Dhaka's relations with Tokyo have reached a new height. Both countries have inked a landmark Economic Partnership Agreement (EPA), under which 7,379 Bangladeshi products will enjoy duty-free access to the Japanese market, including ready-made garments, the poster child of our commercial might.
In return, Bangladesh will gradually provide duty-free or preferential access to 1,039 Japanese products spanning various sectors. It is hoped that the effective implementation of the EPA, the first of its kind for Bangladesh sealed on Friday in Tokyo, will usher in a new chapter of mutual prosperity.
Ostensibly, under the agreement, Bangladesh will enjoy significant benefits in both goods and services trade. The single-stage transformation facility in the garment sector will allow Bangladeshi products to be exported to Japan without complex conditions regarding raw materials.
Most importantly, the deal also opens up employment opportunities for Bangladeshi skilled professionals in Japan across 16 service categories, including IT, engineering, education, care-giving and nursing.
Earlier, in this connection, Bangladesh and Japan signed two Memorandums of Understanding (MoUs) to enhance the skills of Bangladeshi manpower and facilitate their employment in Japan, as the country faces a shortage of workers.
As a result, Japanese authorities and the business community recently announced that they will recruit at least 100,000 workers from Bangladesh over the next five years to address the country's growing labour shortage. This is considered a major boost to Bangladesh's remittance inflows.
Bangladesh-Japan relations took a new turn following a four-day visit by Chief Adviser Professor Muhammad Yunus to Tokyo early last year, which was widely viewed as highly productive. In a tête-à-tête with Prof Yunus, Japanese Prime Minister Ishiba Shigeru reiterated his country's full support for Bangladesh's economic development.
Accordingly, Japan committed to providing $1.063 billion to Bangladesh in budgetary support, railway upgradation and scholarships. Of the total, Tokyo will provide $418 million as a Development Policy Loan for Bangladesh's economic reforms and climate resilience, $641 million for upgrading the Joydevpur-Ishwardi line into a dual-gauge double railway track and $4.2 million in grants for scholarships. In this connection, three exchanges of notes were signed between the two countries.
Japan has long played a key role in building Bangladesh's industrial infrastructure since the country's independence and its contribution in this sector has been enormous. Currently, Japan is funding more than 70 projects, including major ones such as the third terminal of Hazrat Shahjalal International Airport and the Matarbari deep-sea port. In addition, more than 350 Japanese companies are operating in Bangladesh.
Another significant Japanese contribution to Bangladesh is the Japanese Economic Zone located in Araihazar, Narayanganj. It is a joint venture between the Bangladeshi and Japanese governments, built with the aim of driving industrial growth and attracting foreign direct investment (FDI) into Bangladesh.
Judging by these developments, it is reasonable to believe that relations between Bangladesh and Japan will strengthen further in the years to come.
