RESTRICTED  
  
WT/TPR/W/70  
9 October 2014  
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Trade Policy Review Body    
 
*In Original language only/En langue original e seulement/En el idioma original solamente . 
  MONGOLIA  
DRAFT MINUTES OF THE MEETING* HELD ON 24 AND 26 SEPTEMBER 2014 
Delegations are invited to submit factual corrections, if any, on their own statement to the 
Secretariat (Mrs Barbara Blanquart: barbara.blanquart@wto.org , or to tprd@wto.org ) no later 
than 23 October 2014. 
 
Organe d'examen des politiques commerciales 
 
MONGOLIE  
PROJET DE COMPTE RENDU DE LA RÉUNION* TENUE LES 24 ET 26 SEPTEMBRE 2014 
Les délégations sont invitées à soumettre leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat (Mme Barbara Blanquart: barbara.blanquart@wto.org , ou 
tprd@wto.org ) le 23 octobre 2014 au plus tard. 
 
Órgano de Examen de las Políticas Comerciales 
 
MONGOLIA  
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 24 Y 26 DE SEPTIEMBRE DE 2014 
Las delegaciones pueden enviar a la Secretaría (Sra. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 23 de octubre de 2014 las 
correcciones fácticas que deseen introducir en sus propias declaraciones. 
 
 
_______________ 
 WT/TPR/W/70 • Mongolia 
 
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TRADE POLICY REVIEW 
MONGOLIA  
DRAFT  MINUTES OF THE MEETING 
Chairperson: H.E. Mrs Mariam MD Salleh 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 3  
2  OPENING STATEMENT BY THE REPRESENTATIVE OF MONGOLIA .................................. 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 7  
4  STATEMENTS BY MEMBERS ........................................................................................ 10  
5  REPLIES BY THE REPRESENTATIVE OF MONGOLIA AND ADDITIONAL 
COMMENTS ..................................................................................................................... 24  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 28  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Mongolia are reproduced in document WT/TPR/M/297/Add.1 and will be available 
online at http://www.wto.org/englis h/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/W/70 • Mongolia 
 
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1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The second Trade Policy Review of Mongolia was held on 24 and 26 September 2014. The 
Chairperson H.E. Mrs Mariam MD Salleh (Malaysia)  welcomed the delegation of Mongolia headed 
by Mr Ochirbat Chuluunbat, Deputy Minister for Economic Development; the rest of the delegation 
from Ulaanbaatar; H.E. Mr. Vaanchig Purevdorj, Pe rmanent Representative of Mongolia to the WTO 
and his colleagues from the mission in Geneva; and the discussant, H.E. Mr Francisco Pirez Gordillo (Uruguay). 
1.2.  The Chairperson recalled the purpose of th e Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Mongolia was contained in document WT/TPR/G/297 and that of the WTO Secretariat in WT/TPR/S/297. 
1.3.  Mongolia adopted the alternative timeframe for its TPRB meeting. Questions by the following 
delegations had been submitted in writing at least four weeks in advance and had been 
transmitted to the delegation of Mongolia: China; Canada; the EU; Australia; Colombia; the United States; Turkey; Chinese Taipei; Brazil; Thailand; Japan; and Korea. The following delegation 
submitted written questions after the four -week deadline: the Russian Federation. 
1.4.  The last review of Mongolia took plac e in 2005 and much had happened since then. That 
Review had noted relatively modest economic growth of around 4% in the early 2000s based on 
agriculture and services. However, this Review noted that, in the past few years, Mongolia had 
been one of the fastest growing economies in th e world. Driven by increased production and 
exports of minerals, growth in GDP had been over 10% for the past three years as the economy quickly recovered from a recession in 2009 that re quired an IMF supported stand-by arrangement. 
Mongolia successfully exited that stand-by arrangement in October 2010.   
1.5.  Growth was likely to continue, although at a slower rate. While existing mines increased 
production and new ones come on stream brought many benefits, rapid growth also posed 
problems. Bringing the mineral deposits into production required a lot of investment and the 2012 
law on foreign investments in strategic sectors had caused some uncertainty and had contributed to a decline in investment. A new law on investment had been introduced in 2013 which was 
intended to address concerns relating to the 2012 law, as well as concerns about earlier 
legislation. However, the Chairperson had noted that many questions had been raised about the new and related laws and about investment generally. Hopefully, these questions were indicative of the interest of many countries to invest in Mongolia. 
1.6.  Investment in mining also depended on investment in transport infrastructure as well as in 
the mines themselves. With a low population density and harsh climate such investment was expensive for Mongolia. However, it already had a good telecommunications system and there 
were ambitious plans for rail and road developmen t. The realization of these plans could benefit 
from foreign investment and could help development in mining and other sectors. But getting value for money for the cost investment in infrastructure required an efficient and open 
Government system. 
1.7.  The reports and several delegations' questions had noted that, in general, Mongolia had low 
applied tariffs but import duties on some products were higher than the bound rates. Although this 
affected relatively few tariff lines, Members were interested to know the plans by Mongolia in 
addressing this discrepancy between applied and bo und tariffs as well as its import prohibitions. 
Members would also like to hear from Mongolia about its import and export regimes and the steps taken to improve their efficiency and reduce tradin g costs, as well as about any duties and charges 
applied to exports and imports. 
1.8.  The reports and questions from Members and the replies from Mongolia covered many issues. 
The Chairperson was sure that these would be touched upon in greater detail at their deliberations 
on the first and second day of the meeting. WT/TPR/W/70 • Mongolia 
 
