1. The Parties may decide at any time that the arbitral tribunal suspend its work for a period not exceeding 12 months from the date of such decision. Within this period, the suspended arbitral tribunal proceedings shall resume on request of either Party. In the event of such suspension, any relevant period of time for the arbitral tribunal proceedings shall be extended by the period of time that the work was suspended. If the work of the arbitral tribunal has been continuously suspended for more than 12 months, the authority for the establishment of the arbitral tribunal shall lapse unless otherwise mutually determined by the Parties.
2. The Parties may decide to terminate the arbitral tribunal proceedings if a mutually satisfactory solution has been found. In such event, the Parties shall jointly notify the chair of the arbitral tribunal.
3. Before the arbitral tribunal issues its award, it may at any stage of the proceedings propose to the Parties that the dispute be settled amicably.
Article 21.12. Implementation of Award
1. The findings and determinations of the arbitral tribunal shall be final and binding on the Parties. The Responding Party shall:
(a) if the arbitral tribunal makes a determination that the measure at issue is not in conformity with the obligations under this Agreement, bring the measure into conformity; or
(b) if the arbitral tribunal makes a determination that the Responding Party has otherwise failed to carry out its obligations under this Agreement, carry out those obligations.
2. Within 30 days after the date of issuance of the award of the arbitral tribunal to the Parties pursuant to paragraph 15 of Article 21.10, the Responding Party shall notify the Complaining Party of its intentions with respect to implementation and:
(a) if the Responding Party considers that it has complied with the obligation under paragraph 1, it shall notify the Complaining Party without delay. The Responding Party shall include in the notification a description of any measure it considers achieves compliance, the date on which the measure came into effect, and the text of the measure, if any; or
(b) if it is impracticable to comply immediately with the obligation under paragraph 1, the Responding Party shall notify the Complaining Party of the reasonable period of time the Responding Party considers it would need to comply with the obligation under paragraph 1, along with an indication of possible actions it may take for such compliance.
3. If the Responding Party makes a notification pursuant to subparagraph 2(b) that it is impracticable for the Responding Party to comply immediately with the obligation under paragraph 1, it shall have a reasonable period of time to comply with the obligation under paragraph 1.
4. The reasonable period of time referred to in paragraph 3 shall, whenever possible, be agreed on by the Parties. If the Parties are unable to agree on the reasonable period of time within 45 days after the date of issuance of the award of the arbitral tribunal to the Parties, either Party may request that the chair of the arbitral tribunal determine the reasonable period of time, by way of notification to the chair of the arbitral tribunal and to the other Party. Such a request shall be made within 120 days after the date of issuance of the award of the arbitral tribunal to the Parties.
5. Where a request is made pursuant to paragraph 4, the chair of the arbitral tribunal shall present the Parties with a determination of the reasonable period of time and the reasons for such determination within 45 days after the date of receipt by the chair of the arbitral tribunal of the request.
6. As a guideline, the reasonable period of time determined by the chair of the arbitral tribunal should not exceed 15 months after the date of issuance of the award of the arbitral tribunal to the Parties. Such reasonable period of time may be shorter or longer, depending upon the particular circumstances.
7. If the Responding Party considers that it has complied with the obligation under paragraph 1 while or after establishing the reasonable period of time in accordance with this Article, it shall notify the Complaining Party without delay. The Responding Party shall include in the notification a description of any measure it considers achieves compliance, the date on which the measure came into effect, and the text of the measure, if any.
Article 21.13. Compliance Review
1. If the Parties disagree on the existence or consistency with this Agreement of any measure taken by the Responding Party to comply with the obligation under paragraph 1 of Article 21.12, such dispute shall be settled through recourse to an arbitral tribunal reconvened for this purpose (hereinafter referred to in this Chapter as “Compliance Review Arbitral Tribunal”). The Complaining Party may request the reconvening of a Compliance Review Arbitral Tribunal by way of notification to the Responding Party.
2. The request referred to in paragraph 1 may only be made after the earlier of either:
(a) the expiry of the reasonable period of time established in accordance with Article 21.12; or
(b) a notification to the Complaining Party made by the Responding Party pursuant to subparagraph 2(a) or paragraph 7 of Article 21.12 that it has complied with the obligation under paragraph 1 of that Article.
3. The Compliance Review Arbitral Tribunal shall make an objective assessment of the matter before it, including an objective assessment of:
(a) the factual aspects of any action taken by the Responding Party to comply with the obligation under paragraph 1 of Article 21.12; and
(b) the existence or consistency with this Agreement of any measure taken by the Responding Party to comply with the obligation under paragraph 1 of Article 21.12.
