Bangladesh Signs First Preferential Trade Agreement (PTA)

Bangladesh Signs First Preferential Trade Agreement (PTA)

Part of: GS Prelims and GS-III – Infrastructure

In news

• Bangladesh signed its first Preferential Trade Agreement (PTA) with Bhutan allowing duty free access to a range of goods between the two countries.

Key takeaways

• This is the first PTA Bangladesh has signed with any country in the world.
• The agreement was signed on the occasion marking the 50 years of diplomatic ties between the two countries.
• Under the PTA 100 Bangladeshi products will get duty free access to Bhutan. 
• At the same time, 34 items from Bhutan will get duty free access into Bangladesh.
• Bangladesh is expected to sign 11 more PTAs and Free Trade Agreements (FTAs) with countries like Indonesia and Nepal by June next year.

Do you know?

• In 1971, Bhutan was the first country in the world, followed by India as the second, to recognise Bangladesh as an independent country.