Bangladesh has signed an Economic Partnership Agreement (EPA) with Japan, marking the country’s first such agreement with any nation and a significant milestone in its trade relations with developed economies.
The agreement was signed in Tokyo by Bangladesh’s Commerce Adviser, Sk. Bashir Uddin, and Japan’s State Minister for Foreign Affairs, Horii Iwao. Commerce Secretary Mahbubur Rahman confirmed the development to the media following the signing.
Rahman said the EPA would come into effect once the official notification is published, which is expected shortly. He described the agreement as a landmark achievement, noting that it represents Bangladesh’s first full-fledged EPA with a developed country. He added that attracting greater Japanese investment into Bangladesh is a key objective of the agreement and that this is also the first EPA Japan has signed with a least developed country.
The Council of Advisers approved the agreement on 22nd January, with the aim of safeguarding tariff benefits as Bangladesh prepares to graduate from the Least Developed Country (LDC) category in November. At present, Japan provides duty-free market access to LDCs, including Bangladesh, on 97.9% of tariff lines, according to data from Bangladesh Customs.
Under the newly signed EPA, Bangladeshi exporters will receive duty-free access to 97% of their export basket to Japan, including readymade garments, following the agreement’s implementation.
Japan is Bangladesh’s second-largest export destination in Asia. Exports to the country reached US $ 1.33 billion in the financial year 2024–25, recording year-on-year growth of 8.2%, according to Bangladesh Bank data. Key export items include readymade garments, home textiles, jute and jute products, leather and leather goods, raw jute and handicrafts.