4. The Compliance Review Arbitral Tribunal shall set out in its award:
(a) a descriptive section summarizing the arguments of the Parties;
(b) its findings on the facts of the case arising under this Article and on the applicability of the provisions of this Agreement;
(c) its determinations on the existence or consistency with this Agreement of any measure taken by the Responding Party to comply with the obligation under paragraph 1 of Article 21.12; and
(d) the reasons for its findings and determinations referred to in subparagraphs (b) and (c).
5. If a request is made pursuant to paragraph 1, the Compliance Review Arbitral Tribunal shall reconvene within 15 days after the date of the request. The Compliance Review Arbitral Tribunal shall, if possible, submit its draft award to the Parties within 90 days after the date of its reconvening, and issue its award to the Parties within 30 days thereafter. If the Compliance Review Arbitral Tribunal considers that it cannot issue or submit its award or draft award within the relevant period of time, it shall notify the Parties of the reasons for the delay together with an estimate of the period of time within which it will issue or submit its award or draft award to the Parties.
6. The period of time from the date of the request made pursuant to paragraph 1 until the date of issuance of the award of the Compliance Review Arbitral Tribunal shall not exceed 150 days.
7. For greater certainty, consultations under Article 21.6 are not required for the procedures under this Article.
Article 21.14. Compensation and Suspension of Concessions or other Obligations
1. Compensation and the suspension of concessions or other obligations are temporary measures available in the event that the Responding Party does not comply with the obligation under paragraph 1 of Article 21.12 within the reasonable period of time. Neither compensation nor the suspension of concessions or other obligations is preferred to compliance with the obligation under that paragraph. Compensation is voluntary and, if granted, shall be consistent with this Agreement.
2. If any of the following circumstances exists, the Responding Party shall, on request of the Complaining Party, enter into negotiations with a view to developing mutually acceptable compensation:
(a) the Responding Party has notified the Complaining Party that it does not intend to comply with the obligation under paragraph 1 of Article 21.12;
(b) the Responding Party fails to notify the Complaining Party in accordance with paragraph 2 of Article 21.12;
(c) the Responding Party fails to notify the Complaining Party in accordance with paragraph 7 of Article 21.12 by the expiry of the reasonable period of time; or
(d) the Compliance Review Arbitral Tribunal determines, in accordance with Article 21.13, that the Responding Party has failed to comply with the obligation under paragraph 1 of Article 21.12.
3. If the Parties have:
(a) been unable to agree on compensation within 30 days after the date of receipt of the request made pursuant to paragraph 2; or
(b) agreed on compensation but the Responding Party has failed to observe the terms and conditions of that agreement, the Complaining Party may at any time thereafter notify the Responding Party that it intends to suspend the application to the Responding Party of concessions or other obligations equivalent to the level of nullification or impairment, and shall have the right to begin suspending concessions or other obligations 30 days after the date of receipt of the notification.
4. Notwithstanding paragraph 3, the Complaining Party shall not exercise the right to begin suspending concessions or other obligations under that paragraph if:
(a) a review is being undertaken pursuant to paragraph 9; or
(b) a mutually satisfactory solution has been reached.
5. The notification made pursuant to paragraph 3 shall specify the level of the intended suspension of concessions or other obligations and indicate the relevant sector or sectors in which the Complaining Party proposes to suspend such concessions or other obligations.
6. In considering what concessions or other obligations to suspend, the Complaining Party shall apply the following principles:
(a) the Complaining Party should first seek to suspend concessions or other obligations in the same sector or sectors in which the arbitral tribunal has determined that there is non-conformity with, or failure to carry out, an obligation under this Agreement; and
(b) if the Complaining Party considers that it is not practicable or effective to suspend concessions or other obligations in the same sector or sectors, it may suspend concessions or other obligations in other sectors.
7. The level of the suspension of concessions or other obligations shall be equivalent to the level of nullification or impairment.
8. If the Responding Party:
(a) objects to the level of the suspension proposed;
(b) considers that it has observed the terms and conditions of the compensation agreement; or
(c) considers that the principles set out in paragraph 6 have not been followed,
it may, within 30 days after the date of receipt of the notification made pursuant to paragraph 3, request the reconvening of the arbitral tribunal to examine the matter by way of notification to the Complaining Party.
9. If a request is made pursuant to paragraph 8, the arbitral tribunal shall reconvene within 15 days after the date of the request. The reconvened arbitral tribunal shall provide its determination to the Parties within 45 days after the date of its reconvening.
