[🇧🇩] Strategic Aspect of Bangla-Japan Relation

[Saif]

Source : https://www.thedailystar.net/business/news/bangladesh-initiates-talks-japan-sign-economic-partnership-agreement-3565036

Bangladesh initiates talks with Japan to sign Economic Partnership Agreement

Photo: Star
The government today began the negotiation to ink the Economic Partnership Agreement (EPA) with Japan in order to retain the duty benefit after Bangladesh's scheduled graduation to a developing nation in 2026.

State Minister for Commerce Ahsanul Islam Titu formally announced the launching of the negotiation at a press conference at his ministry office in Dhaka.

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Bangladesh will face more than 18 percent duty on the export of goods after 2026 if the EPA is not signed, said Senior Commerce Secretary Tapan Kanti Ghosh.

IWAMA Kiminori, ambassador of Japan to Bangladesh, also spoke.​

 

[Saif]

Bangladesh-Japan relations on the right track

Greater Japanese investment vital in achieving our development goals

www.thedailystar.net

Bangladesh-Japan relations on the right track​

Greater Japanese investment vital in achieving our development goals

VISUAL: STAR

We are delighted by the increasing prospect of Japanese investors coming to Bangladesh. Over the years, the bilateral relation between the two countries has improved exponentially to the point where Japan is now one of our most integral partners. Last April, Japan's relationship with Bangladesh was upgraded to a "strategic" one from the previous comprehensive relationship, as recently emphasised by Japan's economy, trade and industry minister.

As a number of Japanese companies are now looking to shift operations to various parts of Asia, the minister also said that Bangladesh has the potential to attract many of them, which would be a massive boon for investment here, and could lead to numerous added benefits such as increased job creations.


Japanese company Honda already opened its factory in Bangladesh some years ago. A Japanese information technology company, BJIT, has also started production in the country. We are, however, yet to see large-scale relocation of factories to Bangladesh, which will hopefully change once the Japan economic zone, being developed at Araihazar in Narayanganj, is complete. Additionally, the large-scale infrastructure development that has been happening in Bangladesh should inspire more foreign businesses to set up shop here to take advantage of Bangladesh's competitive advantages.​

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In 2022, Bangladesh received more than $100 million in investment from Japan, a record high, as the number of Japanese companies quadrupled in the country over the last decade. To take bilateral relations to the next level, both countries are now working to sign an Economic Partnership Agreement (EPA) to accelerate trade and investment. This, indeed, should be great news for all stakeholders.

However, in order to make the most of our growing economic and business relations, the Bangladesh government should conduct proper research and focus more on improving business conditions that can attract Japanese – and other – businesses to invest and conduct their manufacturing and operational activities out of Bangladesh. In terms of which sectors are showing the greatest promise, the Japanese side has already identified them. Now, it is up to our government to formulate policies in a way that can best compliment the growth of these sectors.

The decision by the Bangladesh government to set up a one-stop service centre for foreign businesses is expected to make life easier for them, and attract more of them. But there are still other ways for the government to further improve the overall business environment, and we hope that it will now shift its focus towards achieving those goals. But aside from the growing private investment, we hope to see even greater investment by the Japanese government in Bangladesh, so that the latter's goal of achieving rapid development and industrialisation can soon become a reality.​

 

[Saif]

Remembering Shinzo Abe: Tragic death of an Asian statesman

From the moment he appeared on the world stage, Shinzo Abe, Japan’s most compelling politician in a generation, was cut from a different cloth.

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Remembering Shinzo Abe: Tragic death of an Asian statesman​

Shinzo Abe (1954-2022) Reuters file photo

From the moment he appeared on the world stage, Shinzo Abe, Japan's most compelling politician in a generation – perhaps even in the entire post-war era – was cut from a different cloth. Whereas the norm for Japanese leaders during this period has been being the efficient, managerial type, who could be relied upon to not rock the boat, Abe, who was assassinated at a political event on July 8, broke the mould by defining himself in terms of the political vision he espoused with such clarity and purpose.

His distinctive lineage was steeped in politics: maternal grandfather Nobusuke Kishi was part of Japan's war cabinet during World War II (while paternal grandfather Kan Abe sat in the opposition benches in the National Diet, campaigning to end the war), and was later prime minister as well under the new, pacifist constitution that Japan adopted in the aftermath of the war. His father Shintaro was a leading figure in the Liberal Democratic Party's politics in the 80s, and served a four-year stint as Japan's foreign minister with distinction.

Vital to Abe's vision was a restoration of Japan to its rightful place at the top table, within the international family of nations. Having relinquished the premiership due to ill health after just a year in office once before, this urge was even more evident when he fashioned an improbable comeback to become the prime minister again in 2012. Shortly afterwards, he gave an address at the Center for Strategic and International Studies in Washington, DC, in which he explained his economic and diplomatic objectives and declared that he had returned to the prime-ministership to prevent Japan becoming a "Tier Two Nation." By the time he was forced to resign once again, due to a recurrence of the same ailment in 2020, no one had led Japan for longer as prime minister.

