Agreement on Trade and Economic Cooperation

The major EU concern in its bilateral relations with Mongolia is the implementation of the Trade and Cooperation Agreement which was signed on 16 June 1992 and entered into force in March 1993. The Agreement was initially concluded for a period of five years and is now tacitly renewed every year. The two Parties accorded each other��s exports most-favoured-nation treatment and engaged themselves to examine appropriate measures to foster trade and economic relations. The Agreement also includes a commitment to protect human rights.
 
EC - Mongolia Joint Committee

The Trade and Cooperation Agreement set up a Joint Committee comprising representatives of the European Community (represented by the European Commission) and Mongolia. The Joint Committee is a key element in political dialogue between EU and Mongolia. It provides the ideal forum to discuss and revise key issues in EU-Mongolian relations and cooperation in a broad context, including the political and economic situation, development and outlook, and relations with neighbouring countries.
 
The Committee meets once a year, in Brussels and Ulaanbaatar alternatively, as foreseen in the Agreement. Its agenda is fixed by mutual agreement. The 13th Committee meeting will be held in Ulaanbaatar in the second half of 2010.
 
EU - Mongolia Trade

The Trade and Co-operation Agreement entered into force in 1993. It was initially concluded for a period of five years and is now tacitly renewed every year. The two Parties accorded each other’s exports most-favoured-nation treatment and engaged themselves to examine appropriate measures to foster trade and economic relations.
 
Mongolia joined the World Trade Organization on 29 January 1997 and was thus the first TACIS country to develop actively economic relations with the world trading partners. Mongolia’s first WTO-Trade Policy Review (TPR) took place in March 2005. The results were generally very positive. Mongolia was commended for its very significant progress in its transition from a centrally planned to a market-based economy. Mongolia’s efforts to create a favourable environment for FDI resulted in a substantial FDI increase: The investment volume has been increasing dramatically since 2000. The total FDI between 1990 and 1999 was equal to 12.77% of total investments, whereas the total FDI in 2000-2007 was equal to 87.2% of the total 1990-2007 FDI.
 
For Mongolia, the EU is one of its main trading partners and has lately been quoted as Mongolia’s third-largest trading partner. In 2007, the total trade value between the EU and Mongolia reached EUR 246 million. Mongolia’s exports to the EU have increased from a total of EUR 23 million in 2003 to EUR 82 million in 2007. The main EU import commodities from Mongolia are cashmere, wool and related products. EU exports to Mongolia in 2007, totalling EUR 164 million, consisted of mainly machinery and transport equipment, chemicals and related products. The most important EU trade partners are Italy and the United Kingdom for imports and Germany for exports.
 
Mongolia has an ambitious trade agenda, with the goal of diversifying and enhancing exports. The EC supports Mongolia’s efforts to create an enabling environment for business, policies aiming at product diversification, and the improvement of product quality. This would help increase Mongolian exports increase the value added of its goods, and at the same time would make Mongolian products more competitive in the domestic market
 
Mongolia, eligible since 2006 for the specific General Preferential Scheme for sustainable development and good governance (GSP+), is interested in fully utilising the incentive to further increase exports to the EU. Mongolia is also interested in the identification of possible products for the development of Geographical Indications, as a means of product labeling in the context of its export product diversification strategy. Tourism is another area of interest that is developing fast in Mongolia. Tourism exports have grown by 40 % since 1999, now comprising around 15% of total exports, the main export markets are China, Russia, South Korea and the EU.
 
For information on EU trade related issues please see:
http://ec.europa.eu/trade/issues/global/index_en.htm
 
For more information on Mongolian trade related issues please see:
www.mongoliatrade.mn
http://www.mongolchamber.mn
 
For specific information on customs duties, customs documentation, rules of origin and trade statistics please see:
http://exporthelp.europa.eu

Partnership and Cooperation Agreement
 
The negotiations for the Partnership and Cooperation Agreement (PCA) were officially launched in September 2009. First round of negotiations were organised in Ulaanbaatar in January of 2010. To date, sides have organised successfully three rounds of negotiations.
 
PCA will shape the future framework of cooperation between Mongolia and EU for years to come. The agreement involves practically all sectors of cooperation, including the implementation of European norms, principles and standards in Mongolia.   
Geographical Indications

Geographical Indications (GIs) could potentially increase the value of Mongolian products on the world market by allowing selected products to be identified as being exclusively from Mongolia and for the quality of the products to be directly associated with the country of origin. Firstly, the Mongolian authorities were informed about how the GI system operates, to give ideas about the potential products that could be targeted. Following this, two products that showed good export potential were selected. Two projects were implemented by the EU to firstly introduce Mongolia to GIs and then to target specific products for development of export potential.