Eighth customs meeting focuses on reducing trade costs, improving market access and strengthening transport links
Bhutan’s bilateral trade with Bangladesh reached USD 85 million in 2025 from around USD 70 million in 2023, reinforcing Bangladesh’s position as one of Bhutan’s important trading partners and prompting renewed efforts by both countries to make cross-border commerce faster, cheaper and more efficient.
Against this backdrop, Senior officials from Bhutan and Bangladesh met in Dhaka on October 14 and 15 for the eighth meeting of the Bangladesh–Bhutan Joint Group of Customs (JGoC), seeking to strengthen customs cooperation, simplify clearance procedures and improve the movement of goods between the two countries.
The meeting reviewed progress on decisions taken during the seventh JGoC meeting in Paro in May 2024 and discussed measures to facilitate legitimate trade, strengthen information exchange and improve coordination between customs authorities.
Senior officials from Department of Revenue and Customs, Department of Trade, and Ministry of Foreign Affairs attended the meeting. Discussions covered the implementation of the Bangladesh–Bhutan Preferential Trade Agreement (PTA), transit arrangements, customs procedures, border operations and information exchange. Both sides stressed the importance of modernising customs systems, strengthening institutional capacity and improving coordination among relevant agencies.
The two countries emphasised the need to simplify clearance procedures and reduce the time and costs associated with cross-border transactions, with the broader objective of making bilateral trade more predictable and commercially attractive.
The Bhutanese side offered to host the ninth meeting of the JGoC in Bhutan in 2027. Bangladesh welcomed the offer, providing an opportunity for both sides to continue reviewing progress and advancing agreed measures.
Preferential Trade Agreement remains vital
The Bangladesh–Bhutan PTA remains a key instrument for expanding market access and diversifying bilateral commerce. Coming into effect on July 1, 2022, it provides preferential tariff treatment for 100 Bangladeshi products in Bhutan and 34 Bhutanese products in Bangladesh. Bangladesh was the first country with which Bhutan signed a preferential trade agreement.
Bhutan’s exports to Bangladesh include boulders, cardamom, oranges, pebbles and gravel, limestone, dolomite, gypsum, ferroalloys and other mineral-based products. Bangladesh, in turn, supplies Bhutan with garments, pharmaceuticals, furniture, household goods, processed foods, beverages and toiletries.
The US$85 million in bilateral trade in 2025 points to the commercial potential of the relationship. The Foreign Affairs ministry stated that sustaining growth requires more than preferential tariffs. Efficient customs procedures, reliable transit arrangements, better information sharing and consistent implementation of trade commitments are important in helping businesses take fuller advantage of the agreement.
Earlier trade figures also illustrate the relationship’s importance. In 2023, bilateral trade was reported at approximately Nu 5.8 billion, comprising Bhutanese exports worth Nu 5.02 billion and imports worth Nu 798 million.
With Bangladesh serving as an important market for Bhutanese exports, reducing administrative and logistical barriers could help exporters improve their competitiveness and explore opportunities to expand the range of goods traded.
Connectivity could widen trade opportunities
Beyond customs cooperation, the two countries have been exploring ways to improve regional connectivity and provide Bhutan with additional options for transporting goods to regional and international markets.
Bhutan and Bangladesh signed a memorandum of understanding in 2017 on the use of inland waterways for bilateral trade and transit cargo. The arrangement was renewed in 2022, alongside a standard operating procedure intended to facilitate the use of Bangladesh’s waterways and seaports which will run till 2027.
Improved access to transport routes and port facilities could help Bhutan diversify its trade logistics, although the commercial benefits will depend on the practical implementation of these arrangements, transport costs and coordination among the authorities involved.
Investment cooperation is another emerging area. Both countries have continued discussing investment on the proposed Bhutanese special economic zone in Kurigram, northern Bangladesh, around 190 kilometres from Gelephu. Bangladesh has expressed interest in exploring potential investment opportunities in the Gelephu Mindfulness City (GMC).
The 10th Commerce Secretary Level Meeting, held in Dhaka on March 9–10, 2026, agreed to explore additional products under the PTA and consider the possibility of a free trade agreement. Bangladesh also offered Pangaon Port as an alternative for Bhutanese cargo, subject to further assessment.
These initiatives complemented existing trade arrangements by creating opportunities for investment, production and market expansion. The customs meeting forms part of the wider bilateral engagement between Bhutan and Bangladesh, which also covers tourism, agriculture, standards and investment.
The proposed ninth meeting in Bhutan in 2027 is expected to provide another opportunity to assess implementation and strengthen cooperation towards more efficient and mutually beneficial trade.
Tashi Namgyal, Thimphu