His desire to see Japan expand its sphere of influence was amply reflected in the unusually busy international schedule he adopted. From December 2012 to September 2014, Abe visited an astonishing 49 countries, including Bangladesh. Keen to unshackle his country from the constraints of its post-war constitution, Abe positioned Japan as a key player in regional security vis-à-vis the Asia Pacific. Perhaps his most audacious foreign policy coup d'état lay in securing Washington's buy-in for the constitutional changes he had in mind, to expand the scope of Japan Self-Defense Forces (it did away with a standing army in the aftermath of World War II) to act in cooperation with and in defence of allies.

Abe's foreign policy moved Japan away from its traditional focus on the "big three" bilateral relationships with the United States, China, and South Korea, and sought to increase the country's international engagements by expanding ties with Nato, the European Union, and others beyond the Asia Pacific region. Bangladesh was one of the countries that benefited from his endeavours, and he held frequent summits with Prime Minister Sheikh Hasina, in the process elevating the bilateral relationship between the two countries to a new comprehensive partnership.

In another sign of the greater priority accorded to Bangladesh under Abe, Prime Minister Hasina was invited to attend the 2016 G7 Summit, which Japan hosted that year, as part of the outreach segment. Invitations to the outreach segment are very much the hosts' prerogative, and it was the first time Bangladesh had been invited to attend the annual meeting of rich, industrialised economies.

Notwithstanding his nationalist credentials, the fact remains that his death has occasioned an outpouring of grief from many corners of the globe, and has been officially mourned at the state level by at least two countries in Asia, including Bangladesh. In death, his reputation will likely be further enhanced.
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[Saif]

“Recall with gratitude Abe’s contributions to elevating Bangladesh-Japan relations”

Prime Minister Sheikh Hasina today (July 8, 2022) expressed deep shock at former Japanese premier Shinzo Abe’s assassination, calling his sudden demise a great loss for Japan and the world.

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“Recall with gratitude Abe’s contributions to elevating Bangladesh-Japan relations”​

PM Hasina condoles Shinzo Abe’s death, Bangladesh to observe state mourning tomorrow

Prime Minister Shinzo Abe and Bangladesh counterpart Sheikh Hasina meet ahead of talks at Abe's office in May 2014. Photo: Collected

Prime Minister Sheikh Hasina today (July 8, 2022) expressed deep shock at former Japanese premier Shinzo Abe's assassination, calling his sudden demise a great loss for Japan and the world.

"The people of Bangladesh join me in standing by the mourning people of Japan at this time of most unexpected misfortune," she said in a letter addressed to Japanese Prime Minister KISHIDA Fumio.​

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Sheikh Hasina noted that the passing away of a statesman like Abe was not only an irreparable loss for Japan but also for the entire world because of his "leadership, vision, and wisdom".

"At this time of great distress, we recall with deepest gratitude his immense contributions to elevating the bilateral relationship between Bangladesh and Japan to a new comprehensive partnership during his tenure as the Prime Minister of Japan," she said.
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Sheikh Hasina extended her deepest condolences and heartfelt sympathies at Abe's most tragic demise on behalf of Bangladesh's people, government and on her own behalf.

"We offer our prayers for the courage and fortitude of the bereaved friendly people of Japan and family members of late Shinzo Abe," she wrote.

Meanwhile, Bangladesh will observe one-day state mourning tomorrow (July 9, 2022), honouring the death of Shinzo Abe.

Cabinet Division issued a notification in this regard today.

National flag will be kept at half-mast at all government, semi-government and autonomous institutions and educational institutions and Bangladesh missions abroad in observance of the mourning day.

Abe succumbed to his wounds hours after a grisly gun attack earlier today.​

 

[Saif]

50 Years of Japan-Bangladesh Ties: From Economic to Strategic Partnership

This often-overlooked partnership figures prominently in the strategic and economic goals of both countries.

thediplomat.com

50 Years of Japan-Bangladesh Ties: From Economic to Strategic Partnership​

This often-overlooked partnership figures prominently in the strategic and economic goals of both countries.
By Hussain Shazzad
February 10, 2022
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Credit: Depositphotos

Half a century ago, on February 10, 1972, Japan officially recognized Bangladesh as a sovereign nation-state. Since then, the two countries have maintained a warm relationship, which can be dubbed as a “good model” of development partnership. On the golden jubilee of their bilateral relationship, it is time to analyze the strengths, problems, and prospects of their five-decade-long journey to take Bangladesh-Japan ties to a new plane of bilateral engagement.

The United States, the most intimate ally of Japan, supported Pakistan during the 1971 Liberation War, so Japan had to be tactful in establishing its links with newly born Bangladesh. Still, Japan was one of the very few countries that extended a helping hand for reconstructing war-torn Bangladesh during the post-independence era. Since then, Japan has actively participated in the development endeavors of Bangladesh.

