Bhutan seeks free trade agreement with Bangladesh

Bangladesh has asked Bhutan to submit a proposal for a possible free trade agreement (FTA) after the Himalayan kingdom expressed interest in upgrading existing bilateral trade ties from the current preferential trade agreement (PTA).

Once the proposal arrives, it will be sent to the technical committee on trade for scrutiny before a final decision is taken, Commerce Secretary Mahbubur Rahman told The Daily Star today.

The development came on the final day of a two-day visit to Dhaka by a commerce secretary-level delegation from Bhutan.

Tashi Wangmo, secretary of Bhutan’s Ministry of Industry, Commerce and Employment, raised the proposal for an FTA during a meeting between the two sides at a hotel in Dhaka.

In December 2020, Bangladesh and Bhutan signed a PTA. Under the agreement, Bangladesh grants duty-free access to 34 Bhutanese products, while Bhutan allows duty-free entry for 100 Bangladeshi goods.

The deal marked Bangladesh’s first bilateral trade agreement.

During today’s meeting, Bhutan also asked Bangladesh to expand the list of products eligible for duty-free access under the PTA from the current 34 items.

Moreover, the Bhutanese side proposed using Chattogram port for imports and exports, citing the country’s landlocked geography, Rahman said.

He added that Bangladesh would allow Bhutan to use Pangaon port in Keraniganj and Khanpur river port in Narayanganj to transport goods. Dhaka will review Thimphu’s request to use Chattogram port. 

Recently, a shipment imported from Thailand by Bhutanese importers passed through Chattogram port as a trial run, Rahman said.

If the arrangement is approved, the ministries of road transport and highways and shipping, along with other relevant agencies, will determine the fee structure for Bhutan’s use of Chattogram port, he added.