Dhaka-Thimphu explore new avenues for expanding trade and investment
Diplomatic Correspondent :
Bangladesh and Bhutan have signed two key Memoranda of Understanding (MoUs) during the visit of Bhutanese Prime Minister Tshering Tobgay to Dhaka.
The MoUs, focused on health cooperation and internet connectivity, aim to address vital sectors that will benefit both nations.
The first MoU, on the Appointment of Health Workforce, was signed between the Health Services Division of Bangladesh’s Ministry of Health and Family Welfare and the Ministry of Health of the Royal Government of Bhutan.
Md Saidur Rahman, Secretary of the Health Services Division, signed the document on behalf of Bangladesh.
The second MoU, concerning the Trade of International Internet Bandwidth and Other Telecommunication Services, was signed between the Royal Government of Bhutan and the Government of Bangladesh.
Abdun Naser Khan, Secretary of the Posts and Telecommunications Division under the Ministry of Posts, Telecommunications and Information Technology, signed on behalf of Bangladesh.
Chief Adviser Professor Muhammad Yunus and Bhutanese Prime Minister Tshering Tobgay witnessed the signing ceremony and the exchange of documents.
The MoU signing followed a tête-à-tête between the Chief Adviser and Prime Minister Tobgay, as well as formal official talks led by the two leaders at the Chief Adviser’s Office in Tejgaon, Dhaka.
During the bilateral talks, the two leaders discussed a wide range of issues covering the entire spectrum of Bangladesh-Bhutan relations, including trade, energy, education, tourism, internet cooperation, transport, healthcare, environment, water resources, investment, and aviation.
Describing Bhutan as “a very important friend of Bangladesh,” Professor Yunus said Bhutan is a key part of Dhaka’s vision for a regional trade and economic cooperation.
“Our future is to build together. Geography and nature have brought us together. Our destiny is to build the future together,” the Chief Adviser said, noting the shared history between the two nations.
In response, Prime Minister Tobgay said Bhutan and Bangladesh enjoy warm and excellent relations.
He described Bangladesh as the source of Bhutan’s “spiritual heritage,” recalling that Bangladeshi monks carried Buddhism to the Himalayan region during the Middle Ages.
The visiting Prime Minister stressed the need for deeper trade and economic cooperation.
“If we have to prosper, we must prosper together,” he said. Both sides discussed a plan to formally launch discussions on a bilateral free trade agreement (FTA).
Bangladesh and Bhutan previously concluded a preferential trade agreement in 2020.
Prime Minister Tobgay said Thimphu wants to sign the FTA “as quickly as possible” and hopes Bhutan will become the first country to conclude a free trade deal with Bangladesh.
He added that the FTA would boost trade and investment between the two nations.
Earlier, Tobgay arrived in Dhaka earlier in the day on a two-day state visit at the invitation of Chief Adviser Yunus.
He was received at Hazrat Shahjalal International Airport (HSIA) around 8:15 am by the Chief Adviser after his Drukair flight landed.
The two leaders held a brief meeting at the airport’s VIP lounge, during which Prime Minister Tobgay inquired about the damages and loss of lives caused by Friday’s earthquake and expressed condolences to the families of the victims.
Following the meeting, Tobgay was escorted to a ceremonial saluting dais, where he was accorded a 19-gun salute and a guard of honour.
After the airport ceremony, the Bhutanese Prime Minister travelled to the National Martyrs’ Memorial in Savar to pay homage to the martyrs of Bangladesh’s Liberation War.
He laid a wreath at the altar and planted a tree on the memorial premises.
In the afternoon, Bangladesh’s Foreign Adviser M Touhid Hossain and Commerce Adviser Sheikh Bashir Uddin called on the Bhutanese Prime Minister.
Bilateral trade between Bangladesh and Bhutan is characterised by increasing growth, largely driven by a Preferential Trade Agreement (PTA) implemented in 2022.
The PTA grants duty-free access for many products on both sides, leading to a doubling of trade to $22.1 million in fiscal year 2022-23.
Key exports from Bangladesh include garments, pharmaceuticals, and melamine, while Bhutan primarily exports boulders, oranges, and limestone.
Bangladesh’s exports to Bhutan reached $14.3 million, according to the Export Promotion Bureau.
The bilateral trade gap between Bangladesh and Bhutan favours Bhutan, as Bangladesh has a trade deficit with the country.
The trade deficit for FY2023-2024 was approximately $29.63 million, primarily because Bhutan’s exports to Bangladesh, such as mineral products, citrus fruits, and boulders, are larger than Bangladesh’s exports to Bhutan, which include beverages and non-alcoholic drinks.
During the meeting, Tshering Tobgay and Sheikh Bashir Uddin held productive talks on strengthening economic ties and boosting bilateral trade.
Tobgay described Bangladesh-Bhutan relations as “excellent” and emphasised the potential for increased trade.
He highlighted that Bangladesh is Bhutan’s only partner with a PTA and expressed interest in moving towards a Free Trade Agreement (FTA) to expand trade further.
The Prime Minister also praised Bangladesh for allocating a Special Economic Zone (SEZ) in Kurigram for Bhutan, with preparatory work already underway.
Additionally, Tobgay outlined Bhutan’s plans to build a biodiversity city in Gelephu and expressed interest in importing construction materials from Bangladesh for the project.
He also noted Bhutan’s growing demand for Bangladeshi pharmaceuticals, ceramics, readymade garments, and electronics, and expressed interest in increasing imports in these sectors.
Both sides showed strong optimism about deepening economic cooperation in the near future.
Under the internet bandwidth agreement, Bhutan will import bandwidth from Bangladesh.
Foreign Adviser Touhid Hossain, who attended the meeting, said Dhaka hopes the export will “strengthen Bhutan’s digital connectivity, and reduce the digital divide.”