Bangladesh and Japan have finalized the draft of their long-anticipated Economic Partnership Agreement (EPA), paving the way for extensive trade liberalization between the two nations. Under the agreement, Japan will grant duty-free access to 7,379 Bangladeshi products, including ready-made garments, while Bangladesh will offer similar benefits to 1,039 Japanese items. The formal signing is expected in January 2026, following months of negotiations led by trade officials from both countries.

The EPA also covers the services sector, with Bangladesh opening 97 service categories and Japan 120, aimed at boosting investment and technology exchange. The agreement follows eight rounds of discussions held alternately in Dhaka and Tokyo since early 2024. Officials say the deal will deepen bilateral trade ties and diversify Bangladesh’s export base beyond apparel.

Analysts view the EPA as a strategic step for Bangladesh ahead of its graduation from Least Developed Country (LDC) status, ensuring continued market access in Asia’s third-largest economy. The agreement is expected to strengthen supply chains, attract Japanese investment, and enhance Bangladesh’s competitiveness in high-value exports.