Bhutan: 12th Annual Consultations with the European Union take place in Brussels
The 12th Annual Consultations between the European Union and the Royal Government of Bhutan took place in Brussels on 9 September. The friendly and productive exchange of views covered a broad range of issues, notably the general elections in both Bhutan and the European Union, current and upcoming priority issues in EU-Bhutan relations as well as high-level visits and meetings.
During the Consultations, the EU and Bhutan 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. Both, the EU and Bhutan reiterated their support for a rules-based international order with the UN at its core.
On 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.
The EU and Bhutan discussed the delivery of the EU’s Global Gateway strategy -EU support under the 2021-2027 Multiannual Indicative Programme (MIP)- focusing on three priority areas: (i) climate change and green growth for a resilient Bhutan; (ii) good governance for inclusive socio-economic development; and (iii) digital transition as a driver for change in education and public service delivery. The EU has approved a first €31 million tranche for the 2021-2024 period and future commitments are to be considered. They also 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 EU and Bhutan reiterated commitment to strengthening the space of Civil Society Organisations in Bhutan and their values in complementing the efforts of the government to provide important services to the people. They 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 Paola Pampaloni, Deputy Managing Director for Asia and the Pacific at the European External Action Service, and Ambassador Pema Choden, Foreign Secretary of the Royal Government of Bhutan.
The next Annual Consultations will take place in 2025 in Thimphu.