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JAPAN BANGLADESH BILITERAL ECONOMIC RELATION
INTRODUCTION
Bangladeshi-Japanese relations were established in February 1972. Japan is Bangladesh's 11thlargest export market; imports from Bangladesh make up 26% of all Japanese imports from the
least developed countries, second only to those from Cambodia. Common imports from
Bangladesh to Japan include leather goods, ready-made garments, and shrimp. By 2004, Japan
had become Bangladesh's fourth-largest source of foreign direct investment, behind the, United
Kingdom, and Malaysia. Japan's political goals in its relationship with Bangladesh include
gaining support for their bid to join the United Nations Security Council, and securing markets
for their finished goods. Japan Bangladesh Relations|
| 1. GENERALJapan and Bangladesh have maintained friendly relations since February 10th,
1972, through economic and technical cooperation, cultural exchanges and mutual visits. Japan
is a major development partner for Bangladesh, extending support to the efforts of Bangladesh
for its economic and social development. The two governments signed the Agreement on
Technical Cooperation between Japan and Bangladesh on December 8th, 2002 to strengthen
further mutual technical cooperation by consolidating its infrastructure and simplifying its
process under a single umbrella framework.Mutual support and cooperation in international
arena have also produced excellent results and deepened the trust between both governments. In
private economic sector, the bilateral relations are increasingly strengthened and diversified.
Agreement between Japan and the People's Republic of Bangladesh concerning the Promotion
and Protection of Investment entered into force in 1999.The year 2002 marked the 30th
anniversary of establishment of diplomatic relations between Japan and Bangladesh. To convey
resolve of the Japanese Government towards further enhancement of its ties with Bangladesh,
Japanese Prime Minister Junichiro Koizumi dispatched
Mr. Shin Sakurai, M.P. and Vice President of Japan Bangladesh Parliamentarians
League, to Bangladesh as his special envoy in October 2002. Throughout the year
2002, a series of cultural programs was held to commemorate the anniversary. H.E.
M. Morshed Khan, Foreign Minister of Bangladesh, visited Japan in March-April, 2003,
for bilateral consultations with the Japanese Government.2. DIPLOMATIC RELATIONS|
1994| Prime Minister Khaleda Zia|

1995| Foreign Minister A. S. M. Mustafizur Rahman|


1996| Foreign Secretary Farooq Sobhan|

1997| Prime Minister Sheikh Hasina Finance Minister S. A. M. S. Kibria| 1998| Foreign
Minister Abdus Samad Azad|
2000| Foreign Minister Abdus Samad Azad |
2001| Science and ICT Minister Moyeen Khan Woman and Children Affairs Minister
Begum Khurshid Zahan Hoque| 2002| Foreign Minister Abdus Samad Azad|
2003| Social Welfare Minister Ali Ahsan Muhammad Mujaheed, Water Resource
Minister L. K. Siddiqui, Foreign Minister M. Morshed Khan, Fisheries and Livestock
Minister Sadek Hossain Khoka| 2007| Nobel Laureate Dr. Muhammad Yunus visited
Japan. |

2008| Foreign Adviser, Dr. Iftekhar Ahmed Chowdhury, visited Japan.|


Bangladesh Japan bilateral relations |
This year marks the 38th anniversary of the establishment of diplomatic relations
between Bangladesh and Japan. The past thirty eight years have witnessed a steady
growth of close cooperation between our two countries. Although bilateral
diplomatic interactions are relatively recent phenomena, the ties between the two
nations are centuries old through historic and cultural connections. 1971, the year of our

liberation war, marks an watershed in Bangladesh-Japan friendship. During the war the Japanese
people extended immense support. The great friend of Bangladesh Late Mr. Takashi Hayakawa
MP played a leading role in Bangladeshs support. According to his wish his ashes are kept in
Bangladesh. The people of Bangladesh nurture enduring gratitude for all Japanese who stood by
us in our trying hours. A bond of mutual goodwill and respect has since developed between the
two peoples. Japan was among the countries that recognized Bangladesh soon after the

