Bangladesh, Japan conclude EPA negotiations

Chief Adviser’s Special Envoy on International Affairs Lutfey Siddiqi,  Executive Chairman of the Bangladesh Investment Development Authority (BIDA), Chowdhury Ashik Mahmud Bin Harun; Secretary of the Ministry of Commerce, Mahbubur Rahman; Chief Negotiator of the Bangladesh–Japan EPA, Ayesha Akter; the Deputy Chief Negotiator, Md. Firoj Uddin Ahmed; and the Focal Point, Mahbuba Khatoon Minu, were present during the announcement, said the Chief Adviser’s press wing.

As an early step in the negotiations, a Joint Study Group was established, which published its report on 27 December 2023. The report recommended a comprehensive approach covering 17 sectors for negotiation.

The official negotiations for the EPA commenced on 12 March 2024, as per the Agreed Work Plan. The first round was held in Dhaka from 19–23 May 2024, but due to unforeseen challenges, the talks were temporarily paused.

In response to the critical importance of the EPA for Bangladesh's economic growth, the interim government refocused its efforts starting November 2024, setting an ambitious goal to conclude the agreement within a year. This led to the adoption of an accelerated negotiation process, significantly speeding up the remaining rounds.

The remaining negotiations progressed through a second round in Dhaka from November 10–14, 2024, followed by a third round in Tokyo on December 19–20, 2024, a fourth round in Dhaka from February 2–6, 2025, a fifth round in Tokyo from April 20–26, 2025, a sixth round in Dhaka from June 21–26, 2025, and finally a seventh and concluding round in Tokyo from September 3–12, 2025, which brought the talks to a successful close.

Through these seven rounds, the EPA text was finalized, adhering to the original work plan.

A crucial factor behind the swift progression of the negotiations was the direct involvement of Commerce Adviser Sheikh Bashir Uddin and Special Envoy Lutfey Siddiqi.

Their proactive steps included chairing multiple inter-ministerial meetings and also high-level visits to Japan, where they engaged directly with their ministerial counterparts, said the Press Wing.

These visits were instrumental in reinforcing Bangladesh’s commitment to finalising the agreement. Their personal involvement highlighted the interim government’s deep commitment to securing the EPA, underscoring its strategic importance.

Upon the conclusion and signing of the EPA, Bangladesh will enjoy immediate duty-free access to the Japanese market for 7,379 products. In return, Japan will receive immediate duty-free access to 1,039 products from Bangladesh. A significant aspect of the EPA is that Bangladesh’s major export products, particularly ready-made garments (RMG), will be granted duty-free access to Japan’s market from the very first day of the agreement. Additionally, Bangladesh will benefit from Single Stage Transformation provisions for RMG products.

The Trade in Services sector also sees a substantial commitment from both sides. Bangladesh has agreed to open 97 sub-sectors to Japan, while Japan will open 120 sub-sectors to Bangladesh across four modes of supply. This is expected to foster increased Japanese investment in Bangladesh, along with greater technology transfer.

 As a Least Developed Country (LDC), Bangladesh will, for the first time, sign an EPA with Japan, the world’s fourth-largest economy. The signing of this agreement is expected to bring far-reaching trade and economic benefits for Bangladesh, including enhanced trade, investment, and employment opportunities, marking a new chapter in the nation’s economic relations with Japan, reports UNB.