Landmark Agreement Signed in Tokyo
In a historic move, Japan and Bangladesh officially signed their first-ever Economic Partnership Agreement (EPA) on February 6, 2026, in Tokyo. The agreement was formalized by HORII Iwao, Japan's State Minister for Foreign Affairs, and Sheikh Bashir Uddin, Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism of the Interim Government of the People's Republic of Bangladesh.
This landmark pact represents a significant step in strengthening economic ties between the two nations, following seven rounds of negotiations held in both Dhaka and Tokyo. Negotiations for the EPA commenced on March 12, 2024, building upon recommendations from a joint study group established in 2022 to commemorate 50 years of diplomatic relations. An agreement in principle was reached on December 22, 2025.
Enhanced Market Access for Goods and Services
The EPA is designed to significantly improve market access for goods and services, fostering increased trade and investment. Under the agreement, Japan will grant 100% duty-free access to 7,379 Bangladeshi products, a crucial benefit for Bangladesh's export-oriented industries, particularly ready-made garments (RMG). A key provision for the garment sector includes 'single transformation' rules of origin, simplifying the process for Bangladeshi apparel to qualify for duty-free entry into Japan.
In return, Bangladesh will provide duty-free or preferential access to 1,039 Japanese products in a phased manner. This includes a gradual abolition of tariffs on items such as steel and automobile parts from Japan.
Opportunities for Professionals and Investment Growth
Beyond goods, the agreement also opens new avenues for services and investment. The EPA will allow Bangladeshi professionals to access Japan's labor market in 16 sectors, encompassing 120 categories, including vital fields like information technology, engineering, education, caregiving, and nursing. Conversely, Bangladesh has agreed to open 98 sub-sectors under 12 categories for Japanese service providers.
The agreement is anticipated to attract greater Japanese Foreign Direct Investment (FDI) into Bangladesh, particularly in key sectors such as manufacturing, infrastructure, energy, and logistics. This influx of investment and advanced Japanese technology is expected to enhance the quality of domestic products in Bangladesh and contribute to the development of Small and Medium Enterprises (SMEs) and a skilled workforce.
A Strategic Partnership for Future Growth
This EPA is seen as a transformative step that will support Bangladesh's economic transition in the post-Least Developed Country (LDC) period. Japan has historically been a significant development partner for Bangladesh, providing substantial official development assistance. The elevation of their bilateral relationship to a 'Strategic Partnership' in April 2023 underscores the deepening trust and cooperation between the two nations. The agreement is expected to foster a predictable trade environment and further strengthen the bond between Japan and Bangladesh.
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