Ministry of Foreign Affairs and External Trade RGOB
Bhutan and the EU hold their 12th Annual Consultations in Brussels
The 12th Annual Consultations between the Royal Government of Bhutan and the European Union took place in Brussels on 9th September 2024. The two sides had a productive and friendly exchange of views on a broad range of issues, reflecting on developments since their previous Annual Consultations, notably the general elections in both Bhutan and the European Union, and discussing current and upcoming priority issues in Bhutan-EU relations, including high-level visits and meetings. In a multilateral context, the EU and Bhutan reiterated their support for a rules-based international order with the UN at its core.
During the Consultations, Bhutan and the EU also shared updates on economic developments in the context of Bhutan’s recent graduation from Least Developed Country (LDC) category, the launch of the 13th Five Year Plan, and the implementation of the country’s major new initiative, the Gelephu Mindfulness City project. Bhutan informed the EU of the preparations and objectives of the Bhutan Innovation Forum on 1-3 October 2024 in Paro, and more broadly about the Government’s plan to attract foreign investments.
In the area of good governance and human rights, the EU commended Bhutan for the recent ratification of the United Nations Convention on the Rights of Persons with Disabilities, and invited Bhutan to consider the signature and ratification of additional international human and labour rights conventions.
Concerning trade relations, Bhutan’s duty-free and quota-free access to the EU market under the ‘Everything But Arms’ arrangement will remain until 2028, requiring notwithstanding timely preparations for exiting this most preferential trading regime. The EU reaffirmed readiness to continue sharing with Bhutan its longstanding experience with Geographical Indications.
Bhutan and the EU discussed the delivery of the EU’s Global Gateway strategy, the implementation of EU support under the 2021-2027 Multiannual Indicative Programme (MIP), focusing on three priority areas: climate change and green growth for a resilient Bhutan; good governance for inclusive socio-economic development; and digital transition as a driver for change in education and public service delivery for which € 31 million was committed as first tranche for the 2021-2024 period and future commitments to be considered. The parties welcomed the signature, in April 2024, of a first European Investment Bank (EIB) operation consisting of a framework loan of up to € 150 million for financing solar power plants and small hydro investments.
The two sides reiterated commitment to strengthening the space of CSO in Bhutan and their values in complementing the efforts of the government to provide important services to the people.
The two sides discussed the achievements and potentials of their cooperation in education and research, and commended their substantive cooperation in international fora, particularly in the areas of climate action and environmental protection.
They also expressed confidence in the benefits of sustained mutual engagement and interactions with the EU and its Member States. The EU appreciated the invitation extended to the EU Heads of Mission in New Delhi to visit Bhutan.
The Consultations were co-chaired by Ambassador Pema Choden, Foreign Secretary of the Royal Government of Bhutan and Ms. Paola Pampaloni, Deputy Managing Director for Asia and the Pacific, European External Action Service.
The next Annual Consultations will take place in 2025 in Thimphu.
