The preferential Trade Agreement (PTA) between Bangladesh and Bhutan that will give duty-free market access to more products from both the countries came into effect on 1 July.
The agreement will provide duty-free access to 10 products from Bangladesh in addition to the already 90 existing products, Kuensel reports.
Meanwhile, 16 more Bhutanese products would enjoy duty-free export to Bangladesh along with the existing 18 products.
Goods that get duty-free to Bangladesh include milk, natural honey, wheat or meslin flour, homogenised preparations of jams, fruit jellies, marmalades, food preparations of soyabeans, mineral water, wheat bran, quartzite, cement clinker, portland cement, soap, ferrosilicon, bars and rods of iron or non-alloy steel, wooden particle boards, and wooden furniture.
Meanwhile, goods from Bangladesh that Bhutan would give duty-free access include pineapple juice, guava juice, orange juice, green tea, waters including mineral and aerated, particle board, plywood, men or boy jackets and blazers, men or boy trousers and shorts, and baby garments and clothing.
According to the press release of the trade department under the economic affairs ministry, the PTA aims to promote and expand bilateral trade between the two countries by implementing appropriate measures including reducing or eliminating barriers affecting trade.
"The department is optimistic that the bilateral trade instrument would help further expand and diversify Bhutanese exports," the press release stated.
The department also requested the private sector to familiarise the favourable market opportunities provided by the PTA.
The Third Parliament of Bhutan during its sixth session in 2021 has ratified the PTA between Bhutan and Bangladesh.