The commerce ministry has said the new agreement on trade, commerce and transit between India and Bhutan which has come into force from July 29, will further strengthen economic ties between the two countries. The commerce ministry said in a statement in New Delhi today that the agreement provides for a free trade regime between the countries and it also gives duty free transit of Bhutanese goods for trade with third countries, The bilateral trade relations between India and Bhutan are governed by this pact. The pact was last renewed on July 29, 2016 for a period of ten years. Its validity was extended for one year or till the new agreement comes into force. The two-way trade stood at USD 808.72 million in 2016-17, up from USD 750.2 million in the previous fiscal.