Bangladesh News Bangladesh - Japan Relation

[PutinBro]

Japan seeks sign defence deal to sell arms to Bangladesh​

Bangladesh foreign secretary Masud Bin Momen (L) and Japan assistant minister and ambassador for global issues, Ministry of Foreign Affairs, Ono Keiichi

Japan included Official Security Assistance (OSA) during Prime Minister Sheikh Hasina’s visit to Tokyo last year to boost defence cooperation with Bangladesh. The country has also offered to sign a specialised defence agreement with Bangladesh on arms sales and technology transfer.

The matter is likely to be discussed at the fifth foreign secretary level meeting of the two countries to be held in Dhaka Tuesday.

Foreign secretary Masud Bin Momen will lead the Bangladesh side while Ono Keiichi, assistant minister and ambassador for global issues, Ministry of Foreign Affairs, will lead Japan in the talks.

Different bilateral issues will be discussed in the meeting while priorities will be on assessing the decisions made during Prime Minister Sheikh Hasina’s visit to Tokyo, said the foreign ministry officials to Prothom Alo.

The ministry sources said trade and commerce, investment, infrastructural development, connectivity, agriculture, Indo-Pacific Strategy (IPS), defence and maritime security issues are also likely to get importance in the meeting.

Apart from this, Rohingya crisis and security issues will also be raised in the context of declining situation in Myanmar.

Japanese defence equipment manufacturers have been showing keen interest to sell arms for the last few years while delegates from several companies of the East Asian country already visited Bangladesh to this end, said diplomatic sources.

Speaking about this, foreign secretary Masud Bin Momen told Prothom Alo Bangladesh and Japan have agreed to elevate the bilateral relations to strategic level. Bangladesh is one of the four countries that Japan included in the OSA project for the first time last year. The country has already shared a draft of the defence agreement with Bangladesh.

Wishing not to be named, a senior official told Prothom Alo that the two countries have been in discussion over the defence agreement but it would take time to finalise this.

The US has been in discussion with Bangladesh for the last few years to sign General Security of Military Information Agreement (GSOMIA) and Acquisition Cross-Servicing Agreement (ACSA). Bangladesh has till now shown interest to sign GSOMIA.

Bangladesh foreign secretary Masud Bin Momen (L) and Italian Ministry of Foreign Affairs Secretary General Riccardo Guariglia

Bangladesh may raise the issue of establishing a regional connectivity centre around the Matarbari deep sea port in the meeting of the foreign secretaries. If the modern seaport is built in full swing, there is a possibility of maximum utilisation by connecting India along with Bangladesh and Japan.

When attention was drawn to this issue, multiple former and serving diplomats said that Japan has already focused on increasing its presence in the northeastern region of India.

Japan has become involved in various projects in the region through the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB). Overall, Japan wants to increase its economic influence in South Asian countries. The country is also interested in security due to investment.

Earlier Italy showed its interested in selling various types of weapons and military equipment including fighter jets, satellites, patrol ships to Bangladesh.

The European country wanted to sign a defence agreement with Bangladesh to facilitate the sale of arms. The matter was supposed to gain importance in the foreign secretary-level talks of the two countries be held in Dhaka Monday.

Masud Bin Momen led the Bangladesh side while Riccardo Guariglia, Italian Ministry of Foreign Affairs Secretary General, led his country in the talks.
Last month, Italian Ambassador Antonio Alessandro paid a courtesy call on Prime Minister Sheikh Hasina at Ganabhaban.

At that time, he told the prime minister that his country is interested in the transfer of technology including the sale of arms for the modernisation of the armed forces of Bangladesh. Italy is also ready to provide a second satellite to Bangladesh.

Japan seeks sign defence deal to sell arms to Bangladesh

Japan seeks to strengthen defence ties with Bangladesh through a potential arms sales and technology transfer agreement, to be discussed at a high-level meeting in Dhaka.

en.prothomalo.com

 

[Isa Khan]

Bangladesh and Japan have agreed to sign the Economic Partnership Agreement (EPA) by the end of 2025 or early 2026 to deepen and expand bilateral trade and investment relations between the two nations.

This was revealed on Wednesday at a ceremony to launch the 'EPA Study Report' at the Embassy of Japan in Dhaka, said a press release today.

Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) officially launched the EPA Study Report.

For signing the EPA, JBCCI has formed a standing committee and assigned a consulting firm named 'Policy Exchange of Bangladesh Limited'. The consulting firm prepared the "EPA Study Report".

