Signing of EPA with Japan a historic milestone in Bangladesh’s trade diplomacy: BGMEA
The EPA is expected to ease trade deficit, boost export diversity, and attract Japanese investment, says the trade body
The signing of the Bangladesh-Japan Economic Partnership Agreement (EPA) marks a historic milestone in Bangladesh's trade diplomacy, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said today (7 February).
"The deal ensures duty-free access for Bangladeshi garments and maintains favourable rules of origin, including single-stage processing, allowing garments to enter Japan tariff-free even after Bangladesh graduates from least developed country (LDC) status," the trade body of the country's apparel industry said in a press release.
Mentioning that Bangladesh exported $1.41 billion in garments to Japan in FY2024–25, the BGMEA said the EPA aims to expand this share to at least 10%, supporting Bangladesh's $100 billion garment export target by 2035.
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"Japan has long been a trusted partner, supporting Bangladesh's industrial growth and economic transformation. This agreement not only secures market access but also provides a predictable trade environment for the RMG sector in the post-LDC era," the BGMEA said.
Bangladesh, Japan sign major trade deal to safeguard market access post-LDC
The association also highlighted that the EPA could reduce the country's trade deficit with Japan, diversify exports beyond garments, and attract increased investment from Japanese importers and machinery suppliers.
Bangladesh is also awaiting the finalisation of a US–Bangladesh trade deal, expected on 9 February, which is expected to provide zero-tariff access for garments using US cotton, another major boost for the sector.
On Thursday (5 February) Bangladesh and Japan signed the landmark economic partnership agreement (EPA) in Tokyo, a major step in Dhaka's efforts to preserve export market access and attract investment as it prepares to graduate from least developed country (LDC) status.
The deal, hailed by business leaders, is Bangladesh's first bilateral free trade agreement and secures continued duty-free access to Japan – the world's third-largest economy – for key exports even after LDC graduation.
Covered products include ready-made garments, leather goods, plastics, light engineering items and selected agricultural products, protecting an export market worth $2.1 billion.
Economists and business leaders described the EPA as less about tariff cuts and more about economic survival after LDC graduation in 2026. Without such an agreement, Bangladesh would face higher tariffs and stricter compliance requirements once Japan's temporary LDC preferences expire.