Japan has generously donated through Official Development Assistance (ODA) to Bangladesh since 1972 and became Bangladesh’s single largest bilateral donor. Bangladesh is the largest recipient of Japan’s ODA, according to Ito Naoki, Japan’s ambassador in Dhaka. Financial assistance from Japan saw a boost after initiating a Comprehensive Partnership with Bangladesh in 2014. In fiscal year 2020-2021, Japan provided more aid to Bangladesh than any other country, amounting to $2.63 billion. Since Bangladesh’s independence, Japan has provided a total of $24.72 billion, almost evenly split between grants and loans. Japan’s development assistance to Bangladesh covers a wide range of areas, from social and economic development to energy and power generation to tangible and intangible infrastructure development. Japan’s ODA to Bangladesh has been proved mutually beneficial for both countries rather than being exploitative in nature.

In Asia, Bangladesh’s largest export destination is Japan. In the last decade, Bangladesh’s exports to Japan have almost doubled, but there is still huge untapped trade potential for Bangladesh. Bangladesh mainly exports ready-made garments and leather goods, but Ito, the Japanese ambassador, sees “high potential” for exporting “pharmaceuticals, agricultural and fishery products” to Japan. Bangladesh’s main imports from Japan, meanwhile, include iron and steel, vehicles, machinery, etc. In FY 2018-19, Bangladesh’s export to Japan was worth $1.3 billion while imports were worth $1.8 billion. The existing trade deficit in their bilateral trade could be addressed by signing a free trade agreement (FTA).

The geographical setting and meteorological characteristics have made Bangladesh extremely vulnerable to natural disasters. According to the 2015 Climate Change Vulnerability Index, Bangladesh was the most climate-change vulnerable country in the world. Likewise, Japan has long been affected by natural disasters, mainly because of its location along the Pacific Ring of Fire. These two disaster-prone countries can cooperate with each other on natural disaster management and raise their voice in different global platforms on climate change. Dhaka could learn to minimize the impact of disasters, especially earthquakes, from the experience of Tokyo. Also, Japan could train Bangladeshi personnel, share its expertise, and transfer relevant technology to help to mitigate risks posed by natural disasters.

Bangladesh is one of the most pro-Japanese countries in Asia, with 71 percent of Bangladeshis holding a favorable view of Japan as of a 2014 Pew Research survey. In 2014, Bangladesh withdrew its candidacy for non-permanent membership in the U.N. Security Council (UNSC) in favor of Japan. Undoubtedly, Japan will also have Bangladesh’s support for its aspiration of becoming a permanent member of the UNSC. As Bangladesh perceives Japan to be its all-weather ally, Dhaka will also expect Japan to advocate with the international community and Myanmar for safe and sustainable repatriation of the 1.2 million Rohingya refugees currently trapped in Bangladesh.

The Indian Ocean is considered a lifeline for Japan, as almost 80 percent of its maritime trade passes through the region. Any disturbance in the Indian Ocean will complicate Japan’s international trade scenario. Bangladesh, with growing economic and political influence on the world stage, is important in Japan’s strategic calculus not simply because of its unique location in between South Asia and Southeast Asia but also because of its direct access to the Indian Ocean. On the other hand, sound diplomatic ties with Japan will help Bangladesh in successfully implementing its “Look East” Policy.

Japan’s Bay of Bengal Industrial Growth Belt (BIG-B), an initiative for changing South Asia’s economic outlook, can play a key role in transforming Bangladesh into the heart of the regional economy by creating a gateway between South Asia and Southeast Asia, ensuring closer interregional cooperation, and incorporating Bangladesh into regional and global value chains. The major projects being implemented under BIG-B in Bangladesh are the MRT line in Dhaka, the deep-sea port at Matarbari, terminal three of the Dhaka airport, and the economic zone at Araihazar. Once implemented, these projects are expected to reshape Bangladesh’s infrastructure landscape, boost industrial agglomeration, ensure energy security, and enhance regional connectivity. Japan’s BIG-B can help Bangladesh to transcend national borders in becoming South Asia’s industrial hub with a congenial economic environment.

In South Asia, Bangladesh is a crucial factor in the strategic-diplomatic agenda of Japan. Bangladesh is one of the most free-market, trade-oriented economies in South Asia, and is gradually emerging as one of the most potentially lucrative markets in this region. From an economic perspective, a market of 164 million consumers with a growing middle-class, higher purchasing power, domestic demand, cheap labor, and rapid pace of economic development will make Japan keep Bangladesh in its geostrategic orbit. Meanwhile, Bangladesh can make itself an attractive alternative destination for those Japanese companies seeking to pivot away from China, due to concerns about overreliance and supply chain disruptions amid the pandemic.

Bangladesh is potentially one of the most attractive investment destinations for Japan. But Bangladesh needs to create a better investment climate, for example, by implementing fast-track projects, to convert itself into an investment-friendly hub for Japan. On the part of Japan, it should provide duty-free access to Bangladeshi products to create a level playing field. Coordinated efforts from both sides are required to eradicate existing bottlenecks, such as cumbersome customs clearance procedures, double taxation, and foreign exchange issues, that are acting as a major stumbling block in their bilateral relations.

