The interim government has approved the signing of an Economic Partnership Agreement (EPA) with Japan, marking Bangladesh’s first comprehensive trade deal with a major global partner and a key step to safeguard export competitiveness after graduating from least developed country (LDC) status in November this year.
Once implemented, the EPA will allow duty-free access for 7,379 Bangladeshi products—covering about 97% of the country’s export basket, including major garment items into Japanese market. In return, Bangladesh will gradually grant duty-free access to 1,039 Japanese products over a period of up to 18 years.
Commerce Secretary Mahbubur Rahman said all procedural requirements have been completed, with both governments approving the final draft. The agreement is scheduled to be signed in Tokyo on February 6, with senior officials from both sides attending the ceremony.
Beyond tariffs, the EPA covers a wide range of areas, including investment, services, labour standards, regulatory cooperation, and compliance. It also introduces single-stage transformation rules for garments, easing rules-of-origin requirements, and includes commitments on services trade, with Bangladesh opening 97 sub-sectors and Japan opening 120 sub-sectors to each other.
Japan is currently Bangladesh’s largest export destination in Asia, with exports nearing $2 billion, driven mainly by ready-made garments. Japanese investment in Bangladesh stands at around $500 million and is expected to rise with improved market access and regulatory cooperation under the EPA.
Trade experts have described the agreement as a milestone, noting that it sends a strong signal of Bangladesh’s ability to negotiate comprehensive trade deals with major partners at a time when the country faces potential export losses following LDC graduation.
