Bhutan proposes free trade agreement with Bangladesh
Bhutan has expressed interest in signing a full free trade agreement with Bangladesh, seeking to expand economic cooperation beyond the existing preferential trade arrangement between the two nations.
Bangladesh has asked Bhutan to formally submit a proposal outlining the framework of the proposed agreement. Once received, the proposal will be reviewed by Bangladesh’s technical committee on trade before the government takes a final decision, Commerce Secretary Mahbubur Rahman said.
The issue was discussed during a meeting in Dhaka between Bangladeshi officials and a delegation led by Tashi Wangmo from Bhutan’s Ministry of Industry, Commerce and Employment. The talks took place on the final day of a two-day visit by the Bhutanese delegation aimed at strengthening bilateral trade and connectivity.
Bangladesh and Bhutan signed a Bangladesh-Bhutan Preferential Trade Agreement in December 2020. Under the agreement, Bangladesh provides duty-free access to 34 Bhutanese products, while Bhutan allows duty-free entry for 100 Bangladeshi goods.
The PTA was historically significant as it became Bangladesh’s first bilateral trade agreement after the country began pursuing regional trade partnerships more actively.
Officials say upgrading the arrangement to a full free trade agreement could further increase bilateral trade, encourage investment and improve market access for goods from both countries.
During the discussions, Bhutan also requested permission to use Chattogram Port for its imports and exports due to its landlocked geography.
Bangladesh has already indicated it would allow Bhutan to use Pangaon Inland Container Terminal and Khanpur River Port to transport goods. The request to use Chattogram port is currently under review by the relevant authorities.
Commerce officials said a recent trial shipment imported from Thailand by Bhutanese traders was successfully routed through Chattogram port, demonstrating the feasibility of the arrangement.
If approved, Bangladesh’s ministries responsible for transport and shipping will determine the logistics procedures and service fees for Bhutan’s use of the port facilities.
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