independence and established diplomatic relations on 10 February 1972. Early that year both
countries opened Embassies in each others capital. The first ever highest level visit from
Bangladesh was undertaken by Bangabandhu Sheikh Mujibur Rahman in 1973, as the Prime
Minister of a free and independent Bangladesh. Since then our two countries relations have
developed steadily and satisfactorily and never looked back. Bangladesh and Japan have shared
views on many key international issues and closely worked for promoting global peace and
stability. Both our countries have important contributions in the UN peace keeping operations.
Bangladesh supports Japans permanent membership in UN Security Council and appreciates its
role as an observer of SAARC that anchors it to the region as a bona fide partner. The relations
with Japan are of priority for us and both countries are already engaged to exploit the high
potentials for further deepening and widening cooperation. Japan Bangladesh Parliamentary
League actively promotes mutual friendship between the two countries. H.E. Mr. Taro Aso, the
incumbent Prime Minister of Japan, assumed the office of the President of the parliamentary
body last year reflecting the confidence of Japan in Bangladeshs potentials. Bangladesh is
deeply appreciative of the Government and the people of Japan for standing by its side over the
last 38 years as the leading development partner. Japan has been greatly instrumental in our
economic infrastructure building; poverty alleviation efforts and human resources development.
Japan aided infrastructures including bridges in Bangladesh have directly helped its economy to
grow at healthy rates. Japan has been a major contributor to our successful poverty alleviation
efforts. Japan has also helped in our human resources development. Today hundreds of trainees
from Bangladesh who have been trained in Japan are helping build a better Bangladesh. Most of
them speak fluent Japanese. We would like Japan to continue and broaden assistance
in our education sector particularly in science, IT and emerging technology. There

are more examples of Japanese assistance presenting Bangladesh as a role model


of successful utilization of ODA. Bangladesh has welcomed the decision of the
Government of Japan for providing substantially enhanced project loans of US$ 440
million this year. We hope the present flow of ODA to Bangladesh will continue in the
future too. Japan is also a major trading partner and source of foreign direct
investment. Although the volume of bilateral trade and investment is yet to reach
the full potentials, joint and new efforts may substantially raise the level for mutual
gains. Bangladesh offers enhanced investment support services, incentives, large
market, inexpensive workforce and quality export products as evidenced in JETRO
studies recognizing the country with lowest cost of doing business and capable of
supplying IT products for Japan. Big businesses like NTT Docomo, UNIQLO, SEIYU, Ito
Yokado, NITORI, and Mitsubishi have started or negotiating for doing business in
Bangladesh. More such delegations also bear the testimony of the hard work and
relentless efforts this mission has put in to motivate and encourage the big
Japanese companies to invest and doing business in Bangladesh. Private sectors of
the two countries have also developed close cooperation over the years. JapanBangladesh Committee of Economic and Commercial Cooperation (JBCCEC) hold its
sessions in Tokyo and Dhaka alternately to discuss and review business and
investment issues. Bangladesh encourages increased Japanese investment
including relocation of facilities in expensive locations elsewhere. An exclusive EPZ
for the Japanese entrepreneurs may also be set up. Tourism is an area our two
countries can cooperate to further promote the friendship, goodwill and exchange
between the people. From time immemorial, travelers visited Bangladesh attracted

by its charm and fame. It is a country of immense scenic natural beauty and rich
flora and fauna. The land and nature that takes variety of shades as the six seasons
visit throughout the year. Bangladesh also has ancient history and rich tradition,
culture, heritage, art and literature. Todays modern Bangladesh and its people
embody all these characteristics and make an attractive place for the Japanese
tourists who also have long history, rich culture and tradition; particularly the
Buddhist archeological sites would

