Bangladesh News FTA - PTA - EPA - CEPA

Isa Khan · 2026-02-21T09:08:26-0600

Bangladesh signed the Economic Partnership Agreement (EPA) with Japan today, marking the country’s first-ever EPA with any nation.

Commerce Adviser of Bangladesh, Sk. Bashir Uddin, and Japan’s State Minister for Foreign Affairs, HORII Iwao, signed the agreement in Tokyo at 3:00 pm Japan Standard Time, Commerce Secretary Mahbubur Rahman told The Daily Star over the phone after the signing.

“The new EPA will come into force once the notification is published. We will publish the notification tomorrow,” he said.

“This is a unique achievement for Bangladesh, as we have signed our first full-fledged EPA with a developed country like Japan. Attracting Japanese investment in Bangladesh is our main target. It is also the first EPA Japan has signed with any LDC,” he added.

Bangladesh previously had a preferential trade agreement with neighbouring Bhutan, which has been in effect since December 2020.

The Council of Advisers approved the agreement on January 22 this year, aiming to secure tariff benefits following the country’s graduation from the Least Developed Country (LDC) category in November.

Japan provides duty-free market access to LDCs, including Bangladesh, on 97.9 percent of tariff lines, according to Bangladesh Customs. A total of 197 tariff lines are excluded from the benefit, including rice, sugar, fisheries products, and leather articles.

After the signing, the trade deal will give Bangladeshi exporters duty-free access to 97 percent of their export basket, including ready-made garments (RMG).

Automobiles from Japan, home to global brands such as Toyota and Honda, will not enjoy duty-free entry under the deal, according to the commerce secretary.

Rahman said the move is deliberate, aimed at encouraging Japanese entrepreneurs to invest directly in Bangladesh’s vehicle segment. Officials believe this could prompt investment in local vehicle manufacturing, possibly reshaping the country’s automotive industry.

Japan is Bangladesh’s second-largest export destination in Asia. Exporters fetched $1.33 billion in the fiscal year (FY) 2024–25, registering 8.2 percent year-on-year growth, according to Bangladesh Bank (BB) data.

Major export items include readymade garments, fish, shrimp and prawns, home textiles, jute manufactures, leather and leather goods, raw jute, and handicrafts.

Bangladesh imported $1.87 billion of goods from the world’s fourth-largest economy in FY25, reflecting the trade balance in favour of Japan.

Iron and steel; vehicles other than railway or tramway vehicles and their parts and accessories; ships, boats and floating structures; nuclear reactors, boilers, machinery, mechanical appliances, and parts accounted for more than 60 percent of imports from Japan during the year, according to BB data.