Bangladesh designates 15 entry-exit points to Bhutan

Bangladesh has granted Bhutan access to 15 entry and exit points in the country for the transit of goods, following the signing of an "agreement on the movement of traffic-in-transit" in March of this year.

Meanwhile, Bhutan has designated eight entry and exit points, for Bangladesh, including Samdrupjongkhar, Gelephu, Phuentsholing, Samtse, Nganglam, Gomtu, Paro International Airport, and Gelephu Airport, said the agreement between the two countries which was presented in the Bhutanese National Assembly on Friday (9 June), reports Kuensel. 

Further deliberations in this regard will take place on 12 June.

Covering 20 articles, the agreement addresses various aspects such as port facilities, infrastructure provision, services at the frontier posts, transit route designations, means of transport options, customs duties and fees, and charges, among others.

Bhutan is among the few countries that have bilateral transit agreements with Bangladesh, reflecting the countries' long-standing friendship.

Bhutan's Minister of Industry, Commerce, and Employment Karma Dorji highlighted Bangladesh is Bhutan's second-largest trading partner, and the agreement will provide alternative transit routes for Bhutan's trade with third countries.

He further stated that the agreement will expand trade relations with Bangladesh and complement the Preferential Trade Agreement signed in July of last year.

Given that Bhutan does not share a geographical border with Bangladesh, officials stated that the success of transit trade through Bangladesh has to rely on the support received from the government of India and its state governments while passing through their territory.

According to officials, Bhutanese traders can potentially expand their business into Bangladesh.

However, they may not experience significant benefits in the early years due to the existence of competitive and better-organised transporters within India and Bangladesh.

Until now, a significant portion of Bhutan's third-country trade has been routed through the port of Kolkata, India. Officials acknowledged that it would take time for the private sector in Bhutan to adapt to the alternate route through Bangladesh.

Bhutan and Bangladesh first signed a transit agreement on 8 September, 1980, in Thimphu, with a validity of 10 years. The contract was subsequently extended for another 10 years until 7 September, 2000.

After the agreement expired in 2000, Bhutan proposed its renewal. However, progress was limited despite numerous bilateral discussions.

Positive developments occurred only last year during the third Joint Working Group (JWG) meeting held in Bangladesh. Bhutan proposed renaming the agreement as the "Agreement on Movement of Traffic-in-Transit" instead of the "Agreement on Movement of Goods in Transit."

The JWG agreed to discuss this proposal at the Commerce Secretary Level Meeting (CSLM) for endorsement. The 8th CSLM, held in Dhaka in September 2022, saw the Agreement, and its protocol received endorsement.

An agreement was signed on 22 March of this year by Bhutan's Minister of Industry, Commerce, and Employment Karma Dorji and Commerce Minister Tipu Munshi.