Dhaka: Bangladesh and Japan have successfully concluded negotiations for the Bangladesh-Japan Economic Partnership Agreement (EPA), as announced by Commerce Adviser Sk. Bashir Uddin during a phone call with Japan’s Foreign Minister, Motegi Toshimitsu.
According to Bangladesh Sangbad Sangstha, the announcement was made in the presence of several key figures, including Lutfey Siddiqi, Special Envoy on International Affairs; Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of Bangladesh Investment Development Authority (BIDA); Mahbubur Rahman, Secretary of the Ministry of Commerce; Ayesha Akter, Chief Negotiator of the Bangladesh-Japan EPA; Deputy Chief Negotiator Md. Firoj Uddin Ahmed; and focal point Mahbuba Khatoon Minu, as stated in a press release from the Chief Adviser’s press wing.
The initial phase of the negotiations saw the establishment of a Joint Study Group, which recommended a comprehensive approach covering 17 sectors for negotiation. This report was published on December 27, 2023. Official negotiations for the EPA kicked off on March 12, 2024, with the first round taking place in Dhaka from May 19-23, 2024. However, unforeseen challenges temporarily halted talks.
In November 2024, the interim government renewed its focus on the EPA, aiming to conclude the agreement within a year. This led to an accelerated negotiation process, with subsequent rounds taking place as follows: the second round in Dhaka from November 10-14, 2024; the third round in Tokyo from December 19-20, 2024; the fourth round in Dhaka from February 2-6, 2025; the fifth round in Tokyo from April 20-26, 2025; the sixth round in Dhaka from June 21-26, 2025; and the seventh and final round in Tokyo from September 3-12, 2025.
The negotiations concluded with the finalization of the EPA text, adhering to the original work plan. The swift progression was largely attributed to the direct involvement of Commerce Adviser Sk. Bashir Uddin and Special Envoy Lutfey Siddiqi, who chaired multiple inter-ministerial meetings and conducted high-level visits to Japan to engage with their ministerial counterparts.
Upon signing the EPA, Bangladesh will gain immediate duty-free access to the Japanese market for 7,379 products, while Japan will receive duty-free access to 1,039 Bangladeshi products. A notable provision is the immediate duty-free access for Bangladesh’s ready-made garments (RMG) to Japan’s market, along with Single Stage Transformation provisions for RMG products.
Furthermore, the Trade in Services sector will see substantial commitments from both nations. Bangladesh will open 97 sub-sectors to Japan, and Japan will reciprocate by opening 120 sub-sectors to Bangladesh across four modes of supply. This is expected to boost Japanese investment in Bangladesh and enhance technology transfer.
As a Least Developed Country (LDC), this marks Bangladesh’s first EPA with Japan, the world’s fourth-largest economy. The agreement is anticipated to significantly boost trade, investment, and employment opportunities for Bangladesh, enhancing its economic relations with Japan. The conclusion of negotiations at the negotiator level will be followed by legal scrubbing and further approvals from the advisory council or cabinet on both sides.