As Bangladesh moves closer to implementing a landmark economic partnership agreement with Japan, experts have urged the government to adopt coordinated policy reforms, strengthen institutional capacity, and enhance industrial competitiveness to fully capitalize on the new framework.
The Bangladesh–Japan Economic Partnership Agreement (EPA) is expected to expand trade, attract higher levels of investment, and support industrial upgrading. However, policymakers and economists caution that translating these opportunities into tangible economic gains will require strategic planning, policy coordination, and sustained collaboration between the government and the private sector.
These points emerged at a seminar titled “Maximising the Opportunities of the Bangladesh–Japan Economic Partnership Agreement (EPA)”, organized by the Centre for Policy Dialogue (CPD) in partnership with the Embassy of Japan in Bangladesh on Monday.
The event brought together policymakers, diplomats, academics, development partners, and business leaders from both countries to discuss trade diversification, industrial upgrading, and investment-led growth, especially as Bangladesh prepares for its graduation from least developed country (LDC) status.
A Milestone in Bangladesh–Japan economic relations
Saida Shinichi, Ambassador Extraordinary and Plenipotentiary of Japan to Bangladesh, described the EPA as a major milestone in bilateral relations, achieved through sustained dialogue. He noted that the agreement is Bangladesh’s first full-fledged economic partnership deal and Japan’s first comprehensive EPA with a least developed country.
“The agreement goes beyond tariff reductions and includes rules and procedures to facilitate trade and investment,” the ambassador said.
He expressed hope that the framework would attract more Japanese investment and strengthen Bangladesh’s industrial base.
Coordinated policy roadmap needed
Fahmida Khatun, executive director of CPD, highlighted that the EPA offers an opportunity to deepen economic relations and move beyond traditional development cooperation based on official development assistance.
She stressed that Bangladesh must develop a coordinated policy roadmap focusing on trade facilitation, industrial upgrading and supportive fiscal policies to fully realize the benefits of the agreement.
The first keynote presentation was delivered by Monzur Hossain, member (secretary) of the General Economics Division at the Bangladesh Planning Commission. He discussed Bangladesh’s development trajectory and industrial policy evolution, highlighting both the country’s achievements and the challenges it faces as it prepares for LDC graduation.
Kenichi Ohno, emeritus professor at the National Graduate Institute for Policy Studies (GRIPS), underscored the importance of strong institutions, learning-based policy design, and effective coordination between government and industry to achieve successful industrial transformation.
Stronger institutions key to policy implementation
Owais Parray, senior economic advisor at UNDP Bangladesh, emphasized that the effectiveness of industrial policy depends on strong institutions, technical capacity, and efficient implementation teams. Mohammad Mahfuz Kabir, research director at the Bangladesh Institute of International and Strategic Studies (BIISS), added that economic diversification and investment in sectors such as automobiles, electronics, pharmaceuticals, and ICT are key to sustaining growth and moving towards a trillion-dollar economy.
Improving competitiveness and quality standards
Md Rabiul Islam, economic officer at the Asian Development Bank (ADB), stressed upgrading quality infrastructure to meet global standards and improve competitiveness.
From a development cooperation perspective, Hiroshi Yoshida, senior representative of the Japan International Cooperation Agency (JICA) Bangladesh office, said simplifying institutional arrangements and strengthening coordination in industrial policy would be essential for improving investment promotion.
He noted that JICA is supporting initiatives such as a unified digital one-stop service for investors and infrastructure development in economic zones, while also working with the government to promote sectors including light engineering, plastics, shipbuilding, ICT and food processing.
Diversifying exports beyond garments
Speaking from an industry perspective, Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), said Bangladesh must diversify beyond the ready-made garment sector to ensure sustainable economic growth.
He also highlighted the need to address anti-export bias through tariff rationalisation and stronger engagement with industry stakeholders to improve export competitiveness.
Sultana Yasmin, joint secretary at the Ministry of Industries, noted that while the National Industrial Policy 2022 provides a strong framework, effective implementation requires closer coordination among government agencies, the private sector, and industry stakeholders.
Lessons from East Asian industrial development
In the second session of the seminar, Yasushi Ueki, president of the Bangkok Research Centre of the Institute of Developing Economies–Japan External Trade Organization (IDE-JETRO), shared lessons from industrial development in ASEAN and East Asia, particularly the Mekong subregion.
He explained that infrastructure development followed by foreign direct investment from lead firms helped expand international supply chains and foster industrial clustering in the region.
Economist Syed Yusuf Saadat of the Transformation Economic Policy Programme (TEPP-II) at UNDP Bangladesh said the Bangladesh–Japan EPA represents a shift from aid-based cooperation to a rules-based economic partnership centred on trade, investment and technology.
He added that Bangladesh should use the agreement to diversify exports, strengthen technology transfer, invest in human capital and build institutional capacity to negotiate future trade agreements.
Ensuring long-term economic gains
Tareq Rafi Bhuiyan, president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), said the EPA could help Bangladesh sustain economic growth in the post-LDC era by strengthening trade, investment and technology cooperation.
Meanwhile, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), stressed the importance of sustained engagement between the government and private sector to expand Bangladesh’s presence in the Japanese market.
Kazuiki Kataoka, country representative of the Japan External Trade Organization (JETRO) Bangladesh office, said the EPA provides an important framework for improving the business environment through clearer rules on customs procedures and intellectual property.
Concluding the discussions, Masrur Reaz, chairman of Policy Exchange of Bangladesh, said the EPA will be particularly significant as Bangladesh prepares for LDC graduation and faces increasing competition in global markets.
Participants at the seminar agreed that while the Bangladesh–Japan EPA creates significant opportunities for expanding trade and investment cooperation, effective policy coordination and institutional strengthening will be essential to ensure that the partnership contributes to sustainable and inclusive economic growth.