Apart from economic benefits, stronger relations with Dhaka will help Tokyo to redesign its power equation to have greater influence in South Asia beyond New Delhi. On the other hand, a close connection with Japan will help Bangladesh to exploit its full economic potential, confront challenges arising after its graduation from Least Developed Country status, to be effective in 2026, and diversify its diplomatic relations with great powers. Both sides can elevate ties to a higher level by exploring new avenues of cooperation in vaccine production, healthcare, the blue economy, high-tech industries, automobile manufacturing, shipbuilding, etc.

Standing at this important juncture of their relationship, Bangladesh and Japan should work together, with pragmatic steps, to cement their partnership with a clear vision for economic cooperation in the year to come.​

 

[Saif]

Japan brings Bangladesh into the folds of new security framework | East Asia Forum

Belying Japan’s new defence cooperation partnership with Bangladesh is a desire to balance regional influence and manage tension between Dhaka and Washington, writes Asif Hassan

eastasiaforum.org

Japan brings Bangladesh into the folds of new security framework​

Published: 18 November 2023Reading Time: 4 mins

Asif Muztaba Hassan

The OSA, which came into effect in April 2023, is Japan’s new security initiative that centres on assisting ‘like-minded’ countries with military aid amid the escalating regional security environment. The other countries currently included in the OSA are Malaysia, the Philippines and Fiji.

Outside of Tokyo’s ambitions to be a more involved geopolitical actor in the region, what is also apparent in Japan’s security considerations is the shared context in which the selected countries operate.

The Philippines has had numerous skirmishes with the Chinese People’s Liberation Army, coast guard and maritime militia vessels near Ayungin Shoal — an island in the South China Sea under Manila’s control but claimed by China within its ‘nine-dash line’.

In August 2023, Fijian Prime Minister Sitiveni Rabuka warned China and the United States against polarising ‘the Pacific into their camps’, amid growing US concern over China’s escalating activities in the region.

While willing to negotiate with China over the South China Sea dispute, Malaysia has made it clear that its state energy firm Petronas’ energy exploration sites fall within the country’s maritime borders.

Most countries selected for the OSA harbour grievances against China. Japan’s strategic thinking reflects the concerns of the United States and the Quad about China’s growing influence in the Pacific Islands. But it is unclear why Tokyo has allocated a distinct defensive budget towards Dhaka, which maintains warm relations with Beijing and purchases a significant portion of its weaponry from China.

Japan maintains economic partnerships with most Asian countries, particularly Bangladesh. Dhaka has received around US$25 billion in development and economic assistance from Tokyo since 1972 and around US$9.2 billion of this has been overseas development assistance.

Japanese companies were also behind the construction of Dhaka’s metro line. But the most crucial aspect of Japan’s economic engagement was the transfer of the Matarbari deep seaport construction from Chinese developers to Japan.

The least-discussed element of the bilateral relationship is the potential for defence cooperation and its significance for both countries amid escalating global geopolitical tension.

The OSA will take the form of grants, rather than loans, aimed at strengthening the region’s ‘comprehensive defence architecture’ without the burden of repayment. This will enable Dhaka to take a significant step towards its military modernisation goal.

While Bangladesh is intent on maintaining geopolitical neutrality amid the US–China power struggle in Asia, Dhaka and Washington have intensified their rhetoric against each other.

In April 2023, the United States highlighted instances of human rights violations by the incumbent party in Dhaka. In 2021, Washington levied sanctions on multiple Bangladeshi security officials for employing extrajudicial tactics while on duty and prohibited their entry into the United States. The United States also denied entry to various government officials, politicians and law enforcers suspected to have been complicit in rigging elections.

Bangladeshi Prime Minister Sheikh Hasina fought against Washington’s criticism, accusing the United States of seeking a regime change and underscoring its history of overthrowing governments that do not align with its interests.

This tension does not indicate a souring relationship between Washington and Dhaka over Bangladesh’s growing economic connections with China. It merely highlights the United States’ values-based foreign policy and its emphasis on the promotion of democracy.

Given this context, Japan’s inclusion of Bangladesh in the OSA holds strategic significance for several key reasons. Primarily, it serves Tokyo’s geopolitical interest in balancing China’s growing economic and defence investments in Dhaka and the surrounding region.

More importantly, Japan’s strategic cooperation manoeuvres are a testament to the Quad’s commitment to establishing a regional hold in South Asia. This will become especially pertinent should US–Bangladesh tensions continue to rise, as it would help to balance any potential strain in relations between the Biden administration and Hasina’s government.

Bangladesh’s enhanced ties with Japan seem to be an outcome of careful geopolitical balancing by all actors. Tokyo is well placed to manage the relationship between Shaka and Washington to ensure Bangladesh stays within the United States’ umbrella while maintaining its neutrality.