10. If the arbitral tribunal reconvened pursuant to paragraph 9 determines that the level of suspension is not equivalent to the level of nullification or impairment, it shall determine the appropriate level of suspension it considers to be of equivalent effect. If the arbitral tribunal determines that the Responding Party has observed the terms and conditions of the compensation agreement, the Complaining Party shall not suspend concessions or other obligations referred to in paragraph 3. If the arbitral tribunal determines that the Complaining Party has not followed the principles set out in paragraph 6, the Complaining Party shall apply them consistently with that paragraph.
11. In the circumstances described in paragraphs 9 and 10, the Complaining Party may suspend concessions or other obligations only in a manner consistent with the determination of the arbitral tribunal referred to in paragraph 9 or 10.
12. The suspension of concessions or other obligations shall be temporary and shall only be applied until such time as the obligation under paragraph 1 of Article 21.12 has been complied with or a mutually satisfactory solution has been reached.
13. If:
(a) the right to suspend concessions or other obligations has been exercised by the Complaining Party under this Article;
(b) the Responding Party has made a notification, pursuant to paragraph 7 of Article 21.12, that it has complied with the obligation under paragraph 1 of that Article; and
(c) the Parties disagree on the existence or consistency with this Agreement of any measure taken by the Responding Party to comply with the obligation under paragraph 1 of Article 21.12,
either Party may request the reconvening of the arbitral tribunal to examine the matter by way of notification to the other Party.
Note: If the arbitral tribunal is reconvened pursuant to this paragraph, it may also, upon request, determine whether the level of any suspension of concessions or other obligations is still appropriate in light of its findings on the measure taken by the Responding Party and, if not, determine an appropriate level.
14. If the arbitral tribunal reconvenes pursuant to paragraph 13, paragraphs 3 through 6 of Article 21.13 shall apply mutatis mutandis.
15. If the arbitral tribunal reconvened pursuant to paragraph 13 determines that the Responding Party has complied with the obligation under paragraph 1 of Article 21.12, the Complaining Party shall promptly terminate the suspension of concessions or other obligations.
Article 21.15. Expenses
1. Unless otherwise mutually determined by the Parties, each Party shall bear the costs of its appointed arbitrator and its own expenses and legal costs.
2. Unless otherwise mutually determined by the Parties, the costs of the chair of the arbitral tribunal and other expenses associated with the conduct of the arbitral tribunal proceedings shall be borne in equal parts by the Parties.
Article 21.16. Contact Points
1. Each Party shall, upon entry into force of this Agreement, designate a contact point for this Chapter and notify the other Party of the contact details of that contact point. The Parties shall promptly notify each other of any change of those contact details.
2. Any notification, request, reply, written submission or other document relating to any proceedings under this Chapter shall be delivered to the other Party through its designated contact point. The other Party shall provide confirmation of the receipt of such documents in writing through its designated contact point.
3. Notwithstanding paragraphs 1 and 2, the Parties may decide to jointly entrust an external body with providing support for certain administrative tasks for the dispute settlement procedure under this Chapter.
Article 21.17. Language
1. All proceedings under this Chapter shall be conducted in the English language.
2. Any document submitted for use in any proceedings under this Chapter shall be in the English language. If any original document is not in the English language, a Party submitting it for use in the proceedings shall submit that document together with an English translation.
Chapter 22. Final Provisions
Article 22.1. Table of Contents and Headings
The table of contents and headings of the Chapters, Sections, Sub-Sections and Articles of this Agreement are inserted for convenience of reference only and shall not affect the interpretation of this Agreement.
Article 22.2. Annexes and Notes
The Annexes and Notes to this Agreement shall form an integral part of this Agreement.
Article 22.3. Amendment
1. This Agreement may be amended by written agreement between the Parties.
2. Such amendment shall be approved by the Parties in accordance with their respective legal procedures, and shall enter into force on the date to be agreed upon by the Parties and by means of diplomatic notes exchanged between the Governments of the Parties informing each other that their respective legal procedures necessary for its entry into force have been completed.
3. Notwithstanding paragraph 2, amendments related only to the following may be made by diplomatic notes exchanged between the Governments of the Parties:
(a) Annex 1, provided that the amendments are made in accordance with the amendment of the Harmonized System, and include no change on the rates of customs duty to be applied by a Party to the originating goods of the other Party in accordance with that Annex;
(b) Annex 2; and
(c) Annex 3.
Article 22.4. Entry Into Force
This Agreement shall enter into force on the first day of the second month following the date on which the Governments of the Parties exchange diplomatic notes informing each other that their respective legal procedures necessary for entry into force of this Agreement have been completed. It shall remain in force unless terminated as provided for in Article 22.6.
