Bhutan has expressed interest in signing a Free Trade Agreement (FTA) with Bangladesh to deepen economic cooperation and expand bilateral trade beyond the existing preferential trade framework. The proposal was raised by Bhutan’s commerce secretary during a meeting with Bangladeshi officials in Dhaka, where both sides discussed upgrading their current trade arrangement. Bangladesh has asked Bhutan to formally submit a proposal, which will then be reviewed by the country’s technical committee on trade before any decision is made. 

The two countries currently operate under a Preferential Trade Agreement (PTA) signed in 2020—Bangladesh’s first bilateral trade pact—which allows duty-free access for 34 Bhutanese products in Bangladesh and 100 Bangladeshi goods in Bhutan. During the recent discussions, Bhutan also requested an expansion of the duty-free product list and proposed using Bangladesh’s ports, including Chattogram, to facilitate its imports and exports due to its landlocked geography. Bangladeshi officials said the request would be reviewed, while additional logistics options such as Pangaon and Khanpur river ports may also be made available to support Bhutan’s trade operations.