The Bangladesh–Japan Economic Partnership Agreement (EPA) marks a defining shift towards a rules-based, competitive global trade framework, but its gains will depend on Bangladesh’s domestic preparedness, said the International Chamber of Commerce-Bangladesh (ICCB).
The chamber, in its January–March bulletin released on Monday, described the agreement signed on 6 February as a forward-looking blueprint for economic transformation in a post-LDC era and a strategic move beyond preference-based market access.
Japan has granted duty-free access to 7,379 Bangladeshi products, helping mitigate tariff risks after LDC graduation and ensuring continued access to one of the world’s largest economies.
The agreement also includes provisions on services, investment, customs facilitation, intellectual property and digital trade. Japan has opened 120 service sub-sectors to Bangladesh, while Bangladesh has offered access to 97 sub-sectors.
According to the chamber, it created opportunities for Bangladeshi professionals in sectors such as information technology, engineering and caregiving, while encouraging Japanese investment, technology transfer and integration into regional supply chains.
The EPA could help diversify exports beyond readymade garments into higher-value sectors including electronics, automotive components and processed goods, supported by reduced non-tariff barriers and improved regulatory transparency.
The agreement strengthens Bangladesh’s position in negotiating similar deals with the European Union, ASEAN countries and the United Kingdom and is being viewed as a template for future trade arrangements.
In contrast, the evolving Bangladesh–United States reciprocal trade arrangement offers limited and conditional benefits, including duty-free access tied to the use of US inputs, which may raise production costs, restrict sourcing flexibility and expose Bangladesh to geopolitical risks.
Realising the full benefits of the EPA will require strengthening quality infrastructure, improving logistics and trade facilitation, developing skilled human capital and ensuring coherent policy alignment.
The agreement signals a shift towards partnership-driven global integration, with effective implementation critical to achieving sustained export growth and industrial transformation.
