weighted score 3.2 · nine dimensions
Country Risk Profile
Bhutan
Sourcing risk, regulatory exposure and audit intelligence for Bhutan-origin supply chains.
Forced & child labour
3
Not TVPRA-listed. Low forced labour incidence. Some child labour in agriculture but prevalence is low by regional standards.
Worker rights & FOA
3
No independent trade unions. Labour law developing. Small formal sector. Freedom of association legally constrained but low exploitation.
OHS & audit transparency
3
Limited industrial activity means limited OHS risk. No significant audit ecosystem. Hydropower operations maintain reasonable safety standards.
Food & product safety
3
Small export base. Agricultural products are primary exports. Food safety regulation basic but low-volume trade limits impact.
Environmental & regulatory
2
Carbon-negative country. >70% forest cover. Strong environmental consciousness. No IUU card. Hydropower is clean energy.
Governance & anti-corruption
2
TI CPI 71 — strong governance. Constitutional monarchy provides stability. Anti-corruption commission functional. Low corruption by regional standards.
Tariff & preferential access
5
LDC graduation (2023) means loss of EBA/DFQF. Bilateral trade with India. No FTA with EU or major Western markets.
Non-tariff barriers
4
Limited export capacity creates de facto barriers. SPS compliance infrastructure underdeveloped. Landlocked geography adds transit barriers.
Supply chain traceability
4
Small export volumes make traceability manageable in principle. But formal traceability systems and certification infrastructure are limited.
Labour & Social Risk
Labour & Social Risk
- Forced labour
- Bhutan is not listed on the US TVPRA List of Goods Produced by Forced or Child Labor. The country has low documented incidence of forced labour. Small population and Buddhist cultural values contribute to relatively low exploitation risk.
- Child labour
- Some child labour exists in agriculture and family enterprises, but prevalence is low by regional standards. ILO conventions ratified. Education is prioritised under GNH framework.
- Worker rights
- Freedom of association is limited — no independent trade unions exist. Labour law framework is developing. The small formal sector means most employment is in agriculture and government.
Governance & Trade Access
Governance & Trade Access
- Governance
- TI CPI 2025: 71 — strong governance for the region. Constitutional monarchy since 2008 provides political stability. Anti-corruption commission is functional. Governance score of 5 reflects limited institutional depth despite low corruption.
- Trade access
- LDC graduation in 2023 means EBA access is being phased out. Bilateral free trade with India is the primary trade arrangement. No comprehensive FTA with EU or US.
- Regulatory environment
- Small regulatory apparatus. Foreign investment framework is developing. Gelephu Mindfulness City project may create new regulatory frameworks for special economic activities.