Japan is showing growing interest in sourcing more apparel products from Bangladesh as businesses from both countries move to capitalize on the recently signed Economic Partnership Agreement (EPA).

The development signals a new opportunity for Bangladesh's apparel industry to diversify export destinations and strengthen its position in Asia at a time when global demand remains uncertain and traditional markets face economic pressures.

Representatives from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Japanese apparel companies, the Japan External Trade Organization (JETRO), the Japanese Commerce and Industry Association in Dhaka (JCIAD), and the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) recently met to discuss ways to expand sourcing partnerships and increase apparel trade.

 Mahmud Hasan Khan, President, BGMEA, said the industry aims to increase apparel exports to Japan from the current $1.4 billion to $3 billion within the next one to two years. He added that Asian destinations, including Japan, South Korea, and Turkey, are receiving increased attention as Bangladesh seeks to reduce dependence on traditional export markets.

Kazuiki Kataoka, Country Representative of JETRO Dhaka, said both Bangladeshi manufacturers and Japanese companies are interested in strengthening business cooperation and increasing apparel sourcing from Bangladesh.

According to data from the Export Promotion Bureau (EPB) of Bangladesh and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh currently exports more than $1.4 billion worth of apparel products to Japan annually. Apparel accounts for nearly 80 percent of Bangladesh's total exports to the Japanese market, making it the dominant export category between the two countries.

The EPA is expected to provide additional momentum to bilateral trade and investment. One of its key benefits for the apparel sector is the continuation of duty-free access for Bangladeshi garment products after implementation.

This is particularly important as Bangladesh prepares for graduation from Least Developed Country status. While Japan has already extended preferential market access benefits for Bangladeshi products until 2029, the EPA offers a longer-term framework for maintaining trade competitiveness.

Industry leaders see Japan as one of the most promising destinations for Bangladesh's export diversification strategy. As global supply chains continue to evolve, many international buyers are looking beyond traditional sourcing locations. Japanese companies are also exploring expansion opportunities in Bangladesh under Japan's China Plus One strategy.

The dedicated Japanese Special Economic Zone in Araihazar, Narayanganj, is expected to further support investment and industrial collaboration by providing a platform for more Japanese companies to establish operations in Bangladesh.

With duty-free market access, expanding business engagement, and stronger institutional cooperation, Japan could become one of the key drivers of Bangladesh's next phase of apparel export growth.