Bangladesh and Japan are set to sign an Economic Partnership Agreement (EPA) on February 6, following the completion of negotiations on the draft deal, Commerce Secretary Mahbubur Rahman said on Sunday.
Speaking to reporters at the Ministry of Commerce at the Secretariat, the secretary said the agreement aims to deepen trade and economic cooperation between the two countries, particularly as Bangladesh prepares for graduation from the least developed country (LDC) status.
An Economic Partnership Agreement is designed to create a free trade area between two countries by reducing or eliminating trade barriers, import quotas and tariffs, while facilitating greater trade in goods and services.
Responding to a question on whether the government is pursuing free trade arrangements to offset potential loss of trade benefits after LDC graduation, the commerce secretary said Bangladesh is actively negotiating free trade agreements (FTAs) with several countries.
“We have completed the entire negotiation process of the EPA with Japan and will sign it on February 6,” he said.
He added that the second round of FTA negotiations with South Korea was completed last Thursday and expressed optimism that an agreement with South Korea would also be signed within this year.
The secretary further said proposals for FTAs have been sent to the European Union and other markets where Bangladesh currently enjoys duty-free access, with discussions expected to begin soon.
According to the Ministry of Commerce, this is Bangladesh’s first economic partnership agreement with any country. Under the EPA, 7,379 Bangladeshi products will receive duty-free access to the Japanese market, while Japan will enjoy duty-free benefits for 1,039 products in Bangladesh. The agreement will also open 97 sub-sectors of Bangladesh’s market to Japan.
On the services front, Japan has agreed to open 120 sub-sectors for Bangladesh under four modes of service delivery.
Officials said Japan is one of Bangladesh’s major trading partners, and the agreement is intended to preserve duty-free access for Bangladeshi products in the Japanese market after LDC graduation, while strengthening bilateral economic ties.
The initiative, formally titled the Bangladesh-Japan Economic Partnership Agreement (BJEPA), aims to expand trade and investment, boost confidence among Japanese investors, and attract long-term Japanese investment in Bangladesh.
Replying to a question on preparations for the Ramadan market, the commerce secretary said discussions have been held on the supply situation and price stability of essential commodities, adding that the overall situation this year appears satisfactory.
On export performance, he acknowledged that global trade recorded a negative growth of 3.7 percent in recent months but said Bangladesh has performed comparatively better.
“We are not outside the global economy. While the global deficit stands at around 3.7 percent, Bangladesh’s export growth is negative by around 1.6 percent, which is still better than the global average,” he said.