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2  OPENING STATEMENT BY THE REPRESENTATIVE OF MONGOLIA (MR OCHIRBAT 
CHULUUNBAT) 
2.1.  At the outset, let me put on record my appreciation to all the delegates present here for 
showing an interest in Mongolia's trade policy through the questions submitted and we hope for a 
constructive exchange of views. 
2.2.  I would like to thank you Madam Chair, for your kind words of welcome and introduction to 
Mongolia's second Trade Policy Review. Special thanks to H.E. Mr. Fransisco Pirez Gordillo, 
Ambassador of Uruguay for accepting to be the discussant for our review. I would also like to 
thank the WTO Secretariat's team for their hard work in producing the report which provides a basis for our discussion. 
2.3.  I must mention that our government officials worked hard to prepare the responses to all the 
questions posed by the Members. The responses we re circulated to Members. Like other Members 
going through the Trade Policy Review, we were engaged in a lot of coordination work as questions cut across Ministries and agencies, despite the many constraints, not least of which is of course, 
time. We assure you that we put the necessary  effort in providing the written answers.  
Mongolia and the multilateral trading system 2.4.  Mongolia strongly believes in the principles and benefits of rules-based multilateral trading 
system in which the World Trade Organization plays a central role in ensuring transparency, 
inclusiveness and predictability. Mongolia remains fully committed to the goals and mission of the WTO. 
2.5.  Mongolia looks forward to the successful conc lusion of the Doha Round and considers that it 
is important to move forward to achieve successful implementation of the issues that were agreed 
during the 9th Ministerial Conference in Bali. Th e implementation of the Bali Package would make 
a contribution to consolidating the multilateral  trade regime thus supporting the expansion of 
global economy. 
2.6.  As a landlocked developing country, Mongo lia continues to be committed to freer trade and 
trade liberalization and, as such, she strives to find the right balance while improving the 
necessary legal basis.  
2.7.  As a Member of the WTO, Mongolia shares the view that the Trade Policy Review is an 
important process in promoting greater awarenes s and understanding of each Member's trade 
policies and practices, and the legitimate reason s behind them. These reviews provide a platform 
for Member to share policy initiatives and measures that are being taken to meet obligations under 
the Agreements.  
2.8.  For the second Trade Policy Review, Mongolia received close to 200 questions from 
12 Members. The queries covered investment policy and its reform, competition policy, domestic 
legal changes, government procurement, services liberalization, and tariff-related issues.  
Current economic overview 
2.9.  In 2013, the economy grew by 11.7% over the previous year; the inflation rate accounted for 
12.5%, the unemployment rate was 7.6%.  
2.10.  GDP per capita, as of last year, has seen a five-fold increase compared to the year of our 
first trade policy review (2005). Foreign trade turnover has substantially increased compared to 
2005, by about five times and accounted for US$11 billion; however, trade deficit has also 
increased reaching US$2.1 billion. Our exports make around 40% of GDP and imports-around 60%. The trade sector absorbs 12% of total workforce and is considered as high workforce 
absorbing sector playing a significant role in employment.  
2.11.  The Government of Mongolia is attributing great importance to intensifying the economic 
development, including through increasing public investment in major projects with government 
bonds and the Development Bank. It is expected to support economic growth in coming years. WT/TPR/W/70 • Mongolia 
 
