Bangladesh and Bhutan have agreed to deepen economic cooperation and expand bilateral trade, with plans to sign a new memorandum of understanding on tourism and strengthen trade facilitation mechanisms between the two countries.

The decisions came during the 10th Commerce Secretary Level Meeting held yesterday and today, where officials reviewed progress in bilateral trade and discussed new initiatives to boost economic ties, according to a statement from Bhutan’s Ministry of Industry, Commerce and Employment.

The Bhutanese delegation was led by Tashi Wangmo, secretary to the ministry, while the Bangladesh side was headed by Mahbubur Rahman, secretary to the commerce ministry.

One of the key outcomes of the meeting was the agreement to sign a new MoU between Bhutan’s Department of Tourism and Bangladesh’s Ministry of Civil Aviation and Tourism to promote tourism cooperation.

Both sides also discussed ways to strengthen trade relations, improve market access and consider adding more products under the Bangladesh-Bhutan Preferential Trade Agreement 2020 in a bid to further boost bilateral trade.

The two countries also agreed to explore the possibility of negotiating a free trade agreement in the future.

The meeting decided to establish a Joint Trade Committee under the framework of the preferential trade agreement. The committee will work to resolve trade-related issues, examine prospects for expanding product coverage and advance discussions on a possible FTA.

Bangladesh offered the use of Pangaon Inland Container Terminal as an alternative route for handling Bhutanese cargo. The facility could improve connectivity and help reduce congestion at Narayanganj River Port, with Bhutanese officials expected to assess the terminal during a future site visit.

The two sides further agreed to pursue a mutual recognition agreement on standards and certification between the Bhutan Standards Bureau and the Bangladesh Standards and Testing Institution, which would help streamline product certification and facilitate smoother trade.

Strengthening private sector engagement also featured prominently in the discussions. Both countries agreed to expand business-to-business cooperation between the Federation of Bangladesh Chambers of Commerce and Industry and the Bhutan Chamber of Commerce and Industry.

Bangladesh also invited Bhutan to regularly participate in the Dhaka International Trade Fair to showcase Bhutanese products and expand market opportunities.

The meeting further decided to reconstitute an international banking sub-committee to address payment-related challenges faced by Bhutanese exporters and facilitate smoother trade transactions.

With bilateral trade reaching $85 million in 2025, Bangladesh is currently the second-largest export destination for Bhutan.