Trade, Commerce, and Investment

Signing of Transit Agreement and Protocol between Bangladesh and Bhutan, 22 March 2023: Bangladesh and Bhutan signed the "Agreement on movement of traffic-in-transit and its Protocol" on 22 March 2023 in Thimphu, for establishing arrangements for multi-modal communication channels via road, waterways, railways and airways between Bangladesh and Bhutan.

Signing of the Amended SOP for the MoU on Inland Waterways, 15 September 2022: To finalize mechanism and legal basis for effective waterways connectivity with Bhutan and to ensure utilization of Bangladeshi sea ports by Bhutan, a Standard Operating Procedure (SOP) for the MoU on the Use of Inland Waterways between Bangladesh and Bhutan was signed on 15 September 2022 in Dhaka.

Renewal of the MoU on Inland Waterways, September 2022: MoU on the Use of Inland Waterways between Bangladesh and Bhutan was signed in 2017 and has been renewed for five years (until 2027) in September 2022.

Preferential Trade Agreement (PTA), signed on 06 December 2020, implemented from 01 July 2022: Bangladesh and Bhutan have signed a preferential trade agreement (PTA) on 06 December 2020 to ease further trade barriers between the two countries and facilitate an increase in the volume of bilateral trade. Bhutan is the first country to sign PTA with Bangladesh. Under the agreement, Bangladesh will enjoy duty benefit on export of 100 local products and Bhutan will enjoy duty benefit on its 34 products. From 01 July 2022, Preferential Trade Agreement (PTA) between Bangladesh and Bhutan has been implemented.

Please click on the link to download the Product list under PTA between Bangladesh and Bhutan

Commerce Secretary Level Meeting: The successive rounds of annual Commerce Secretary Level Meetings(CSLM) have focused on strengthening trade relations between the two countries. Further, it attempts to explore new areas of cooperation for expansion of Bhutan’s bilateral and international trade through the development of institutional linkages and collaboration between the chambers of commerce, tourism authorities, and standards authorities of the two countries. 8^th round of Commerce Secretary Level Meeting (CSLM) between Bangladesh and Bhutan was held from in September 2022 in Dhaka. The Bhutanese delegation was led by Bhutanese Secretary of Economic Affairs and the Bangladeshi delegation was led by Senior Secretary of the Ministry of Commerce.

Facts and figures of bilateral trade

Bangladesh is the 2nd largest trading partner of Bhutan after India. Both the countries are enjoying excellent bilateral trade relations.

Bangladesh’s export to Bhutan is characterized by very limited products. Garments, melamine, pharmaceuticals, furniture, aluminum structures (doors, windows etc), dry food, confectionary items (sweet biscuits, cakes & pastry), fruit juice, mineral water, kitchenware, toiletries dominate the export of Bangladesh to Bhutan. Bhutan’s exports to Bangladesh mainly consist of boulders, cardamom, oranges, pebbles and gravels, limestone, dolomite, ferroalloys, gypsum, semi-finished products of iron or non-alloy steel, silicon carbide etc.

Financial Year	Export to Bhutan in Million USD	Import from Bhutan in Million USD
2020-2021	6.89	38.25
2019-2020	4.36	40.90
2018-2019	7.56	49.90
2017-2018	4.38	32.30
2016-2017	3.21	33.13
2015-2016	4.74	21.60

Table: Trade Data Bangladesh-Bhutan [Source: EPB & Bangladesh Bank]

The successive rounds of annual Bilateral Meetings at Commerce Secretary Level (CSLM) have focused on strengthening trade relations between the two countries. Further, it attempts to explore new areas of cooperation for expansion of Bhutan’s bilateral and international trade through the development of institutional linkages and collaboration between the chambers of commerce, tourism authorities, and standards authorities of the two countries.

Investment

Proposed Special Economic Zone by Bhutan in Northern District of Bangladesh: Bangladesh and Bhutan have taken initiatives to invest in each-other’s economic zones. Both the countries have agreed to establish a Special Economic Zone (SEZ) in the northern district of Bangladesh by Bhutan. Bangladesh agreed in principle to provide land for a SEZ in Kurigram district which is only 190km from the southern city, Gelephu of Bhutan.
Again, Bhutan is working on a master plan to prepare a special economic zone in the southern district of Gelephu where Bangladesh will consider to invest.