June 2, 2026
THIMPHU – The government has formally resumed Bhutan’s accession process to the World Trade Organisation (WTO), nearly two decades after negotiations stalled, as the country seeks deeper integration into the global economy and prepares for its post-Least Developed Country (LDC) transition.
The decision follows Cabinet approval in June 2025, after which the Ministry of Industry, Commerce and Employment, in collaboration with multiple agencies, reviewed and finalised 17 accession-related documents required for submission to the WTO Secretariat.
The documents include Bhutan’s Draft Working Party Report, offers on commitments in goods and services, legislative inventories, and action plans related to trade facilitation, intellectual property, sanitary and phytosanitary measures, and technical barriers to trade.
The Director of the Department of Trade (DoT), Sonam Tshering Dorji, said Bhutan’s accession process involves a “whole-of-government approach” with more than 20 officials from key sectors, including agriculture, finance, transport, intellectual property, standards, and trade.
“It is not just the DoT leading the process,” he said. “Every technical document has been prepared with inputs from the relevant agencies because WTO accession affects multiple sectors of the economy.”
Bhutan first applied for WTO membership in 1999 and held its last Working Party meeting in 2008 before the process slowed amid concerns over the possible impact on Bhutan’s Gross National Happiness philosophy and policy space.
Sonam Tshering Dorji said that joining the WTO has become increasingly important as Bhutan pursues ambitious economic targets, including graduating to a high-income economy and expanding exports beyond hydropower.
“We are a country of around 700,000 people. Our market cannot remain limited to Bhutan,” he said. “If we want to become a developed country, we have to think globally, export more, and integrate with international markets.”
He said WTO membership would provide Bhutan with access to 166 markets under a rules-based multilateral trading system, without the need to negotiate separate bilateral agreements with each country.
Bhutan currently trades largely under bilateral and regional arrangements with India, Bangladesh, and Thailand. However, officials say existing agreements mainly cover goods, while WTO membership would also provide frameworks for services trade and investment protections.
Sonam Tshering Dorji said joining the WTO sends a strong signal that Bhutan is serious about doing business and attracting investment. “It provides predictability and transparency, which investors look for.”
The renewed push also comes alongside the development of the Gelephu Mindfulness City (GMC), envisioned as a major economic hub.
According to officials, WTO accession is being pursued jointly with GMC to strengthen Bhutan’s international economic credibility.
Despite the optimism, concerns remain about Bhutan’s technical and institutional capacity to comply with WTO obligations and handle future trade disputes.
An economist said that while WTO membership could help Bhutan secure non-discriminatory market access and improve investor confidence, compliance with complex WTO rules may impose administrative burdens on a small economy with limited institutional capacity.
The economist added that Bhutan may face challenges in pursuing legal cases involving intellectual property or trade disputes under the WTO system.
Sonam Tshering Dorji responded that Bhutan already has institutional foundations in place, including a dedicated Department of Intellectual Property and legal experts familiar with WTO dispute settlement mechanisms.
He added that Bhutan is already a member of the World Intellectual Property Organisation and has aligned many of its laws with WTO Trade-Related Aspects of Intellectual Property Rights (TRIPS) provisions. “However, we acknowledge there is still a need for continuous training and capacity building.
In addition, Sonam Tshering Dorji said that Bhutan would continue awareness programmes and technical training for government agencies, parliamentarians, the private sector, civil society, and the media over the next two years.
No disadvantage for local businesses
Officials reassured that WTO membership would not necessarily disadvantage Bhutanese businesses against foreign competitors.
“We already have one of the most liberal trading arrangements with India under a free trade agreement,” Sonam Tshering said. “Most goods already enter Bhutan at zero duty. So our private sector is already operating in a highly open trading environment.
He added that Bhutan’s small population, high transportation costs, and landlocked geography make it unlikely that international producers would flood the Bhutanese market.
International perspective
The Economic Affairs Officer at ESCAP’s Subregional Office for South and South-West Asia, Jing Huang, said that Bhutan’s WTO accession presents an important opportunity for the country to expand market access, attract responsible investment, and strengthen confidence among international trading partners, while also supporting economic diversification and creating opportunities for youth and small businesses.
She also said that as a small, landlocked country that has only recently graduated from LDC status, Bhutan faces structural challenges such as high trade costs, limited production capacity, and dependence on a narrow range of sectors and markets. Aligning domestic policies with WTO rules will therefore require sustained legal reforms, institutional strengthening, and technical capacity-building.
“WTO accession does not mean Bhutan has to compromise its unique development philosophy. Bhutan can negotiate commitments carefully and ensure that trade policies continue to support Gross National Happiness, environmental conservation, and balanced, sustainable growth,” Jing Huang said.
Rather than competing in mass production, she said Bhutan can focus on niche areas such as organic agriculture, premium products, sustainable tourism, clean energy, wellness services, and cultural industries that reflect the country’s identity and values.
Next steps
The Cabinet endorsed submitting the accession documents to the WTO Secretariat for circulation among WTO members, a key milestone before formal Working Party negotiations resume.
Officials said Bhutan’s accession strategy would remain “calibrated, transparent, and development-oriented” to ensure alignment with national priorities and Bhutan’s development philosophy.