Bangladesh has entered a new chapter in its trade diplomacy by signing its first full-fledged economic partnership agreement with a developed economy. The Economic Partnership Agreement with Japan not only grants duty-free market access but also opens doors for long-term strategic cooperation in investment, technology, trade in services, and supply chain management.
Experts say the deal is a timely and landmark achievement for Bangladesh’s economy in the post-LDC graduation era.
The agreement was formally signed in Tokyo yesterday. Bangladesh’s delegation to the ceremony includes four Ministry of Commerce officials: Additional Secretary and Free Trade Agreement Division Head Ayesha Akter, Joint Secretary Firoz Uddin Ahmed, Deputy Secretary Mahbuba Khatun Minu, and Senior Assistant Secretary Mohammad Hasib Sarkar.
The Bangladesh–Japan Economic Partnership Agreement was completed in just four years, a relatively short period by international standards. Its journey began in 2022 with a joint study team formed to mark the 50th anniversary of diplomatic relations between the two countries. The team’s mandate was to outline a framework for long-term, structured bilateral economic relations.
Following the submission of the team’s recommendations in December 2023, formal negotiations commenced on March 12, 2024.
A total of seven negotiation rounds were held in Dhaka and Tokyo during 2024 and 2025. Discussions covered tariffs and non-tariff barriers, investment protection, the services sector, intellectual property, labor and environmental standards, and supply chain cooperation.
The draft agreement was finalized in September 2025, with stakeholders attributing the success to strong political commitment from both countries and the negotiation teams’ expertise.
On December 22 last year, Bangladesh Commerce Adviser Sheikh Bashiruddin and Japan’s Foreign Minister Iwao Horii jointly announced the completion of negotiations.
The Ministry of Commerce said that from day one, Bangladesh will enjoy duty-free access to Japan for 7,379 products. Japan will receive the same benefit for 1,039 products in Bangladesh.
Notably, Bangladesh’s major export, ready-made garments, will enter Japan duty-free immediately upon implementation. The agreement also includes a step-up production transformation benefit for the garments sector, which is expected to significantly enhance competitiveness.
Both countries have made substantial commitments in the services sector. Bangladesh has agreed to open 97 sub-sectors to Japan, while Japan will open 120 sub-sectors to Bangladesh through four mechanisms. The agreement is expected to accelerate Japanese investment, technology transfer, and the development of skilled human resources in Bangladesh.
According to Bangladesh Bank, in fiscal year 2024–25, Bangladesh imported $1.8745 billion in goods from Japan and exported $1.4115 billion to Japan.
The Economic Relations Division reports that from 2020 to Sept. 30, 2025, Japan’s cumulative foreign direct investment in Bangladesh reached $469.6 million. By fiscal year 2023–24, Japan’s committed loans totaled $32.32 billion, of which $22.36 billion was waived.
The joint study team highlighted that Bangladesh’s imminent graduation from the least-developed country status could result in the loss of existing duty-free benefits. In this context, a partnership with one of the world’s largest economies will be crucial to sustaining and enhancing the competitiveness of Bangladesh’s export sector.
Mohiuddin Rubel, former director of the garment industry association, told Bangla Tribune that completing such a complex agreement with a developed country in just four years demonstrates that with clear strategy, political commitment, and focused negotiations, Bangladesh can rapidly establish high-impact international economic partnerships. He added that the deal will elevate Bangladesh–Japan relations and position Bangladesh as a credible partner for similar agreements with other developed economies in the future.
