Bangladesh Targets $3 Billion Apparel Exports to Japan Under New EPA
Bangladesh’s ready-made garment (RMG) sector is set to benefit significantly from the newly signed Economic Partnership Agreement (EPA) with Japan, with industry leaders projecting apparel exports to the Japanese market could reach $3 billion in the coming years.
The Bangladesh-Japan EPA, signed in February 2026, is expected to strengthen bilateral trade relations while ensuring continued preferential market access for Bangladeshi products after the country’s graduation from Least Developed Country (LDC) status.
Industry stakeholders believe the agreement will provide a major boost to Bangladesh’s apparel exports by maintaining favorable tariff treatment and offering flexible rules of origin, allowing local manufacturers to remain competitive in one of Asia’s largest consumer markets.
Currently, Bangladesh exports more than $1 billion worth of garments to Japan annually. With Japan importing over $20 billion in apparel each year, the EPA is expected to help Bangladeshi exporters capture a larger share of the market and potentially double exports to around $3 billion.
The agreement also comes at a time when Japanese retailers are seeking to diversify sourcing destinations beyond traditional suppliers. Bangladesh’s growing reputation for quality manufacturing, sustainability initiatives, and compliance standards positions the country as an attractive sourcing partner.
Industry experts note that while the EPA creates significant growth opportunities, achieving the $3 billion export target will depend on Bangladesh’s ability to maintain high product quality, improve delivery efficiency, and strengthen relationships with Japanese buyers.
The Bangladesh-Japan EPA is widely regarded as a milestone for the country’s garment industry, opening new avenues for export growth and supporting the sector’s long-term competitiveness in the global apparel market.