Bangladesh-Japan EPA: Agreement Summary

The Bangladesh-Japan Economic Partnership Agreement (EPA), signed in 2024 and effective from 2025, is Bangladesh's first comprehensive bilateral free trade agreement with a developed economy. The agreement provides for phased tariff elimination on 90% of bilateral trade over a 10-year implementation period, with Japan opening its market to 87% of Bangladeshi exports (mostly textile, leather, and agricultural products) immediately upon entry into force. Bangladesh will reciprocally eliminate tariffs on 71% of Japanese exports (machinery, electronics, vehicles) over 7-10 years, with sensitive sectors (automobile fully-built units, certain agricultural products) excluded. Key features include: rules of origin requiring 35% regional value content (with cumulation provisions), a 14-day customs clearance commitment, mutual recognition of AEO programmes, an investment protection chapter with ISDS provisions, and a chapter on movement of natural persons (Mode 4) allowing Bangladeshi IT professionals and contractual service suppliers to enter Japan under simplified visa procedures. The EPA is expected to increase Bangladesh's exports to Japan from USD 1.7B (2024) to USD 5B by 2030.