be of great delights for them. There are more

than 10,000 Bangladesh nationals living in Japan and are engaged in various
activities including business, employment, research and academic related
pursuits. There are also good number of Japanese people living in Bangladesh
who, too, are involved in various activities such as business, employment and
voluntary services. These expatriate nationals are providing valuable
contribution to the strengthening of people to people contact and are building
a strong bridge of friendship between Bangladesh and Japan. In order to
harness the potentials and strength of Bangladesh businessmen living in
Japan, this Mission helped launch a Bangladesh Chamber of Commerce and
Industry in Japan in 2007. The chamber has already started playing an
important role towards increased bilateral trade and investment, between the
two countries. There is a cultural agreement between our two countries and
also a cultural exchange programme under the agreement. Both the
government may facilitate more exchanges in the field of culture that would
further reinforce our friendship. There has been regular exchange of visits
between the two countries since our independence. The visits not only added

visibility of excellent friendly relations but also contributed to the steady


growth of close multifarious cooperation between Bangladesh and Japan. The
important two way visits are enumerated below. As we take stock of our
relations of the past thirty eight years, both countries are confident that the
bilateral relations, foundation of which has been reinforced and consolidated
during the past years, will continue to further strengthen in the years ahead to
our mutual benefit. Japan-Bangladesh Relations

The current state of relations between Bangladesh and Japan can be termed as
excellent. Since our independence in 1971 there has been steady, smooth and
excellent development of bilateral relations between Bangladesh and Japan.
This is evident from regular exchanges of high level visits (ii) signing of several
mutually beneficial agreements in different fields (iii) cooperation between the
two countries in the international fora for the realization of our shared ideals
and objectives. Year 2002: 30thAnniversary of Japan-Bangladesh Diplomatic
Relations:Japan recognized the Peoples Republic of Bangladesh on February
10th, 1972, soon after its independence. A Warm friendship has been fostered
between our two peoples since then. Century-old
exchanges between Japanese and Bengali people: One of the earliest close
contracts between our two peoples go back to the beginning of the
20thcentury, when Rabindranath Tagore and Tenshin Okakura, a
distinguished Japanese fine arts scholar, and Taikan Yokoyama, a Japanese

master of painting, profoundly affected and influenced each others work


through their friendship. Up to the present time, our two peoples have not
only enjoyed cordial relations but also developed bonds of mutual
understanding and friendship. Cultural exchange: Every year, over a hundred
of Bangladeshi students receive Japanese Government Scholarships to study
in Japan, and Bangladesh is one of the largest recipient countries of these
scholarships in recent times. Professor Mohammad Kibria, among other
renowned painters in Bangladesh, is one of those who studied in Japan as a
scholarship student of the Japanese Government. Japan has extended
assistance for the preservation of Monuments of Begerhat and Paharpur Bihar
from 1992 to 1997, through the UNESCO/Japan Trust Fund for the
preservation of the World Cultural Heritage. Experimental conservation work
was successfully carried out, detailed plan and the restoration completed.
Japanese people supported our war of independence: Bangladesh has
traditional and historical connections with Japan. During our war of
independences the Japanese People, inter-ala through the political parties and
news media had extended valuable support to our cause. The late Takashi
Hayakawa, then a member of the diet was an outspoken advocate for the cause
of Bangladesh.

Establishment of Diplomatic relations: Japan recognized Bangladesh on 10


February 1972 and immediately thereafter established her embassy in Dhaka
in March, 1972.The Government of Bangladesh reciprocated positively by

establishing her embassy in Tokyo in July 1972. Exchange of High-level visits:


After establishment of diplomatic relations the bilateral relations between the
two countries began to grow steadily. There have been successive high level
visits from both sides at political and official levels. Preside Ziaur Rahman
visited Japan in 1978 and in 1980. The Present Prime Minster Begum Khaleda
Zia visited Japan in 1994. The present Foreign Minister of Bangladesh Mr. M
Morshed Khan MP visited Japan in January 2002 to participate in an
international conference on Afghanistan. He also paid an official visit to Japan
from 30th March till 4thApril,, 2003 at the invitation of the Government of
Japan The Imperial Highness- Crown Prince Akihito and the Crown Princess
Michiko (currently their Majesties the Emperor and the Empress) visited
Bangladesh in 1975. Mr Shin Sakurai, member of the House of Councilors and
Vice President of the Japan Bangladesh Parliamentarians League visited
Bangladesh from 23-25 October, 2002 as a Special Envoy of the Japanese
Prime Minister HE Mr. Junichiro Koizumi to join the celebrations of the
30thAnniversary of the establishment of diplomatic relations between
Bangladesh and Japan.

