Cabinet nod for new free trade agreement with Bhutan

New Delhi, Oct 27 (IANS) The Union Cabinet on Thursday approved a new free trade agreement between India and Bhutan, which also provides for duty-free transit of Bhutanese merchandise for export to third countries.

“Trade relations between India and Bhutan are governed by an Agreement on Trade, Commerce and Transit,” a Commerce Ministry statement said here.

“The agreement provides for free trade regime between the two countries. The agreement also provides for duty-free transit of Bhutanese merchandise for trade with third countries,” it said.

The agreement was renewed in July 2006 for a period of 10 years.

The validity of the agreement was extended with effect from July 29, 2016, for a period of one year or till the new agreement comes into force through the exchange of diplomatic notes, the statement added.

–IANS

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