Bangladesh braces for post-LDC economic shift
Bangladesh will lose preferential trade benefits when it exits the Least Developed Country category in November 2026, threatening its garment export sector that generates over 80 percent of foreign earnings. The International Chamber of Commerce Bangladesh warned that the European Union, Canada, and Australia will impose tariffs of 10 to 12 percent on ready-made clothing from Bangladesh after graduation. The country faces mounting external debt exceeding $100 billion while managing inflation and recovering from supply chain disruptions that followed civil unrest in July 2024.
The chamber joined 15 trade organizations on Aug. 24, requesting a three to five-year postponement of the graduation to allow economic restructuring. Bangladesh met United Nations requirements for advancement through improved income levels, human development, and reduced economic vulnerability. The textile industry must boost productivity and expand into pharmaceuticals, information technology, leather goods, and shipbuilding to offset lost market access advantages and adapt to stricter environmental regulations.
