Foreign Trade Division

The Head of the Foreign Trade Division looks after matters pertaining to international trade and consists of three sections:

Regional & Bilateral Trade

The Regional and Bilateral Trade Section under the Foreign Trade Division looks after the regional trade activities as well as bilateral trade relations, especially with India and Bangladesh. Other activities of the Section include:

Preparation and participation in the meetings under the auspices of SAARC including trade liberalization under SAPTA.
Compile and analyse statistics on exports and imports;
Coordinate with the Ministry of Foreign Affairs and Bhutan Export Promotion Centre (BEPC) for participation in SAARC Trade Fairs;

Since the Eight Five Year Plan the RGOB has been trying to increase its exports to third countries, defined as countries other than India, in order to diversify its export base. Most third countries export are presently to Bangladesh. Bhutan's total trade deficit has increased from Nu. 1,061 million in 1998 to Nu. 2,847 million in 1999. The trade balance with India has jumped from a surplus of just over Nu. 550 million in 1998 to a deficit of Nu. 1,134 million in 1999. The sharp increase in imports was mainly attributable to massive imports from India for developmental activities like construction of hydropower plants. The trade deficit with third countries has been slowly increasing, rising from US $ 37 million in 1996 to US $ 40 million in 1999. India accounted for 94.5% of exports in 1999, and 75% of imports. Exports to Bangladesh were only 4% of total exports. Exports to countries other than India and Bangladesh continues to remain small.

Bhutan continues to participate in the progressive trade liberalisation initiatives under SAPTA. The third round of trade negotiations under SAPTA was concluded in 1997 and efforts are underway to initiate the fourth round of trade negotiations. Further, member countries of the SAARC are also working towards a South Asian Free Trade Area (SAFTA). Bhutan has a Free Trade Arrangement with India and a Preferential Trading Arrangement with Bangladesh. The existing Trade and Transit Agreements between Bhutan and Bangladesh have been extended. Initiatives are being taken to develop closer trading relations with Nepal and Thailand.

In order to enhance market access opportunities through trade liberalization initiatives at bilateral as well as regional levels, the Regional and Bilateral Trade Section through its concerned Department and Ministry would continue to work towards enhancing trade between Bhutan and India under the existing Free Trade Agreement between the two countries. Bilateral consultations on transport, transit and other procedural aspects will be initiated with India from time to time to facilitate Bhutan's third country trade. It would also pursue further liberalization initiatives with Bangladesh through deeper reductions in tariff and expansion of product coverage under the existing bilateral trade arrangement and enter into bilateral trading arrangements with other countries starting from Nepal and Thailand during the next Plan period. It would also actively pursue the existing trade liberalization initiatives under SAPTA and shall also work towards the South Asian Free Trade Area (SAFTA).

Contact Person(s):


Mr. Sonam Wangchuk
Head, Foreign Trade Division
Department of Trade
Tel: (975)-2-322407/321337
Fax: (975)-2-321338
E-mail: bepc@druknet.net.bt Ms. Karma Sonam Dorji
Trade Officer
Foreign Trade Division
Department of Trade
Tel: (975)-2-322407/321337
Fax: (975)-2-321338
E-mail: bepc@druknet.net.bt

WTO

Bhutan joined as an observer to the World Trade Organization in April 1998 and formally applied for membership in October 1999. To facilitate preparatory works for our accession, a Trade Officer was appointed in Geneva and a WTO Reference Center under the Department of Trade was established in November 1998 with technical assistance from the WTO Secretariat. The main task of this center in the immediate fold will be to become a member of the WTO for which an inter-sectoral committee coordinated by the Department of Trade and Industry has been created.

The main responsibilities under this are;

• The drafting of the Memorandum on Foreign Trade Regime (MFTR) which would entail the following process and responsibility;
  
  - Answers to the Questions on the MFTR by the WTO members
  - Complete negotiations on tariffs concessions, commitments on agricultural domestic support and export subsidies
  - Complete negotiations on specific commitments on Services
   

• Conducting of workshops on the International Trading System by UNCTAD, ITC and WTO to create awareness among the stake holders
   

• Attendance of the WTO seminars and training by the Trade officials to keep abreast with the developments and enhance their knowledge of the Multilateral Trading System.
  
  Contact Person:
  
  Mr. Pema R Rinchen
  Foreign Trade Officer
  Telephone: (975) 2 321337
  Fax: (975) 2 321338
  Email: bepc@druknet.net.bt
  Ms. Karma D Nidup
  Foreign Trade Officer
  Telephone: (975) 2 322407
  Fax: (975) 2 321338
  Email: bepc@druknet.net.bt
  
  Bhutan Export Promotion Centre
  
  The Bhutan Export Promotion Centre was launched on the 16th of April 1998 and formally opened by the EU Ambassador to Bhutan on May 29. The Centre undertakes the following activities:
   

• Collection of trade information and dissemination to other organisations and exporters within Bhutan

• Establish linkages with international organisations such as European Import Promotion Organisations, ITC, UNCTAD Trade Point and Indian Chambers of Commerce

• Identification of market opportunities

• Co-ordination and conducting market research

• Marketing assistance to exporters

• Organising trade related workshops

• Problem solving for exporters

• Technical assistance

• Organisation and promotion of trade fairs and missions.
  
  Since its inception, the Centre has undertaken Market Research missions for Fruits and Processed Fruits in SE Asia, Essential Oils in Europe, Handmade Paper in Europe, Traditional Medicines in Europe and Wood Products in SE Asia.
  
  Trade missions for private sector exporters have been conducted for Processed Food in Thailand, Handmade Paper in the UK and Wood Products in Thailand.
  
  The Centre has also organized participation of Bhutanese companies in the Industrial India Trade Fair at Calcutta in India, the Autumn International Gift Show at Birmingham in the United Kingdom, the Asia Pacific Millennium Trade Fair at Delhi in India and the 3rd SAARC Trade Fair at Karachi in Pakistan.
  
  Contact Person: Mr. Sonam Rinchen
  Export Promotion Officer
  Telephone: (975) 2 322407
  Fax: (975) 2 321338
  e-mail: bepc@druknet.net.bt

See Exporters Directory of the Kingdom of Bhutan (in new window, pdf format)