Bangladesh Set to Seal Trade Deals With Japan, US

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Bangladesh is poised to strengthen trade and investment ties with Japan and the United States, with two key trade agreements set to be signed next week, officials said.

Commerce Adviser Sk Bashir Uddin and Commerce Secretary Mahbubur Rahman will lead a government delegation to Tokyo and Washington to finalise the deals. The team is scheduled to depart Dhaka on Thursday, according to the commerce ministry.

The Bangladesh-Japan Economic Partnership Agreement (BJEPA) is set to be signed in Tokyo on Friday. Under the agreement, 7,379 Bangladeshi products will enjoy duty-free access to the Japanese market from the first day, while 1,039 Japanese products will receive immediate duty-free entry into Bangladesh.

Following the Tokyo visit, the delegation will travel to Washington, where a trade agreement with the United States is scheduled to be signed on 9 February, just days ahead of the 13th parliamentary election.

"We have received confirmation for 9 February from the United States. The summary seeking approval for the draft agreement and its signing on that date has already been sent,” the commerce secretary told reporters on Sunday.

He said the current reciprocal tariff rate stands at 20 per cent, although some countries face higher duties. “We hope the rate will be reduced further, but final clarity will come on 9 February,” he added.

Bangladesh secured a reduction in US tariffs from 35 per cent to 20 per cent in August following intensive negotiations. Earlier, in April 2025, duties on Bangladeshi goods had been raised to 37 per cent before being revised. Officials see the upcoming agreement as a diplomatic breakthrough that could help stabilise bilateral trade.

To address the long-standing trade imbalance, Dhaka has submitted a formal proposal to the United States Trade Representative outlining steps to narrow the trade gap. As part of its strategy, Bangladesh has announced plans to purchase 25 aircraft from Boeing, along with wheat, liquefied natural gas, cotton, medicines, capital machinery, chemical raw materials and agricultural products from the US.

According to US trade data, bilateral trade reached $10.6 billion in 2024. Bangladesh exported goods worth $8.4 billion to the US, a year-on-year rise of 1.1 per cent, while US exports to Bangladesh slipped slightly to $2.2 billion, widening the US trade deficit with Bangladesh to $6.2 billion.

Responding to concerns over the recently signed free trade agreement between India and the European Union, the commerce secretary said Bangladesh has no reason to be alarmed.

“We have developed strong capacity in the ready-made garment sector and are now the world’s second-largest exporter. India also has a strong global position in textiles, and we import raw materials from there. We are not concerned,” he said.