Commerce Adviser Salehuddin Ahmed on Sunday said that Bangladesh would take a measured approach to its graduation from the least developed country status, carefully considering all factors to ensure a smooth transition.

He made the remark during a briefing at the commerce ministry in Dhaka.

‘Business leaders prefer delaying LDC graduation to retain trade benefits for a longer period, and we understand the concerns of businesses, especially those in export sectors,’ the adviser added.

‘Business leaders prefer to delay the LDC graduation to retain trade benefits for a longer period and we understand the concerns of businesses, particularly those focused on exports,’ the adviser said.

Prior to the press briefing, Salehuddin launched negotiation of Bangladesh-Singapore free trade agreement.

He said that the government formally began negotiations with Singapore to sign a FTA aimed at boosting bilateral trade between the two countries.

Bangladesh and Singapore share a close relationship and it is expected that trade will grow once the FTA is finalised, Salehuddin said. He, however, did not specify when the agreement would be concluded.

He also said that businessmen were concerned about the impact of LDC graduation, as it would erode preferential trade benefits they currently enjoyed.

He said that the decision on LDC graduation would not be made hastily, as it was closely linked to various issues, including Trade and Intellectual Property Rights or TRIPs and would be taken in the greater interest of the country’s people.

‘The transition plan is progressing and we have developed a strategy for a seamless transition,’ Salehuddin said.

He also said that the government would continue negotiations for FTAs with other countries, including Malaysia, Indonesia, Japan and India.

High commissioner of Singapore to Bangladesh Derek Loh said that the issue of signing an FTA between Bangladesh and Singapore was first raised in June 2021.

Since then, a joint committee has been formed and both countries have held meetings and conducted a feasibility study to facilitate the start of negotiations.

In 2022, the two nations signed a memorandum of cooperation to strengthen trade and commerce between them.

Loh said that the signing of the FTA would be mutually beneficial for both countries, creating a win-win situation.

He also said that the FTA would significantly enhance bilateral trade, particularly in areas such as infrastructure, power, economic development, trade, investment, logistics and transportation.

Chief adviser’s special envoy on international affairs Lutfey Siddiqui said that the government had been implementing reforms to create a more conducive environment for investment.

He said that the FTA would strengthen bilateral relations, particularly in services and investment.

Additionally, the FTA will enhance Bangladesh’s access to Southeast Asian markets.

Siddiqui said that Singapore could become a significant source of investment for Bangladesh, particularly in areas such as power, energy, transport, logistics and importantly, people-to-people exchanges between the two countries.

The signing of the FTA is expected to boost foreign direct investment, technical cooperation and overall trade relations, he mentioned.

Siddiqui acknowledged that businesses were seeking a delay in Bangladesh’s transition from LDC to a developing country, scheduled for November 2026, in order to continue benefiting from LDC trade privileges, which would help enhance their competitiveness on global markets.

Commerce secretary Md Selim Uddin said that the government had been negotiating FTAs with several countries and regions, including Indonesia, Malaysia, Japan, the Regional Comprehensive Economic Partnership and the Association of Southeast Asian Nations.

Bangladesh Investment Development Authority executive chairman Chowdhury Ashik Mahmud Bin Harun expressed hope that through the FTA negotiations, Bangladesh would secure a prominent place in history, similar to Singapore.