Japan EPA hailed by business leaders as boost to exports, investment and post-LDC transition

Business leaders have welcomed the signing of the Economic Partnership Agreement (EPA) between Bangladesh and Japan, describing it as a major milestone that will help the country address post-LDC graduation challenges and deepen trade and investment ties.

Japan and Bangladesh signed the EPA today (6 February) in Tokyo. Japan's State Minister for Foreign Affairs Horii Iwao and Sk Bashir Uddin, adviser for commerce, textiles and jute, and civil aviation and tourism of Bangladesh's interim government, represented their respective sides at the signing ceremony.

In a statement, Japan's foreign ministry said both sides welcomed the signing, noting that as Bangladesh's first EPA, the agreement would further strengthen the bond between two countries.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), said the agreement is "a timely and strategic milestone" as Bangladesh prepares for its graduation from the Least Developed Country (LDC) category in 2026.

He said the EPA will allow more than 7,000 Bangladeshi products to enjoy duty-free access to the Japanese market, providing a significant boost to exports.

From a business perspective, he highlighted the importance of the single-stage transformation facility for the ready-made garment sector, which will enable exporters to ship garments to Japan without complex rules of origin.

"This will substantially enhance our export competitiveness and ensure smoother access to imported inputs, an issue that will become even more critical after LDC graduation," he said.

Taskeen also pointed to new opportunities in services under the agreement, noting that Bangladeshi professionals will be able to work in around 120 service sub-sectors across 16 categories, including IT, engineering, education, caregiving and nursing.

He added that the EPA is likely to accelerate Japanese investment in Bangladesh, bringing advanced technology, management expertise and long-term industrial partnerships that could strengthen Bangladesh's position in global value chains.

Meanwhile, MA Jabbar, managing director of DBL Group and president of the Bangladesh Semiconductor Industry Association, described the Japan EPA as a clear milestone but stressed the need to fast-track similar agreements with other major partners.

"This momentum must now be extended to other major partners, particularly the European Union and other strategic markets, without delay," he said.

Jabbar said the first priority should be identifying export-oriented sectors and creating targeted investment opportunities.

"We need to expand capacity in products where Japan has opened its market and ensure policy support for strategic sectors such as semiconductors and ICT," he added.

According to him, without focused sector selection and investment readiness, the full benefits of the agreement may not be realised.

According to him, the garment industry at present remains concentrated largely in low- and mid-end products and Japanese firms, however, place strong emphasis on quality, technology, and know-how.

By leveraging Japanese technology, skilled human resources, and management expertise, Bangladesh can make meaningful progress toward high-value-added garment production, Jabbar said.

Beyond garments Japan's technological support and robust client base can help Bangladesh develop new markets, he said, adding, "something the country urgently needs for long-term competitiveness."