Following the implementation of a preferential trade agreement (PTA) in 2022, trade between Bhutan and Bangladesh increased to US $ 22.1 million in the fiscal year 2022–2023.
Bangladesh, which has no free trade agreements (FTAs) with any other country, signed its first PTA with Bhutan, and according to relevant officials, the agreement’s implementation has already produced encouraging outcomes.
Prior to the PTA, Bangladesh’s exports to Bhutan were never more than US $ 10 million; in FY ’22, they were US $ 9.5 million.
According to economists, Bangladesh may now use its expertise in establishing similar agreements with other countries, as the PTA with Bhutan was successful.
After extensive negotiations with Bhutan, the PTA was signed on 6th December 2020. The agreement came into effect on 1st July 2022.
Under the PTA, 100 local products from Bangladesh are enjoying duty-free access to the Bhutanese market. Bhutan, on the other hand, has duty-free access to 34 products in Bangladesh. Subsequently, Bangladesh extended duty-free access to an additional 16 Bhutanese products.
The Ministry of Finance’s Internal Resources Division made it clear in an order dated August 4, 2022, that there will be no taxes or customs duties applied to the import of the 34 original and 16 new products from Bhutan.
18 products from Bhutan have been able to reach Bangladesh’s duty-free market since 2010, according to officials. On the other hand, Bangladesh used to have duty-free market access in Bhutan for ninety of its products.
Bangladesh’s duty-free products include ready-made garments, and apart from this, duty-free facilities exist for the export of men’s jackets, blazers, trousers, leather and leather products and footwear.