Asif Muztaba Hassan is a security researcher and journalist based in Dhaka, Bangladesh.​

 

[Saif]

Japan, BD need to work more for better business environment: Envoy

Ambassador of Japan to Bangladesh Iwama Kiminori said on Thursday that the Economic Partnership Agreement (EPA) and the Public Private Economic Dialogues (PPED) between Japan and Bangladesh are the two organs to move forward the business environment in the years to come. “We have to move for

thefinancialexpress.com.bd

Japan, BD need to work more for better business environment: Envoy​

FE ONLINE DESK

Published :​

Mar 14, 2024 22:27

Updated :​

Mar 14, 2024 22:27

Ambassador of Japan to Bangladesh Iwama Kiminori said on Thursday that the Economic Partnership Agreement (EPA) and the Public Private Economic Dialogues (PPED) between Japan and Bangladesh are the two organs to move forward the business environment in the years to come.


“We have to move forward to the continual dialogue between the two governments on the business environment,” he said.

The ambassador said this while speaking as the chief guest at the opening ceremony of the new office of HmAC on Wednesday, UNB reports.

He also uncovered a book “Taxation Handbook for Investors in Bangladesh” prepared by Howlader Maria & Co.

Japan recognises the paramount significance of Bangladesh's development acknowledging its role in shaping the business destiny, he said.

A growing number of companies are redirecting their focus on Bangladesh. Japan Bangladesh Chambers & Commerce of Industry (JBCCI) and JETRO Bangladesh offer valuable advice to companies in navigating the complexity of Bangladesh, according to a press release.

The synergistic collaboration between the Japanese Business Circle along with the embassy of Japan is manifested through a concerted effort to ensure a comprehensive and seamless support structure for companies venturing into Bangladesh, the release adds.​

 

[Saif]

BD-Japan FTA talks: Zero duty may impact Indian exports to Bangladesh

A report by Indian think-tank CUTS International (Consumer Unity & Trust Society) has warned India about the possible impact of the proposed Bangladesh-Japan Free Trade Agreement (FTA) on its trade with Bangladesh. The report -- a quarterly analysis by CUTS Dossier on Preferential Trade Agreements

thefinancialexpress.com.bd

BD-Japan FTA talks: Zero duty may impact Indian exports to Bangladesh
Indian think tank says in a report
ISMAIL HOSSAIN
Published :
Apr 22, 2024 09:29
Updated :
Apr 22, 2024 09:29

A report by Indian think-tank CUTS International (Consumer Unity & Trust Society) has warned India about the possible impact of the proposed Bangladesh-Japan Free Trade Agreement (FTA) on its trade with Bangladesh.

The report -- a quarterly analysis by CUTS Dossier on Preferential Trade Agreements and India released two days ago -- recommends that India "exercise caution and closely monitor the progress of the Bangladesh-Japan EPA negotiations."

CUTS International anticipates that India's exports to Bangladesh could be adversely affected if Bangladesh offers zero duty on all products to Japan under the FTA, which is scheduled to be signed by December this year.

"Several products in sectors such as automobiles, metals, electricals and textiles may be largely impacted by the Bangladesh-Japan FTA," according to the CUTS International analysis of possible scenarios.

As Bangladesh seeks to expand its trade relations with Japan, the CUTS report recommends that India assess the potential impact on its own trade interests and competitiveness in the region.

The report suggests that India may need to consider strengthening its existing trade ties with Bangladesh, diversifying its export markets, enhancing its competitiveness and exploring partnership opportunities to navigate the changing trade dynamics effectively.

The report said while India has a Preferential Trade Agreement (PTA) with Bangladesh and there is the Agreement on South Asian Free Trade Area (SAFTA), addressing these concerns is crucial to maintaining India's export performance in this market and neutralising the shocks posed by future FTAs that Bangladesh may engage in.

"This calls for a comprehensive economic cooperation agreement between India and Bangladesh," the report suggests.

Bangladesh is not a big competitor for India in terms of access to the Japanese market, as India already enjoys a tariff advantage in Japan due to its Comprehensive Economic Partnership Agreement (CEPA), according to CUTS International analysis.

However, the report warns that India should assess the possible impact of Bangladesh's fast-growing textile and apparel sector, including footwear, which is gaining a comparative advantage over time.

"As Bangladesh is entering into FTAs, India's textile and apparel industry should be concerned about their prospective market access challenges to third-country markets."

However, the CUTS International analysis using its SMART methodology suggests that India is unlikely to experience significant market share loss for textile and apparel products in Japan.

"Still it will be better to take some precautionary measures," the report cautions.

The analysis also suggests that any reduction in India's exports of certain textiles, apparel, and footwear to Japan would likely be negligible.

While Bangladesh's current export value to Japan remains lower than India's, the gap is narrowing due to Bangladesh's export growth. Bangladesh's exports to Japan reached $1.70 billion in 2022, compared to below $1 billion in 2013.

