Bangladesh expects a decision this month on its request for a three-year deferment of LDC graduation, with plans to conclude trade negotiations with eight to ten countries by 2027 and finalise an FTA with the European Union before graduation.
Speaking at a seminar titled "Bangladesh's LDC Graduation Trajectory: Critical Challenges and Exploring Policy Options", jointly organised by the Bangladesh Foreign Trade Institute (BFTI) and the Economic Reporters' Forum (ERF) in Dhaka today (19 October), Commerce Minister Khandakar Abdul Muktadir said the government hoped to secure a decision on the proposed extension by the end of this month, ahead of the 24 November deadline.
The government has already sought the three-year delay, arguing that Bangladesh needs additional time to prepare for the economic and trade challenges of graduation, he said.
"We have reached a broadly unanimous position with the European Union and other stakeholders on the three-year extension. I am very optimistic that we will see a resolution next week or the week after, within October," the minister said.
The minister said the government had also prepared a time-bound action plan to use the proposed extension to strengthen the country's readiness for graduation and shared it with the European Union.
"We have wasted considerable time. We tried to politically glorify graduation while setting aside the economic and financial challenges it would bring," he said, explaining why the government was seeking more time.
Trade deals with eight to ten countries by 2027
Alongside the proposed delay, the government is pursuing trade agreements to protect Bangladesh's export competitiveness as LDC-specific trade preferences are reduced or withdrawn after graduation.
The government expects to complete trade negotiations with eight to ten countries during 2026 and 2027, the minister said.
Negotiations or preparatory work are underway with countries including Oman, Singapore and New Zealand, while the European Union remains a key priority. Bangladesh has already signed Comprehensive Economic Partnership Agreements (CEPAs) with Japan and South Korea, according to the minister.
He said the government wanted to conclude an FTA with the EU before graduation to safeguard access to one of Bangladesh's most important export markets.
The government has appointed a chief negotiator for discussions with the 27-member bloc and is preparing to begin the first technical round, although the date has not yet been finalised.
"I have spoken with ministers from several EU member states, the EU ambassador in Bangladesh and the European trade commissioner. I am hopeful that we will be able to conclude the FTA before graduation," he said.
The minister added that Bangladesh would pursue the Generalised Scheme of Preferences Plus (GSP+) option in parallel but hoped to conclude the FTA before needing to rely on it.
Bangladesh has also received in-principle approval to begin the process of accession to the Regional Comprehensive Economic Partnership (RCEP), a major Asia-Pacific trade bloc. A committee has been formed to oversee the accession process for Bangladesh, Sri Lanka and another country, he said.
The government's objective is to secure wider access to international markets before graduation so that Bangladesh can maintain export momentum, attract investment and integrate more smoothly into global trade.
Inadequate preparation prompted delay request
The minister said Bangladesh had not adequately prepared for the economic and financial challenges of graduating from the LDC category, making additional preparation time necessary.
He cited weaknesses in energy security, inadequate strategic reserves and bureaucratic barriers to investment as major concerns.
Bangladesh remains heavily dependent on imported gas, while the absence of adequate liquefied natural gas (LNG) storage facilities leaves the country vulnerable to international supply disruptions and price volatility, he said.
The country also lacks sufficient strategic reserves of essential commodities, including soybean oil and liquefied petroleum gas, limiting its ability to manage supply shocks, he added.
The minister said Bangladesh needed to attract significantly more investment to sustain economic growth and create jobs for its expanding working-age population.
He estimated that around 20–22 lakh people could join the working-age population each year, increasing the need for new investment and employment opportunities.