Canada has established diplomatic and consular relations with Bhutan following an exchange of letters between foreign ministers of both countries, says Canadian Minister for Foreign Affairs, Bill Graham.

Canadian and Bhutanese Permanent Representatives to the United Nations completed this final step in New York on June 25.

"The establishment of formal diplomatic relations with Bhutan will further enhance the friendly and productive relations both countries have enjoyed for many years," Graham said in a statement from Ottawa. "It will also provide additional channels for discussing trade, development assistance, and regional and international issues of mutual concern."

It was stated that Canada would conduct its relations with Bhutan on a non-resident basis through the Canadian High Commission in New Delhi.

Isabelle Savard, Director of Communications of Graham said Bhutan has also indicated it will similarly cross-accredit its Permanent Representative to the United Nations as a non-resident ambassador to Canada.