As the chief guest, Iwama Kiminori, ambassador of Japan to Bangladesh, appreciated JBCCI for organising the launching ceremony and expressed the hope that the inputs and findings of the 'EPA Study Report' will accelerate the process of EPA signing.

Md Emran, executive director of JBCCI, said EPA is a very important vehicle to secure duty-free market access for Bangladesh after its graduation from LDC in 2026.

Manabu Sugawara, president of JBCCI, laid emphasis on EPA for increasing the trade and investment relations between Bangladesh and Japan.

M Masrur Reaz, chairman of Policy Exchange of Bangladesh, presented a keynote paper outlining the benefits and challenges of the EPA, along with insights into how countries could benefit from it.

Bangladesh, Japan agree to ink EPA to deepen trade ties

Bangladesh and Japan have agreed to sign the Economic Partnership Agreement (EPA) by the end of 2025 or early 2026 to deepen and expand bilateral trade and investment relations between the two nations. This was revealed on Wednesday at a ceremony to launch the 'EPA Study Report' at the Embassy...

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[PutinBro]

Bangladesh is set to sign an agreement with Japan to procure defence equipment with Chief Adviser Professor Muhammad Yunus, who holds the defence portfolio, having already given his consent.

The defence ministry has now sent the document – a copy of which has been seen by The Business Standard – to the Public Security Division, the foreign ministry, the Finance Division, and the Economic Relations Division for their final approval and opinions on the agreement.

Tokyo had previously proposed signing an agreement on the transfer of defence equipment and technology between the two Asian nations.

All three branches of the armed forces – the Bangladesh Army, Bangladesh Navy, and Bangladesh Air Force – along with the foreign ministry have expressed no objections to the agreement.

Based on Bangladesh's feedback, Japan revised the draft agreement and has resubmitted it for final consent.

Officials at the defence ministry said Bangladesh and Japan enjoy friendly bilateral relations, which also extend to the armed forces of both countries.

A Memorandum of Understanding on defence cooperation was signed in April 2023 during a visit by the then prime minister Sheikh Hasina, aiming to elevate the existing comprehensive partnership between the two nations to a strategic partnership.

The agreement is expected to further strengthen military ties between the two countries, the officials added.

Japanese military equipment manufacturers have shown interest in selling arms to Bangladesh for several years. Meanwhile, a delegation of Japanese military equipment manufacturers has visited Bangladesh.

Japan requested Bangladesh to sign the agreement during a foreign secretary-level meeting between the two countries held in Dhaka last June.

The United States has also been negotiating with Bangladesh for several years to sign specialised defence pacts – the General Security of Military Information Agreement (GSOMIA) and the Acquisition Cross-Servicing Agreement (ACSA). So far, Bangladesh has expressed interest in signing GSOMIA.

China and Russia remain the primary suppliers of arms to Bangladesh, which also imports weapons from neighbouring India.

As Bangladesh's financial capacity grows, the number of countries interested in selling arms to the nation has also increased. Countries such as Italy, Türkiye, Sweden, and France have been offering arms sales to Bangladesh.

Bangladesh set to sign defence purchase deal with Japan

Tokyo had previously proposed signing an agreement on the transfer of defence equipment and technology between the two Asian nations

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[Isa Khan]

Chattogram Port Authority (CPA) today (22 April) signed an agreement with two Japanese firms over Matarbari Deep Sea Port, the country's only deep sea port in the Bay of Bengal.

The agreement signing ceremony was held at Le Meridien Hotel in Dhaka.

CPA signed the deal with Japan's Penta-Ocean Construction Co Ltd and TOA Corporation.

The event was attended by the Chief of Naval Staff, the Senior Secretary of the Ministry of Shipping, representatives from the Japanese Embassy, and senior officials from JICA. The project will be jointly financed by JICA and CPA.

Speaking at the event, Brigadier General (Retd) M Sakhawat Hossain, adviser on Shipping and Labour and Employment Affairs, stated that the upcoming Matarbari Deep Sea Port would open new horizons for international trade and transform Bangladesh's economic landscape.

"This is more than just an infrastructure project—it's a strategic investment in the future of Bangladesh," the adviser said.

Sakhawat highlighted that the Matarbari Deep Sea Port would significantly enhance the nation's capacity to handle large vessels—up to 1,00,000 DWT—while reducing congestion at existing ports.

"It will streamline the supply chain and provide direct access to the emerging industrial belt in Cox's Bazar and Moheshkhali. Ultimately, this will position Bangladesh as a key energy and transshipment hub in the region," he said.

