A slew of 7,379 BD products getting free market access

Bangladesh's maiden bilateral free-trade agreement is being signed this month with Japan that will accord 7,379 Bangladeshi products duty-free quota-free (DFQF) market access to world's third-largest economy immediate after the deal-making, officials say.

The deal, coming under the umbrella of Economic Partnership Agreement (EPA), on the other hand, will enable Japanese products under 1,039 Harmonised System (HS) Line to enjoy the DFQF facility at the same time.

Moreover, Bangladesh offered DFQF facility to Japanese products in 4,843 HS Line under 8-digit arrangement which will be implemented in phases.

Commerce Secretary Mahbubur Rahman told The Financial Express Wednesday that the negotiations had been completed and "we are expecting to sign the deal in the last week of this month".

He presumes the deal may be signed in Dhaka or Tokyo, but if the commerce minister/adviser of the two countries found busy, the pact may be signed online.

"We will get duty-free access of the entire products that presently enjoy the similar facility on the Japanese market," says Mr Rahman.

According to officials concerned, there are 7436 products in 8-digit Bangladesh tariff line while Japan has 9,354 products in its 9-digit tariff line.

Both countries have prepared offer lists in line with agreed principle of the negotiations which will cover 80 per cent of their tariff line and 90 per cent of their import valuation.

Moreover, Bangladesh has prepared the offer list aiming to retain DFQF facility of its 98.7-percent products presently enjoying the facility as a least-developed country (LDC) on the Japanese market.

Officials say Bangladesh has put products in 1,474 HS Line in 8-digit lineup under sensitive list while Japan put products in 1259 HS Line in 9-digit sensitive list.

Moreover, according to officials concerned, Japan offered DFQF facility to products in 509 HS Line in 9-digit arrangement in phases.

Sources say Japan had requested duty-free access of its main export product, passenger car, to Bangladesh. However, Bangladesh agrees to provide most-favoured-nation treatment to the product alongside similar treatment to products in 81 HS Line under 8-digit cover.

In the past fiscal year 2024-25, Bangladesh exported goods worth $1.41 billion to Japan while imports cost around $1.51 billion.

Bangladesh mainly exports ready-made garments, home textiles, leather and leather goods, footwear, and sea foods to Japan. Bangladesh mainly imports iron and steel, vehicles, mineral fuels, oils, distillation products, machinery, nuclear reactors, boilers, manmade staple fibers, optical, photo, technical, medical apparatus, manmade filaments, impregnated, coated or laminated textile fabrics, electrical, electronic equipment, and plastics, among others.

syful-islam@outlook.com