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Bangladesh, Bhutan sign initial deal on transit

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Bangladesh and Bhutan have signed a memorandum of understanding on transit, aiming to strengthen trade ties.

Commerce Minister Tipu Munshi and Bhutan’s Trade, Industries and Employment Minister Karma Dorji signed the initial deal in Thimphu on Wednesday, according to

After signing the final deal, Bhutan can pay a fee and use land, water and aviation routes in Bangladesh to run its import and export business with a third country. Bangladesh, on the other hand, can run trade with China through Bhutan using the transit facility when Bhutan gets direct road connectivity with China in the future.

Tipu Munshi hoped that the new agreement will pave the way for smooth trade and business between the two countries, the commerce ministry said in a statement.

After Bhutan dropped out of the Bangladesh, Bhutan, India, and Nepal Motor Vehicles Agreement, it proposed a bilateral transit agreement with Bangladesh. In September 2022, the countries held meetings and drafted an agreement and protocol.

The Bangladesh government then approved the transit deal at a cabinet meeting.

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