The PTA between the two countries dates back to 2020. At a meeting with Commerce Adviser Sk Bashir Uddin, Tobgay expressed that an FTA could unlock far greater trade potential.
Bangladesh and Bhutan have taken a significant step toward strengthening bilateral cooperation by signing two Memoranda of Understanding (MoUs) on health-sector workforce recruitment and internet connectivity, during Bhutanese Prime Minister Tshering Tobgay’s two-day state visit to Dhaka.
The agreements were inked at a formal ceremony in the Chief Adviser’s Office in Tejgaon, witnessed by Bangladesh’s Chief Adviser Professor Muhammad Yunus and PM Tobgay.
New Health Cooperation to Support Bhutan’s Workforce
Under the first MoU, Bangladesh’s Health Services Division (HSD), a part of the Ministry of Health and Family Welfare, will collaborate with Bhutan’s Ministry of Health to facilitate the appointment of health workers. Md Saidur Rahman, Secretary of the HSD, signed the agreement on behalf of Bangladesh.
This deal could help Bhutan address staffing gaps in its health system while offering employment opportunities to Bangladeshi health professionals. The move reflects a deepening of people-to-people and institutional links in a critical public-service domain.
Bandwidth Deal Opens Path for Cross-Border Internet Trade
The second MoU establishes a framework for trading international internet bandwidth and other telecommunication services between the two countries. Bangladesh’s side was represented by Abdun Naser Khan, Secretary of the Posts & Telecommunications Division, who signed the document.
This agreement potentially allows Bhutan to leverage Bangladesh’s stronger connectivity infrastructure to access international bandwidth – a move that could stimulate digital growth and improve internet access in Bhutan, given its challenging terrain and geographic constraints.
Bhutan Pushes to Turn PTA into FTA Amid Strengthened Diplomacy
Alongside the MoU ceremony, PM Tobgay reiterated Bhutan’s interest in elevating its existing Preferential Trade Agreement (PTA) with Bangladesh into a full Free Trade Agreement (FTA).
The PTA between the two countries dates back to 2020. At a meeting with Commerce Adviser Sk Bashir Uddin, Tobgay expressed that an FTA could unlock far greater trade potential – especially in sectors such as medicines, ceramics, ready-made garments, construction materials, and electronics.
He also highlighted Bhutan’s plan to develop a “Biodiversity City” in Gelephu and said construction materials for that project could be imported from Bangladesh. Meanwhile, he invited Bangladeshi tourists, noting that Bhutan charges a reduced Sustainable Development Fee (SDF) for tourists from Bangladesh and other South Asian countries.
Bangladesh’s Commerce Adviser welcomed the proposal and said the FTA idea will be considered seriously at an upcoming secretary-level Bangladesh–Bhutan meeting.
Strategic Context and Broader Implications
PM Tobgay arrived earlier in the day in Dhaka, received by Adviser Yunus at Hazrat Shahjalal International Airport. He paid respects at the National Martyrs’ Memorial in Savar and planted a tree, a symbolic act underscoring the two nations’ shared history and diplomatic warmth.
Observers say the twin MoUs reflect not just Bangladesh and Bhutan’s intent to deepen cooperation in the social and digital spheres, but also point to the growing ambition to leverage economic integration. The bandwidth deal may help Bhutan overcome its geographic limitations in connectivity, while the health workforce agreement could strengthen Bhutan’s healthcare capacity.
If the push to convert the PTA into an FTA succeeds, both countries could significantly expand trade volumes – unlocking new opportunities in manufacturing, infrastructure, and pharmaceuticals.
