Bangladesh RMG sector poised for major boost as Japan offers duty-free access

Bangladesh is set to secure duty-free access for 7,379 products in the Japanese market once the Bangladesh–Japan Economic Partnership Agreement (EPA) is formally signed, in what is being described as one of the country’s most strategically significant trade breakthroughs ahead of its graduation from least developed country (LDC) status.

According to an official statement from the Chief Adviser’s Press Wing, technical-level negotiations have been successfully concluded, with only legal scrubbing and final approvals remaining. The update followed a telephone conversation between Bangladesh’s Commerce Adviser, Sheikh Bashir Uddin, and Japan’s Foreign Minister, Motegi Toshimitsu.

A central feature of the EPA is Japan’s commitment to provide immediate duty-free market access to Bangladesh’s key export products, particularly readymade garments (RMG), from the first day of implementation. The provision is expected to significantly enhance Bangladesh’s competitiveness against regional apparel exporters such as Vietnam, Cambodia and Indonesia in one of Asia’s most quality-conscious consumer markets.

The agreement also incorporates Single Stage Transformation (SST) rules of origin for RMG, a long-standing demand from Bangladesh’s apparel industry. The SST framework is expected to ease compliance pressures linked to backward linkage requirements and offer greater sourcing flexibility for exporters operating within global supply chains.

Industry sources said this concession alone could materially strengthen Bangladesh’s pricing power in Japan, where import tariffs and complex origin rules have historically constrained export growth.

As Bangladesh prepares to lose preferential market access in several developed economies following LDC graduation, the Japan EPA is emerging as a key instrument for ensuring trade continuity. Japan, the world’s fourth-largest economy, is already among Bangladesh’s most important Asian trading partners, and the agreement is expected to underpin long-term export stability.

Senior policymakers and trade negotiators were involved in the announcement, including Lutfey Siddiqi, Special Envoy on International Affairs; Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority; Mahbubur Rahman, Secretary of the Ministry of Commerce; and Ayesha Akter, Chief Negotiator for the Bangladesh–Japan EPA.

Their participation underscores strong institutional alignment behind the agreement, with investment promotion, trade facilitation and export diversification expected to advance in parallel once the EPA comes into force.