FE REPORT
Business leaders and policy experts on Tuesday urged the government to tackle long-standing structural bottlenecks to fully capitalise on the newly signed Economic Partnership Agreement (EPA) with Japan, warning that the deal alone will not automatically boost trade and investment.
They said that while the agreement offers significant market access opportunities, its success will depend on swift implementation of domestic reforms and export diversification.
The call came at a roundtable titled 'Export Potentialities under Bangladesh-Japan EPA: Challenges and Way Forward', organised by the Export Promotion Bureau (EPB) at its office in the capital.
Bangladesh signed its first-ever EPA with Japan on February 6. Under the agreement, 7,379 Bangladeshi products will enjoy 100 per cent duty-free access to the Japanese market, while 1,039 Japanese products will receive duty-free access in phases.
AKM Asaduzzaman Patwary, secretary general of the Dhaka Chamber of Commerce and Industry (DCCI), said the focus must now shift from celebration to implementation.
"We need to assess how effectively and how quickly the EPA can be translated into tangible economic gains," he said.
He noted that Japan has signed EPAs with nearly 20 countries with notable results.
Following the Japan-India EPA, bilateral trade reportedly rose to around $18 billion, while Japan-Vietnam trade increased from about $24 billion to nearly $51 billion.
"These figures are encouraging, but we must avoid complacency. The real challenge is whether Bangladesh can replicate such success," he said.
Citing reports by the Japan External Trade Organization (JETRO), Patwary said Bangladesh is often identified as a promising destination for Japanese investors.
However, administrative delays, infrastructure gaps, supply chain disruptions, customs complexities and regulatory bottlenecks continue to hinder investment, he said.
"Japan's outward FDI stood at roughly $500 billion in 2025, yet Japanese FDI stock in Bangladesh is only about $500 million despite five decades of relations. This gap shows that signing agreements is not enough -- we must remove practical roadblocks," he added.
He also stressed the need to diversify exports beyond readymade garments, highlighting opportunities in fintech, nursing, caregiving, engineering and IT-enabled services.
Addressing non-tariff barriers, including language constraints,
technical standards and compliance requirements, will be crucial to broadening the export basket, he added.
Asif Ashraf, managing director of Urmi Group and former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the EPA offers much-needed certainty for the RMG sector amid concerns over post-LDC duty implications.
"Japan's apparel import market is worth about $20 billion, but Bangladesh captures only $1.4 billion. To expand our share, we must diversify into manmade fibre-based products and ensure energy security, policy consistency and stronger R&D support," he said.
He added that the Japanese market requires patience, strict quality control and long-term commitment. Kanchan Miah, managing director of Arot Agro, said exporters of fresh vegetables are facing difficulties due to the suspension of the Dhaka-Narita direct flight and urged the government to resume the route to facilitate trade.
Professor Jahangir Alam, chairman of Dhaka University's Japanese Studies Department, said exporters would struggle to do business with Japanese customers without strong quality assurance, as the market is highly stringent in its standards.
Stakeholders from academia and sectors such as ICT, pharmaceuticals, logistics, renewable energy, green technologies and agro-processing highlighted priority areas to strengthen bilateral trade and investment under the EPA framework.
Tareq Rafi Bhuiyan (Jun), president of the Japan-Bangladesh Chamber of Commerce and Industry, and Hajime Suzuki, executive officer of RX Japan Ltd, presented keynote papers emphasising preparedness, compliance and active participation in international trade fairs to expand market access.
Participants agreed that the EPA will deliver meaningful results only if backed by robust domestic reforms, capacity-building initiatives and targeted export diversification programmes. Mohammad Hasan Arif, vice-chairman and executive member of the EPB, moderated the session.
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