Monday, 09 February, 2026
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has hailed the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA) as a historic milestone, calling it a landmark achievement in Bangladesh’s trade diplomacy.
In a statement, the BGMEA said the association, along with the entire ready-made garment (RMG) sector, is deeply grateful to the government of Japan for its continued support in promoting sustainable economic growth and strengthening bilateral ties.
Signed on Friday in Tokyo, the EPA marks Bangladesh’s first-ever such agreement with Japan. The accord was signed by Sk. Bashir Uddin, Adviser for Commerce, Textiles, Jute, Civil Aviation and Tourism of the Government of Bangladesh, and HORII Iwao, State Minister for Foreign Affairs of Japan.
“This agreement is the outcome of seven rounds of intensive negotiations, covering trade in goods and services, and reflects a shared commitment to deepen economic engagement in a mutually beneficial manner,” the BGMEA said.
Japan has long been Bangladesh’s largest development partner and the country’s biggest ODA provider, contributing significantly to infrastructure, industrial growth, and overall economic transformation. The BGMEA described the EPA as a natural progression of this trusted, long-standing partnership.“This is not just a trade agreement—it is a strategic step for Bangladesh as it prepares for LDC graduation, ensuring stable and predictable market access,” the BGMEA noted.
From a trade perspective, the EPA is expected to boost market access for Bangladesh’s exports, particularly garments, which dominate the nation’s shipments to Japan. In FY2024-25, Bangladesh exported US$1.41 billion worth of garments to Japan, while Japan’s global garment imports exceeded US$23 billion. Despite being the world’s second-largest single-market garment importer after the U.S., Japan currently accounts for only 3% of Bangladesh’s total garment exports.“As Bangladesh aims to reach US$100 billion in garment exports by 2035, increasing Japan’s share to at least 10% should be a clear strategic objective,” the BGMEA said.
The EPA ensures duty-free access for Bangladeshi garments, maintaining favourable rules of origin. Currently, Bangladesh benefits from Japan’s GSP scheme, but post-LDC graduation, the country would face Japan’s MFN tariffs of 8–15% for knitwear and 10–15% for woven garments. Under the EPA, these customs duties will be eliminated from day one.
Bangladesh also gained flexibility in rules of origin, particularly for garments. Chapter 3 and Annex 2 specify that garments produced under a single-stage processing qualify for duty-free access, mirroring current GSP arrangements and making it one of the most favourable deals globally for a garment-exporting nation.
The BGMEA emphasised that the EPA creates a predictable trade environment, but stressed the need for Bangladesh to develop a clear roadmap to fully leverage its benefits in line with the US$100 billion garment export vision.
Currently, Bangladesh has a trade deficit of approximately US$456 million with Japan. The BGMEA believes the EPA could help reduce this gap, diversify exports beyond garments, and attract greater investment from Japanese importers, retailers, and machinery suppliers.
“The Japan-Bangladesh EPA should be seen as the beginning of a broader strategic shift in Bangladesh’s trade policy,” the BGMEA said.
It urged the Ministry of Commerce and other negotiating teams to fast-track similar agreements, including the upcoming U.S. preferential deal using American cotton, to ensure Bangladesh maintains zero-tariff access and strengthens its post-LDC trade strategy.
“This landmark EPA sets a guiding precedent for all future trade negotiations in the post-LDC era,” the BGMEA concluded.
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The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has hailed the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA) as a historic milestone, calling it a landmark achievement in Bangladesh’s trade diplomacy.
In a statement, the BGMEA said the association, along with the entire ready-made garment (RMG) sector, is deeply grateful to the government of Japan for its continued support in promoting sustainable economic growth and strengthening bilateral ties.
Signed on Friday in Tokyo, the EPA marks Bangladesh’s first-ever such agreement with Japan. The accord was signed by Sk. Bashir Uddin, Adviser for Commerce, Textiles, Jute, Civil Aviation and Tourism of the Government of Bangladesh, and HORII Iwao, State Minister for Foreign Affairs of Japan.
“This agreement is the outcome of seven rounds of intensive negotiations, covering trade in goods and services, and reflects a shared commitment to deepen economic engagement in a mutually beneficial manner,” the BGMEA said.
Japan has long been Bangladesh’s largest development partner and the country’s biggest ODA provider, contributing significantly to infrastructure, industrial growth, and overall economic transformation. The BGMEA described the EPA as a natural progression of this trusted, long-standing partnership.“This is not just a trade agreement—it is a strategic step for Bangladesh as it prepares for LDC graduation, ensuring stable and predictable market access,” the BGMEA noted.
From a trade perspective, the EPA is expected to boost market access for Bangladesh’s exports, particularly garments, which dominate the nation’s shipments to Japan. In FY2024-25, Bangladesh exported US$1.41 billion worth of garments to Japan, while Japan’s global garment imports exceeded US$23 billion. Despite being the world’s second-largest single-market garment importer after the U.S., Japan currently accounts for only 3% of Bangladesh’s total garment exports.“As Bangladesh aims to reach US$100 billion in garment exports by 2035, increasing Japan’s share to at least 10% should be a clear strategic objective,” the BGMEA said.
The EPA ensures duty-free access for Bangladeshi garments, maintaining favourable rules of origin. Currently, Bangladesh benefits from Japan’s GSP scheme, but post-LDC graduation, the country would face Japan’s MFN tariffs of 8–15% for knitwear and 10–15% for woven garments. Under the EPA, these customs duties will be eliminated from day one.
Bangladesh also gained flexibility in rules of origin, particularly for garments. Chapter 3 and Annex 2 specify that garments produced under a single-stage processing qualify for duty-free access, mirroring current GSP arrangements and making it one of the most favourable deals globally for a garment-exporting nation.
The BGMEA emphasised that the EPA creates a predictable trade environment, but stressed the need for Bangladesh to develop a clear roadmap to fully leverage its benefits in line with the US$100 billion garment export vision.
Currently, Bangladesh has a trade deficit of approximately US$456 million with Japan. The BGMEA believes the EPA could help reduce this gap, diversify exports beyond garments, and attract greater investment from Japanese importers, retailers, and machinery suppliers.
“The Japan-Bangladesh EPA should be seen as the beginning of a broader strategic shift in Bangladesh’s trade policy,” the BGMEA said.
It urged the Ministry of Commerce and other negotiating teams to fast-track similar agreements, including the upcoming U.S. preferential deal using American cotton, to ensure Bangladesh maintains zero-tariff access and strengthens its post-LDC trade strategy.
“This landmark EPA sets a guiding precedent for all future trade negotiations in the post-LDC era,” the BGMEA concluded.
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