Relief For Bangladesh As WTO Extends Duty-free Market Access Till 2029
Bangladesh has successfully secured a three-year extension of duty-free market access following its graduation to a developing nation in 2026. The decision, endorsed by 166 members of the World Trade Organisation (WTO) at its Ministerial Conference in Abu Dhabi on March 1st, ensures continued trade benefits for Bangladesh until 2029.
The extension comes after intense negotiations spanning over five days during the 13th WTO Ministerial Conference. Bangladesh, set to leave the least-developed country (LDC) category on November 24, 2026, faced uncertainty regarding the loss of approximately US$ 7 billion worth of trade annually post-graduation. However, with the extension, these concerns have been alleviated.
The initiative for the extension originated from the LDC group, chaired by Djibouti, which appealed to the WTO and other UN bodies in 2020. The Covid-19 pandemic and subsequent economic challenges, compounded by the Russia-Ukraine war in 2022, underscored the need for continued support to graduating LDCs.
The decision to extend trade benefits was first considered at the 12th Ministerial Conference in Geneva in June 2022, with further discussions culminating in the recent endorsement. Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD) in Bangladesh, emphasized the significance of the extension, stating that it not only benefits Bangladesh but also opens opportunities for other graduating LDCs.
With the extension, Bangladesh can now negotiate for trade benefits with various countries, including the European Union, China, India, UK and South Korea. However, it will not enjoy such benefits in the US, as the country lacks a preferential duty programme for LDCs.
Bangladesh’s international trade has thrived on the duty-free benefits under the LDC category, with 73 per cent of the country’s shipments currently enjoying LDC-linked market access. This support has been instrumental in establishing Bangladesh as the second-largest apparel supplier globally, following China, and as the highest beneficiary of duty-free trade benefits among 45 LDCs.
