FROM PAGE B1

Meanwhile, Commerce Adviser Sk Bashir Uddin and the ministry’s trade negotiation team are travelling to Tokyo this week to sign what will be Bangladesh’s first full-fledged trade agreement with a major partner.

The advisory council approved the EPA on January 22, establishing a framework for preferential trade benefits after Bangladesh transitions from LDC status in November.

“We are ready to sign the EPA with Japan on February 6, according to our previous announcement,” Rahman said.

The agreement provides substantial market access benefits. Once it comes into effect, Japan will grant duty-free entry to 7,379 products representing 97 percent of Bangladesh’s export basket, including key garment items. Bangladesh will reciprocate by offering duty-free access to 1,039 Japanese products, phased in over 18 years.

Beyond goods, the EPA includes provisions for trade in services. Bangladesh has committed to opening 97 sub-sectors across 12 service categories to Japan, while Japan will open 120 sub-sectors to Bangladesh. This framework is expected to encourage Japanese investment and facilitate technology transfer.

Japan currently stands as Bangladesh’s largest Asian export market, with shipments approaching $2 billion annually, predominantly driven by garment demand. Last month, Japan confirmed it would extend duty-free market access for Bangladesh for three additional years through 2029.

These trade agreements represent critical components of Bangladesh’s strategy to maintain export competitiveness after losing LDC privileges.

Research estimates suggest the country could face export losses of up to $8 billion annually once LDC-related benefits expire, making preferential trade arrangements with major partners essential for sustaining economic growth.