Bangladesh signs first Preferential Trade Agreement (PTA) since its independence

Bangladesh signed its first Preferential Trade Agreement (PTA) with Bhutan allowing duty free access to a range of goods between the two countries. This is the first PTA Bangladesh has signed with any country in the world.

The agreement was signed on Sunday between Bangladesh Commerce Minister Tipu Munshi and Bhutan’s Economic Affairs Minister Lyonpo Loknath Sharma in Dhaka. The agreement was signed on the occasion marking the 50 years of diplomatic ties between the two countries.

In 1971, Bhutan was the first country in the world, followed by India as the second, to recognise Bangladesh as an independent country.

Under the PTA 100 Bangladeshi products will get duty free access to Bhutan. At the same time, 34 items from Bhutan will get duty free access into Bangladesh. Further items can be added in the list later on the basis of discussion between the two countries.

Goods like Jute and Jute products, baby clothes and accessories, men’s trousers, jackets and blazers are among the 100 items  from Bangladesh which will get duty free access to Bhutan. On the other hand fruit juice, natural honey, wheat flour jams, jellies and lime stone, quartzite etc from Bhutan will have duty free access to Bangladesh.

The trade volume between the two countries is approximately 50 million dollars with 7.56 million of export  and 42.09 million import into Bangladesh.

Bangladesh is expected to sign 11 more PTAs and Free Trade Agreements (FTAs) with countries like Indonesia and Nepal by June next year.

Source: News Service Division