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Bhutan and Bangladesh decided to renew bilateral trade agreement

April 10, 2014
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Bhutan and Bangladesh- renew bilateral trade agreementBhutan and Bangladesh have decided to renew the bilateral trade agreement before its validity expires. The validity of the agreement expires later this November. The bilateral trade agreement was signed in 1980 and was last renewed in 2009.

The decision was taken during the two-day Commerce Secretary Level Meeting between Bhutan and Bangladesh. The meeting ended today.

Besides the renewal of the bilateral agreement, Bangladesh has agreed to provide duty free and tax free excise on Bhutan’s fruit juices in tetra packs. Similar concessions have been agreed on pebbles exported to Bangladesh.

The two nations have also decided to look into the possibilities of having a formal preferential trade arrangement between the two. Solving transit issues was one of them.

“We already have the proposal from the Bangladesh government and we will be getting back to them conveying our views …,” said the Department of Trade’s Director, Sonam Wangchuk.

Sonam Wangchuk also said they are looking into Bhutan’s intention to use Bangladesh’s waterways. “…that will also be considered when we look into the possibility of entering into our bilateral transit agreement.”

On the expansion of trade affairs between the two countries, the Ministry of Economic Affairs finds this achievable provided there is enabling environment for trading.

“While the hydro power and tourism are potential sectors that can be expanded, even manufactured and agricultural produce have an immense scope for expansion of trade…,” said trade director.

Bangladesh currently grants duty free and tax free excise on 18 products of Bhutan. The products are vegetable, fruits, fruit juices, jams, pickles and other mineral products.

 

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