Dhaka, March 22 -- Bangladesh and Bhutan have signed a memorandum of understanding on transit, aiming to strengthen trade ties.

As part of the MoU, Bhutan can pay a fee and use land, water and aviation routes in Bangladesh to run its import and export business with a third country. Bangladesh, on the other hand, can run trade with China through Bhutan using the transit facility when Bhutan gets direct road connectivity with China in the future.

Bangladesh Commerce Minister Tipu Munshi and Bhutan's Trade, Industries and Employment Minister Karma Dorji signed the initial deal in Thimphu on Wednesday.

Tipu Munshi hoped that the new agreement will pave the way for smooth trade and business between the two countries, the commerce ministry s...