Country Brief -Bhutan Contents 1. Background 2. Trade & Environment 3. Conclusion

 Agrarian Economy (70% of 0.6 million population)  Agriculture Share of GDP 1990 (35.73%) 1995 (32.40%) 2000 (27.73%) 2004 (24.69%)  Agricultural land -7.7% of total land

 Agriculture-subsistence farming  Major crops- rice, wheat, maize, buckwheat, potatoes.  Cash crop farming on small scale- mandarin, apple, cardamon.

 Commercial level food processing small scale based on local resources.  Narrow range of processed food- alcoholic beverages, carbonated drinks, dairy, processed fruit and vegetable products.

 Export share of agriculture products to total exports is 12.16%.  Main export markets are India & Bangladesh.  Export to other countries is 2.5% of total export value (Red rice to the USA, mushroom –Japan and Thailand etc.).  International trade constraints- lack of standardization facilities, inefficient transport system, underdeveloped logistical facilities, lack of market information, etc..

Trade and Environment  Sustainable development  Environment Assessment Act 2000  Application of WTO Agreements on SPS and TBT  Not faced serious problems related to standards  Membership of Codex Alimentarus Commission 2000.

Trade and Environment  Exports to Japan, USA and Europe sold based on phytosanitary certificate and certificate of origin  Micro climate  Export based on strength of natural environment  Attract FDI

Conclusion  Trade contact with India & Bangladesh  Regional grouping to identify affecting trade  Harmonization of regional standard  Promotion of mutual acceptability of certification  Establishment of testing and certification body  Capacity building