The Department of Trade under the Ministry of Industry, Commerce and Employment (MoICE) has introduced new measures to regulate consumer trade fairs across Bhutan, following a comprehensive assessment and consultations with key stakeholders.
The decision comes amid growing concerns raised by the private sector and regulatory agencies over the increasing frequency of consumer trade fairs and their impact on local businesses, market fairness, and regulatory compliance.
According to MoICE, an assessment conducted in 2025 highlighted challenges related to market saturation, uneven competition, and compliance gaps, prompting stakeholder consultations with the Bhutan Chamber of Commerce and Industry (BCCI), traders’ associations, trade fair organisers, and relevant government agencies.
“While trade fairs play an important role in promoting commerce and providing market access, an unregulated increase in such events can undermine local businesses and distort fair competition,” a senior official from the Department of Trade said. “The revised measures aim to strike a balance between economic promotion and market stability.”
As per the notification, which came into effect on January 1, 2026, a maximum of two consumer trade fairs will be allowed annually in Thimphu, while each dzongkhag will be permitted one consumer trade fair per year.
The Ministry clarified that thematic trade fairs—focused on specific sectors or products—will continue to be allowed, provided organisers strictly adhere to approved guidelines. “Any violations of the conditions will be dealt with firmly,” the official said.
To strengthen support for domestic producers and local entrepreneurs, only local food stalls will be permitted during consumer trade fairs. Additionally, trade fairs that exclusively display and sell locally manufactured products without foreign participation will not be subject to restrictions.
Trade fair organisers have also been reminded to ensure full compliance with health, financial, customs, and taxation requirements, failing which penalties will be imposed.
“These measures are intended to promote responsible trade practices while safeguarding the interests of consumers, domestic producers, and small businesses,” the Ministry stated in the notification.
Business representatives have largely welcomed the move, noting that frequent trade fairs in recent years had placed pressure on permanent retailers.
“A large number of trade fairs, particularly those involving imported goods, were affecting local shops that operate year-round and comply with all regulatory requirements,” a representative from a traders’ association said. “Limiting the number of fairs will help restore balance in the market.”
However, some trade fair organisers said they hoped the review mechanism would allow flexibility if conditions improve. “Trade fairs are also platforms for entrepreneurship and exposure, especially for small vendors,” an organiser said. “A transparent review after one year will be important.”
Over the past decade, consumer trade fairs have become increasingly popular across Bhutan as platforms to promote products, boost sales, and attract consumers. While they have provided opportunities for small entrepreneurs and vendors, concerns have emerged over the dominance of imported goods, pricing disparities, and regulatory oversight.
In recent years, both government agencies and business groups have called for clearer guidelines to ensure trade fairs complement, rather than undermine, domestic businesses and long-term market development.
MoICE said the new measures reflect this evolving policy approach, emphasising regulated growth, domestic value addition, and fair competition.
The Ministry further noted that the impact and effectiveness of the new measures will be reviewed after one year, allowing adjustments based on outcomes, market response, and stakeholder feedback.
“All concerned stakeholders are urged to take due note of the notification and ensure full compliance,” the Ministry said.
Tashi Namgyal
From Thimphu
