Bangladesh and Japan have announced the elevation of their bilateral relationship to a “strategic partnership”, with Japan welcoming projected private-sector investment of up to 1 trillion yen in Bangladesh over the next five years, potentially creating around 200,000 jobs.
The decisions were outlined in a joint statement issued after talks in Tokyo between Bangladesh Prime Minister Tarique Rahman and Japanese Prime Minister Sanae Takaichi. The statement covered economic cooperation, investment, employment, infrastructure development, defence, trade, and regional and international security.
The two leaders pledged to strengthen cooperation in economic development, infrastructure, energy, defence, security and regional geopolitics, building on the long-standing friendly relationship between the two countries.
Bangladesh and Japan also announced an expansion of their flagship Bay of Bengal Industrial Growth Belt, or BIG-B, initiative under the concept “BIG-B for Shared Prosperity”.
The initiative aims to integrate power, energy, deep-sea ports, industry and information and communication technology infrastructure. Both countries will work to develop the Matarbari-Maheshkhali area, centred on Matarbari Deep-Sea Port, as a major international hub for logistics, energy and industry.
Japanese Prime Minister Sanae Takaichi praised reform initiatives by the administration of Prime Minister Tarique Rahman aimed at increasing foreign direct investment in Bangladesh.
Japan welcomed forecasts that its private sector could invest up to 1 trillion yen in Bangladesh over five years. The investment is expected to help create around 200,000 jobs in manufacturing, agriculture, information and communication technology and pharmaceuticals.
The joint statement said three memorandums of cooperation or memorandums of understanding had been signed to expand trade and investment between the two countries.
The first memorandum, signed between Japan’s Ministry of Economy, Trade and Industry and the Economic Relations Division of Bangladesh’s Ministry of Finance, concerns improvements to the business environment. It aims to reduce complications related to taxation, customs valuation, dividend and remittance transfers, and licensing.
Prime Minister Tarique Rahman pledged to ensure full transparency and regulatory compliance in these processes, according to the joint statement.
The other two memorandums concern cooperation in agriculture and fisheries, with the aim of attracting Japanese technology and investment in food, agriculture, fisheries and livestock sectors.
A high-level Japanese business delegation is expected to visit Bangladesh soon to further strengthen bilateral commercial relations.
The two prime ministers also agreed to expedite the opening of the third terminal at Hazrat Shahjalal International Airport in Dhaka and advance construction of the Dhaka Metro Rail, or MRT.
Japan will provide an emergency assistance loan of 50 billion yen under its POWERR Asia programme to help Bangladesh address rising and volatile global energy prices, maintain energy security and support economic stability.
Bangladesh and Japan welcomed the implementation of an agreement on the transfer of defence equipment and technology to strengthen bilateral security cooperation amid growing geopolitical uncertainty.
Japan confirmed maritime support for Bangladesh under two programmes to enhance coastal security capacity. Bangladesh is set to receive one patrol vessel under Japan’s Official Development Assistance programme and five patrol boats under the Official Security Assistance programme.
The two leaders reaffirmed their commitment to swiftly implement the Bangladesh-Japan Economic Partnership Agreement, or EPA, to maintain a free and fair international economic system.
The joint statement said the agreement would support Bangladesh’s balanced and sustainable graduation from the least developed country category. Japan also expressed a positive attitude towards advancing discussions on Bangladesh’s request to join the Regional Comprehensive Economic Partnership, or RCEP, one of the world’s largest regional trade agreements.
The two prime ministers expressed deep concern over the continuing crisis in Myanmar and the prolonged presence in Bangladesh of Rohingya people who have taken refuge there.
Prime Minister Tarique Rahman said the Rohingya crisis originated in Myanmar and that its solution also lay in Myanmar. Prime Minister Sanae Takaichi praised Bangladesh’s humanitarian role in hosting the Rohingya.
The two leaders agreed that the voluntary, safe and dignified repatriation of Rohingya people to their homeland was the only durable solution to the crisis.
The two prime ministers also backed a two-state solution to resolve the Gaza crisis. Discussions covered freedom of navigation in the Red Sea, the war in Ukraine and other global security issues.
Both leaders reaffirmed full support for international law and the United Nations Charter, stressing their importance in maintaining international peace and security.
Japanese Prime Minister Sanae Takaichi also congratulated Bangladesh Foreign Minister Dr Khalilur Rahman on his election as president of the 81st session of the United Nations General Assembly.