Bangladesh-Bhutan Preferential Trade Agreement to Undergo Review
17 August 2025
During the ninth commerce secretary-level meeting in Thimphu, Bhutan in April 2025, both Bangladesh and Bhutan delegations agreed to expand cooperation in investment, energy, transit, tourism, and communications, and to undertake a comprehensive review of the progress and impact of the preferential trade agreement (PTA). This review will examine tariff reductions, non-tariff barriers, and trade facilitation measures with a view to further strengthening bilateral trade. Officials noted that the assessment will help identify priority sectors for expansion and ensure that the agreement continues to deliver tangible benefits, particularly as Bangladesh prepares for its graduation from Least Developed Country (LDC) status in 2026.
Bangladesh’s first PTA with Bhutan, signed in December 2020 and implemented in July 2022, has already doubled bilateral trade to $22.1 million in FY 2022-23, with exports from Bangladesh reaching $14.3 million in FY25, according to the Export Promotion Bureau, reported the Financial Express. The pact grants duty-free access to about 100 Bangladeshi products, including garments, jute goods, leather items, processed foods, and beverages. Meanwhile, 34 Bhutanese products such as oranges, ginger, honey, limestone, and fruit juices enjoy the same privilege in the Bangladeshi market.
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