Bhutan

Enhanced Integrated Framework(EIF) and Trade Facilitation Meeting

Organised jointly by:
The Government of Bhutan, UNDP, EIF Secretariat, UNCTAD, UNIDO, and ITC

A meeting focusing on trade promotion as a means to combat poverty was held in Paro 4-6 March. The meeting was well attended by representatives of all relevant government ministries, agencies, the private sector and civil society. The meeting revolved around the current trade and industry situation in Bhutan, and the potential of applying for accession to the „Enhanced Integrated Framework., established to enable least developed countries to integrate in the global economy and benefit from opportunities generated by the multilateral trading system.

The Enhanced Integrated Framework, which Bhutan potentially could access, is set up by the International Monetary Fund, ITC, United Nations Conference on Trade and Development, United Nations Development Programme, World Bank and the World Trade Organization as an instrument to join efforts with least developed countries and other donors to respond to the trade development needs of these countries.

The meeting was chaired by Dasho Sonam Tshering, Secretary of the Ministry of Economic Affairs and the UNDP Resident Representative a.i. Mr. Bakhodir Burkhanov. It was according to the participants very timely, with the strong attention the newly endorsed 10th Five Year Plan pays trade and private sector development. “The meeting contributed to a solid and common understanding of trade mainstreaming, policy management, the potential of small industries, micro finance, standardization and quality issues” Mr. Sherab Tenzin, Ministry of Economic Affairs, expressed, and continued “the Ministry is of the view that the window provided by the Enhanced Integrated Framework would be a good complement for the government to extend its funding base for the 10th Five Year Plan”.

The need for embarking on a joint approach by combining efforts of the government and development partners was acknowledged, and Dr. Gepke Hingst, UN Resident Coordinator a.i., underlined in her closing remarks that “since economic development and industrialization is at the core of the Government's and thus the UN.s strategy for the future, it is commendable that representatives of relevant departments of the government ministries and the private sector together with UNDP, ITC, UNIDO and UNCTAD jointly have agreed to follow a common action plan”. Mr. Sherab Tenzin, Ministry of Economic Affairs, vouched on the side of the Ministry that should the Government agree to the accession of Bhutan to the Enhanced Integrated Framework, all agencies and stakeholders present at the workshop would be fully consulted in the process.

The Ministry of Economic Affairs. Trade Department will request the Government to apply for accession to the framework by end of March 2009, and it is envisioned that the diagnostic trade integration study, which is a precursor to the funding and which should lead to an action plan, could be fast tracked.