The Royal Bhutan Army is Bhutan’s military service. It includes the Royal Bodyguard and the Royal Bhutan Police. Membership is voluntary, and the minimum age for recruitment is 18. The standing army numbers about 6,000 and is trained by the Indian Army. It has an annual budget of about US$13.7 million — 1.8 percent of the GDP. Being a landlocked country, Bhutan has no navy.
The branches of the armed forces of Bhutan are the Royal Bhutan Army, Royal Bodyguards, Militia, and Royal Bhutan Police. Being a landlocked country, Bhutan doesn’t have a navy. Additionally, Bhutan does not have an air force, although the Royal Bhutan Army does have a very small air arm which possesses no combat capabilities and is used entirely for transport. India is responsible for military training, arms supplies and the air defense of Bhutan.
Though the 1949 treaty with India is still sometimes misinterpreted to mean that India controls Bhutan’s foreign affairs, the government of Bhutan handles all of its own foreign affairs, including the sensitive (to India) border demarcation issue with China. The 1949 treaty has been superseded by the 2007 treaty with India, which clarified that Bhutan was master of its own foreign relations. Bhutan has diplomatic relations with 21 countries, and with the European Union, with missions in India, Bangladesh, Thailand, and Kuwait. It has two UN missions, one in New York and one in Geneva. Only India and Bangladesh have residential embassies in Bhutan, while Thailand has a consulate office in Bhutan. By a long standing treaty, Indian and Bhutanese citizens may travel to each other’s countries without a passport or visa using their national identity cards instead. Bhutanese citizens may also work in India without legal restriction. Bhutan does not have formal diplomatic ties with its northern neighbour, the People’s Republic of China, although exchanges of visits at various levels between the two have significantly increased in recent times. The first bilateral agreement between China (PRC) and Bhutan was signed in 1998, and Bhutan has also set up honorary consulates in Macau and Hong Kong. Bhutan’s border with China is largely not demarcated and thus disputed in some places. Approximately 269 square kilometers remain under discussion between China and Bhutan.
On 13 November 2005, Chinese soldiers crossed into the disputed territories between China and Bhutan, and began building roads and bridges. Bhutanese Foreign Minister Khandu Wangchuk took up the matter with Chinese authorities after the issue was raised in the Bhutanese parliament. In response, Foreign Ministry spokesman Qin Gang of the People’s Republic of China has said that the border remains in dispute and that the two sides are continuing to work for a peaceful and cordial resolution of the dispute. An Indian intelligence officer has said that a Chinese delegation in Bhutan told the Bhutanese that they were "overreacting." The Bhutanese newspaper Kuensel has said that China might use the roads to further Chinese claims along the border.
On 8 February 2007, the Indo-Bhutan Friendship TreatyPDF (30.6 KB) was substantially revised. In the Treaty of 1949 Article 2 states: "The Government of India undertakes to exercise no interference in the internal administration of Bhutan. On its part the Government of Bhutan agrees to be guided by the advice of the Government of India in regard to its external relations." In the revised treaty it now reads as "In keeping with the abiding ties of close friendship and cooperation between Bhutan and India, the Government of the Kingdom of Bhutan and the Government of the Republic of India shall cooperate closely with each other on issues relating to their national interests. Neither government shall allow the use of its territory for activities harmful to the national security and interest of the other." The revised treaty also includes this preamble: "Reaffirming their respect for each other’s independence, sovereignty and territorial integrity", an element that was absent in the earlier version. The Indo-Bhutan Friendship Treaty of 2007 strengthens Bhutan’s status as an independent and sovereign nation.
Bhutan has no formal relations with the United States, Russia, China, the United Kingdom or France. Informal contact with the United States is made through the U.S. Embassy in New Delhi.