Bangladesh and Japan have initiated negotiations for a trade deal to ensure continued duty-free export benefits post the Least Developed Country (LDC) graduation of Bangladesh in 2026.
The first round of talks for an Economic Partnership Agreement (EPA) commenced in Dhaka on 19 May, 2024, focusing on various sectors identified in a joint study. These sectors include trade in goods, services, investment, electronic commerce, and more.
The meetings involved representatives from both governments, including senior officials and ministers.
Bangladesh is pursuing agreements which include FTAs and PTAs with major trading partners to safeguard its export benefits.
Failure to secure such agreements could subject Bangladeshi products to 18% duty in the Japanese market, posing a risk of an USD 8 billion annual loss in exports.
Japan, Bangladesh’s significant trading partner, has witnessed growing investments from Japanese companies in various sectors, driven by Bangladesh’s abundant labour force and expanding consumer market.
The negotiation aims to conclude by December, 2025.
