Bangladesh, Japan set to sign Economic Partnership Agreement to boost ties

The government is set to sign the Bangladesh-Japan Economic Partnership Agreement (BJEPA) with one of the largest trading partners, aiming to further strengthen bilateral economic relations between the two countries.

The BJEPA also aims to ensure continued duty-free access of Bangladeshi products to the Japanese market after the country's graduation from the Least Developed Country (LDC) category.

The agreement is intended to expand bilateral trade and investment, enhance investor confidence, and attract long-term Japanese investment in Bangladesh. 

It encompasses a wide range of sectors, including trade in goods and services, customs duties, investment, trade facilitation, and intellectual property rights. As an LDC, Bangladesh will sign an Economic Partnership Agreement for the first time with Japan, the world's fourth-largest economy, said a press release.

As part of the initial phase of negotiations, a Joint Study Group (JSG) formed by the two countries jointly published its report on 27 December 2023, recommending a comprehensive negotiation framework covering 17 sectors.

To formally commence negotiations, Bangladesh and Japan made a joint announcement on 12 March 2024. Considering the agreement's significance for Bangladesh's economic growth, the interim government began priority-based work from November 2024, setting an ambitious target to complete the agreement within one year. 

In preparation, multiple consultations were held with relevant stakeholders on both sector-specific issues and the overall agreement. Following the agreed workplan, the EPA text was finalised through seven rounds of negotiations.

The direct involvement of Commerce Adviser Sk Bashir Uddin and the Chief Adviser's Special Envoy for International Affairs, Lutfey Siddiqi, played a pivotal role in accelerating the negotiation process. 

They chaired several inter-ministerial meetings and held multiple rounds of high-level discussions during official visits to Japan, engaging directly with their ministerial-level counterparts. These initiatives underscored Bangladesh's strong commitment to finalising the agreement and highlighted the strategic importance of the EPA.

Upon entry into force, 7,379 Bangladeshi products will enjoy immediate duty-free access to the Japanese market from the first day of signing. In return, Japan will receive immediate duty-free access for 1,039 products in the Bangladeshi market.

Notably, Bangladesh's key export items-particularly readymade garments (RMG)-will gain duty-free access to Japan from day one. The RMG sector will also benefit from the Single Stage Transformation facility.

In the area of trade in services, both countries have made substantial commitments. Bangladesh has agreed to open 97 sub-sectors under 12 sectors for Japan in line with the WTO Sectoral Classification List, while Japan has agreed to open 120 sub-sectors for Bangladesh.

These commitments are expected to stimulate Japanese investment and accelerate technology transfer to Bangladesh.

The agreement is expected to deliver significant trade and economic benefits, including increased trade, enhanced investment flows, and expanded employment opportunities, thereby ushering in a new phase in Bangladesh-Japan economic relations. Japan has expressed its intention to sign the agreement on 6 February 2026.

The proposal to sign the Bangladesh-Japan Economic Partnership Agreement (BJEPA) received approval from the Advisers Council at its meeting held today. 

At the meeting, all members congratulated the Commerce Adviser, the Secretary concerned, and all officials involved in the successful conclusion of the negotiations.