Largest Bilateral Development partner: Japan has been providing economic


assistance to Bangladesh since her independence in 1971.The bilateral
economic cooperation has gained momentum with the implementation of
some important projects in the recent past. With Japanese economic
assistance Bangladesh has established expansive physical and infrastructure

facilities. These are mainly in the field of telecommunications, bridges,


airports, roads, energy, irrigation, agriculture, health, education, rural
development etc. Japan today is the largest bilateral development partner of
Bangladesh contributing about US$ 300 million as development assistance.
Trade and Investment: Japan is now the 6thbiggest export-destination for
Bangladeshi goods, although always in favor of Japan. Products such as
prawns, garments, shoes and other leather goods are exported to Japan. Japan
is also one of the major countries investing in Bangladesh and now more than
14 Japanese companies inside EPZs and 40 outside EPZs are operating. Major
Japanese Investment In Bangladesh: According to Board of Investment
Sources Japans total Foreign Direct investment (FDI) is US$1110.878million
as of 2002. Japanese investment in Bangladesh ranks 4thamong the foreign
investing countries after the USA, UK and Malaysia. There are presently about
120 projects with 100 percent Japanese Investment or Joint Venture between
Bangladesh and Japanese Investors. Japanese assistance in the priority areas:
As one of the largest development partners Japan has extended support for
economic and social development for the past 30 years since its independence.
Alleviation of poverty is the highest priority while emphasis has been put on
the quality of aid. Infrastructure: Network of road, Bridge,
Telecommunications and Electricity throughout the country: Japan has been
supporting Bangladeshs development efforts based on the priority areas such

as (a) Agriculture, and improvement of agricultural productivity, (B)


Improvement of social areas (basic human needs, health care, etc.), Basic
infrastructure for investment and export promotion, (d) Disaster control.

During the last 30 years, with Japanese Official Development Assistance


(ODA), road networks have been built and major bridges constructed across
the Meghna, Meghna-Gumti and Jamuna Rivers. Pakshey and Rupsha Bridges
and presently under construction. Bangladesh, with more then 300 major
rivers, will have been completely connected all through the country, north to
south and east to west, after Rupsha bridge has been opened. These bridges
are the symbols of our friendly cooperation that bridges Japan and
Bangladesh. A large number of other facilities such as Chittagong
International Airport as well as a network of Telecommunications and Power
station have also been constructed and developed. Assistance in Health Sector
and Agricultural Sector: Assistance has been continuously extended into the
area of health and agricultural. (1) Medical assistance There have been a large
number of helpful assistance projects, amongst which, the Seven-year Project
in Dhaka for the diseases of circulatory organs, the Five-year Pilot Project in
Narayangonj for the control of rheumatic fever, in which delegations of
Japanese medical doctors have been sent to Bangladesh, as well as Project in
Narayangonj for the construction of General Hospital (grant aid) have been
very helpful in the improvement of medical techniques facilities. In respect of
the on-going projects, for example, the Five-year Human Resource

Development Project in the Reproductive Health Sector in Azimpur


(September 1999 till August 2004)is continuing, and under the Polio
Eradication Programme, vaccines and syringes have, amongst other things,
been supplied since 1995. (2) Agricultural assistance Japanese assistance is
helpful also in the agricultural area, for example, Twelve-year Project for the
construction of library and other physical infrastructures of IPSA (I,II),
current Bangabandhu Sheikh Mujibur Rahman Agricultural University In
respect of the on going projects, for example, five-year Poultry Management
Techniques improvement Project (agricultural assistance, November 1997 till
2002) is continuing.

