Considering the risks, the graduating countries will face on account of losing LDC-specific support measures as well as due to the fallouts of coronavirus pandemic, Bangladesh Foreign Minister AK Abdul Momen has sought incentive-based and long-term package for nations graduating and graduated from the LDC status.
The Foreign Minister made this call while addressing a high-level virtual event on ‘Building Resilience for Sustainable and Irreversible Graduation of the LDCs’ as a keynote speaker.
Speaking at the event hosted by the Permanent Mission of Bangladesh in New York in collaboration with the Permanent Mission of Canada and the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (OHRLLS), the Finance Minister maintained that most of the LDCs (least developed countries) had limited fiscal buffers and absence of ex-ante insurance schemes against shocks, thereby making the graduation trajectory highly challenging for them even as he highlighted the importance of adequate financing and resources as critical means for LDCs to keep pace with graduation expectations.
The Foreign Minister further underlined the importance of promoting export diversification in the LDCs with a firm commitment to duty-free, quota-free (DFQF) market access, incentivising job creation, skills development while also enhancing South-South and trilateral cooperation, enhancing monitoring and support mechanism in the post-graduation phase, etc.
It may be mentioned here the LDC graduation will come with its own share of positives and drawbacks; however, it could have an adverse impact on the country’s apparel industry as apparel exports would cease to enjoy the duty privileges that it currently enjoys owing to Bangladesh being in the league of LDC nations still.