India's key exports to Japan include petroleum oils, fish products, non-industrial diamonds and ferro-silicon manganese, accounting for 42.76 per cent of its total exports to the country.

Bangladesh's exports to Japan are dominated by various types of readymade garments and footwear for both men and women, contributing 55 per cent of its total exports to Japan.

India's exports to Japan began a steady rise in 2016 after a three-year downturn in 2013-2015. This growth continued after the Covid-19 pandemic. However, the overall value of India's exports to Japan has declined, falling from nearly $8 billion in 2013 to $5.70 billion in 2022.

In March, Dhaka initiated talks to sign the Economic Partnership Agreement (EPA) with Tokyo in order to retain the duty benefit after Bangladesh's scheduled graduation to a developing nation in 2026.

The Bangladeshi authorities said the EPA with Japan will be signed before December.

If trade deals are not finalised before 2026, LDC-graduating Bangladesh will need to seek bilateral agreements with World Trade Organisation (WTO) member countries to continue enjoying duty-free market access until 2029.

The 13th WTO ministerial conference in Abu Dhabi last month extended duty-free benefits for graduating LDCs for an additional three years. However, Bangladesh will still need to negotiate bilateral trade deals to retain these benefits in the long term.

Therefore, Bangladesh is pursuing preferential trade agreements (PTAs) such as Economic Partnership Agreements (EPAs), Comprehensive Economic Partnership Agreements (CEPAs), and Free Trade Agreements (FTAs) with major trading partners.

In 2022, Japan imported approximately $1.72 billion worth of goods from Bangladesh, with over 90 per cent comprising apparel items like clothing and footwear.

Conversely, Japan exported $2.57 billion worth of goods to Bangladesh, with iron and steel accounting for around 30 per cent of these exports.

A study by the Japan External Trade Organization (JETRO) in May 2023 found that the number of Japanese companies operating in Bangladesh has doubled over the past decade, reaching 338.

These firms could face challenges if Bangladesh experiences higher tariffs exceeding 10 per cent for certain textile products after graduating from LDC status.

This situation marks a first for Japan, as it has never negotiated an EPA with a country on the verge of leaving its LDC status.

Initial research into a potential EPA with Bangladesh began in December 2022, and the findings recommended launching formal negotiations.

The research suggested that an EPA would not only boost trade and investment between Japan and Bangladesh but also strengthen their political and diplomatic ties.

Besides, Japan is also keen on setting standards for tariffs and trade regulations, particularly as Bangladesh considers a free trade agreement with China.

The negotiations will focus on simplifying import and export procedures, including reducing excessive paperwork.​

 

[Saif]

Japan-Bangladesh Joint Statement on Strategic Partnership

 

[Saif]

2 more projects dropped

Two more development projects to be implemented following a public-private partnership module under Bangladesh-Japan joint initiative have been dropped.

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Bangladesh, Japan JOINT PPP PLATFORM
2 more projects dropped

Two more development projects to be implemented following a public-private partnership module under Bangladesh-Japan joint initiative have been dropped.

The projects are expansion of Chattogram-Cox's Bazar Highway and the upgrading of Nabinagar-Manikganj-Paturia Highway into an expressway.

The decision came at the sixth Bangladesh-Japan Joint PPP Platform meeting held in Dhaka on March 18 this year, shows its minutes.

With the two, five projects have been dropped from the government-to-government initiative, which had created hopes of receiving huge investments from Japanese companies.

The development came at a time when most of the other projects under the initiative could not make significant progress over the last six years due to multiple problems.

Most of the projects were included in the list without carrying out any studies. So, when the studies were done, the projects were found not to be viable for PPP, leading to their exclusion from the list, officials said.

Besides, some Japanese companies involved in the process needed more engagement, they added.

To read the rest of the news, please click on the link above.​

 

[Saif]

Japan keen to invest more in Bangladesh's manufacturing sector

Japanese Ambassador to Bangladesh Iwama Kiminori on Saturday expressed his country’s willingness to invest more in the manufacturing sector in Bangladesh. The envoy expressed this interest in a bilateral meeting with Education Minister Mohibul Hasan Chowdhury in the National Parliament on Su

thefinancialexpress.com.bd

Japan keen to invest more in Bangladesh's manufacturing sector
Published :
Jun 10, 2024 00:03
Updated :
Jun 10, 2024 00:03

Japanese Ambassador to Bangladesh Iwama Kiminori on Saturday expressed his country's willingness to invest more in the manufacturing sector in Bangladesh.

The envoy expressed this interest in a bilateral meeting with Education Minister Mohibul Hasan Chowdhury in the National Parliament on Sunday.

The Japanese government is also willing to increase the connection and collaboration of Bangladeshi universities with Japanese universities, UNB reports.

He has expressed interest in retraining Bangladeshi students to employ them in Japanese industrial factories in the fields of robotics and manufacturing in Japan.

