Bangladesh and Japan are on track to sign a comprehensive Economic Partnership Agreement (EPA) by the end of 2025 to strengthen bilateral trade, investment, and economic cooperation. The decision was reaffirmed during a meeting between Chief Adviser Muhammad Yunus and Japanese Prime Minister Shigeru Ishiba during Yunus’ recent visit to Tokyo.

The agreement is expected to go beyond conventional trade liberalisation, encompassing services, investment protection, intellectual property rights, and economic and technical cooperation. Once in place, this will mark Japan’s first EPA with a South Asian country.

Deepening Strategic and Economic Ties

During the visit, Japan also pledged US$1.063 billion in assistance to Bangladesh—including budgetary support, railway development, and scholarships—further solidifying its support for Bangladesh’s democratic transition and economic recovery.

Additionally, the two nations further formalized their strong ties with the signing of six strategic partnerships: 

• MoU between the Japan Bank for International Cooperation (JBIC) and Bangladesh’s Ministry of Power, Energy and Mineral Resources on implementing energy sector projects.
  
  
• MoU between ONODA Inc and Bangladesh Special Economic Zones Limited (BSEZ) on setting up a factory for assembling, inspecting, and maintaining gas metres in BSEZ.
  
  
• MoU between Bangladesh Naxis Co Ltd and BSEZ to establish a factory for producing garment accessories.
  
  
• MoU between Glagit, Musashi Seimitsu Industry Glafit, and the Bangladesh Investment Development Authority (BIDA) on launching a manufacturing facility for battery-powered bicycles and electric motorcycles.
  
  
• MoU with Cipher Core Co Ltd. on launching a  $20 million pilot project for strengthening information security in Bangladesh
  
  
• MoU between Japan International Cooperation Agency (JICA) and BIDA on developing an Integrated Single Window Platform for the investment agencies of Bangladesh.

Chief Adviser Yunus invited Japan to enhance market access for Bangladeshi products post-LDC graduation and proposed cooperation in significant infrastructure projects, including LNG and LPG terminals, expressways, and bridge construction. He also highlighted upon the vast opportunities for Japanese investments in EVs, electronics, solar, and light engineering, and expanded avenues for Bangladeshi skilled workers and students in Japan.

A New Chapter in Regional Cooperation

Japanese PM Ishiba praised Bangladesh’s leadership and highlighted the country’s role in Indo-Pacific stability. He reaffirmed Japan’s commitment to supporting Bangladesh’s transformation into a democratic, tech-forward economy.