Final round of FTA talks with Japan begins Sep 3

Bangladesh is set to begin the final round of negotiations for a free trade agreement (FTA) with Japan next week as part of its push to ensure such deals ahead of its graduation from the least developed country club next year.

Besides, the first round of talks regarding a Comprehensive Economic Partnership Agreement (CEPA) with South Korea is set to conclude today, Commerce Secretary Mahbubur Rahman said.

"I am going to Japan to attend the final round of negotiations for signing the Economic Partnership Agreement (EPA) with Japan," he told The Daily Star over the phone yesterday

First round of CEPA talks with S Korea concludes today

"The final round of negotiation will begin on September 3 and continue until September 13 in Tokyo," said Rahman.

Regarding the CEPA negotiation with Korea, Rahman said, "A team from Bangladesh is already in South Korea to participate in the first round of negotiation with Seoul. The meeting began on August 25 and will continue until August 27."

EPA WITH JAPAN EXPECTED BY YEAR-END

Speaking about the EPA talks with Japan, the secretary said as per the policy of the EPA, three meetings were held in Dhaka and four will be held in Japan.

The talks include issues such as trade, investment, export and import between the two countries.

Rahman is hopeful that after the final negotiations, the deal can also be signed before the end of this year, as the governments of both countries are showing interest.

Previously, Bangladesh signed a preferential trade agreement with Bhutan in 2020. But no FTA has been signed so far with any country.

Japan is a key market, being the first Asian nation where Bangladesh has exported over $1 billion in more than a decade, thanks to duty-free and quota-free access under its LDC status.

Demand remains high in the island nation for Bangladeshi garments, leather goods, and footwear.

CEPA TALKS

The CEPA negotiations are being led by Ayesa Akther, director general of External Trade at Bangladesh's Ministry of Commerce, alongside South Korea's chief negotiator for free trade agreements, Kwon Hye-jin.

Around 40 delegates from both countries are participating, with discussions covering goods, rules of origin, customs, intellectual property, and other key trade issues, according to The Korea Post.

The CEPA with Korea is expected to create new opportunities for Korean businesses to enter Bangladesh's fast-growing market.

"Bangladesh has recorded an average annual economic growth of 6.6 percent over the past three years, making it the fastest-growing market in South Asia. The government is actively expanding infrastructure, including power, roads, and aviation, which will benefit Korean companies," the commerce secretary said.

The Korean side is also keen on exploring Bangladesh's potential.

"The CEPA with Bangladesh will serve as a stepping stone for South Korean companies to access the high-potential South Asian market. We hope this negotiation will lead to tangible benefits that both nations' citizens can feel directly," the Korea Post said, quoting Kwon Hye-jin.

Bangladesh is negotiating with nearly a dozen countries, such as India, Japan, Korea, Indonesia, Malaysia, Sri Lanka, Turkey and China, for signing the trade deals mainly to secure preferential market access after the LDC graduation.

Analysts estimate that Bangladesh could lose up to 14 percent of exports, worth $7 billion, as 73 percent of current exports benefit from LDC-related preferences in 38 countries.