The Bhutanese Leading the way.
Bhutan’s exports to Thailand recorded a significant rise in 2024, reaching Nu 84 million, up from Nu 11.25 million in 2023.
The sharp increase was driven primarily by the export of cordyceps, mushrooms, and spices, among other goods.
Cordyceps was Bhutan’s top export to Thailand, valued at Nu 55.24 million in 2024. Other key exports included mushrooms, particularly Matsutake, worth Nu 23.7 million. Bhutan also exported smaller quantities of tea, dried fruits, vegetables, and woven fabrics to Thailand.
Despite the notable growth in exports, Bhutan’s trade balance with Thailand remains heavily tilted. Bhutan imported goods worth Nu 2.67 billion from Thailand in 2024, resulting in a trade deficit of Nu 2.58 billion.
Imports from Thailand included a wide variety of goods such as automatic data processing units, ovens, cookers, smartphones, and medical equipment.
Consumer products made up a substantial portion of the imports, with Bhutan bringing in Nu 70.59 million worth of aerated beverages, Nu 25.5 million in baked goods, Nu 18.79 million in chips, Nu 6.75 million in sauces, Nu 3.89 million in toilet paper, and Nu 4.62 million in books.
Thailand now accounts for 13.44 percent of Bhutan’s total imports, excluding those from India.
Meanwhile, Bhutan and Thailand signed a Free Trade Agreement (FTA) on 3rd April 2024, during the 6th Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) in Bangkok. The agreement was signed by Bhutan’s Minister of Industry, Commerce, and Employment, Namgyal Dorji, and Thailand’s Minister of Commerce, Pichai Naripthaphan.
The FTA, finalized after four rounds of negotiations over nine months, will provide duty-free market access for Bhutanese exports to Thailand. The government expects it will promote more seamless trade and deepen economic cooperation. However, the agreement must be ratified by Bhutan’s Parliament before it can be implemented, with ratification expected later this year.
Under the Customs Duty Act of Bhutan 2021, most goods imported from third countries, including Thailand, are currently subject to a 10 percent customs duty. Other taxes, such as the Goods and Services Tax and Value-Added Tax, remain applicable in both countries based on their national regulations.
Thailand has also expressed interest in investing in Bhutan’s tourism sector, digital infrastructure, and smart city development. Additionally, both countries have agreed to strengthen tourism ties under the “Two Kingdoms, One Destination” initiative.
