BD signs PTA: 100 items to get duty-free access to Bhutan

As many as 100 Bangladeshi products such as apparel, dry fish, agri products, tea and light engineering will get duty-free access to Bhutanese market under a Preferential Trade Agreement (PTA).

The PTA was signed by Commerce Minister Tipu Munshi and Bhutan's Finance and Commerce Minister Loknath Sharma in Dhaka on Sunday. Prime Minister Sheikh Hasina and her counterpart Lotte Shering witnessed the event via videoconference.

“Bangladesh will get the benefit from Bhutan in 2024 even after graduation from the Least Development Country to lower middle-income country,” said the commerce minister.

In return, 34 products of Bhutan will enjoy duty-free access to the Bangladesh market. More products will be added to the list of the duty-free access through discussions.

Bangladesh will move from the LDC to lower-middle income country in 2024, resulting in losing its eligibility to get some trade advantages. That’s why the government has taken steps to increase Bangladesh's participation in world trade, said Munshi.

Talks are underway to sign PTAs and FTAs with 11 countries as the existing agreements with them will be phased out after the graduation, he added.

Bhutan first recognised Bangladesh as an independent and sovereign state on December 6, 1971. The PTA was signed with Bhutan on the day to make the day memorable.

The Bangladeshi products benefitting from the PTA include readymade garments, processed foods such as juice, condensed milk, biscuits, mineral water, bread, agricultural products such as potatoes, cosmetics, toiletries products such as soap and shampoo, dry fish, cement, tea, plywood, light engineering, men's jackets, blazers, trousers, underwear, children's clothing, chocolates, various types of plastic products and gourds, leather and leather goods, garments products, jute and jute products, aluminium doors, wood products, electronics products, footwear, cables, metal and plastic furniture.

The Bhutanese products which would benefit include boulder, gypsum, dolomite, fruit and juice, processed foods such as jams and jellies, spices, furniture and other products.

In 2018-19 fiscal year, the trade between the two countries reached $56.90 million. Bangladesh exported goods worth $7.56 million, while Bhutan imported goods worth $49.76 million during the period.