The relationship between Bhutan and Thailand has long been defined by a spirit of mutual respect, trust, and meaningful collaboration. This enduring bond was formally enshrined on November 14, 1989, when the two Kingdoms established diplomatic relations—marking the beginning of a dynamic and evolving partnership.
Since that historic moment, the ties between Bhutan and Thailand have grown steadily stronger, extending across a wide range of sectors. From education and health to trade and sustainable development, both nations have joined hands in pursuit of shared progress, fostering initiatives that uplift communities and enhance the quality of life for the people.
Groundbreaking Free Trade Agreement (FTA) negotiations concluded
In a momentous stride toward deeper economic integration, the fourth and final round of Free Trade Agreement (FTA) negotiations between the Kingdoms of Bhutan and Thailand was held from February 17 to 19, 2025, in the vibrant heart of Bangkok. This decisive round—co-chaired by Sonam Tshering Dorji, Director of Bhutan’s Department of Trade, and Ms. Chotima Iemsawasdikul, Director General of Thailand’s Department of Trade Negotiations—brought to a close a comprehensive and far-reaching dialogue that has unfolded over several years.
The successful conclusion of the FTA negotiations marks a landmark achievement in the enduring partnership between the two nations. All chapters of the agreement were finalized and sealed, underscoring a shared resolve to deepen economic cooperation and strengthen institutional linkages across a broad spectrum of sectors.
Once ratified, the agreement will grant duty-free access to Bhutanese exports in Thailand’s expansive market of nearly 70 million people—a transformative opportunity for Bhutanese businesses and a gateway to regional trade expansion.
The anticipated outcomes of the FTA are as ambitious as they are impactful: increased bilateral trade, enhanced investment flows, improved market access, and greater availability of competitively priced goods for consumers and enterprises in both countries. It sets the stage for a dynamic and mutually beneficial economic framework—one that reinforces Bhutan and Thailand’s joint vision for regional prosperity and integration.
This historic agreement was formally signed on April 3, 2025, on the sidelines of the 6th BIMSTEC Summit held in Bangkok. The FTA was signed by His Excellency Lyonpo Namgyal Dorji, Bhutan’s Minister for Industry, Commerce, and Employment, and His Excellency Pichai Naripthaphan, Thailand’s Minister for Commerce, in the esteemed presence of the Hon’ble Prime Minister (PM) Dasho Tshering Tobgay and Hon’ble Prime Minister Paetongtarn Shinawatra at the Government House in Bangkok.
The signing of the FTA not only cements a new era of economic cooperation but also stands as a powerful testament to the enduring friendship and shared aspirations of Bhutan and Thailand. It is a bold step forward—toward seamless trade, deeper connectivity, and a future shaped by shared prosperity.
Trade: Current statistics and future prospects
While the historical volume of direct trade between Bhutan and Thailand has remained modest, recent trends point to a horizon rich with potential. According to the United Nations COMTRADE database, Thailand’s exports to Bhutan in 2024 reached an estimated USD 12.94 million—a figure that, though relatively small, signals a rising trajectory in bilateral commerce.
Bhutan’s imports from Thailand span a diverse array of sectors, with a strong focus on consumer goods—including sophisticated machinery, cutting-edge electronics, high-quality textiles, and more. These imports not only reflect Bhutan’s growing demand for quality products but also highlight Thailand’s capacity as a reliable and valued trading partner.
This evolving trade dynamic lays a strong foundation for the newly signed Free Trade Agreement, offering both nations the opportunity to unlock new markets, diversify their economic engagement, and write a bold new chapter in their economic partnership.
Looking ahead: Future of trade
With the FTA negotiations now successfully concluded, both Bhutan and Thailand stand on the cusp of a new era in their economic relationship. The official signing of the agreement, anticipated in the near future, will mark the formal beginning of a more vibrant and dynamic trade partnership—further cementing the cooperative spirit that has long defined the Bhutan-Thailand alliance.
As both nations continue to forge ahead, their collaboration extends far beyond trade, with human resource development, technical cooperation in healthcare, and educational initiatives remaining steadfast pillars of their partnership. These enduring areas of cooperation reflect the deep respect and mutual benefit that underpin their relationship, strengthening the bonds between the two Kingdoms.
Together, Bhutan and Thailand are poised to chart a bold path forward, one shaped by shared values, visionary collaboration, and a future rich with promise.
Human resource development: Another facet of Thailand and Bhutan ties
Since the 1980s, human resource development has stood at the heart of the thriving collaboration between Bhutan and Thailand. The Thai International Cooperation Agency (TICA), formerly known as the Department of Technical and Economic Cooperation, has been a driving force in this initiative, offering invaluable training programs and scholarships to Bhutanese students.
These programs have opened doors for Bhutanese scholars to pursue higher education at Thailand’s prestigious institutions, fostering a generation of well-educated individuals poised to contribute to the growth of their nation. Alongside TICA’s efforts, private universities in Thailand have extended further opportunities, providing scholarships across diverse fields of study, enriching Bhutan’s intellectual capital.
In parallel with educational advancement, the technical cooperation between the two nations took a monumental leap forward on October 16, 1987, with the signing of a Memorandum of Understanding (MoU) focused on health sector collaboration. This agreement marked a new era of partnership, with Thailand’s government offering vital support and expertise in the construction of a state-of-the-art Ear, Nose, and Throat (ENT) center in Thimphu—an enduring symbol of the shared commitment to advancing Bhutan’s healthcare infrastructure.
The partnership has only deepened over the years. Since 2008, Bhutan has benefited from an influx of skilled volunteers through the “Friends from Thailand Programme,” with experts in fields such as agriculture, public health, tourism, and vocational training. This program has become a powerful testament to the mutual dedication of both nations in strengthening Bhutan’s human capital, sharing knowledge and expertise that will have lasting impacts for generations to come.
Further strengthening these ties, annual gatherings such as the Bilateral Consultation, Joint Trade Committee Meeting, and Joint Agriculture Working Group Meeting ensure that both countries remain aligned in their development goals, driving sustainable progress in key areas.
As both nations move forward with unwavering commitment, the future of Bhutan-Thailand relations looks brighter than ever. With the official ratification of the FTA on the horizon, both nations are poised to embark on a new chapter of economic collaboration, unlocking new opportunities and ensuring an improved quality of life for their citizens. A future of shared growth, prosperity, and dynamic partnership awaits.
Sherab Dorji from Thimphu
