STAR BUSINESS DESK

The Economic Partnership Agreement (EPA) between Bangladesh and Japan is set to serve as a precedent for future agreements with major economies such as the European Union, the Association of Southeast Asian Nations (Asean), and the United Kingdom, as Bangladesh seeks to expand its global trade network.

As Bangladesh’s first comprehensive economic partnership with a developed economy, the EPA is viewed as a strategic step in preparing for its post-Least Developed Country (LDC) era, according to the latest news bulletin of the International Chamber of Commerce-Bangladesh (ICCB), released on Monday.

Under the agreement, Japan has granted duty-free access to 7,379 Bangladeshi products, covering nearly 97 percent of the country’s export basket, including readymade garments.

This is expected to help Bangladesh mitigate potential tariff shocks as it graduates from LDC status.

The EPA goes beyond tariff benefits, incorporating provisions on services, investment, customs facilitation, intellectual property, and digital trade.

Japan will open 120 service sub-sectors to Bangladeshi professionals, while Bangladesh will allow access to 97 sub-sectors, creating new opportunities in areas such as IT, engineering, and caregiving.

The ICCB bulletin noted that the agreement could play a key role in diversifying Bangladesh’s export base, which has long been dominated by garments.

Sectors such as electronics, automotive components, and processed goods are likely to benefit from increased Japanese investment and integration into regional supply chains.