STAR BUSINESS REPORT

About 85 per cent of the local and Japanese companies with operations in both nations want their respective governments to sign a free trade agreement (FTA) so that they can continue enjoying duty benefits after Bangladesh graduates from the UN’s list of least developed countries in 2026, according to a survey.

Meanwhile, some 20 per cent or 26 Japanese companies want to relocate from Bangladesh to more competitive countries in the Association of Southeast Asian Nations (Asean) if an FTA is not signed.

Only one company was against signing an FTA as it would render the incentives for garment factories housed inside export processing zones redundant. Of the local companies surveyed, some 87 per cent, or 26 multinational companies, want an FTA between the two countries.

Six companies did not respond while 8 per cent of respondents had no particular opinion on the question of signing an FTA.

The Japan External Trade Organization and Japan-Bangladesh Chamber of Commerce and Industry jointly conducted the survey between August 5 and October 14 last year.

The survey organisations sent questions to 300 companies of Bangladeshi and Japanese origins having operations in both countries. However, some 142 companies responded to the queries.

The existing rules of origin (ROO) in the GSP for garment products should be continued. Standard tariff classification changes will come into play if the ROO to the Japanese markets, the survey found.

Simplifying the process of issuing certificates of origin (COO) with less time is required as well. The introduction of self-certification could serve to this end, it said.