Bangladesh is poised to sign its first-ever Economic Partnership Agreement (EPA) with Japan by the end of January 2026, as the two countries finalised the draft text proposing immediate duty-free access for a wide range of products, including readymade garments, from the very first day.
Commerce Adviser Sheikh Basir Uddin made the announcement at a press conference at Bangladesh Secretariat on Monday.
He said the two governments, in principle, agreed to sign the EPA following the conclusion of negotiations and a telephone conversation with Japanese Foreign Minister Motegi Toshimitsu shortly before the briefing.
With the draft now finalised, negotiations on the EPA have formally concluded after eight rounds of talks, the commerce adviser told journalists, adding that the agreement would be signed after the completion of the ratification process in both countries.
"With the agreement in place, we expect around 97 per cent of Bangladeshi products to enjoy duty-free access to the Japanese market," he said.
Special Envoy to the Chief Adviser on International Affairs Lutfey Siddique, Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashik Chowdhury and Commerce Secretary Mahbubur Rahman also spoke at the event.
According to the draft EPA, Bangladesh will receive immediate duty-free access for 7,379 products in the Japanese market, while Japan will enjoy similar access for 1,039 products in Bangladesh.
"The most significant aspect of the EPA is that Bangladesh's major export items, particularly readymade garments, will enjoy duty-free access to Japan from the very first day of the agreement," the Commerce Ministry said in a press statement.
Under the agreement, Bangladesh has agreed to open 97 sub-sectors to Japan, while Japan will open 120 sub-sectors to Bangladesh across four modes of supply.
Replying to a question, the commerce adviser clarified that 95 per cent of Bangladesh's duty-free access would take effect immediately, while Japan would receive its concessions in phases over 18 years.
He said the EPA would help boost Japanese investment in Bangladesh through technology transfer and the creation of new business opportunities.
Describing the agreement as a new chapter ahead of Bangladesh's graduation from least developed country (LDC) status, he expressed the hope that the country would now be able to sign more EPAs and free trade agreements, supported by an increasingly capable government negotiating team.
The special envoy praised the outcome of the negotiations, saying all stakeholders, including the Commerce Ministry team, have contributed to the shaping of the agreement.
BIDA Executive Chairman Ashik Chowdhury said the EPA would help create a more structured environment to attract Japanese investment, noting that Japan's cumulative investment in Bangladesh currently stands at about US$500 million.
Calling the EPA a historic benchmark, he said it would open new avenues for Japanese investment beyond the limited manufacturing and energy sectors.
Meanwhile, Manabu Sugawara, president of the Japanese Commerce and Industry Association in Dhaka (JCIAD), also known as Shoo Koo Kai, welcomed the agreement between the two governments.
He said JCIAD plans to promote effective utilisation of the EPA through information dissemination and other initiatives once the details are clarified, and will continue to play a role in strengthening the economic relations between Bangladesh and Japan.
smunima@yahoo.com
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