Bhutan’s trade with Thailand has expanded over the past five years, with imports from the Southeast Asian country ranging from more than Nu 1.7 billion to Nu 3.32 billion annually in recent figures.
According to the Department of Revenue and Customs, Bhutan imported goods worth Nu 3.32 billion from Thailand in 2022, making Thailand the country’s third-largest import source that year. Exports to Thailand amounted to approximately Nu 16.45 million.
Trade figures subsequently fluctuated. In 2023, Bhutan imported goods worth Nu 1.77 billion from Thailand, while exports stood at Nu 11.25 million.
In 2024, imports increased sharply to Nu 2.67 billion, while exports rose to Nu 84 million. This represented a more than sevenfold increase in exports compared with the previous year, although imports continued to dominate bilateral trade. The resulting trade deficit stood at approximately Nu 2.58 billion.
The figures underline the difference between the two countries’ positions in the trading relationship. Thailand supplies Bhutan with a broad range of consumer goods, food products, machinery and electronic equipment, while Bhutan’s exports remain concentrated in a smaller range of products.
In 2024, cordyceps was Bhutan’s leading export to Thailand, valued at Nu 55.24 million. Matsutake mushrooms accounted for another Nu 23.7 million. Other exports included spices, tea, dried fruits, vegetables and woven fabrics.
On the import side, Bhutan purchased food products, beverages, electronics, smartphones, medical equipment and household goods from Thailand. Reported consumer imports included Nu 70.59 million worth of aerated beverages, Nu 25.5 million in baked goods and Nu 18.79 million in chips.
The expansion of trade has been accompanied by efforts to establish a more favourable framework for economic cooperation.
At the fourth Joint Trade Committee Meeting in Phuket in April 2022, the two governments agreed to pursue stronger bilateral trade, renew cooperation on tourism and handicrafts, and improve market access for Bhutanese agricultural and non-agricultural products. Thailand also agreed to facilitate the requirements for Bhutanese potatoes, while Bhutanese honey could enter the Thai market after meeting the necessary sanitary and phytosanitary requirements.
At the time, the two countries set an ambition to increase bilateral trade from US$25 million in 2020 to US$120 million by 2025.
The two countries’ trade relationship is entering a new phase following the signing of a Free Trade Agreement (FTA) in 2025. The agreement is expected to reduce trade barriers, improve market access and create opportunities for businesses in both countries.
The FTA represents a further step towards that ambition. Thailand’s Cabinet approved the agreement in June 2026 for submission to Parliament, with both countries targeting its entry into force on January 1, 2027.
Under the proposed arrangement, Bhutan would eliminate customs duties on up to 99.8 percent of product lines from Thailand, while Thailand would provide market access covering 94 percent of product lines for Bhutanese goods. The agreement is also expected to support cooperation in investment and economic development, including the Gelephu Mindfulness City initiative.
Tashi Namgyal, Thimphu
