BD, Japan to ink EPA tomorrow

In a historic move to safeguard its economic future, Bangladesh is set to sign a comprehensive economic partnership agreement (EPA) with Japan tomorrow.
Titled Bangladesh-Japan Economic Partnership Agreement (BJEPA), the agreement is a strategic "lifeline" designed to ensure continued duty-free access to the world's fourth-largest economy as Bangladesh prepares to graduate from the least developed-country (LDC) status on November 24 this year.
The deal is the first of its kind for Bangladesh.
To sign it, the commerce adviser and the commerce secretary are supposed to leave for Tokyo today.
It is supposed to be inked in the capital of Japan.
After the signing, the commerce adviser is expected to return to Dhaka on February 7.
The agreement follows seven rigorous rounds of negotiations between Dhaka and Tokyo, concluding in a framework that covers more than a dozen key sectors.
From day one of the deal's signing, some 7,379 Bangladeshi products, including readymade garment (RMG), will enjoy immediate duty-free access to the Japanese market.
In return, Bangladesh will grant duty-free access to 1,039 Japanese products.
A major win for the RMG sector is the shift to the "single stage transformation" rule.
The agreement allows apparel manufacturers to qualify for duty-free access even if they source fabrics globally, provided the final sewing is done in Bangladesh.
Japan will open 120 service sub-sectors to Bangladeshi professionals, while Bangladesh will open 97 sub-sectors to Japanese firms.
The deal is expected to trigger a surge in Japanese foreign direct investment (FDI) in automotive parts, electronics, and high-end manufacturing.
As Bangladesh faces the LDC graduation this year, experts warn that without such deals, exports could face tariffs as high as 18 per cent.
The BJEPA makes duty-free access legally binding and permanent, providing the "predictability" that international investors and local exporters have long craved.
"This is not just a trade deal; it is a strategic shift," says a senior official of the commerce ministry.

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