Bhutan eager to sign FTA with Bangladesh: Envoy

Bhutan has expressed a strong interest in signing a Free Trade Agreement (FTA) with Bangladesh to further unlock trade potential and strengthen economic cooperation between the two South Asian neighbours.

Bhutanese Ambassador to Bangladesh Dasho Karma Hamu Dorjee made the remark at a seminar titled "Bangladesh-Bhutan Relations: Bilateral Ties for Shared Prosperity," held at the Bangladesh Institute of International and Strategic Studies (BIISS) in Dhaka yesterday.

Bhutan was the first country to sign a Preferential Trade Agreement (PTA) with Bangladesh on 6 December 2020. The agreement came into effect on 1 July 2022, reducing tariff barriers to facilitate greater trade flows.

Under the PTA, Bangladesh enjoys duty-free access for 100 products, while Bhutan receives similar benefits for 34 of its items.

Bangladesh is currently Bhutan's second-largest trading partner after India. During the 2020-21 fiscal year, Bangladesh exported goods worth $6.89 million to Bhutan, while imports from Bhutan stood at $38.25 million. In FY20, Bangladesh's exports were valued at $4.36 million against Bhutan's $40.90 million, and in FY19, $7.56 million against $49.90 million, respectively.

Major traded products between the two countries include baby clothes, men's trousers and jackets, jute and leather goods, dry cell batteries, fans, watches, cement, plywood, toothbrushes, mineral water, and fruit juices.

Addressing a question on the potential export of Bhutanese hydropower to Bangladesh, Ambassador Dorjee said the three countries – Bangladesh, India, and Bhutan – would need to engage in tripartite negotiations regarding the use of Indian transmission lines. "Hydropower is a very sensitive issue as it involves environmental, ecological, and human rehabilitation concerns," she noted.

The ambassador emphasised that both nations could achieve substantial economic benefits if Bhutan's Special Economic Zone, the Gelephu Mindfulness City (GMC), were connected to the Special Economic Zone in Kurigram that Bangladesh has already allocated to Bhutanese investors.

"Bangladesh and Bhutan can take their bilateral relations to a new level through improved connectivity, trade, and investment," she added.

She also outlined Bhutan's plans to expand religious tourism, noting that Buddhist monks from Bangladesh historically contributed to spreading Buddhism in Bhutan. Commending Bangladesh's newly inaugurated chancery building in Thimphu, themed "Bay of Bengal at the Foothills of the Himalayas", she reaffirmed her country's commitment to fostering a forward-looking partnership based on mutual trust, respect, and regional harmony.

The seminar was moderated by Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD). BIISS Director General Major General Iftekhar Anis delivered the welcome address, underscoring Bhutan's historic role as the first nation to recognise Bangladesh's independence in 1971 and highlighting the enduring friendship between the two countries.

Ambassador Mashfee Binte Shams, former secretary (East) at the Ministry of Foreign Affairs and former Rector of the Foreign Service Academy, reflected on the evolution of Bangladesh-Bhutan relations and emphasised emerging opportunities in trade, connectivity, and renewable energy cooperation.

The event concluded with an open discussion featuring senior government officials, diplomats, academics, international organisation representatives, researchers, media professionals, and students, who shared insights on advancing bilateral cooperation for shared prosperity.