Bangladesh has taken a major step in reshaping its global trade relations by signing its first comprehensive Economic Partnership Agreement (EPA) with a developed country, Japan—an achievement widely described by experts as a timely and strategic breakthrough ahead of the country’s graduation from least-developed country (LDC) status.
Bangladesh–Japan Economic Partnership Agreement was formally signed in Tokyo on 6th February, opening a new chapter in bilateral economic cooperation that goes far beyond traditional tariff concessions. In addition to duty-free market access, the agreement lays the foundation for long-term collaboration in investment, trade in services, technology transfer, intellectual property, and resilient supply chains.
Bangladesh’s delegation at the signing ceremony included senior officials from the Ministry of Commerce: Ayesha Akter, Additional Secretary and Head of the FTA Wing; Firoz Uddin Ahmed, Joint Secretary; Mahbuba Khatun Minu, Deputy Secretary; and Mohammad Hasib Sarkar, Senior Assistant Secretary.
Four-year journey from concept to conclusion
The EPA was completed in just four years, a relatively short timeframe for a full-scale economic partnership with a developed economy. The process began in 2022, when Bangladesh and Japan formed a joint study team to commemorate the 50th anniversary of diplomatic relations. The team was tasked with designing a structured framework for deeper and more sustainable economic engagement.
After the submission of the study report in December 2023, formal negotiations were launched on March 12, 2024, reflecting strong political commitment from both sides.
Seven negotiation rounds deliver fast progress
Between 2024 and 2025, seven rounds of negotiations were held alternately in Dhaka and Tokyo. Talks covered a wide range of issues, including tariff liberalisation, non-tariff barriers, investment protection, services trade, intellectual property rights, labor and environmental standards, and supply-chain cooperation.
The agreement was finalized in September 2025, with negotiators crediting the outcome to technical expertise and consistent high-level support from both governments. On December 22 last year, Bangladesh’s Commerce Adviser Sheikh Bashiruddin and Japan’s Foreign Minister Iwao Horii jointly announced the successful conclusion of negotiations.
Immediate duty-free access for key exports
According to the Ministry of Commerce, Bangladesh will enjoy duty-free access for 7,379 products in the Japanese market from the first day of implementation. In return, Japan will receive duty-free access for 1,039 products in Bangladesh.
Crucially, ready-made garments, Bangladesh’s largest export item, will enter the Japanese market duty-free immediately, providing a significant competitive edge. The agreement also includes a step-up production transformation facility for the apparel sector, aimed at supporting value addition and industrial upgrading.
Services, investment and skills development
The EPA makes substantial commitments in the services sector, an area of growing importance for Bangladesh’s economic diversification. Bangladesh will open 97 services sub-sectors to Japanese participation, while Japan will open 120 sub-sectors to Bangladesh under four modes of supply.
Experts expect the agreement to accelerate Japanese foreign direct investment, promote advanced manufacturing and green technologies, and contribute to human resource development, particularly through skills transfer and industrial training.
Trade and investment snapshot
Bangladesh Bank data show that in FY2024–25, Bangladesh imported goods worth $1.87 billion from Japan and exported $1.41 billion to the country. Meanwhile, the Economic Relations Division reports that cumulative Japanese FDI in Bangladesh reached $469.6 million between 2020 and September 2025.
Japan also remains Bangladesh’s largest bilateral development partner. By FY2023–24, Japan’s committed loans stood at $32.32 billion, of which $22.36 billion has been waived, underscoring the depth of the strategic relationship.
Strategic importance after LDC graduation
The joint study team noted that Bangladesh’s impending LDC graduation could lead to the gradual loss of existing preferential market access in several destinations. In this context, a comprehensive agreement with one of the world’s largest and most technologically advanced economies is seen as critical to sustaining export growth and competitiveness.
Trade analysts believe the Bangladesh–Japan EPA could serve as a template for future agreements with other developed economies, strengthening Bangladesh’s position in global value chains and supporting a smoother transition into the post-LDC era.