Article 22.5. General Review
Without prejudice to the provisions concerning review in other Chapters, the Parties shall undertake a general review of the implementation and operation of this Agreement in the fifth year following the date of entry into force of this Agreement, and at such times as may be mutually determined by the Parties thereafter.
Article 22.6. Termination
Either Party may terminate this Agreement by giving one year’s advance notice in writing through the diplomatic channels to the other Party.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.
DONE at Tokyo this sixth day of February in the year 2026 in duplicate in the English language.
For Japan:
Iwao Horii
For the People’s Republic of Bangladesh:
Sk. Bashir Uddin
Annex 4 referred to in Chapter 7. Financial Services
Article 1. Definitions
For the purposes of this Annex:
(a) the term “financial service” means any service of a financial nature offered by a financial service supplier of a Party. Financial services include all insurance and insurance-related services, and all banking and other financial services (excluding insurance). Financial services include the following activities:
Insurance and insurance-related services
(i) direct insurance (including co-insurance):
(A) life; and
(B) non-life;
(ii) reinsurance and retrocession;
(iii) insurance intermediation, such as brokerage and agency;
(iv) services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;
Banking and other financial services (excluding insurance)
(v) acceptance of deposits and other repayable funds from the public;
(vi) lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;
(vii) financial leasing;
(viii) all payment and money transmission services, including credit, charge and debit cards, travelers checks and bankers drafts;
(ix) guarantees and commitments;
(x) trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:
(A) money market instruments (including checks, bills and certificates of deposits);
(B) foreign exchange;
(C) derivative products including, but not limited to, futures and options;
(D) exchange rate and interest rate instruments, including products such as swaps and forward rate agreements;
(E) transferable securities; and
(F) other negotiable instruments and financial assets, including bullion;
(xi) participation in issues of all kinds of securities, including underwriting and placement as agent, whether publicly or privately, and provision of services related to such issues;
(xii) money broking;
(xiii) asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;
(xiv) settlement and clearing services for financial assets, including securities, derivative products and other negotiable instruments;
(xv) provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services; and
(xvi) advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (v) through (xv), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy;
(b) the term “financial service computing facility” means a computer server or storage device for processing or storage of information relevant for the conduct of the ordinary business of a financial service supplier;
(c) the term “financial service supplier” means any natural person or juridical person of a Party seeking to supply or supplying financial services but the term “financial service supplier” does not include a public entity;
(d) the term “new financial service” means any financial service which is not supplied in the Area of a Party but is supplied and regulated in the Area of the other Party. This may include a service related to current and new products, or the manner in which a product is delivered;
(e) the term “public entity” means:
(i) a government, a central bank or a monetary authority of a Party, or an entity owned or controlled by a Party, that is principally engaged in carrying out governmental functions or activities for governmental purposes, not including an entity principally engaged in supplying financial services on commercial terms; or
(ii) a private entity, performing functions normally performed by a central bank or a monetary authority, when exercising those functions; and
(f) the term “self-regulatory organization” means any non-governmental body, including any securities or futures exchange or market, clearing or payment settlement agency, or other organization or association, that:
(i) is recognized as a self-regulatory organization and exercises regulatory or supervisory authority over financial service suppliers by legislation or delegation from central or local governments or authorities; or
(ii) exercises regulatory or supervisory authority over financial service suppliers by legislation or delegation from central or local governments or authorities.
Article 2. Scope
1. This Annex shall apply to measures affecting the supply of financial services. Reference to the supply of a financial service in this Annex shall mean the supply of a service as defined in subparagraph (o) of Article 7.2.
2. For the purposes of subparagraph (j) of Article 7.2, the term “services supplied in the exercise of governmental authority” means the following:
(a) activities conducted by a central bank or a monetary authority or by any other public entity in pursuit of monetary or exchange rate policies;
(b) activities forming part of a statutory system of social security or public retirement plans; or
(c) other activities conducted by a public entity for the account or with the guarantee or using the financial resources of the government.
If a Party allows any of the activities referred to in subparagraph (b) or (c) to be conducted by its financial service suppliers in competition with a public entity or a financial service supplier, the term “services” shall include such activities.
3. Subparagraph (l) of Article 7.2 shall not apply to services covered by this Annex.
Article 3. New Financial Services
1. A Party shall permit financial service suppliers of the other Party to offer in its Area any new financial service, provided that the introduction of this new financial service does not require the former Party to adopt a new law or modify an existing law.