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Japan-Bangladesh Free Trade Agreement: A New Era of Economic Cooperation

Japan-Bangladesh Free Trade Agreement: Strengthening Bilateral Economic Ties. Introduction: The economic relationship between Japan and Bangladesh has witnessed significant growth over the past decades. As Bangladesh approaches its graduation from the Least Developed Country (LDC) status in 2026, both nations have recognized the need to establish a more structured and mutually beneficial trade framework. This realization has culminated in the initiation of negotiations for a Free Trade Agreement (FTA), specifically an Economic Partnership Agreement (EPA), aimed at sustaining and enhancing bilateral trade and investment. Historical Context of Japan-Bangladesh Relations: Diplomatic relations between Japan and Bangladesh were officially established on February 10, 1972. Over the years, Japan has emerged as one of Bangladesh's most significant development partners, contributing to various infrastructure projects, including the Matarbari Deep Sea Port and the Dhaka Metro Rail. Trade between the two countries has also seen a steady rise, with Japan becoming a vital export destination for Bangladeshi goods, particularly in the ready-made garments sector. Rationale for the Free Trade Agreement Post-LDC Graduation Challenges: Bangladesh's impending graduation from LDC status presents both opportunities and challenges. While the graduation signifies economic progress, it also means the potential loss of preferential trade benefits currently enjoyed under various international agreements. To mitigate the adverse effects of this transition, establishing an FTA with Japan aims to retain duty-free access to the Japanese market, ensuring that Bangladeshi exports remain competitive. Mutual Economic Benefits; For Japan, an FTA with Bangladesh offers access to a burgeoning market with a growing middle class. Japanese companies have shown increasing interest in Bangladesh as a destination for investment, particularly in sectors like manufacturing, textiles, and technology. The FTA is expected to provide a structured framework that facilitates smoother trade and investment flows, benefiting businesses and consumers in both countries. 🔹🔹🔹🔹🔹🔹🔹🔹 #JapanBangladeshFTA #EconomicCooperation #TradeAgreement #JapanBangladeshRelations #FreeTrade #GlobalEconomy #BilateralTrade #EconomicGrowth #BusinessOpportunities #InternationalTrade 🔹🔹🔹🔹🔹🔹🔹🔹