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2.12.  Promoting development of the private sector has been one of the key objectives of the 
Government of Mongolia. In order to improve the legal environment, to direct public and private 
partnerships for economic development, the Concession Law was adopted in 2010. The Government implemented actions such as promoting private investment in infrastructure projects, 
transfer some of the government functions to the non-governmental organizations and 
professional associations. A particular attention was paid to privatization of state-owned enterprises and privatization plans are adopted for four years. 
2.13.  In 2013, Mongolia traded with 135 countries. The PR of China, the Russian Federation, the 
United States, Canada, the EU, Japan, and the Re public of Korea are our main trading partners, 
accounting for 90% of total trade.  
2.14.  Some of the Mongolian export items enjoy preferential tariffs under the GSP schemes of the 
U.S, the EU, Canada, Japan and the Russian Federation. From 2014, Mongolia is eligible to "GSP 
Plus" of European Commission on sustainable development and good governance. These enhance the possibilities to improve the access to these markets.  
2.15.  Most of the questions we received were regarding our investment environment and a New 
Investment Law, which was approved in 2013. This law replaced the controversial Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic 
Importance. The Government has made its best efforts to improve the investment environment.  
2.16.  Mining is one of the major sectors that plays an important role in the economy of the 
country. As of 2013, the share of the sector in the GDP accounted for 28%. To develop private sector driven, transparent, responsible mining sector and in order to create balanced and 
diversified economy in short and medium term, the Policy in the Mining Sector until 2025 was 
adopted by the Parliament this year.  
2.17.  The main foundation of Mongolia's economy is livestock husbandry; it plays an important 
role in the economy, employment and export revenu es of Mongolia. As of the end of 2013, close to 
28% of GDP were produced by the agricultural sector, of which 77.5% account for livestock husbandry. As well, 35% of the total labour force is  engaged in the agricultural sector and 7% of 
export income is contributed by the agricultural sector. In 2013, we counted the total of 45 million 
heads of livestock.  
2.18.  The Government of Mongolia continues to believe that trade liberalization plays and should 
play a vital role in improving the living standards of all people. From this point of view, the 
Government is working to make the necessary contribution to successful completion of the Doha 
Round in the near future.  
2.19.  The Government of Mongolia is of the view that all Members, large and small, should make 
a contribution to move the negotiations forward. Mongolia shares the view of and actively 
participates in the groups such as G-33, Small and Vulnerable Economies (SVEs), Recently Acceded Members (RAMs), and Net Food Importing Developing Countries.  
2.20.  Trade facilitation is an issue that has a particular importance in increasing trade especially 
for landlocked developing countries with small economies. The Government of Mongolia is pleased that an agreement is underway, waiting for a consensus. Mongolia is of the position to conclude the agreement at the earliest.  
2.21.  Taking this opportunity let me inform th e Members that an International Think-Tank of 
LLDCs was established in Mongolia and high-level events took place recently.  
2.22.  Mongolia is also working hard to integrate into the regional economy. Until now, it remained 
the only country that did not belong to any of the regional trade arrangements. We see regional 
trade agreements as useful complements to the multilateral trading system. Our first free trade agreement is being negotiated with Japan, and we are also working to accede to the Asia-Pacific 
Trade Agreement. The Government attentively foll ows the activities of the ASEAN, the APEC, the 
PECC, as well as the economic cooperation in the North-East and Central Asia. In the future, it is intended to ensure a more active particip ation in APEC through acceding to it.  WT/TPR/W/70 • Mongolia 
 
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2.23.  In summary, during the period under th e review, Mongolia had continued to pursue a 
generally liberal trade and economic policy through consolidating the accomplishments and promoting fair competition and creating a new structure of the economy, which rests on the pillars of competitive industries. The economic policies  of the country and its WTO compliance efforts 
were complementary. Mongolia continues to hope that its legitimate interests are heard and 
treated with due consideration and understanding. WT/TPR/W/70 • Mongolia 
 
