Prime Minister’s Japan Visit: New Economic and Trade Opportunities
Faruk Hossain
Prime Minister Mr. Tarique Rahman has left for Japan on a four day state visit at the invitation of Japanese Prime Minister Ms. Takaichi Sanae. Japan is one of the great powers of the world economy. He left Dhaka on a Biman Bangladesh Airlines commercial flight (BG 376K) at 12:10 am early yesterday. He was due to reach Narita Airport in Tokyo at 9:25 am Japan time yesterday (7:25 am Bangladesh time).
Several ministers, state ministers, advisers and senior officials are accompanying the Prime Minister on this visit, along with his wife Dr. Zubaida Rahman. They include Finance Minister Mr. Amir Khasru Mahmud Chowdhury and Finance and Planning Adviser Dr. Rashed Al Mahmud Titumir. State Minister for Foreign Affairs 1 Mr. Humayun Kabir and State Minister for Power, Energy and Mineral Resources Mr. Anindya Islam Amit are also in the team.
The delegation also includes Mr. Rehan Asif Asad, Adviser to the Ministry of Posts, Telecommunications and Information Technology and the Ministry of Science and Technology. Chairman of the Bangladesh Investment Development Authority (BIDA) Mr. Ashik Chowdhury is part of the team too. So is Dr. Shakirul Islam Khan Shakil, Special Assistant to the Prime Minister on employment in the Asia Pacific region. Senior government officials, the media team and other eminent persons are also traveling.
Concerned people say this four day state visit will not stay within traditional protocol based diplomatic formalities. They say it is taking shape as a historic turning point. The aim is to lift the friendship of half a century between the two countries into modern trade, industrialization and an integrated strategic partnership.
Japan recognized Bangladesh as an independent state on 10 February 1972. Since then, Japan’s funding and technical role has been beyond question in rebuilding the war torn country. It also helped in mega projects such as the Jamuna Multipurpose Bridge, Dhaka Metro Rail, the third terminal of Shahjalal International Airport and the Matarbari deep sea port.
In the present context, the nature of the relationship is changing. It is moving away from loan based help and formal grant structures. It is turning toward mutual commercial investment, industrialization and supply chain partnership.
Sources at the Prime Minister’s Office and the Foreign Ministry say the Prime Minister is going to Japan mainly with a message to strengthen strategic and commercial ties. Many issues will get importance during the visit. These include bilateral trade, more Japanese investment in mega projects and the infrastructure sector, and the export of skilled manpower. The Prime Minister will also visit an LNG terminal and a power plant in the Chiba region near Tokyo.
He will also visit the headquarters of the company Uniqlo and the factory of the car maker Toyota in Nagoya. The visit schedule has been prepared in draft form. Mr. Tarique Rahman will also join several high level meetings, including a dinner at the invitation of the Japanese Prime Minister.
In these meetings, strengthening the existing bilateral relations will get importance. So will peace and stability in the regional and international arena, and a lasting solution to the Rohingya problem, as Bangladesh is sheltering the Rohingya. The Prime Minister will have a busy time in Japan. During the visit, memorandums of understanding or cooperation are likely to be announced in trade, agriculture, fisheries, human resource development and skills building, and private civil aviation.
These are expected to open a new door to bilateral relations and to more Japanese investment in Bangladesh.
Importance of economic partnership and investment: Bangladesh and Japan have a long, historic and friendly relationship. Japan has been making an important contribution to the socio-economic development of Bangladesh, the building of infrastructure, human resource development and capacity building. Over time, the relationship has grown beyond trade, investment and development cooperation. It now covers science and technology, connectivity, the environment, and regional and multilateral cooperation.
In this context, the relationship is now at the level of “strategic partnership.” Under it, work is going on in Bangladesh on infrastructure, technological excellence, human resource development and security cooperation. More plans for activities will be discussed during this visit.
Senior officials of the Foreign Ministry say the coming visit gives a timely chance to make the ties between the two countries deeper and longer reaching, in the context of the existing “strategic cooperation.” They say a new possibility for expanding trade and investment has arisen, especially because the Economic Partnership Agreement (EPA) between Bangladesh and Japan was signed last February. Japan has long been one of the main development partners of Bangladesh. It has helped build and manage the Metro Rail, the third terminal of Hazrat Shahjalal International Airport, and several important infrastructure and communication projects in Matarbari.
During the visit, the two sides will focus on the effective implementation of the EPA. They will also discuss wider access for Bangladeshi goods to the Japanese market, more Japanese investment in Bangladesh, and stronger business engagement. Cooperation in new areas will also get importance. These include renewable energy, agriculture, science and technology, digital transformation, skills building and human resource development.
Bilateral meeting with the Japanese Prime Minister: Sources at the Foreign Ministry say the Prime Minister will take part in various government and private meetings in Japan. He will also visit several important sites. The visit schedule has been set in draft form. On the second day of the visit, which is today, Mr. Tarique Rahman will hold a high level bilateral meeting with the Japanese Prime Minister at her office.
The Bangladesh Prime Minister will also attend a lunch hosted in his honor by the Japanese Prime Minister. Other possible meetings and programs include the Japan Bangladesh Parliamentary Friendship League. He may also meet the chairman of the Japan Bangladesh Committee for Commercial and Economic Cooperation (JBCCEC), the president of JICA, and the governor of the Japan Bank for International Cooperation. He is also expected to meet the president of the Japan External Trade Organization (JETRO) and the chairman of the Sasakawa Peace Foundation. He will give the keynote speech at the Japan Bangladesh Economic Forum and meet Japanese business leaders.
