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Published : 18 Jul 2026, 01:48 PM
Bangladesh has established a strong foothold in the US and European markets, but it continues to struggle in Japan -- one of the world's largest economies.
Export earnings from Japan have remained trapped between $1 billion and $1.5 billion for the past 11 years.
Even the much-anticipated Economic Partnership Agreement (EPA) with Japan has yet to deliver the expected boost. Instead, exports have declined.
An analysis of the latest Export Promotion Bureau (EPB) data shows Bangladesh exported goods worth $1.36 billion to Japan in the fiscal year ending Jun 30, 2026, down 3.65 percent from the previous year and 18.56 percent below the official target.
Of that total, $1.16 billion came from readymade garments.
In FY2024-25, exports to Japan stood at $1.41 billion, while the interim government had targeted $1.67 billion for FY2025-26.
Bangladesh recorded its highest-ever export earnings from Japan in FY2022-23, when shipments reached $1.45 billion, up 7.1 percent year-on-year. Garments accounted for $1.25 billion of that figure.
Despite repeated government and industry initiatives, exporters have failed to unlock Japan's vast market, where annual apparel demand alone is estimated at $25 billion. Bangladesh supplies only about 5 percent of that market.
A stronger presence in Japan, exporters say, would reinforce Bangladesh's position in global trade.
Muhammad Yunus, who led the interim government after the fall of the Awami League, discussed expanding exports during his visit to Japan in May last year.
That momentum led to Bangladesh signing its first-ever EPA with another country on Feb 6, five days before the national election.
The agreement was signed in Tokyo by then Commerce Advisor Sheikh Bashir Uddin and Japan's State Minister for Foreign Affairs Horii Iwao.
The deal grants duty-free access to 7,379 Bangladeshi products, yet exports have failed to gain momentum. Ironically, Japan remains Bangladesh's largest bilateral development partner.
Former BKMEA president Fazlul Haque told bdnews24.com, "To be honest, we focused far more on the US and European markets. Despite Japan being a huge market, we never gave it enough attention. That failure belongs to both the government and exporters. Had we acted together, exports could have reached $5 billion. Instead, we haven't even crossed $1.5 billion."
Fazlul, also managing director of Plummy Fashions and JCX Knitwears, believes the EPA alone will not transform exports because garments already enjoyed duty-free access.
"The real additional benefit is the single-stage transformation rule," he said.
"Exports won't grow if we sit idle. We must identify what went wrong and redesign our strategy."
BKMEA Executive President Fazlee Shamim Ehsan said Bangladesh must diversify its product basket.
"Japan has strong demand for sportswear. We cannot rely on the same products we sell in Europe and America. We need to supply what Japanese consumers actually want," he said, adding that Japan's quality-conscious fashion market could open new opportunities.
Trade expert Mustafizur Rahman of CPD said the EPA remains strategically important beyond tariffs, covering services, investment and technology.
He said the new single-stage rules of origin would significantly benefit garment exporters, while urging Bangladesh to expand supply capacity, diversify exports and improve competitiveness to maximise duty-free access.
Mustafizur called for a joint public-private strategy to raise exports to $5 billion within five years, including leveraging the Japanese Economic Zone in Araihazar.
RAPID Chairman MA Razzak said the EPA also protects Bangladesh after its graduation from least developed country status, preventing a 10 percent tariff on products currently enjoying duty-free access, while strengthening Bangladesh's trade credentials with other countries.
