trade regime. This requires careful consideration of which sectors need continued protection and which can benefit from increased competition. Looking ahead, Bangladesh’s success in this transition depends on implementing smart reforms that enhance competitiveness while protecting vulnerable sectors. The country has the opportunity to use this graduation as a stepping stone toward becoming a more integrated and prosperous member of the global economy. With proper planning and strategic policy implementation, Bangladesh can turn the challenges of LDC graduation into opportunities for sustained economic growth and development.
