Bangladesh, Bhutan sign first-ever preferential trade agreement 

Bangladesh and Bhutan signed their first-ever preferential trade agreement (PTA) on December 6, 2020 to boost bilateral trade.

The agreement was signed by Bangladesh's Commerce Minister Tipu Munshi and Bhutanese Economic Affairs Minister Lyonpo Loknath Sharma in Bangladesh's capital city Dhaka. 

Bangladesh Prime Minister Sheikh Hasina and Bhutanese PM Lotay Tshering also joined the event virtually from their official residences in Dhaka and Thimphu respectively.

Significance

The Bangladesh-Bhutan Preferential Trade agreement comes at a time when the two South Asian countries are also marking the 50th anniversary of their diplomatic ties. Bhutan had recognized Bangladesh’s independence on December 6, 1971, becoming the first country to accept it as a sovereign nation in the world.

Key Highlights

•The preferential trade deal is expected to contribute to further consolidating the relations between the two nations.

•Under the agreement, a range of products from Bangladesh (100) and Bhutan (34) will get duty-free entry into each other’s markets.

•Bangladesh Foreign Minister AK Abdul Momen called the agreement a new chapter in bilateral ties of the two nations and urged businessmen on both sides to take advantage of the accord.

•Momen said that the deal raises the possibility of robust trade between the two nations and cooperation in many areas including health, education, shipping, information technology and agriculture.

•The agreement is expected to strengthen the mutual relationship between Bangladesh and Bhutan.

Bhutan PM Lotay Tshering recalled his eight years in Bangladesh and called the nation his second home. Tshering stated that Bhutan pays high importance to its ties with Dhaka. Bangladesh PM Hasina also stated that Bhutan has a special place in the hearts of all Bangladeshis.

Background

The bilateral trade between Bangladesh and Bhutan stood at $12.77 million in the fiscal year 2008-09 and it rose to $49.65 million in 2018-19, as per official data.