The Way forward for identified promising and sustainable export-oriented industries following LDC Graduation

Bangladesh is going to graduate into a developing economy by 2026. This graduation may affect the local and export market of our country. Our export-oriented industries including leather, jute and jute products, agriculture and Agro-processing, IT & IT enabled Services (ITES) and pharmaceuticals and Light-engineering besides RMG sector will lose cash incentives after 2026. Apart from this, Bangladesh as a graduating country will face some economic challenges due to the loss of LDC-specific International Support Measures (ISMs), such as preferential market access, loss of LDC-specific ISMs. Taking these challenges into consideration, this study based on survey and KIIs aims to find way forward and alternatives to follow for export market sustenance. The study finds that various laws such as company law, bankruptcy law, partnership law, and taxation law need to be reformed. Besides, it is important to emphasize negotiation for easing the requirements of Rules of Origin (RoO) and capacity building for remaining competitive in the global export market. Furthermore, we also referred how developing countries like Vietnam, Korea, Thailand absorbed new incentive schemes and supports to sustain the export market upon their graduation in line with the WTO standards.