Finalising study for EPA with Japan underway
Bangladesh and Japan yesterday outlined areas of focus for a joint study that would act as a principal guideline for signing an economic partnership agreement (EPA) to increase bilateral trade and investment between the two countries.
Both sides discussed tariff and duty structures, trade in goods and services, investment, mutual recognition of certifications and the current market situation, said Noor Md Mahbubul Haq, additional secretary of the commerce ministry.
The discussions were undertaken by senior government officials of both countries at a hotel in Dhaka to prepare the study for launching formal negotiations on signing an EPA, he added.
Haq, who is engaged in the discussions, informed that both sides are still taking stock of existing issues and nothing is final yet.
"The study will be finalised after another round of discussions, which may take place either in Dhaka or Tokyo," he said, adding that the ongoing discussions would continue today.
"Our target is to start formal negotiations with Japan from December and we are hopeful that we can reach the final stage of negotiations for signing an EPA well before 2026," Senior Commerce Secretary Tapan Kanti Ghosh said over the phone.
The EPA is broader than a free trade agreement (FTA) as it includes not only tariff structures, but also investment and services.
Bangladesh has been negotiating with major trading partners for signing trade deals to retain duty facilities once it makes the United Nations' country status graduation from least developed to a developing nation in November 2026.
Bangladesh will be immensely benefited if an EPA can be signed with Japan, said Masrur Reaz, chairman and founder of the Policy Exchange of Bangladesh, a private think-tank.
The benefits will come in three areas, one of which is increased inflow of foreign direct investment (FDI).
Japan is a developed country and a member of the G-7, and its economy is regarded as one of the most stable ones in the world, Reaz said.
So, grabbing a bigger share of the high value-added markets of Japan will brighten the image and credibility of Bangladesh, he added.
Reaz also said an EPA with Japan would inspire other countries to do the same with Bangladesh, if not at least increase trade.
Japan has been observing Bangladesh over the past decade for signing an EPA for greater economic engagement, and both countries are sincere in this regard, he added.
Besides, Bangladesh will also benefit through the transfer of technological knowledge from Japan as the country is advanced in this regard.
Bangladesh should target attracting more FDI from Japan while also diversifying its export products as the country's export basket is still low compared to that of Japan, Reaz said.
Japan can readily offer at least 15 products for export as it has a diversified product basket, he added.
Comments