Commerce ministry has formed a high-powered working group on trade service aiming to negotiate talks ahead of signing an economic partnership agreement (EPA) between Bangladesh and Japan, according to sources.
The group was formed under the purview of the Regional Trade Agreement (RTA) Policy 2022. An official circular to this end was issued last Thursday.
The 22-member body, headed by an additional secretary (FTA), will prepare a position paper with a strategy ahead of the meeting between Bangladesh and Japan in mid-January.
The group is expected to sit in a preparatory meeting tomorrow (Wednesday) with an eye to devising necessary strategies.
To brace themselves with necessary homework on technicalities of the deal-making, the ministry earlier constituted an 18-member trade negotiations committee led by the chairman of Bangladesh Trade and Tariff Commission.
Bangladesh is expecting to strike the EPA with Japan by December 2025, capping the process that got underway with a joint study group (JSG) report released in 2023.
"After the country's graduation from the LDC status in 2026, the deal will facilitate maintaining its duty-free market access to the world's third-largest economy," according to an official.
The proposed EPA would be a "win-win deal for both countries," the Japanese envoy said earlier, emphasising the strengthening of bilateral relations, including in trade and business, between the two countries further.
Considering looming challenges, Bangladesh has taken a policy decision to sign such agreements with its potential trading partners for smooth transition into the post-graduation era, according to a senior official.
With sights set on an EPA, Bangladesh and Japan on 12 December 2022 decided to conduct a joint feasibility study as part of the spadework.
During the then premier Sheikh Hasina's Japan visit in April 2023, the two PMs announced upgrading bilateral ties into a strategic partnership, in a region where multidimensional bids for forging blocs have been in high gear of late.
Based on the declaration, the Ministry of Commerce of Bangladesh and the Economy, Trade and Industry Ministry of Japan earlier signed a memorandum of understanding to set the process in motion.
The JSG had three rounds of meetings in April, July and September 2023 to give necessary stitches to the much-trumpeted deal.
Such an EPA would not only promote the expansion of trade and investment by eliminating tariffs and improving the investment environment, but also help forge political and diplomatic ties between the two, cited the JSG report.
It will also play an important role in the economy of the respective regions.
Two-way trade between the two Asia-Pacific nations stood at more than $4.0 billion, as of June 2023, according to the Bangladesh Embassy in Tokyo.
[email protected]
