Japan confirms broad trade agreement with Bangladesh to cut tariffs
Japan has confirmed a broad agreement with Bangladesh on concluding an economic partnership agreement. The move would see Bangladesh remove tariffs on steel, auto parts and some other products that have long faced high duty rates.
The agreement was confirmed when Japanese Foreign Minister Toshimitsu Motegi held a roughly 10-minute phone call with Bangladesh's commerce adviser, Sheikh Bashir Uddin, on Monday. The two sides will keep working toward formally signing the agreement, which would be Bangladesh's first EPA.
Japan is moving ahead on trade rules with Bangladesh at a time when China and other countries are seeking to conclude trade agreements with the South Asian nation.
Steel accounts for roughly a quarter of Japan's total exports to Bangladesh. Tariffs on steel, which currently reach as high as 56.6%, will be abolished within 18 years of the agreement's signing. Duties on tires, engines and other auto parts will be removed within 15 years, while passenger vehicles will be assured conditions no less favorable than those offered to other countries.
Tariffs on Japanese wagyu beef and seafood such as scallops will also be removed within 18 years, but rice is excluded from the scope of tariff eliminations.
Japan will immediately eliminate tariffs on textile imports from Bangladesh once the agreement is signed. Apparel and footwear account for more than 90% of Japan's total imports from the country.
Bangladesh is expected to graduate from least developed country status, under which exports to developed markets are exempt from tariffs, in November 2026, according to the United Nations. If tariffs are not removed by the time of the status change, textile products could be subject to duties exceeding 10%.
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