Japan-Bangladesh partnership to finalize EPA

Japan-Bangladesh partnership to finalize EPA

Bangladesh and Japan are set to finalize an Economic Partnership Agreement (EPA) by December 2025 to boost commerce and investment. The draft EPA spans 17 sectors, including trade in goods, customs procedures, investment, and electronic commerce. Senior Secretary Tapan Kanti Ghosh expects the agreement to integrate Bangladesh into the global value chain, fostering increased investment and trade.

The EPA follows a joint feasibility study, aiming to elevate the bilateral relationship to a strategic partnership. The agreement, viewed as mutually beneficial, is seen as crucial for Bangladesh as it approaches graduation from Least Developed Country status in November 2026. The EPA is expected to positively impact bilateral trade in services, with Bangladesh’s total exports to Japan in services having tripled over the past decade.

Current investment trends show a rise in foreign direct investment (FDI) to Bangladesh, reaching a record $3.44 billion in 2022. Japanese investment in Bangladesh also hit a new high in FY2022 at $122.72 million, with the number of Japanese companies in Bangladesh tripling over the past decade. Collaborative initiatives, including the Bangladesh Special Economic Zone and the Bangladesh-Japan joint Public Private Partnership Platform, are poised to further expand Japanese investment in Bangladesh.

Source: The Business Standard

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