Bhutan's engagement with international trade is highly dependent upon its neighbor and ally, India. In 1997, US$114.2 million of Bhutan's exports were purchased by India, which constituted 94.6 percent of the total. Bangladesh received US$5.1 million of Bhutanese goods. In the same year, the direction of the flow of Bhutan's imports consisted of US$97.6 million from India, 69.4 percent of the national total. In addition, Bhutan imported US$23.8 million of goods from Japan, US$4 million from Singapore, and US$1.8 million from Germany.
Bhutan is a founding member of the South Asian Association for Regional Co-operation (SAARC), whose other members are Bangladesh, India, Nepal, Pakistan, and Sri Lanka. Bhutan will host the 2002 SAARC summit meeting. As part of its policy of engagement with the world economy, Bhutan is preparing to join the World Trade Organization.