Dhaka: Commerce Adviser Sk. Bashir Uddin announced today that Bangladesh and Japan have finalized the draft of an Economic Partnership Agreement (EPA), scheduled for signing next month. This agreement marks Bangladesh’s first-ever economic partnership with another country, aimed at significantly boosting bilateral trade, investment, and economic cooperation.
According to Bangladesh Sangbad Sangstha, the agreement will see Bangladesh opening 97 sub-sectors for Japan, while Japan will reciprocate by opening 120 sub-sectors for Bangladesh. The announcement came during a press conference on Bangladesh-Japan EPA negotiations held at the Commerce Ministry conference room at the Bangladesh Secretariat. Notable attendees included Chief Adviser’s Special Envoy on International Affairs Lutfey Siddiqi, Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Chowdhury Ashik Mahmud Bin Harun, and Commerce Secretary Mahbubur Rahman.
Once the agreement is in effect, 7,379 Bangladeshi products will gain immediate duty-free access to the Japanese market. Conversely, 1,039 Japanese products will enjoy duty-free access to the Bangladeshi market from the first day. Sk. Bashir Uddin highlighted that the EPA draft was finalized after intensive negotiations, stating that he had a phone conversation with Japan’s foreign minister to confirm the signing next month.
Lutfey Siddiqi emphasized the challenges faced in entering such an agreement for the first time but acknowledged the collective government efforts that led to its successful negotiation. Chowdhury Ashik Mahmud Bin Harun noted that while Japan has been a longstanding development partner, Japanese investment in Bangladesh remains relatively low. The EPA is expected to remove barriers and attract more Japanese investment, which has previously been hindered by the lack of a structured economic agreement.
Mahmud Bin Harun further mentioned regional competition with countries like Vietnam, which has multiple trade agreements. He expressed optimism that this agreement would facilitate future partnerships and ease challenges related to Bangladesh’s graduation from the Least Developed Countries (LDC) status.
Commerce Secretary Mahbubur Rahman shared that the negotiation process began at the end of 2024, culminating in the finalization of the agreement after eight rounds of meetings. The agreement is anticipated to bring extensive trade and economic benefits, including trade expansion, increased investment, and new employment opportunities, heralding a new chapter in Bangladesh-Japan economic relations. The agreement will be signed following approval from the Council of Advisers or cabinets of both countries and the completion of legal formalities.
An Economic Partnership Agreement (EPA) typically aims to establish a free trade area by reducing tariffs, import quotas, and other trade barriers, thereby facilitating greater trade in goods and services and strengthening long-term economic cooperation.