The Free Trade Agreement (FTA) between Bhutan and Thailand will now extend to the Gelephu Mindfulness City (GMC).
Spices such as ginger, turmeric, and cardamom, which currently face a 20 percent tariff, along with honey, pickles, and jams subject to a 30 percent tariff, will be eligible for zero customs duty. Higher tariff items, including oranges, matsutake mushrooms, and coffee that currently face 40 percent tariffs, as well as potatoes, tea, and alcoholic beverages subject to a 60 percent tariff, will likewise be covered under the agreement.
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.
According to the Ministry of Industry, Commerce and Employment, the FTA aims to boost Bhutan’s exports by liberalising and facilitating trade in goods, strengthening economic and technical cooperation, improving economic efficiency and competitiveness, and promoting transparency in trade-related laws and regulations.
