What are the benefits of LDC classification?
- The WTO recognises LDCs relying on a classification by the UN based on a criteria that is reviewed every three years. LDCs are often exempted from certain provisions of WTO pacts.
- Bangladesh, currently classified as an LDC, receives zero duty, zero quota access for almost all exports to the EU.
- It is, however, set to graduate from the LDC status in 2026 as its per capita GDP has risen sharply surpassing that of India in FY21.
