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Dhaka and Tokyo are expected to start second-round negotiations on November 10 to pen the Economic Partnership Agreement (EPA) between Bangladesh and Japan in principle to boost bilateral trade.
A wide range of areas, including trade in goods and services, e-commerce, customs procedures, sanitary and phytosanitary (SPS) measure, internet, intellectual property, will be discussed in the meet.
It will be held in Dhaka between 10 and 14 November 2024.
The first round of talks on the proposed multidimensional cooperation deal was hosted here on May 19-23 this year.
Seeking anonymity, a senior official said, "The high-level talks may take off on November 10 for five days. We know that Japan is a large development partner of Bangladesh and potential is huge to boost export earnings from Japan."
"Dhaka, therefore, looks to seize this opportunity through inking the EPA."
To brace themselves with necessary homework on technicalities of the deal-making, commerce ministry earlier constituted a high-powered 18-member Trade Negotiations Committee (TNC), headed by the chairman of the Bangladesh Trade and Tariff Commission (BTTC).
The members were drawn from different state agencies like the then PMO, foreign ministry, finance division, commerce ministry, National Board of Revenue, BTTC, BIDA, BSEC and Dhaka University.
The TNC was formed under the purview of the Regional Trade Agreement (RTA) Policy 2022.
"The panel of experts will work and bargain with the developed nation to carry forward the negotiations for inking the deal between the nations," says one official in the know.
Bangladesh is expecting to strike the EPA with Japan by December 2025, capping the process that got underway with a joint study group (JSG) report released in 2023.
"After the country's graduation from the LDC status in 2026, the deal would facilitate maintaining its duty-free market access to the world's third-largest economy," added the official.
The proposed EPA would be a "win-win deal for both countries," the Japanese envoy said earlier, emphasising the strengthening of bilateral relations, including in trade and business, between the two countries further.
Considering looming challenges, the ministry concerned has taken a policy decision to sign the EPA with potential trading partners for smooth transition into the post-graduation era, according to a senior official.
With sights set on an EPA, Bangladesh and Japan on 12 December 2022 decided to conduct a joint feasibility study (JFS) as part of the spadework.
During the Japan visit of the then premier Sheikh Hasina in April 2023, the two PMs announced upgrading bilateral ties into a strategic partnership, in a region where multidimensional bids for forging blocs have been in high gear of late.
Based on the declaration, the Ministry of Commerce of Bangladesh and the Economy, Trade and Industry Ministry of Japan earlier signed a memorandum of understanding (MoU) to set the process in motion.
The JSG had three rounds of meetings in April, July and September 2023 to give necessary stitches to the much-trumpeted deal.
Such an EPA would not only promote the expansion of trade and investment by eliminating tariffs and improving the investment environment, but also help forge political and diplomatic ties between the two, reads the JSG report.
It will also play an important role in the economy of the respective regions.
According to the report, Bangladesh is now preparing to face post-LDC-graduation challenges, including trade-related ones, and has decided to conclude regional trade agreements with existing and potential trade partners to retain its market access and accelerate expansion.
Two-way trade between the two Asia-Pacific nations stood at more than $4.0 billion, as of June 2023, disclosed the Bangladesh Embassy in Tokyo.