This milestone marks Bangladesh’s first-ever comprehensive trade deal, aimed at protecting its export growth as the nation prepares to graduate from the Least Developed Country (LDC) category later this year.
The agreement was signed in Tokyo by Bangladesh’s Commerce Adviser Sheikh Bashir Uddin and Japan’s State Minister for Foreign Affairs Horii Iwao. The ceremony was attended by high-ranking diplomats, including Bangladesh’s Ambassador to Japan Md Daud Ali and Japanese Ambassador to Bangladesh Saida Shinichi.
Unlocking the Japanese Market: 7,300+ Products to Go Duty-Free
The centerpiece of the EPA is the massive expansion of market access. Under the deal, approximately 7,379 Bangladeshi products will enjoy 100% duty-free entry into Japan.
A critical victory for Bangladesh is the inclusion of the "single-stage transformation" rule for the Ready-Made Garment (RMG) sector. The Change: Previously, exporters faced complex "rules of origin" that required multiple stages of production to occur within Bangladesh.
The Benefit: Now, apparel manufacturers can qualify for duty-free access even if they use globally sourced fabrics, provided the final sewing is completed in Bangladesh.
In exchange, Bangladesh will gradually open its doors to 1,039 Japanese products, offering them preferential tariff treatment over several years to prevent sudden revenue shocks.
A Strategic "Lifeline" for LDC Graduation Trade analysts describe the EPA as a strategic "lifeline." When Bangladesh graduates from LDC status in November 2026, it risks losing many existing trade preferences. This binding agreement ensures that duty-free access remains permanent, providing the predictability required by international investors.
Beyond Goods: Opportunities for Professionals The EPA isn’t just about shipping containers; it’s about people. The deal opens 120 service sub-sectors for Bangladeshi professionals, creating new pathways in:
# Information Technology (IT) and Engineering
# Education and Healthcare
# Caregiving and Nursing
Conversely, Bangladesh has committed to opening 98 sub-sectors for Japanese participation, paving the way for advanced Japanese technology in local manufacturing, logistics, and energy.
The Path to the Agreement
The journey to this historic Friday began with seven rigorous rounds of negotiations spanning political shifts in Dhaka. Originally initiated by a joint study group in 2023, the talks were briefly paused during the political transitions of August 2024 but were fast-tracked by the current interim government to meet a one-year completion target.
"This is more than just a commercial pact," stated Commerce Adviser Sheikh Bashir Uddin. "It is a reflection of the deep mutual trust and the long-standing friendship between our two nations."
With the world’s fourth-largest economy now a formal partner, Bangladesh is poised to attract significant Foreign Direct Investment (FDI) and enhance its global industrial competitiveness.
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