Bhutan resumes negotiations to join the WTO after 18-year hiatus

Bhutan's Minister for Industry, Commerce, and Employment (MoICE) Lyonpo Namgyal Dorji led the high-level delegation for the 5th Working Party meeting, the first held since January 2008. The delegation also included Tashi Wangmo, MoICE Secretary and Chief Negotiator for Bhutan's WTO accession, and senior officials from various ministries. The Working Party Chairperson, Ambassador Alexander Kmentt of Austria, welcomed Bhutan's return to Geneva after 18 years, highlighting that participation in the WTO could play a positive role in Bhutan's transformation.

In addressing the Working Party, Minister Namgyal Dorji conveyed his country's "readiness to engage, negotiate and become a constructive, responsible and committed WTO member". He also expressed Bhutan's "unwavering commitment to bring this accession process to a successful conclusion."

He said: "We return to this Working Party after 18 years because we believe the time is right. We return as a country that has grown its economy, modernized its regulatory environment, strengthened its institutions, and developed the capacity to negotiate, implement, and benefit from WTO membership." He highlighted the progress made by Bhutan in the past 18 years, including with GDP, which almost tripled - from US$1.3 billion in 2008 to US$ 3.8 billion in 2025. He also cited investments in infrastructure, economic diversification and a significant decline in poverty rates.

Despite considerable progress, Minister Namgyal Dorji also underlined structural elements to be considered in Bhutan's accession negotiations, such as the country's geography, market size and narrow economic base, as well as the risks associated with climate change. "A durable and credible accession agreement must be built upon an honest understanding of the economy it will govern," he noted.

Speaking on behalf of the WTO Director-General, Deputy Director-General Xiangchen Zhang said: "This meeting represents a significant milestone in Bhutan's renewed commitment to WTO accession and to the multilateral trading system, its principles and values, building on Bhutan's recent graduation from least-developed country (LDC) status."

The chair noted the 14 negotiating documents submitted by Bhutan in preparation for the meeting. These documents covered issues such as technical barriers to trade (TBT), sanitary and phytosanitary (SPS) measures, import licensing procedures and agricultural export subsidies. Bhutan also circulated a revised Legislative Action Plan with 174 pieces of legislation and updated market access offers on goods and services. Also circulated was the second revision of the Draft Working Party Report, which was fully updated by the WTO Secretariat, together with Bhutan, before the meeting.

Bhutan reported on meetings held with several WTO members which have expressed interest in initiating or relaunching bilateral market access negotiations. It also delivered presentations on legislative developments, and on the Gelephu Mindfulness City, a Special Administrative Region of Bhutan. 

During a full day of substantive discussions, members asked about regulatory developments in Bhutan since 2008 and examined its trade regime extensively, seeking clarifications on issues such as regulations on investment, foreign exchange and payments, and several aspects of policies affecting trade in goods, services and trade-related aspects of intellectual property rights (TRIPS). Members welcomed Bhutan's resumption of accession negotiations. They encouraged the government to continue implementing the necessary legislative reforms and to provide regular updates to the Working Party.

Next steps

The chair of the Working Party underscored the "substantive and very constructive exchanges" between WTO members and Bhutan. A new set of questions and replies will be circulated for consideration at the next meeting, and the WTO Secretariat will revise the draft Working Party Report accordingly, he said. Bhutan was also invited to submit several updated accession supporting documents and to keep the Working Party regularly informed of legislative developments. Bhutan and WTO members were encouraged to intensify engagement to advance bilateral market access negotiations.

A specific date for the next Working Party meeting will be determined following consultations with members and the WTO Secretariat once negotiating inputs have been received, the chair said.

Bhutan deposited its bid to accede to the WTO in 1999. Information on Bhutan's WTO accession can be found here