Mongoliaand EU established diplomatic relations on 1st of August 1989.
 
Since the political reforms started in Mongolia in the early 1990s, relations between the EU and Mongolia have developed very positively.
 
The Mongolian Ambassador to the EU presented his credentials in 1990 and the Head of the EC Delegation in Beijing was accredited to Mongolia in 1991. The Delegation of the European Commission in Beijing is accredited to represent the EU in Mongolia, while Mongolia maintains an embassy in Brussels. Furthermore, six EU Member States have embassies in Ulaanbaatar, and Mongolia has embassies in nine EU Member States. In 2006, the EC Technical Office was opened in Ulaanbaatar.
 
The EU-Mongolia relationship has been consolidated over recent years and is set to develop further in the future, also as a consequence of the enlargement of the Union to the East. Several of the new Member States and EU Candidate Countries traditionally maintain close relations with Mongolia and are represented in Ulaanbaatar.

There were high-level visits from Mongolian side to EU in 2009 and 2010.
 
A milestone in the EU-Mongolia relations was the decision taken in 2006 for Mongolia to join the Asia-Europe Meeting (ASEM) process. Participation in ASEM brings Mongolia into the Asia-Europe political and economic cooperation framework and thus further strengthens our relationship. Mongolia participated, at 7th and 8th ASEM Summits.
 
The inclusion of Mongolia as a country of operation for the EBRD (European Bank for Reconstruction and Development) and the opening of the EBRD office in Ulaanbaatar in 2006 has further increased Europe-Mongolia cooperation.

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 was held in Ulaanbaatar on 11th of October of 2010.
 
EU - Mongolia Trade

The Trade and Co-operation Agreemententered 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. The EU is about to grant Mongolia the Market Economy status.
 
For Mongolia, the EU is one of its main trading partners and has lately been quoted as Mongolia’s third-largest trading partner. In 2009, the total trade value between the EU and Mongolia reached EUR 184 million. The main EU import commodities from Mongolia are cashmere, wool and related products. EU exports to Mongolia in 2009, totalling EUR 139 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
 
Partnership and Cooperation Agreement
 
The negotiations for the Partnership and Cooperation Agreement (PCA) were officially launched in September 2009. In December of 2010, the two sides have successfully concluded the negotiations and initialled Partnership and Cooperation Agreement. The new agreement will replace “The 1993 Mongolia-EU Trade and Cooperation Agreement”.
 
PCA will shape the future framework of cooperation between Mongolia and EU for years to come. The agreement involves practically all sectors of cooperation. Both side expect increased trade through PCA.

GSP+

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.

The EU has become Mongolia’s third biggest trading partner, and Mongolian exporters benefit from GSP+, which offers tariff-free entry into the EU markets on over 6200 products. In 2009, Mongolia-EU trade within this framework accounted for over EUR 10 Mln.