The government is advancing the Thailand–Bhutan Free Trade Agreement, preparing to submit it to Parliament for consideration, targeting enforcement by 1 January 2027. This will open a new market and drive growth in Thai exports, with an expected increase in value exceeding 12 billion baht.
On 10 June 2026, Ms. Lalida Perwivatthana, Deputy Spokesperson of the Prime Minister's Office, revealed that under the leadership of Prime Minister and Minister of Interior Anutin Charnvirakul, the government is pushing to expand Thailand's trade and investment opportunities in South Asia. The Cabinet approved submitting the Thailand–Bhutan Free Trade Agreement (FTA) to Parliament for constitutional approval under Section 178, while preparing measures to ensure the agreement is enforced by the target date of 1 January 2027.
The Deputy Spokesperson stated that the Thailand–Bhutan Free Trade Agreement is the first such agreement between the two countries. It covers 10 chapters and 4 annexes, aiming to liberalize and facilitate trade, reduce trade barriers, promote economic and academic cooperation, and establish clear, mutually beneficial trade rules. The revised agreement also includes Bhutan's special administrative area, the Gelephu Mindfulness City (GMC), a new economic zone currently under development.
Regarding market access, Bhutan will exempt customs duties on Thai products covering up to 99.8% of all product items, while Thailand will open its market to Bhutanese goods covering 94% of product items. Thai export sectors expected to benefit include automotive and parts, agriculture and food such as dried fruits, fruit juices, instant noodles, processed foods, textiles, garments, chemicals, rubber and plastic products, and electrical appliances. At the same time, Thai businesses will gain additional sources of raw materials from Bhutan, including minerals, cordyceps, matsutake mushrooms, and temperate fruits like apples.
Ms. Lalida said economic impact studies estimate that the agreement will help Thailand's economy grow by 0.02–0.03%, equivalent to about 4.13–4.34 billion baht. Thai exports to Bhutan are expected to increase by 229–266%, or approximately 12.36–14.39 billion baht, and foreign investment in Thailand will rise by 0.05–0.06%, about 1.79–1.99 billion baht. Although the government will lose around 215,696 baht annually in customs revenue, the overall economic benefits to Thailand will be much greater.
“The Thailand–Bhutan Free Trade Agreement represents an important step in expanding Thailand's export markets into South Asia. It creates new opportunities for Thai entrepreneurs, enhances competitiveness, and strengthens long-term economic relations between the two countries, which will positively impact Thailand’s economy and people in the future.”