Most local firms and the Japanese companies operating in various sectors in Bangladesh are in favour of signing a free trade agreement (FTA) between the two countries for maintaining competitiveness in both exports and imports.
Some 85 per cent of the companies responded in a survey expecting a bilateral FTA between Japan and Bangladesh, while 88 per cent respondents expected the FTA with focus on tax reduction.
The standing committee on FTA of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) conducted the survey on 300 companies.
The respondents expressed concern over losing competitiveness in most aspects if Bangladesh signs FTA with China before Japan, dropping a broader hint that textile machinery and steel products from Japan would face adverse impact due to customs duty after abolishment of the GSP facility.
The JBCCI took the initiative of conducting the survey on the possibility of signing the FTA as the Japanese government has recently informed the Bangladesh mission in Japan that they would not take any initiative in this regard until the demand comes from the business community.
However, the Japanese Ambassador in Dhaka on various occasions expressed the interest in signing the FTA with Bangladesh.
The JBCCI survey got responses from 70.4 per cent of Japanese companies operating here while 19.4 per cent Bangladeshi and multinational companies (MNCs).
Of the respondents, 53 were from the services sector, followed by 50 that export products manufactured in Bangladesh, 39 import form a third country to Bangladesh, 33 export products manufactured in Bangladesh to third countries.
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