Bangladesh, Japan to sign Economic Partnership Agreement by year-end
CA Yunus urges Japan and its businesses to partner with Bangladesh in shaping a “New Bangladesh”
Highlights:
- Bangladesh, Japan to sign Economic Partnership Agreement (EPA) this year.
- Japan backs Bangladesh's democratic transition and regional stability role.
- Yunus seeks Japanese investment in energy, infrastructure, and high-tech industries.
- Requests duty-free access post-LDC graduation and more scholarships.
- Bangladesh secures $1.063b in loans, grants:
- $418 million in budget support
- $641 million for railway upgrades
- $4.2 million in scholarships for Bangladeshi students
- Dhaka, Tokyo sign six MoUs on investment and cooperation
- Yunus urges Japan, its businesses to partner with Bangladesh in shaping a "New Bangladesh"
Chief Adviser Muhammad Yunus and Japanese Prime Minister Shigeru Ishiba today (30 May) announced that the two countries will conclude an Economic Partnership Agreement (EPA) in the coming months to deepen economic and trade relations.
The commitment was made during an official bilateral meeting between the two leaders at the Japanese prime minister's office in Tokyo, according to a press release issued by the Chief Adviser's Press Wing.
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Before the meeting, Yunus addressed a business seminar in Tokyo where he urged the Japanese government and its businesses to partner with Bangladesh in shaping a "New Bangladesh" that meets the aspirations of its youth.
Bangladesh and Japan signed six Memoranda of Understanding (MoUs) to strengthen economic and investment cooperation at the seminar, hosted by the Japan External Trade Organisation and the Japan International Cooperation Agency.
Aside from signing six MoUs, the chief adviser also secured pledges of $1.063 billion in loans and grants for Bangladesh, reports UNB. This includes $418 million in budget support, $641 million for railway upgrades, and grants of $4.2 million in scholarships for Bangladeshi students.
After the seminar, Yunus met the Japanese premier. Their talks encompassed the entire gamut of the relationships between the two friendly countries, with both leaders reaffirming their abiding commitment to strategic partnership.
Ishiba described Bangladesh as a long-standing friend and stated that Japan would stand by Bangladesh in its endeavour for a democratic transition.
He also paid tribute to Yunus, saying Bangladesh will usher in a new era under his leadership.
He also highlighted Bangladesh's importance for ensuring peace and stability in the Indo-Pacific region. "Bangladesh plays a critical role in regional stability."
The Japanese prime minister said the two countries would conclude an EPA by the end of this year in an effort to boost trade and investment between the two nations.
Yunus thanked Ishiba for Japan's unwavering support of Bangladesh in the last 10 months after the previous government left a shattered economy, an empty coffer and destroyed institutions.
"We thank Japan for supporting the interim government and its reform initiatives. We seek Japan's active support and cooperation in our endeavour," the chief adviser said.
He also reiterated Bangladesh's firm commitment to a vision of a free, open and inclusive Indo-Pacific for the shared prosperity of all.
"Bangladesh is ready to forge partnership and cooperation with Japan to ensure maritime safety and security, freedom of navigation, sustainable use and management of marine resources, promote enhanced connectivity, and combat transnational organised crimes in the Indo-Pacific," the chief adviser said.
He noted significant progress in the EPA negotiations and high-level visits in this regard recently. "In pursuing our bilateral relations, we look forward to sustained engagements with Japan."
Yunus sought Japanese support for the construction of a land-based LNG terminal at Matarbari, an import-based LPG terminal at Moheshkhali, and duty-free and quota-free access of Bangladeshi products to Japan for at least three years after the LDC graduation of Bangladesh in 2026.
He also sought a Japanese soft loan for the improvement of the Dhaka-Chattogram National Highway into a six-lane access-controlled expressway, the upgradation of the Chattogram-Cox's Bazar Highway and the construction of a new four-lane bridge over the Meghna-Gomti river.
He requested the Japanese premier to encourage Japanese manufacturers to invest in automobiles and electric vehicles, light machinery, high-tech electronics and the solar industry in Bangladesh and to connect its industrial value chain with Japan.
