The government is set to sign the Bangladesh-Japan Economic Partnership Agreement (BJEPA) with one of its largest trading partners, in a move aimed at further strengthening bilateral economic relations.
The BJEPA will also ensure continued duty-free access for Bangladeshi products to the Japanese market following the country’s graduation from the Least Developed Country (LDC) category.
The agreement is designed to expand trade and investment, enhance investor confidence, and attract long-term Japanese investment in Bangladesh. It covers a wide range of sectors, including trade in goods and services, customs duties, investment, trade facilitation, and intellectual property rights. As an LDC, Bangladesh is signing an Economic Partnership Agreement with Japan, the world’s fourth-largest economy, for the first time, according to a government press release.
As part of the initial negotiations, a Joint Study Group (JSG) established by the two countries published its report on 27 December 2023, recommending a comprehensive negotiation framework spanning 17 sectors.
Formal negotiations were launched following a joint announcement by Bangladesh and Japan on 12 March 2024. Given the agreement’s significance for Bangladesh’s economic growth, the interim government prioritised work on the deal from November 2024, setting an ambitious target to conclude the agreement within a year.
In preparation, multiple consultations were held with relevant stakeholders on both sector-specific issues and the overall agreement. Following the agreed work plan, the EPA text was finalised after seven rounds of negotiations.
The direct involvement of Commerce Adviser Sk. Bashir Uddin and the Chief Adviser’s Special Envoy for International Affairs, Lutfey Siddiqi, was instrumental in accelerating the process. They chaired several inter-ministerial meetings and undertook multiple high-level discussions during official visits to Japan, engaging directly with ministerial-level counterparts. These efforts underlined Bangladesh’s strong commitment to finalising the agreement and highlighted the strategic importance of the EPA.
Upon entry into force, 7,379 Bangladeshi products will enjoy immediate duty-free access to the Japanese market from day one. In return, Japan will receive immediate duty-free access for 1,039 products in Bangladesh. Notably, Bangladesh’s key export sector — readymade garments (RMG) — will gain duty-free access from the first day, with the RMG sector also benefiting from the Single Stage Transformation facility.
In terms of trade in services, both countries have made substantial commitments. Bangladesh has agreed to open 97 sub-sectors under 12 sectors to Japanese investment, in line with the WTO Sectoral Classification List, while Japan will open 120 sub-sectors to Bangladeshi investment. These commitments are expected to stimulate Japanese investment and accelerate technology transfer to Bangladesh.
The agreement is anticipated to deliver significant trade and economic benefits, including increased trade, enhanced investment flows, and expanded employment opportunities, ushering in a new phase in Bangladesh-Japan economic relations. Japan has indicated its intention to sign the agreement on 6 February 2026.
The proposal to sign the Bangladesh-Japan Economic Partnership Agreement (BJEPA) was approved by the Advisers Council at its meeting today. All members congratulated the Commerce Adviser, the relevant Secretary, and all officials involved in the successful conclusion of negotiations.
