Bangladesh unveils five-year trade strategy to tackle post-LDC graduation challenges

Bangladesh is set to roll out a new five-year action plan to strengthen its trade capacity, improve the investment climate and boost competitiveness in global markets as the country prepares to graduate from the Least Developed Country (LDC) category.

The initiative will be implemented under the Country Programme Document (CPD) for the third phase of the Enhanced Integrated Framework (EIF), a World Trade Organization (WTO)-led programme that helps LDCs build trade capacity, according to a press release.

Commerce Secretary Ataur Rahman Khan announced the plan while speaking at a validation workshop on the CPD held at the Ministry of Commerce in Dhaka on Sunday.

He said Bangladesh is at a crucial stage in its economic transition, facing the twin challenge of preparing for LDC graduation while addressing non-tariff barriers, meeting international compliance standards and improving the country's investment environment.

"The recommendations from the previous phases of the EIF have been incorporated into the Country Programme Document. It includes 12 priority activities aligned with Bangladesh's trade capacity-building and reform agenda," he said.

Ataur Rahman Khan stressed that drafting policies and preparing research reports alone would not be enough, noting that the success of the initiative would depend on effective implementation.

"In addition to studies, the document must provide practical guidance on implementing reforms effectively so that their benefits reach ministries, departments and relevant agencies at all levels," he said.

He also highlighted the need to strengthen trade facilitation, advance trade liberalisation, reform legal and regulatory frameworks and improve coordination among ministries to create a more business-friendly environment.

Speaking at the workshop, Additional Secretary (WTO) at the Ministry of Commerce Khadiza Nazneen said the WTO's Enhanced Integrated Framework provides financial support to LDCs for trade capacity development with assistance from development partners, including the United Kingdom, the European Union and Sweden.

She noted that Bangladesh had successfully completed the first two phases of the EIF programme, implemented between 2009 and 2015 and from 2016 to 2024, respectively.

"The third phase will now begin. Based on the Country Programme Document, Bangladesh will receive financial assistance to implement the programme, which is expected to commence this year and continue for five years," she said.

Former Additional Secretary and EIF consultant Md Hafizur Rahman said the CPD was prepared by incorporating recommendations from existing national policies, strategies and earlier studies.

He said the priority areas were identified based on the Diagnostic Trade Integration Study (DTIS), the Export Policy, Industrial Policy, Trade Policy, the WTO Trade Facilitation Agreement and investment facilitation initiatives.

"Initially, around 52 project ideas were identified. These were later narrowed to 12 priority activities after considering the expected support from development partners and implementation capacity," he said.

The selected activities include export capacity development, trade facilitation, improving the investment climate, strengthening institutional capacity, training, research and the application of artificial intelligence (AI) in trade-related activities.

The workshop was also attended by Additional Secretary (FTA) Ayesha Akter, Additional Secretary (IIT) Shibir Bichitra Barua, and representatives from various ministries, government agencies and stakeholder organisations.

Participants expressed confidence that successful implementation of the third phase of the EIF programme would help Bangladesh sustain its competitiveness in global trade and attract new investment following its graduation from the LDC category.