Japan will provide $1.5m to help Bangladesh trade more efficiently and lower trading cost.
Asian Development Bank (ADB) will administer the technical assistance project.
Economic Relations Division (ERD) Joint Secretary Saifuddin Ahmed and ADB Deputy Country Director for Bangladesh Stefan Ekelund signed an agreement on behalf of their respective organisations, said a statement yesterday.
Japan is providing the grant from the Japan Fund for Poverty Reduction (JFPR), a fund that provides grants and technical assistance for projects to support poverty reduction and related social development activities.
ADB will also provide expertise and training for the improvement of border clearance processes in line with the Revised Kyoto Convention - an international accord providing standards and best practices on customs administration.
The technical assistance project will supplement efforts being made under the SASEC Trade Facilitation Project, which is being supported by ADB with a $21m loan.
The project is aimed at removing the lack of customs automation and unavailability of one-stop shop for trade-related information, which currently constrain the growth of trade.
“Improving the trade environment in Bangladesh through measures that will make exporting and importing faster and less costly would enhance the country’s competitiveness and attractiveness to foreign investors,” said M Teresa Kho, ADB country director for Bangladesh.