India-Bhutan New Trade and Transit agreement come into force
The new bilateral Agreement on Trade, Commerce and Transit between India and Bhutan came into force from July 2017. The new agreement aims to further strengthen the bilateral trade relations between both countries.
The new agreement signed in November 2016 provides for a free trade regime between the territories of India and Bhutan. It also provides for duty-free transit of Bhutanese merchandise for trade with third countries.
Bilateral trade between both countries will continue to be transacted in Bhutanese Ngultrums and Indian Rupees. Moreover, the new agreement removes requirement of having an annual consultation between India and Bhutan for the transit of goods of both countries along with the goods originating in third country
Background
The bilateral trade relations between India and Bhutan are governed by the Agreement on Trade, Commerce and Transit. The agreement provides for a free trade regime between the territories of India and Bhutan. The last agreement was renewed on July 29, 2006 for ten years. The validity of this agreement was extended (from July 29, 2016) for one year or till new agreement comes into force.
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Month: Current Affairs - August, 2017