The Governments of Bhutan and Thailand have signed a landmark Free Trade Agreement (FTA) that aims to deepen economic ties and expand export markets. The agreement is expected to significantly boost bilateral trade, targeting a trade volume of $120 million.  

This FTA is Bhutan’s first FTA outside South Asia and Thailand’s 17th such pact. Bhutan Prime Minister Tshering Tobgay and Thailand Prime Minister Paetongtarn Shinawatra witnessed the signing ceremony between Bhutan Minister of Industry, Commerce, and Employment Namgyal Dorji, and Thailand Minister of Commerce Pichai Naripthaphan on 3 April 2025, in Bangkok, Thailand, ahead of the 6th BIMSTEC Summit.  

Under the FTA, Bhutan will immediately eliminate tariffs on nearly all Thai products, which would benefit sectors such as automotive, agriculture, food products, textiles, chemicals, and electronics. In exchange, Thailand will remove tariffs on 94% of Bhutanese exports, including potatoes, green tea, jams, and fruit juices. This will provide Bhutan with greater access to the Thai market. Thailand is looking to invest in Bhutan's tourism industry, smart city, and digital infrastructure. 

Both Governments will seek parliamentary ratification, with implementation targeted for 1 January 2026. Both governments expect the FTA to foster seamless bilateral trade and are encouraging the private sector to maximize the new opportunities. 

Related links 

News Release: Thailand and Bhutan Sign Free Trade Agreement  

Bhutan and Thailand sign Free Trade Agreement    

Thailand and Bhutan Sign Free Trade Agreement, Aiming to Boost Exports