He emphasised the critical role of Japanese government support and JICA's contribution in making the project a reality.

Under "Package 1" of the project, the development will include a 300-metre-long multipurpose berth for ships up to 200 metres in length, a 460-metre-long container berth for vessels up to 350 metres, construction and installation of terminals, buildings and pavement.

It will also include sea walls, retaining walls, boundary walls, land development, dredging, land reclamation, utilities, emergency power systems, solar energy components, and other supporting infrastructure.

Once operational, the port will feature approximately 5,100 ground slots for container storage. It will be capable of accommodating container ships with a draft of 14.5 metres and lengths of up to 300 metres, handling around 8,200 TEUs per ship.

By 2029, the port is expected to handle between 6 and 11 lakh TEUs annually, with capacity projected to reach 22 to 26 lakh TEUs by 2041.

CPA, Japan’s Penta Ocean Construction ink deal to build Matarbari Deep Sea Port

The port will unlock new horizons for international Trade, says the shipping adviser

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[Isa Khan]

Bangladesh has signed a $630 million loan agreement with Japan to finance the construction of a dual-gauge double railway line between Joydebpur and Ishwardi, aimed at enhancing trade and connectivity.

The agreement was formalised today (27 June) at the Economic Relations Division's NEC-2 conference room in Sher-e-Bangla Nagar, Dhaka. Md Shahriar Kader Siddiky, secretary of the Economic Relations Division, signed on behalf of Bangladesh, while Ichiguchi Tomohide, chief representative of the Japan International Cooperation Agency (Jica) in Bangladesh, represented Japan.

According to a press release, this funding is part of the second instalment under Japan's 46th Official Development Assistance (ODA) loan package. It follows the signing of an "Exchange of Notes" in Tokyo on 30 May 2025, during Chief Adviser Muhammad Yunus's official visit.

The Joydebpur-Ishwardi railway project includes a 162km dual-gauge main line, 25km loop and siding lines, and the reconstruction of 11km of existing track. It will also involve the construction of three new stations and associated infrastructure to improve efficiency and reduce travel time.

Japan will finance the project in phases. Previously, it committed $32 million for the project's engineering services, said the release.

For this tranche, the loan comes with an interest rate of 2% for construction work, 0.65% for consultancy services, and a 0.20% one-time front-end fee. The repayment period is 30 years, including a 10-year grace period.

Japan remains Bangladesh's largest bilateral development partner, having committed over $33.6 billion in loans and grants since 1971. Its assistance spans key sectors including transport, power, agriculture, health, education, water supply, and rural development.

Bangladesh signs $630m loan deal with Japan for Joydebpur-Ishwardi rail project

Jica will finance the project in phases

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[Isa Khan]

Japan has called on Bangladesh to sign the Economic Partnership Agreement (EPA) within this year and to implement key reforms—such as simplifying business procedures, overhauling customs processes, and ensuring consistent, investor-friendly tax policies—to attract more Japanese investment.

During the Japan–Bangladesh Public–Private Joint Economic Dialogue (PPED) held in Tokyo in April, Japanese officials highlighted several obstacles that need urgent attention, including unstable economic zone incentives, long visa and work permit approval times, banking practices not aligned with international standards, and shortages of skilled labour and infrastructure.

The dialogue took place ahead of Chief Adviser Muhammad Yunus's visit to Japan in May, and the minutes of the meeting were circulated this week among relevant ministries, a copy of which has been obtained by The Business Standard.

EPA seen as key to sustaining trade after LDC graduation

Bangladesh's trade and investment relations with Japan now hinge on the timely signing of the EPA. The seventh round of negotiations concluded in Tokyo from 3–12 September, covering goods, services, investment, e-commerce, and intellectual property.

Commerce Secretary Mahbubur Rahman told TBS yesterday that the final round of negotiations was completed in September.

"The negotiations are over. Japan has sent us its tariff and service schedules, and we have shared ours with them. After reviewing, we found both sides' documents are aligned," he said.
"We aim to complete all legal procedures through the Ministry of Law by November to enable signing in December. However, Japan may need more time to finish its legal process. The EPA will be signed once they are ready."

Currently, Bangladesh enjoys duty-free access to the Japanese market under its LDC status. This privilege will end upon graduation next year, after which Bangladeshi exports will face an 18% tariff. The EPA is intended to maintain duty-free access and expand trade across 17 priority sectors.