Education Minister Mohibul assured to support any initiative of the Japanese government in all fields of education starting from the university level to increase the skills of Bangladeshi students through information technology and technical and vocational training.

He expressed his interest in teaching the Japanese language in universities and introducing a teacher exchange program aimed at improving the skills of secondary-level teachers in Bangladesh through Japanese-trained teachers.​

 

[Saif]

Japan leads development funding to Bangladesh

Japan leads development funding to Bangladesh by releasing the highest US$1.66 billion worth of assistance among the foreign financiers in recent tough times facing the country amid forex crunch. The amount of foreign-aid disbursement by Japan was the highest during the first 10 months fro

thefinancialexpress.com.bd

Japan leads development funding to Bangladesh
FHM HUMAYAN KABIR

Japan leads development funding to Bangladesh by releasing the highest US$1.66 billion worth of assistance among the foreign financiers in recent tough times facing the country amid forex crunch.

The amount of foreign-aid disbursement by Japan was the highest during the first 10 months from July to April of the outgoing financial year (FY) 2023-24, in keeping with its top position since last fiscal, official data showed.

In the FY2023 also, Bangladesh received the highest $1.94 billion in loans and grants from the historically highest bilateral donor, Japan, according to the Economic Relations Division (ERD) data.

During this past July-April period, the total amount of the assistance was nearly $600 million higher than Bangladesh's historically largest development partners-the World Bank-and nearly $200 million higher than the second-biggest financier- the Asian Development Bank.

The Manila-based Asian bank disbursed $1.499 billion worth of assistance and the Washington-based WB $1.05 billion during the period in question.

In the past fiscal, Japan disbursed $1.94 billion worth of loans and grants in FY2023. But the ADB released $1.787 billion and the WB $1.898 billion.

"Japan has emerged as the biggest development partner of Bangladesh in recent years, as its fund disbursement is rising year on year," says a senior ERD official in appreciation of the gesture at a time when the country faces the toughest challenge on the financial front from foreign-exchange inadequacies.

"The amount of foreign assistance from Japan is higher than that of two other larger development partners -the WB and the ADB," he adds.

According to another ERD official, Japan is currently bankrolling some mega-and larger projects in Bangladesh which need lots of fund investment every year.

The developed Asian country is financing MRT-01, MRT-05 and MRT-06, the rail bridge over the Jamuna, and the third terminal at the Hazrat Shahjalal International Airport in Dhaka.

For the Uttara-Motijheel MRT-06, Japan International Cooperation Agency (JICA) has made a commitment of $2.1 billion.

In June 2022, JICA confirmed $979.8 million (JPY 133,399 million) in credit for building MRT-05 from Hemayetpur to Vatara in Dhaka.

For the Airport-Kamalapur MRT-01, Dhaka will receive $1.10-billion loan from Tokyo as they signed an agreement in 2021 for construction of Dhaka's first underground metro rail.

For the third-terminal project, Japan has recently signed an agreement for providing some $517.27 million (JPY 76.635 billion).

Earlier in August 2020, JICA confirmed nearly $750 million (JPY 80 billion) worth of aid in the first installment for the same project.

Meanwhile, the agency provided a record $2.314 billion worth of aid in FY2022, some $1.945 billion in FY2021 and $1.69 billion in FY2020, the ERD data showed.

JICA's support has been on the rise since FY2018 when it disbursed $1.54 billion in foreign assistance, up by $899 million from FY2017.

Japan disbursed $1.195 billion in FY2019 and $1.544 billion in FY2018.

Meanwhile, the country's biggest multilateral financier, the World Bank, disbursed $1.42 billion in FY2018, $2.03 billion in FY2019, $1.51 billion in FY2020, $1.64 billion in FY2021, $1.739 billion in FY2022 and $1.93 billion in FY2023.

The ADB released $938 million in FY2018, $1.25 billion in FY2019, $1.70 billion in FY2020, $1.30 billion in FY2021, $2.628 billion in FY2022 and $1.56 billion in FY2023.

Historically, Japan also remains the third-largest donor among its peers operating in Bangladesh. In 2012, it became the largest bilateral donor to Bangladesh.

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[Saif]

Japan reviewing plan to support BD's LDC graduation, 9th FYP

Japan is reviewing the Country Assistance Plan for Bangladesh, taking into account the nation's upcoming graduation from Least Developed Country status and its Ninth Five-Year Plan, Japanese Ambassador to Bangladesh Iwama Kiminori said. "We are considering Bangladesh's needs against its developmen

thefinancialexpress.com.bd

Japan reviewing plan to support BD's LDC graduation, 9th FYP
General Economic Division is currently formulating the Ninth Five-Year Plan
FE REPORT
Published :
Jul 11, 2024 09:47
Updated :
Jul 11, 2024 09:47

Japan is reviewing the Country Assistance Plan for Bangladesh, taking into account the nation's upcoming graduation from Least Developed Country status and its Ninth Five-Year Plan, Japanese Ambassador to Bangladesh Iwama Kiminori said.

