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20 November 2023  
 Page: 1/3 
Committee on Trade and Development  
(Aid for Trade)  Original:  English/anglais/inglés  
 
  
UNOFFICIAL ROOM DOCUMENT1 
COMMITTEE ON TRADE AND DEVELOPMENT – 59TH SESSION ON AID FOR TRADE  
STATEMENT BY BHUTAN  
14 November 2023  
 
 
Comité du commerce et du développement (Aide pour le commerce)  
 
DOCUMENT DE S ÉANCE NON OFFICIEL1 
COMMITTEE ON TRADE AND DEVELOPMENT – 59TH SESSION ON AID FOR TRADE  
STATEMENT BY BHUTAN  
14 November 2023  
 
 
Comité de Comercio y Desarrollo (Ayuda para el Comercio)  
 
DOCUMENTO DE SALA NO OF ICIAL1 
COMMITTEE ON TRADE AND DEVELOPMENT – 59TH SESSION ON AID FOR TRADE  
STATEMENT BY BHUTAN  
14 November 2023  
 
_______________  
  
 
* In Original language only/En langue originale seulement/En el idioma original solamente.  
1 Documents issued in the RD series are not official WTO documents. They usually appear in their 
language of submission and will not be translated systematically into  the working languages of the WTO. They 
are intended for use in WTO meeting rooms and are attributed an unofficial symbol for archiving purposes only.  
Les documents de la série RD ne sont pas des documents officiels de l 'OMC. Ils ne paraissent 
généralemen t que dans la langue dans laquelle ils ont été communiqués et ne seront pas systématiquement 
traduits dans les langues de travail de l'OMC. Ils sont destinés aux salles de réunion de l'OMC et une cote non 
officielle leur est attribuée à des fins d'archivag e. 
Los documentos de la serie RD no son documentos oficiales de la OMC. Por lo general se distribuyen en 
el idioma en que han sido presentados y no se traduce n sistemáticamente a los idiomas de trabajo de la 
Organización. Se distribuyen para su uso en las salas de reunión de la OMC y se les asigna una signatura no 
oficial a efectos de archivo únicamente.  RD/COMTD/AFT/19  
 
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Draft Statement to be presented to WTO Committee on Trade and 
Development  - Aid for Trade  
14 November 2023  
  
Distinguished Chair of the WTO Committee on Trade and Development  
Members of the Committee on Trade and Development  
 
Good morning  
 
● It is a special honor  and privilege for Bhutan to be given this opportunity to participate in 
this important CTD Aid for Trade meeting today and share our perspectives and experiences.  
 
● With changing global trade dynamics and continuous efforts made by countries to align with  
the WTO's framework, Aid for trade has been a critical catalyst in mainstreaming the trade 
agenda and supporting the inclusive growth of our ‘Least Developed Country’ status.  
 
● For Bhutan, trade is not just a mechanism for economic growth but a vital path way towards 
sustainable development and economic self -resilience. As a Landlocked Least Developed 
Country, Bhutan is confronted with inherent challenges and limitations to further its 
economic development goals.   
 
● Our trade mainstreaming journey started w ith a comprehensive Diagnostic Trade Integration 
study (DTIS) in 2011, supported by the Enhanced Integrated Framework (EIF). The DTIS 
has helped us to identify, through a thorough consultative process, trade development 
priorities to be integrated into the  national development and sector strategies. The DTIS has 
provided a roadmap for the Government as well other development partners to channel AfT 
resources to the most needed priorities, and to ensure concerted implementation in the 
national agenda.  
 
● In 2020, Bhutan updated the DTIS and make it a comprehensive trade strategy in support 
of economic diversification. The DTISU provided a clear analysis of new priorities and 
challenges ahead for the growth of the Bhutanese economy with specific action plans fo r 
relevant stakeholders. The study, in particular, underscored the instrumental role of trade 
facilitation and trade agreements in creating a favorable trading environment for Bhutan 
with focus on Bhutan’s trade competitiveness and long -term policy recomme ndations. It also 
covered  insights into the smooth transitioning of Bhutan from the LDC category and on the 
impact of the COVID -19 pandemic on Bhutan's economy. Given the limited aid for trade 
development in the country, EIF has proven to be an important support measure for trade 
and development, and Bhutan is committed to make the best use of the  programme.   
 
