The National Council of Bhutan unanimously endorsed a free trade agreement between Bhutan and Thailand. The 23 members of the council voted on 23 December 2025 to expand Bhutan’s trade outside of South Asia.

Bhutan’s exports to Thailand are currently subjected to customs duties between 5% and 60%, while imports are subjected to 10% duties. The free trade agreement will allow trade between Bhutan and Thailand to be exempt from customs duties according to National Council members, which acknowledged potential benefits as well as points of concern. Domestic taxes, including value-added tax and goods and service tax, will still apply under the agreement.

Bhutan’s exports to Thailand is mostly agricultural products, while Bhutan’s imports from Thailand include smartphones, pharmaceuticals, and other consumer products. Mr. Tshewang Rinchen, chair of the Economic Affairs Committee and Member of Parliament for the Samdrup Jongkhar District of Bhutan, said the projected benefits for the free trade agreement include ease of trade, job opportunities, and strengthened economic relations with Thailand. Concerns that were discussed include the agreement’s possible effects on jobs in manufacturing.

Following the National Council’s vote, the agreement will be up for deliberation in the National Assembly.

• NC endorses Bhutan-Thailand Free Trade Agreement
• Bhutan forges ahead with FTA with Thailand