Dhaka:Bangladesh's access to Japan's lucrative market, along with fresh investment and new job opportunities, could be significantly influenced by the early implementation of the Economic Partnership Agreement (EPA). The Japanese Embassy in Dhaka has emphasized the importance of a swift entry into force and effective execution of the agreement to realize tangible economic gains.
According to Bangladesh Sangbad Sangstha, the embassy's Economic Section highlighted the necessity for businesses to be well-informed about the agreement's provisions, particularly regarding tariff preferences and rules of origin, to convert the deal into economic benefits. Signed on February 6, 2026, the EPA marks a substantial step in bilateral economic relations, establishing a comprehensive framework for expanding trade and investment between Japan and Bangladesh.
Upon the agreement's enforcement, it will offer preferential market access under agreed tariff schedules and greater predictability through provisions covering services, investment, customs procedures, e-commerce, and intellectual property. The embassy stressed the immediate priorities of early entry into force and effective implementation, emphasizing the need for completing necessary government procedures and preparing businesses to leverage the agreement.
The embassy also noted the importance of raising awareness among small and medium-sized enterprises (SMEs), suggesting that outreach initiatives could broaden business participation and enable more companies to benefit from the new trade framework. As Bangladesh transitions beyond the least developed country (LDC) category, the agreement could provide businesses with a more predictable framework for planning exports, investment, and long-term partnerships.
Sustained dialogue between the two governments and their business communities is deemed essential for converting the agreement into increased trade, fresh investment, and employment. Post-implementation, both countries could utilize established mechanisms, including the Joint Committee, to address implementation issues and enhance trade and investment conditions.
The embassy also indicated potential for Bangladesh to diversify exports to Japan beyond ready-made garments (RMG), focusing on leather goods, jute products, pharmaceuticals, and information technology services. Exploring upstream industries, like automobile components, could strengthen Bangladesh's manufacturing base and integrate it into international supply chains.
Bangladeshi exporters must gain a better understanding of Japanese market requirements, maintain consistent product quality, ensure reliable delivery, and comply with environmental, labor, and product standards. In particular, meeting Japan's product approval and manufacturing quality requirements is crucial for pharmaceuticals.
Potential areas for Japanese investment in Bangladesh include manufacturing, food processing, consumer products, IT services, logistics, and energy. The Bangladesh Special Economic Zone (BSEZ) in Araihazar, Narayanganj, could serve as a significant platform for attracting Japanese companies, creating employment, and developing local supplier networks.
Improvements in infrastructure, administrative efficiency, and policy predictability are seen as factors that would further encourage Japanese investors to establish and expand operations in Bangladesh. The EPA, along with stronger industrial cooperation and an improved investment climate, could help deepen the economic partnership between the two nations.