Prime Minister Paetongtarn Shinawatra and Prime Minister Dasho Tshering Tobgay of Bhutan on 3 April 2025 witnessed the signing of a free trade agreement (FTA) between the Kingdom of Thailand and the Kingdom of Bhutan.

The signing ceremony took place at the Thai Khu Fah Building, Government House, in Bangkok, on the sidelines of the sixth BIMSTEC Summit hosted by Thailand. The agreement was signed by Lyonpo Namgyal Dorji, Minister of Industry, Commerce, and Employment of Bhutan, and Mr. Pichai Naripthaphan, Minister of Commerce of Thailand.

The leaders of Thailand and Bhutan shared the view of the potential of both countries, which signed the FTA following four rounds of negotiations within only nine months. The FTA will enhance bilateral trade and investment cooperation, reflecting the shared vision of Bhutan and Thailand to deepen economic ties. 

Thailand is interested in investing in the tourism industry, the smart city, and digital infrastructure in Bhutan. In 2024, trade between the two countries amounted to 460.47 million baht, with Thailand exporting goods worth 457 million baht and importing 3.47 million baht's worth of goods from Bhutan.

During their meeting on 3 April, Prime Minister Paetongtarn and the Prime Minister of Bhutan discussed the coordination of both countries for the upcoming state visit of Their Majesties the King and Queen of Thailand to Bhutan, as well as the celebration of Thai-Bhutanese relations throughout this year.

The Prime Minister of Bhutan expressed his concern over the recent earthquake the struck Myanmar and impacted Thailand. He also admired Thailand’s ability to effectively managing the earthquake situation, which could minimize damage and loss, and this reflected the country’s readiness to cope with natural disasters.

The Prime Minister of Bhutan thanked Thailand for supporting the introduction of its “One Tambon, One Product (OTOP)” program for use in the One Gewog One Product (OGOP) project in Bhutan. Both countries believe that the policy will help develop the potential of communities and add value to local products.

In addition, Thailand and Bhutan agreed to promote the policy of "Two Kingdoms, One Destination" in order to enhance tourism cooperation between the two countries.