What is the Japan Bangladesh EPA and what changed?

It is a new Economic Partnership Agreement that reached broad agreement on December 24. The pact removes steel tariffs, cuts duties on many auto parts, and keeps textile zero duty. The goal is to lower export costs for Japanese firms and secure stable access for apparel sourcing from Bangladesh.

When could the tariff cuts take effect?

The deal still needs legal scrubbing, signature, Cabinet approval in Japan, and Diet ratification. Bangladesh also completes its own process. After both sides finish, the tariff schedules will start on a set date. Watch official notices for the go live timing and affected HS codes.

Which Japanese sectors benefit most?

Steel producers, processors, and trading houses may gain from lower steel tariffs. Auto parts suppliers for engines, drivetrains, tires, and electronics could see better pricing. Apparel retailers benefit from textile zero duty. Logistics, packaging, and chemical suppliers may also lift volumes as sourcing and production scale.

How does textile zero duty help Japanese buyers?

Zero duty keeps landed costs stable for garments and home textiles imported from Bangladesh. It reduces the risk of price jumps as Bangladesh moves toward LDC graduation. With predictable tariffs, buyers can lock longer contracts, plan fabric and trims, and optimize shipping to lower per unit costs.

Global Market Insights

December 24: Japan–Bangladesh EPA Cuts Steel, Auto Parts Tariffs

ByHuzaifa Zahoor December 24, 2025December 24, 2025

The Japan Bangladesh EPA reached broad agreement on December 24, cutting tariffs on steel and auto parts while keeping textile tariffs at zero. For Japanese manufacturers, this lowers export costs and supports market access in a fast growing South Asian economy. It also gives apparel supply chains tariff certainty as Bangladesh prepares to exit least developed status. We explain what changes, who benefits, and what investors in Japan should watch as the pact moves toward signing and ratification. Timing and product lists will shape near term trade flows.