Bangladesh Commerce Minister Tipu Munshi recently called upon the Japanese Government to extend the zero-duty benefit — which the former currently enjoys for its exports to Japan as a least developed country (LDC) — by at least 5 more years even after Bangladesh graduates from the LDC status.
According to media reports which cited a statement issued by the Commerce Ministry in this regard, Tipu Munshi made this appeal during his recent meeting with the Japanese Ambassador to Bangladesh, Naoki Ito.
It may be mentioned here that Japan has turned into a major export destination for Bangladesh, especially for apparel items, on the back of zero-duty benefit that the country enjoys as an LDC to the Japanese market.
However, following graduation from LDC status to a developing country — as per the assessment of the UN Committee on Development Policy (UN CDP), Bangladesh is scheduled to graduate to a developing country in 2024 — Bangladesh will lose the preferential trade benefit subsequent to which exporters would have to pay duty on exports thereby reducing Bangladesh’s competitiveness in the global market.