According to the Export Promotion Bureau, Bangladesh's exports to Japan reached $1.41 billion in FY25, representing 2.92% of total export earnings.
Bangladesh Bank data shows that Japanese foreign direct investment (FDI) stood at $500 million as of 2024, while JETRO data indicates that 330 Japanese companies currently operate in Bangladesh—57.7% of which plan to expand operations.

Japanese firms such as Lion Corporation, ONODA, and NICCA Chemical Co. Ltd have already acquired land in the Bangladesh Special Economic Zone to establish facilities.

In response to concerns raised by Japanese officials and businesses during the Japan-Bangladesh dialogue in April, Siraz Uddin Miah, principal secretary to the chief adviser, also assured Japan that the EPA would be signed this year and that challenges facing Japanese investors in Bangladesh would be addressed.

The Bangladesh delegation at the dialogue was led by Principal Secretary Siraz Uddin Miah, while Japan's delegation was headed by Takehiko Matsua, vice minister of the Ministry of Economy, Trade and Industry (METI) and the Ministry of International Affairs.

The Japan-Bangladesh Economic Dialogue serves as the only platform for comprehensive discussions on business integration and economic cooperation between Bangladesh and Japan. This forum's previous dialogue was held in April 2023.

Japanese side urges swift reforms and stable policies

At the Tokyo dialogue, Japanese officials and business leaders pressed Dhaka to accelerate the EPA signing and address long-standing issues impeding investment.

Gaku Yoda, Deputy Director General at Japan's Ministry of Economy, Trade and Industry (METI), emphasised the need to conclude the EPA quickly, noting its importance for Bangladesh's smooth transition from LDC status in 2026.

He said both governments must "listen to companies' voices" and "cooperate to create a smoother business environment."

Kukubu Fumiya, Chairman of the Japan–Bangladesh Committee for Commercial and Economic Cooperation, described the early conclusion of the EPA as "an urgent issue," saying that 85% of Japanese companies in Dhaka expect it to be finalised this year.

JETRO Country Representative Ando Yuji noted that despite the change in government, Japanese firms remain optimistic about business expansion in Bangladesh over the next one to two years—particularly in chemical fibre, export-oriented, and domestic market–focused industries.

He cited major hurdles such as visa and work permit delays of up to 14 months, sudden changes to tax incentives in economic zones, and banking procedures not compliant with international standards.

JICA's South Asia Director General Yamada Tetsuya observed that Bangladesh's FDI-to-GDP ratio remains very low—just 0.3%—due to complex regulations, inadequate infrastructure, and a shortage of skilled workers. He said JICA is supporting reforms to improve productivity and investment readiness.

Executives from Japanese firms also raised specific concerns. KAFCO Japan sought stability in gas supply contracts, while ONODA Inc. announced plans to set up a prepaid gas meter assembly plant in Narayanganj's Special Economic Zone.

Simada Mitsuo, director for the South and Central Asia emerging regions division of the Ministry of Agriculture, Forestry and Fisheries (MAFF) in Japan, presented on the current state of collaboration in the food and agriculture sector between Japan and Bangladesh.

He pointed out that improving the business environment and eradicating unclear procedures are important from the Bangladesh side.

Bangladesh promises reforms and swift EPA signing

In response, Principal Secretary to the Chief Adviser Siraz Uddin Miah, who led the Bangladesh delegation, reaffirmed that the government aims to sign the EPA this year and address Japanese investors' challenges.
He said steps are underway to ease visa issuance, work permits, and customs procedures, and pledged to review problems faced by companies such as ONODA and KAFCO.

Bangladesh's Ambassador to Japan, Md Daud Ali, said the interim government under Chief Adviser Yunus is pursuing broad reforms to strengthen the rule of law and investor confidence.

He acknowledged the language barrier as a key obstacle and proposed establishing training centres in Bangladesh to provide Japanese language and technical education. He also expressed interest in expanding vegetable exports to Japan.

Bida Director General Md Ariful Hoque said efforts are underway to raise FDI from 0.3% to 3% of GDP, supported by policy consistency, anti-corruption measures, and stable resource supplies.

Bangladesh Bank official Abu Saleh Mohammed Shahab Uddin assured that payment-related issues have been resolved and that reserves and exchange rates are now stable.

Meanwhile, NBR Member Md Moazzem Hossain said customs and tax reforms are progressing, with the National Single Window nearing completion and the new Customs Bond Management System (CBMS)—launched in January 2025—expected to significantly reduce clearance times and improve transparency.

Japan urges Bangladesh to sign EPA by this year, ease business rules to attract its FDI

EPA talks with Japan concluded; Bangladesh set to sign by December, says commerce secy

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