"We are considering Bangladesh's needs against its development plan and Japan's assistance policy," he said after a meeting with Planning Minister Major General (Retired) Abdus Salam at his office on Wednesday.

The General Economic Division (GED) is currently formulating the Ninth Five-Year Plan (FYP), titled 'Sustainable and Equitable Growth for Higher Middle Income'.

This plan, involving secretaries from over 15 ministries, aims to transform Bangladesh into a developed nation by 2041. The Eighth FYP, covering 2020-2025, was the first in a series of four designed to implement the government's Vision 2041.

After the meeting, the ambassador told journalists that various topics, including Bangladesh's future development plans, were discussed.

"Bangladesh is working on its Ninth Five-Year Plan. In this ambitious plan, Japan will provide financing in line with Japan's policies and Bangladesh's needs," he added.

Japan is revising its Country Assistance Plan, with specific areas of support to be determined through further discussions with Bangladesh. Japan's assistance will prioritise areas aligned with the Bangladeshi government's priorities, he added.

Planning Minister Abdus Salam called for Japanese collaboration to support the second phase of the Public Investment Management System to improve the efficiency of government spending.

Mr Salam told journalists that the ambassador visited to congratulate him and that Bangladesh has requested Japan's continued cooperation in capacity building.

"Specifically, support is sought for the second stage of the Public Investment Management System, with 40 projects already implemented with Japanese funding," said the minister.

Discussions also focused on enhancing Bangladesh's skills capacity, with Japan committed to supporting the implementation of both the current five-year plan and future development plans, he said.

While responding to a media query, Minister Salam said, "Japan is always with us. They have promised to stand by Bangladesh in various developments in the future".​

 

[Saif]

Japan to continue supporting Bangladesh

Japan has expressed happiness over Bangladesh reaching political stability recently and assured of continuing its support for the development of the country, said Finance and Commerce Adviser Salehuddin Ahmed yesterday.

www.thedailystar.net

Japan to continue supporting Bangladesh
Salehuddin says

Salehuddin Ahmed

Japan has expressed happiness over Bangladesh reaching political stability recently and assured of continuing its support for the development of the country, said Finance and Commerce Adviser Salehuddin Ahmed yesterday.

"We discussed various bilateral issues, including trade, investment and employment. Japan is very happy over the political stability and interim government's leadership," he said.

The adviser made the remarks while talking to journalists after meeting with Japanese Ambassador to Bangladesh Iwama Kiminori at the Ministry of Finance in Dhaka.

"There are no more questions about the work. Rather, they want to extend their cooperation with more projects for the future, including metro rail projects," he said.

Ahmed said during the meeting, they sought budgetary support and more investment in the private sector to boost the foreign exchange reserves.

"We have urged them to expand their cooperation in the health and education sectors," he said.

Ahmed said Japan wanted Bangladesh to ensure a business-friendly environment and smooth access and processes in banks and customs.

"About their concerns regarding reforms, I have assured them of bringing about reforms in the banking sector and customs of the National Board of Revenue. We are already on it," he said.

"About the near future, we have told them that their existing cooperation is good and we urged them to intensify it," he said.

The government wants to relieve people's sufferings and Japan will stand by Bangladesh, he added.

"In the meeting, we have also discussed free trade agreement (FTA) and graduation from LDC (least developed country) status. Japan also assured us about their cooperation," he added.​

 

[Saif]

Japan assures of cooperation for Bangladesh's economic rebuilding

The envoy acknowledged the challenges of the interim government and compared the Bangladesh situation with post-World War 2 period in Japan.

en.prothomalo.com

Japan assures of cooperation for Bangladesh's economic rebuilding
BSS
Published: 21 Aug 2024, 23: 04

Japanese ambassador in Dhaka assured Chief Adviser Professor Muhammad Yunus of Tokyo’s cooperation in rebuilding Bangladesh economy as he called on him at his Jamuna office on Wednesday.

Briefing the newsmen after the meeting chief adviser’s press secretary Shafiqul Alam said Prof Yunus sought enhanced Japan’s assistance for rebuilding Bangladesh economic when Ambassador Iwama Kiminori assured him that his country would stay beside his interim government.

The envoy acknowledged the challenges of his interim government and compared the Bangladesh situation with post-World War 2 period in Japan.

“The envoy said Japan is interested to work closely with the interim government of Bangladesh . . . He congratulated Prof Yunus on his assumption as the chief adviser to the interim government,” Alam told the briefing at the Foreign Service Academy.

Kiminori, the press secretary said, focused on economic cooperation, peace and people-to-people bonding.

The chief adviser told the envoy he considered none as foe in Bangladesh saying “we are all brothers and sisters. No one is enemy”.

The press secretary said the Rohigya crisis also came up during the meeting when the chief adviser said the repatriation of the forcibly displaced people was the only solution to the crisis.

“He sought more Japanese humanitarian assistance for Rohingyas,” Alam said.​