New Zealand assures post-LDC trade access for Bangladesh

New Zealand will continue the duty-free market access for Bangladeshi merchandise and the preferential market access even after the country graduates from the least developed country (LDC) category, said David Pine, non-resident high commissioner of New Zealand to Bangladesh.

He shared the information at a meeting with Commerce Minister Khandakar Abdul Muktadir at the latter’s secretariat office in Dhaka.

At the meeting, both countries also showed interest in exploring the possibility of signing a trade deal, such as a free trade agreement (FTA), to boost investment and bilateral trade, according to a statement from the commerce ministry.

Muktadir said employment generation and rapid growth of investment are important for the country’s sustainable LDC graduation.

The minister said it is also important to maintain the competitiveness of garment exports and ensure preferential market access for the country’s main apparel items.

He also requested the high commissioner to encourage entrepreneurs from his country to choose Bangladesh as an investment destination, as the Bangladesh government has taken many measures to ease doing business.

Bangladesh exported $99.73 million worth of goods to the Pacific island in the last fiscal year 2024-25, with around 90 percent accounting for garment items, according to the Export Promotion Bureau (EPB). During the July-April period of the ongoing fiscal year, the figure stood at $78.93 million.

Pine said that given the current global scenario, export market diversification is not only important, but diversification of import sources is equally important. As a result, both countries can enjoy the mutual benefits of bilateral trade, he added.

The high commissioner said his country has been giving special importance to ensuring that the preferential and duty-free market access of Bangladeshi goods to the New Zealand market is not affected after Bangladesh’s LDC graduation.

He also said that New Zealand goods are well known worldwide for their reliability, high standards, safety, and being free of genetically modified organisms. New Zealand is interested in establishing a stable and long-term trade structure, the statement added.

Bangladesh is scheduled to graduate from the LDC group on November 24 this year if the process is not delayed, as the country has already applied to the UN for a three-year deferment until 2029 for further preparation.

Some countries such as the UK, Canada, and Australia have already assured that they will continue preferential market access for Bangladeshi goods even after LDC graduation.

At the same time, Bangladesh has also been lobbying some of its trading partners to sign trade deals to retain duty-free market access in the post-LDC period.

Bangladesh may lose $17.5 billion worth of exports annually after LDC graduation, as nearly 75 percent of its exports are LDC-induced.