Bangladesh will continue to enjoy duty-free access to the Japanese market for three years after it graduates from the least-developed country (LDC) category, following Tokyo’s decision to amend its tariff policy.

Japan formally notified the World Trade Organisation (WTO) on November 5 of changes to its Temporary Tariff Measures Law, allowing graduated LDCs to retain preferential trade benefits for an additional three years.

Under the revised law, countries recognised as LDCs by the UN General Assembly, or up to three years after graduation, will remain eligible for special preferential treatment under Japan’s Generalised System of Preferences (GSP). The GSP aims to boost exports from developing economies by offering reduced tariffs on selected goods.

Dr Mohammad Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID), described the move as “positive for Bangladesh’s exporters,” noting that Australia and China have announced similar post-graduation facilities.

Bangladesh, which is set to graduate to developing-country status in November 2026, counts Japan among its key export destinations, alongside the EU, the United States, the United Kingdom, Canada, and India.

At the 2023 WTO Ministerial Conference in Abu Dhabi, member countries also agreed that LDCs should retain trade privileges for a period of three years after graduation to ensure a smooth transition.