Bhutan And Bangladesh Sign MoU To Strengthen their Trade Relations

Bhutan and Bangladesh signed an initial memorandum of understanding (MoU) on transit to strengthen trade relations recently. After the final agreement is signed, Bhutan will pay a fee to use land, water, and aviation routes in Bangladesh for imports and exports, while Bangladesh will be able to trade with China in the future using the former's territory.

Bhutan is expected to gain direct road access to China in the future.

Karma Dorji, Bhutan's trade, industries, and employment minister, and Tipu Munshi, Bangladesh's commerce minister, signed the initial MoU in Thimphu.

According to a news agency citing a commerce ministry statement, Munshi expressed hope that the agreement would pave the way for smooth trade between the two countries.

Bhutan proposed a bilateral transit agreement with Bangladesh after withdrawing from the Bangladesh, Bhutan, India, and Nepal Motor Vehicles Agreement. In September 2022, the countries met and drafted an agreement and protocol.