Bangladesh’s shipments to Japan declined 3.7 per cent in the first 11 months of 2016-17. Earnings fell 16.09 per cent short of expectations.

But the country’s exporters hope to cross the billion dollar mark by the end of the fiscal year, an achievement already made in the EU, US and Canadian markets. Japan is Bangladesh’s single largest export destination among Asian nations and its market offers promising returns for quality apparel and leather and jute and associated goods. Japanese consumers are quality conscious. Exports to Japan have been soaring over the last few years maintaining nearly 20 per cent growth every year.

During the July to May period, Bangladesh exported garments worth $696.32 million to Japan. Of this, $374.38 million were from woven items and $321.94 million from knitwear. Japan wants to reduce its dependence on China for goods like apparels, electronic gadgets and home appliances.

Another catalyst has been the relaxation of the ‘Rules of Origin’ by Japan on knitwear and woven garments from least developed countries. This allows Bangladesh to enjoy a zero-duty trade privilege and a competitive edge against countries like China and Pakistan in meeting Japan’s annual demand for garments worth over 40 billion.