Yunus urged Tokyo to launch the Bangladesh-Japan Skilled Workforce Partnership programme in an effort to meet Japanese labour shortages and pave the way for the recruitment of hundreds of thousands of Bangladeshi workers in Japan.
He also asked Japan to increase the number of scholarships for Bangladeshi students and for technical and vocational education training instructors to study in Japan.
The Japanese prime minister said Tokyo would provide assistance to Bangladesh to help overcome its challenges and the interim government's efforts to create a prosperous and democratic "New Bangladesh."
The two leaders also discussed geopolitical issues in the region, with Yunus saying his government is committed to "the best relationships" with Dhaka's neighbours.
Yunus called for redoubling Japanese efforts for a durable solution to the Rohingya crisis.
Ishiba recalled his visit to Bangladesh some 38 years ago when the Jamuna Multipurpose Bridge, built with Japanese assistance, was inaugurated.
He also praised the efforts of Yunus and his pioneering micro-lender, Grameen Bank, to combat poverty across the globe.
"Japanese people have profound respect for you," Ishiba said, expressing his willingness to visit Bangladesh at a mutually convenient time.
Yunus arrived in Tokyo on Wednesday (28 May) for a four-day visit to attend the Nikkei Forum 30th Future of Asia conference and hold bilateral talks with the Japanese prime minister. He is scheduled to return home tomorrow (31 May).
CA urges Japan to partner with Bangladesh
Addressing the "Bangladesh Business Seminar in Tokyo" before his bilateral meeting with Ishiba, Yunus urged the Japanese government and its businesses to partner with Bangladesh, saying, "The partnership is vital to realise the aspirations of millions of young people in Bangladesh."
"We are in big trouble. Literally, Bangladesh has gone through a 16-year earthquake. Everything fell apart, and we are trying to pick up the pieces," he said.
Calling Japan a reliable friend, he added, "A good friend comes out in hard times, and that friend is Japan. I came here to thank you."
The chief adviser said Bangladesh is facing a historic challenge and expressed confidence that with Japanese support, the country can overcome it.
At the seminar, Takeuchi Shinji, Japan's parliamentary vice-minister of economy, trade, and industry, acknowledged Bangladesh's strategic position as a bridge between Asia and the world.
"The number of Japanese companies operating in Bangladesh now exceeds 300, which is three-fourths higher than 10 years ago," Shinji said.
He reaffirmed Japan's commitment to support Bangladesh's growth and encouraged Japanese companies to explore new investment opportunities beyond the textile sector.
Six MoUs to deepen cooperation
Bangladesh and Japan signed six MoUs on economic, investment and other cooperation in Tokyo today, UNB reports, citing the chief adviser's Deputy Press Secretary Abul Kalam Azad Majumder.
The first MoU was signed between the Japan Bank for International Cooperation (JBIC) and Bangladesh's Ministry of Power, Energy and Mineral Resources. It paves the way for JBIC's support in implementing energy sector projects.
The second MoU involves ONODA Inc and Bangladesh SEZ Ltd (BSEZ). ONODA, which has already implemented a gas metre project in Bangladesh, plans to set up a factory for assembling, inspecting, and maintaining gas metres in BSEZ.
The third MoU was signed between Bangladesh Naxis Co Ltd and BSEZ for a land lease to establish a factory producing garment accessories.
The fourth MoU involved Glagit, Musashi Seimitsu Industry Glafit, and the Bangladesh Investment Development Authority (Bida). It supports the establishment of a manufacturing facility for battery-powered bicycles and electric motorcycles.
The fifth MoU was signed with Cipher Core Co Ltd, which will invest $20 million to launch a pilot project based on Cipher technology to strengthen information security in Bangladesh. The project aims to position Bangladesh as a quantum-resilient digital economy.
The final MoU was signed between Jica and Bida to provide technical assistance for the development of the Integrated Single Window Platform. This platform will unify the services of various investment agencies to create a more streamlined investment process.
Yunus said the agreements mark an important step forward. "Now it is our task to implement. I am moved," he said.
