Bangladesh is set to sign the Bangladesh–Japan Economic Partnership Agreement (BJEPA) with Japan, marking a major step toward deepening bilateral trade and investment ties between the two countries.

The agreement is designed to secure uninterrupted duty-free access for Bangladeshi products in the Japanese market following Bangladesh’s graduation from the Least Developed Country (LDC) category. Officials say the deal will also strengthen investor confidence and encourage long-term Japanese investment in Bangladesh.

Safeguarding Market Access After LDC Graduation

For Bangladesh, the BJEPA is strategically significant as it addresses one of the key risks of LDC graduation—loss of preferential market access. Under the agreement, 7,379 Bangladeshi products will receive immediate duty-free entry into Japan from the first day it comes into force. In return, Japan will enjoy duty-free access for 1,039 products in the Bangladeshi market.

Readymade garments, Bangladesh’s leading export, will benefit from duty-free access from day one, alongside the Single Stage Transformation facility, which simplifies rules of origin requirements.

Broad Coverage Across Trade, Investment, and Services

The agreement covers a wide range of areas, including trade in goods and services, customs duties, investment protection, trade facilitation, and intellectual property rights. It is Bangladesh’s first Economic Partnership Agreement with Japan, the world’s fourth-largest economy.

Negotiations were guided by a Joint Study Group report published in December 2023, which outlined a comprehensive framework spanning 17 sectors. Formal negotiations began in March 2024, with the interim government prioritizing completion within one year. The final text was concluded after seven negotiation rounds and extensive stakeholder consultations.

In services trade, Bangladesh has committed to opening 97 sub-sectors across 12 sectors, aligned with the World Trade Organization sectoral classification. Japan, in turn, will open 120 sub-sectors to Bangladeshi service providers. These commitments are expected to accelerate technology transfer and stimulate higher-value investment.

High-Level Engagement and Next Steps

Senior policymakers played a central role in advancing the talks, chairing inter-ministerial meetings and holding high-level discussions during official visits to Japan. Officials say this direct engagement helped maintain momentum and resolve complex issues.

The agreement has received formal approval from the Advisers Council, which praised the negotiating team for completing the process. Japan has indicated its intention to sign the BJEPA on February 6, 2026, potentially ushering in a new phase of economic cooperation between the two countries.