Total amount of assistance extended by Japan: since the independence of


Bangladesh, Japan has contributed a total amount of approximately 403
billion yen (approximately Tk 170 billion) in grant assistance and more then
35 billion yen (approximately Tk. 14.7 billion) in technical assistance up to
2000 respectively as well as approximately 591 billion yen (approximately Tk.
248 billion) in soft loans up to 2001 (E/n base). The total amount of 1.029
Trillion yen (approximately Tk. 432.7 billion) has been extended bilaterally
from Japan to Bangladesh since independence in 1971. 762 JOCV (Japan
Overseas Cooperation Volunteers) members have been sent to Bangladesh to
date. JICA (JAPAN INTERNATIONAL COOPERATION AGENCY)Activities in
Bangladesh 1973| Beginning of Japanese Technical Assistance to Bangladesh
by dispatching Japan Overseas Cooperation Volunteers (JOCVs)| 1974| The

first ODA Loan to Bangladesh

Establishment of JICA Bangladesh Office|


1988| Establishment of OECF (antecedent of JBIC) Representative Office in
Dhaka| 1995| Exceeding 500 billion yen as total commitment of ODA Loans to
Bangladesh| 2003| Exceeding 1,000 Experts dispatched from Japan

Debt Cancellation (1,58.90 million yen)|


2006| Exceeding 5,000 Participants joining trainings in Japan| 2008| Merger
of JICA and JBIC |
2009| Exceeding 1,000 JOCVs dispatched from Japan About JICA in
Bangladesh: Japan International Cooperation Agency (JICA) is an
implementing agency of Japanese Official Development Assistance (ODA). As
the worlds largest bilateral and agency JICA provides high quality
international cooperation to meet the needs of people living in around 150
developing countries.Bangladesh and Japan have a long history of good
friendship with the interaction of people between the two countries since
Japanese ODA started in Bengal Region long before the independence of
Bangladesh, it has witnessed the remarkable progress of Bangladesh economy
and of the Peoples living condition here. Despite a pile of challenges and
difficulties, JICA believes, the people and the government of Bangladesh shall
continue their successful path to peace and prosperity JICAs Philosophy of
assistance puts emphasis on people and community and their capacity

development which facilitate the sustainable process Inclusive and Dynamic


Development of Bangladesh based on the concept of human security. This
Philosophy deeply resonates with the believe of the great Tagore expressed as
we must understand the simple truth that everyman has resource within him.
If we can appreciate and apply this, we can find a way out of povertyThe
recent institutional reform of Japans ODA has given a great opportunity to
implement Japans ODA in a more dynamic way by providing Technical
Cooperation, Grant Aid and ODA loans under a single roof of the new JICA
with synergy effect since October, 2008. Furthermore JICA has also
committed itself to deal with the issues of alignment and harmonization of
various aid activities from the sprites of Ownership and partnership.JICA is
always standing by the people of Bangladesh to support in achieving their full
potential for sustainable development and prosperity of Bangladesh. 1,190
billion Japanese Yen as a total amount of Japanese ODA| conclusion|

Japan has been the single largest donor to Bangladesh ever since diplomatic
ties were established in February 1972 between the two, although one can
always ask whether such huge official development assistance (ODA) has been
effective in contributing to the sustainability accomplishments of Bangladesh.
Despite the magnitude of Japan's economic assistance to Bangladesh, the
latter's share in Japanese global trade and investment is negligible. Despite
having many competitive advantages, Bangladesh has been suffering from a
huge trade deficit in its business with Japan. Likewise, even though

Bangladesh has been trying its best to attract Japanese investors and
entrepreneurs by offering a package of incentives and better facilities,
investment here remains very low. While Japan recognizes the strategic
significance of Bangladesh in a changing Asia, and wants to help the nation
approach global competition better, Bangladesh's image abroad is dented by
poor governance and political instability. Against this background, one needs
to identify the challenges confronting Japan and Bangladesh in their bilateral
relationship while analysing the significance of the JapanBangladesh
economic partnership.

REFERENCES
1,classified.japantimes.com/nationalday/.../20101129-bangladesh-visit.... 2.
en.wikipedia.org/wiki/BangladeshJapan_relations
3, www.bdsdf.org ... Business & Industry
4.www.wikipedia.com
5.www,google.com

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