Bhutan aims to elevate its existing Preferential Trade Agreement (PTA) with Bangladesh, inked in December 2020, to a comprehensive Free Trade Agreement (FTA) to maximize the untapped commercial opportunities between the two nations, as highlighted by Bhutanese Ambassador Dasho Karma Hamu Dorjee recently. Dorjee expressed confidence in overcoming current obstacles and realizing the full potential of an FTA during a discussion on bilateral trade relations organized by the Bangladesh Institute of International and Strategic Studies (BIISS) in Dhaka.
Emphasizing Bhutan’s significant hydropower potential, Dorjee underscored its crucial role as a resource for the nation and expressed eagerness to explore its regional benefits. She mentioned Bangladesh’s interest in investing in hydropower projects and power generation infrastructure, with both governments collaborating with Indian authorities to enhance cooperation in this domain.
Dorjee also discussed Bhutan’s evolving energy policy, which now welcomes private sector investments, domestically and internationally, including from Bangladesh and India. She highlighted the vast potential in this sector, emphasizing the need for mutual efforts to expedite progress.
Touching upon connectivity and tourism, Dorjee acknowledged Bhutan’s current geographical limitations affecting connectivity, particularly citing the operational constraints of Paro, the country’s sole international airport. However, she mentioned the ongoing development of a new airport in Gelephu expected to be operational by 2029, serving as a regional aviation hub facilitating enhanced flights and people-to-people exchanges between Bhutan and Bangladesh.
Regarding Saarc, the ambassador acknowledged the sluggish pace of regional cooperation but expressed optimism, noting the substantial untapped trade potential within South Asia. Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), moderated the discussion, highlighting the importance of a tripartite agreement for transmitting power from Bhutan to Bangladesh through the Indian grid and commending the progress in this regard.
Rahman also drew attention to the lessons learned from the Saarc Motor Vehicle Agreement (SA MVA) and its transformation into the Bangladesh-Bhutan-India-Nepal (BBIN) MVA following legal concerns raised by Pakistan. He emphasized the significance of the BBIN framework for regional competitiveness, particularly in reducing lead time and costs, while also considering environmental concerns, such as Bhutan’s aim to limit vehicular movement.
Discussing Safta, Rahman acknowledged its limited progress but highlighted the continued benefits under the LDC scheme, providing duty-free and quota-free access to India for LDCs. Despite Bhutan no longer being classified as an LDC, countries like Nepal, Bangladesh, and Afghanistan have been benefiting from this scheme since 2011, contributing to increased exports to India.
Mashfee Binte Shams, former secretary (East) at Bangladesh’s Ministry of Foreign Affairs, underscored the significance of regional integration, drawing parallels with other regions like Asean and the European Union, despite differing colonial experiences. She emphasized the growing trend of regional integration in various parts of the world, including Africa, showcasing the potential for collaboration and cooperation among diverse nations.