Bhutan signs new trade pact with India

New Delhi, Nov 12, 2016 (PTI)

India and Bhutan today signed the Agreement on Trade, Commerce and Transit that aims to enhance trade between the two countries through trade facilitation, cutting down documentation and adding additional exit/entry points for Bhutan's trade with other countries.

Commerce Minister Nirmala Sitharaman and the Minister for Economic Affairs, Royal Government of Bhutan, Tengye Lyonpo Lekey Dorji signed the Agreement, Commerce Ministry said.

"The new bilateral Trade Agreement aims to enhance trade between the two countries through trade facilitation by improving procedures, cutting down on documentation and adding additional exit/entry points for Bhutan’s trade with other countries," it added.

It is also expected to further strengthen the excellent relations between the two countries, it said.

The first Agreement on Trade and Commerce between Bhutan and India was signed in 1972. Since then, the Agreement has been renewed four times.

The last Agreement was renewed on July 28, 2006 and was valid till July 29, 2016. The validity of the Agreement was extended for a period of one year or till the date of coming into force of the new Agreement, whichever is earlier, by exchange of diplomatic notes between the two countries.