In a recent development, Bangladesh is going to open three of its ports to Bhutan so as to facilitate trade with other countries, as confirmed by the Bhutanese government on March 23. This can be termed a step to help the landlocked nation reduce its dependency on India when it comes to transit.
Bhutan, which happens to be wedged between India and China, as of now, solely depends upon Indian ports when it comes to the supply of essential goods which includes fuel as well as trade with other countries.
On March 22, both Bhutan and Bangladesh inked a fresh transit agreement after years of negotiations as far as opening of Mongla, Chittagong as well as Payra ports were concerned. As per a statement from the Ministry of Industry, Commerce, and Employment accessed by Reuters, the deal will go on to provide Bhutan with better connectivity in terms of necessary transit facilities when it comes to the movement of goods.
The minister for Energy and Natural Resources of Bhutan, Loknath Sharma, said the agreement will go on to reduce the cost of transportation. As per Sanjeev Mehta, professor in economics at the Royal Thimphu College, the agreement will reduce the extent of Bhutan’s dependence on India when it comes to transit. It is well to be noted that a similar treaty between both countries expired in 2020.
As of now, Bhutan manages its third country trade mostly from eastern as well as southern ports of India.
