- Bangladesh gets duty-free access to 97% of exports to Japan
- Japanese cars are excluded to boost local automotive investment
- Japan is Bangladesh’s second-largest export market, with a trade imbalance
Bangladesh and Japan established a pivotal trade agreement which enables Bangladeshi products to enter the Japanese market without paying import taxes. Bangladesh's Commerce Adviser Sk. Bashir Uddin and Japan's State Minister for Foreign Affairs HORII Iwao signed the agreement in Tokyo.
He stated, “The new EPA will come into force once the notification is published. We will publish the notification tomorrow. 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”.
The agreement provides Bangladesh with duty-free export rights to 97 percent of its products which include important items like ready-made garments (RMG).The agreement has 197 tariff lines that remain outside its coverage.
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The duty-free access does not apply to products which include rice sugar fisheries and leather articles. Japanese automobiles from major manufacturers such as Toyota and Honda will not receive the same tariff benefits. Bangladesh's automotive sector will receive Japanese investment through this exclusion which will help develop domestic vehicle production capabilities.
Japan stands as Bangladesh's second-biggest Asian export market because the country exported goods worth $1.33 billion to Japan during the 2024-25 fiscal year, which represents an 8.2% increase compared to the previous year.
The main export items from Bangladesh to Japan include readymade garments and fish and shrimp and home textiles and leather products. Bangladesh imported products from Japan worth $1.87 billion during FY25 which included over 60% of its imported goods in the form of iron, steel, machinery and vehicles, resulting in a trade deficit that favored Japan.
The newly established agreement between the two countries strengthens their economic relationship while delivering major advantages to exporters from Bangladesh.