Visit to LNG terminal and Toyota factory: The visit schedule says the Prime Minister will visit an LNG terminal and a power plant in Futtsu City, Chiba. He will also visit the headquarters of Uniqlo and the Toyota factory in Nagoya. As part of the Prime Minister’s priority initiatives, detailed talks are planned on setting up factories of Japanese companies in Bangladesh. The talks will also cover creating jobs and getting Japan’s help in human resource development.
Rohingya crisis and regional stability: Foreign Secretary Mr. Asad Alam Siam said the visit will go beyond bilateral relations. He said both sides are expected to hold fruitful talks and take steps on peace and stability in the regional and international arena. They will also work on a lasting and peaceful solution to the Rohingya problem and on joint roles to strengthen cooperation to ease the energy crisis.
Mr. Siam said he hopes the visit will further strengthen the existing bilateral relations and open a new door to ties. He expects new private investment from Japan to Bangladesh and faster progress on ongoing projects. He also expects stronger commercial partnership, more economic and development aid, and continued security help. On the occasion of the visit, memorandums of understanding or cooperation are likely to be announced on agriculture, fisheries, human resource development and skills building, private civil aviation, trade, environmental protection and modernization of local government.
Several memorandums of understanding to be signed: More than four memorandums of understanding (MoUs) are expected to be signed between Bangladesh and Japan during the visit. A joint statement will also be issued, highlighting bilateral cooperation and future direction. The proposed MoUs include expanding cooperation in agriculture, fisheries, human resource development, skills building, civil aviation, trade, environmental protection and modernization of the local government system.
Seven or eight documents on cooperation are being finalized ahead of the visit. But how many will finally be signed depends on how the talks end. Foreign Secretary Mr. Asad Alam Siam said, “We hope many of these MoUs will be signed during the visit.”
The proposed agreements include a joint framework of the Economic Partnership Agreement (EPA). Through it, the two sides will protect duty free bilateral trade, protect investment and face challenges after leaving the LDC list. Another covers recruitment of skilled manpower and technical training. It will make hiring easier in nursing, IT and construction under a specified skilled worker program.
Another is on energy security and LNG logistics. It will cover building LNG terminals at Matarbari and Moheshkhali by the Japanese power giant JERA and strengthening the supply chain. Another is on protecting automobile and high tech investment. It will cover assembly plants of Japanese car makers in Bangladesh and the protection of backward linkage industries.
One more is on maritime security and building the capacity of the Coast Guard. It will bring advanced surveillance technology and the handover of patrol vessels to ensure safe navigation in the Bay of Bengal. Another is on ICT and semiconductor human resource development. It will cover jobs for Bangladeshi programmers in the Japanese IT market and nano technology training. The last is on customs modernization and one stop service coordination. It will reduce red tape and bring logistics automation in the Araihazar special economic zone.
Concerned people say the biggest gain of this visit will be setting a clear timeline for implementing the EPA. After Bangladesh leaves the least developed country list, it will lose Generalized System of Preferences (GSP) benefits in Europe and other developed markets. A comprehensive free trade agreement with Japan is very much needed as an alternative to that.
Once the EPA takes effect, Bangladeshi ready made garments, leather goods, footwear and agricultural products will get long term duty free access to the Japanese market. Special benefits will come for importing Japanese high tech machinery, electronics and industrial raw materials. This will lift Bangladesh’s manufacturing sector to world standard. It will also create room for bilateral trade to cross the present $3 billion mark and reach $7 billion in the next five years.
Chance of 1 trillion yen investment: According to international investment monitoring agencies, leading Japanese corporate groups are preparing a long term roadmap to invest about 1 trillion yen in Bangladesh in the next few years. That is about $6 billion. Famous Japanese brands are showing interest in moving their factories to the Bangladesh Special Economic Zone, the Japanese economic zone in Araihazar, Narayanganj.
During the visit, the Prime Minister will meet top executives of Japan’s leading business bodies JETRO and Keidanren directly. He will stress quick release of this investment and a guarantee for setting up industries.
Automobile and heavy industrialization: The Bangladesh market has so far depended largely on reconditioned Japanese cars, and that shaped Toyota’s investment plans. But in this visit, the most important talks are on direct local investment by the world famous auto giant Toyota Motor Corporation. Japanese companies are moving ahead with plans to set up assembly plants in Bangladesh through joint ventures.
This will create an unimaginable backward linkage for small and medium industries making light engineering goods, tires, plastics and cables at the local level. It will also create jobs for thousands of skilled mechanical engineers.
Joy and hope among expatriates: The visit of Prime Minister Mr. Tarique Rahman has created great enthusiasm among expatriate Bangladeshis and businesspeople in Japan. They have already held several preparatory and business exchange meetings to welcome him.
Japan BNP President and businessman Mr. Reza Mir said the visit is very happy and important for expatriates. He said, “All of us, regardless of party or opinion, will go to Narita Airport in Tokyo to welcome the Prime Minister. We have already completed all preparations.” He hopes the Prime Minister will take steps and decisions to solve the long standing problems of expatriates and businesspeople.
Japan BNP General Secretary and businessman Mr. Emdadul Islam Moni said this state visit will take the long standing strong economic and diplomatic ties of Bangladesh and Japan one step forward. He said it is a big chance to present Bangladesh’s new economic prospects to Japanese investors. He said the visit will also play a very positive role in solving various problems of Bangladeshis living in Japan and in creating chances to send new skilled manpower. He said, “We are hopeful that Bangladeshi youths will have a bigger share in the Japanese labor market through this visit.”
Japan based engineer Mr. Mostafizur Rahman Joni said the visit will open a new horizon in Bangladesh Japan economic ties. He said the relationship of the two countries rests on long standing friendship and cooperation. He said both countries have chances to cooperate in development cooperation, infrastructure, industry, technology and human resource development.