● Further, built on the DTISU analysis and priorities identified, Bhutan worked with UNDP and 
EIF to develop and launch the National Export Strategy  (NES) in November 2022. The 
Strategy has served as an instrumental document in the formulation of the 13th FYP through 
diagnostic review and assessment of the impediments faced by the export sector, and 
providing strategic recommendations towards addressi ng them at various spectrums of 
institutional, legal, and regulatory front concerning supply side constraints;  trade and 
business infrastructure; standards and certification issues etc.  
 
I am happy to inform you here that few agencies such as BFDA alread y have a satellite 
laboratory in 6 entry points with basic facilities and rapid test kits which were some of the 
recommendations of the NES 2022. Similarly, IT/ITES sector has been prioritized for 
promotion under the FDI Policy with no minimum investment r equirement and the same is 
located in the IT Park, Thimphu. Additionally, other recommendations in NES 2022 were also 
included in the 13th FY plans and programs of the respective agencies.  
 
● Nevertheless, having an export strategy and trade mainstreamed in  the national 
development plan is just a necessary condition but not sufficient to boost trade in a 
sustainable and inclusive manner. What is equally important is building trade capacity so 
that national stakeholders, particularly SMEs, women, youth could participate in the global 
trade and benefit from it. In this regard, Aid -for-trade, specifically the support of  Enhanced RD/COMTD/AFT/19  
 
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  Integrated Framework (EIF) and other partners such as International Trade Center (ITC), 
UNDP, UNCTAD, World Bank, UNESCAP, EU, Japan  etc have  been instrumental in furthering 
trade, commerce and associated sectors, particularly in terms of the capacity building of 
private sectors and the institutions mandated for trade promotion.   
 
● The Ministry of Industry, Commerce and Employment  as the lead agency for the 
implementation of Trade related technical assistance programs in Bhutan have successfully 
identified numerous challenges faced by the private sector such as  inadequacy of the 
facilities to meet export requirements,  testing, certif ication, export information, market 
access, shortage of manpower, and transport and transit issues and  addressed them with 
appropriate measures and interventions.  Further, through EIF and partners agencies 
support, several activities were implemented to expand and improve the quality of existing 
products, support new enterprises, and promote export.  
Towards supporting MSMEs including the exporters, the following business infrastructure 
were successfully completed, that is, opening of Brand Bhutan Store/ two outlets in Australia 
and USA, the establishment of six raw materials banks in Eastern Bhutan; production of 
Drumdhen (carpet) in Zhemgang, and one -stop center for export packaging and 
photography center. Support also extended for training on Branding, packaging, labeling, 
natural dying, and felting to more than 40 MSMEs, survivors of Domestic Violence and 
Gender  based Violence (DV/GBV), housewives, school dropout youths and other vulnerable 
women.  
● On the quality infrastructure front, Bhutan Food and Dr ug Authority (BFDA) was supported 
to upgrade the National Food Testing Laboratory (NFTL) through equipment support in 
collaboration with the Asian Development Bank,  and Bhutan Standard Bureau (BSB) in 
development of   standards and certifications for 18 s elect products.  
● At the institutional level, Bhutan has offered trade -related capacity building, supported the 
construction of basic infrastructure critical for  private sector growth, and facilitated 
discussions with partner agencies to improve and promote trade; establis hing institutional 
linkages and better coordination among relevant technical agencies in the country to build 
necessary support levels and facilities for the development of the private sector. 
Furthermore, the development of the E -commerce policy in 2019 a nd the e -regulations 
Portal in 2022 has helped generate additional domestic and foreign investments worth over 
USD 372 million.  
● Chair, on the WTO front, we are delighted to inform that Bhutan, after a hiatus of almost 
15 years, has resumed its WTO accession in April 2023. Following the approval from the 
Government, several capacity building activities - both virtual and physical - were 
undertaken by the WT O and development partners.  Bhutan’s WTO Negotiating Team with 
members from relevant agencies was constituted, and two technical committees were 
constituted (Technical Committee for Goods led by the Department of Trade and Technical 
Committee for Services  led by the Department of Industry). Updated Draft Working Party 
Report, Market Access Offer on Goods, Action plans and the Schedule of services have been 
finalized and shared with the WTO Secretariat.  
 
● With this brief update, I would like to thank the CT D for giving me the opportunity to update 
our progress and extend our gratitude to the EIF, donor agencies, development partners 
and WTO secretariat for the continued support and assistance.  We look forward to continued 
support from development partners a nd this has become even more imperative with 
Bhutan’s LDC graduation in Dec 2023 and WTO accession which will require sustained 
support and collaboration from international development partners.  
  
● Thank you Chair and all for your kind attention.  
 
 
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