Bangladesh News FTA - PTA - EPA - CEPA

[Isa Khan]

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.

Bangladesh signs first economic partnership deal with Japan

Commerce Adviser of Bangladesh, Sk. Bashir Uddin, and Japan’s State Minister for Foreign Affairs, HORII Iwao, signed the agreement in Tokyo

www.thedailystar.net

 

[Isa Khan]

Bangladesh and South Korea today signed the Comprehensive Economic Partnership Agreement (CEPA) in Dhaka to boost bilateral trade and investment.

Under the deal, 97 percent of Bangladesh's goods will get preferential market access to South Korea, while 87 percent of Korean goods will get similar access to Bangladesh.

Commerce Minister Khandakar Abdul Muktadir and South Korean Trade Minister Han-Koo Yeo announced the signing at a press conference at the Commerce Ministry in Dhaka.

Replying to queries from journalists, the ministers said the agreement would pave the way for increased trade and investment between the two countries.

Bangladesh exported goods worth $421 million to South Korea in FY2025-26, down by 9 percent year-on-year, according to data from the Export Promotion Bureau (EPB).

Bangladesh imported goods worth $614 million from South Korea during the July-December period of the last fiscal year, according to available data.

Imports reached $1.2 billion in FY2024-25, up 33 percent from $903 million in FY2023-24, according to Bangladesh Bank.

The deal follows the former interim government's EPA with Japan in Tokyo in February this year as part of its efforts to retain the country's competitiveness after its graduation from the Least Developed Country category.

Bangladesh, South Korea sign CEPA to boost trade

Under the deal, 97 percent of Bangladesh's goods will get preferential market access to South Korea

www.thedailystar.net