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Asia and Oceania
Bhutan |
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Last reviewed: 27 October 2009 |
Country information
INTERNATIONAL RELATIONS
Bhutan's Relations with India
Bhutan had a Friendship Treaty (1949) with India under which it agreed to be guided by the advice of India in its external relations. This clause was removed in a new Friendship Treaty which was signed by India and Bhutan during the Bhutanese King’s visit to India on 8th February 2007. The Indo-Bhutan Friendship Treaty of 2007 strengthens Bhutan's status as an independent and sovereign nation.Bhutan enjoys preferential trade and transit facilities and benefits from Indian aid (India finances nearly three-fifths of Bhutan's budget expenditures). The export of hydro-electric power to India is Bhutan’s most important source of revenue. In June 2006, the 1972 free-trade agreement (which permits Bhutan to import and export goods via India) was renewed for 10 years. India and Bhutan also signed a 60-year agreement to co-operate in the development of hydro-electric power.
The Bhutanese and Indian armies have connections dating back to the early ‘60’s. Most of the training of the Bhutanese Army is carried out by the Indian Military Training Team (IMTRAT) in Bhutan. In December 2003 the Bhutanese Army, personally led by the King, undertook a surprise and successful military expulsion of ULFA (United Liberation Front of Assam) and Bodo militants from their illegal camps in South East Bhutan. Although there is no specific evidence to suggest the groups are returning, there have been a few reports that some Indian separatist militant groups are able to infiltrate across the border to escape Indian army pursuit.
Bhutan's Relations with the International Community
Bhutan began to develop its foreign relations by joining the Colombo Plan in 1962 and the World Postal Union in 1969. It joined the United Nations on 21st September 1971, sponsored by India and co-sponsored by Britain. In 1981 Bhutan joined the IMF and World Bank, and in 1982 became a member of UNESCO and the World Health Organisation. Bhutan is also increasing representation at international conferences and is an active member of the South Asian Association for Regional Co-operation (SAARC).Currently Bhutan has formal diplomatic relations with twenty two countries - India, Bangladesh, Japan, Thailand, Kuwait, Pakistan, Sri Lanka, Singapore, the Maldives, Republic of Korea, Bahrain, Australia, Canada, Nepal, Norway, Finland, Switzerland, Austria, Denmark, Finland, Netherlands and Sweden. Bhutan does not have diplomatic relations with any of the permanent members of the UN Security Council. In March 2009 Bhutan established an Embassy to the European Union in Brussels with a resident Ambassador who is also accredited to those European countries with which Bhutan has formal diplomatic relations.
There is also an Ambassador to the United Nations resident in Geneva and a Permanent Representative to the UN in New York. Bhutan has Honorary Consuls in the UK, France, Germany, Netherlands, Denmark. The only foreign Ambassadors resident in Bhutan are those of India and Bangladesh.
The Bhutanese Foreign Minister visited China in early 1999 and the two countries signed an agreement committing them to a relationship of 'peace and tranquillity', but without formal diplomatic relations. Friendly border negotiations with China have taken place over the last twenty years and the border is now almost entirely agreed. Relations with Nepal are friendly though affected from time to time by the refugee problem. Bhutan has expanded its trading ties with Bangladesh.
Bhutan has strong and friendly relations with the Government of India at the diplomatic, political and economic levels.
Bhutan's relations with the UK
The UK does not have diplomatic relations with Bhutan though we are willing to do so in principle. Bilateral relations are friendly and we conduct business with Bhutan through our High Commission in New Delhi and via the Bhutanese Honorary Consul who is based in the United Kingdom and spends half the year in Bhutan.
UK Development Assistance
British development assistance to Bhutan was restricted to a small projects scheme totalling £12,000, co-ordinated through our High Commission in New Delhi, although 2005-2006 was the final year for this scheme. The last project is a training course for Bhutanese lawyers to build capacity in the field of Intellectual Property Rights (IPR) in Bhutan. This is being run by the University of Cardiff. In February 2006 the British Council allocated £5,000 for the provision of English language books for the National Institute of Education and for a small library and study facility used by children of army personnel.
In 2008, the FCO presented the King of Bhutan with a full Chevening scholarship (worth approx. £22,000) as a coronation gift. This will be advertised throughout Bhutan in 2009; a joint FCO and Bhutanese government interview panel will select a Bhutanese national to take up this scholarship in 2010. We hope the gift will be seen as a unique & unusual gift that would stand out from the usual coronation gifts and be seen as a gift to the King for the benefit of the people of Bhutan.
