Dhaka, Tokyo agree on feasibility study for economic partnership

Tokyo and Dhaka have agreed to conduct a joint feasibility study for signing an Economic Partnership Agreement (EPA) and have decided to form a joint working group to this end.

Bangladesh is trying to continue the existing duty-free export facility by signing either an EPA or a Free Trade Agreement (FTA) with the rich Asian country before the LDC graduation in 2026.

Officials of the two countries, at a meeting at the commerce ministry in Dhaka on Monday, decided on the feasibility study, Commerce Minister Tipu Munshi and Japanese Ambassador to Bangladesh Ito Naoki said at a joint press briefing at the end of the meeting.

The commerce minister said, "We are afraid of losing the duty-free export facility after LDC graduation. The loss of preferential facilities may lead to a crisis in Bangladesh's exports from 2026 onward.

"From that point of view, we are trying to continue duty-free export facilities in the Tokyo market by signing an FTA or EPA with Japan in any format before the LDC graduation."

He said preparations are underway to sign FTAs with a few other countries, such as China, India, Indonesia, Nepal, and Sri Lanka.

Last fiscal year, Bangladesh's exports to Japan were $1.35 billion, while imports amounted to $2.4 billion.

"The bilateral trade is in Japan's favour, but RMG exports to the country are on the rise. If an FTA is signed, the export income of Bangladesh will increase to $4-5 billion in the next four-five years," the minister hoped.

Ito Naoki said the economy of Bangladesh should be more integrated with the global and regional economies after LDC graduation. For this, Bangladesh needs a lot of foreign direct investments and increase in its export capacity.

Once the proposed EPA is signed, trade and investment between the two countries will increase. The door of economic cooperation will be further expanded, he added.