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.
The EPA is also expected to enhance regulatory transparency and reduce non-tariff barriers, strengthening Bangladesh’s position as a reliable destination for trade and investment.
In contrast, ongoing discussions on a Bangladesh-US reciprocal trade arrangement offer a more limited framework, with conditional market access and less comprehensive coverage in services and investment.
Despite these opportunities, experts stress that Bangladesh’s ability to fully benefit from such agreements will depend on domestic preparedness, including improvements in logistics, trade facilitation, quality infrastructure, and human capital development.
The ICCB added that the EPA represents more than a trade milestone, signalling Bangladesh’s readiness to move beyond its LDC status and integrate more deeply into the global economy.