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3  STATEMENT BY THE DISCUSSANT 
3.1.  Para comenzar quiero darle la bienvenida, a esta importante ocasión, a la delegación de 
Mongolia encabezada por su Excelencia, el Sr. Oc hirbat Chuluunbat, Vice Ministro de Desarrollo 
Económico. 
3.2.  También quiero agradecer a Mongolia y a la Secretaría por los informes de alta calidad que 
nos fueran presentados que serán una base muy importante para los intercambios que se darán durante estos dos días de examen. 
3.3.  Es un honor y un privilegio tener la oportunidad de ser el Ponente en este Segundo Examen 
de las Políticas Comerciales de Mongolia. Mis comentarios estarán enfocados en dos partes, la primera relacionada con el entorno económico, mientras que la segunda hará referencia al marco de las políticas comerciales y, en particular, en el análisis de algunas políticas sectoriales. Mi 
intención es contribuir de manera constructiva con la discusión en esta sección de alto nivel. 
3.4.  Debo expresar que la preparación de esta intervención ha sido muy enriquecedora por cuanto 
he podido conocer y apreciar más de cerca los diferentes avances de Mongolia, también me 
ayudaron a comprender de mejor manera algunos de los desafíos pasados y futuros que enfrenta 
este interesante país de aproximadamente 2.800.000 (dos millones ochocientas mil) personas. 
Entorno Económico 
3.5.  En cuanto al entorno económico corresponde destacar, tal como lo señala el Informe de la 
Secretaría, que el país examinado se ha resistido a aplicar medidas proteccionistas manteniendo a la vez y en términos generales un régimen abierto del comercio y las inversiones. 
3.6.  El crecimiento del PBI de Mongolia fue superior al 10% durante los últimos tres años, 
impulsado por el aumento de la producción y las exportaciones de minerales. Es probable que 
continúe el rápido desarrollo al aumentarse la producción de las minas existentes y cuando las nuevas se pongan en funcionamiento. Sobre este punto, el Informe de la Secretaría reitera que 
pueden surgir problemas por la dependencia en una estrecha base económica apoyada en 
minerales. 
3.7.  Es evidente que para hacer producir los depósitos de minerales se requiere de mucha 
inversión. La Ley del 2012 sobre las inversiones extranjeras en los sectores estratégicos causó 
cierta incertidumbre y contribuyó a una disminución de la inversión. Sin embargo, una nueva ley sobre la inversión introducida en el 2013 tiene como objetivo abordar las preocupaciones relacionadas con la ley del 2012, así como abordar las preocupaciones planteadas sobre la 
legislación anterior. 
3.8.  De los informes se destaca una serie de cambios que el Gobierno viene adoptando de manera 
de lograr una mejora sustancial en la competitividad de sus diferentes sectores económicos. La 
inversión extranjera directa ha contribuido en gran medida al crecimiento del país, por tal motivo 
el hecho de que las autoridades sigan trabajando de manera intensa para mejorar el régimen económico-comercial existente, es muy positivo. Como consecuencia, el país recibirá mayores 
beneficios y transferencia de tecnología a través de dichas inversiones, contribuyendo a los 
esfuerzos de seguir mejorando la calidad de vida de sus habitantes. En este contexto de apertura económica, la inversión extranjera ha jugado un rol crítico. Por lo tanto, sería interesante saber cuáles son las medidas que Mongolia está considerando para atraer mayor inversión extranjera. 
3.9.  Respecto a la necesidad de diversificar la base económica, algunos Miembros ya habían 
presentado sus comentarios y preguntas durante el Primer examen de las políticas comerciales de Mongolia en 2005, mientras que otras delegaciones reiteraron preguntas sobre el punto para este 
nuevo examen. En este sentido, es importante destacar que las autoridades están conscientes de 
esta dificultad que se puede plantear, tal es así que en el Informe del Gobierno de Mongolia se 
señala que una diversificación de sus exportaciones ayudará al país a tener un mejor desempeño 
de su economía.  WT/TPR/W/70 • Mongolia 
 
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3.10.  En esta línea, sería interesante escuchar a las autoridades los resultados que ha venido 
teniendo la implementación de la estrategia nacional de desarrollo integral de Mongolia establecida en el año 2008. 
3.11.  Otro aspecto de relevancia en el entorno económico es que el país ha venido adoptando una 
serie de leyes para lograr el fortalecimiento del marco de la política fiscal y la promoción de la 
consolidación fiscal, por lo que sería interesante conocer si dichas acciones que vienen siendo adoptadas han alcanzado los resultados esperados al día de la fecha. 
3.12.  En lo que respecta a los aranceles, el Informe de la Secretaría indica que Mongolia ha 
consolidado casi todas sus líneas al 20% siendo el promedio consolidado NMF de 17,7% comparado con el promedio aplicado NMF que es del 5%. Asimismo, se destaca que el país examinado aplica un tipo arancelario ad valorem  de un 5% a casi todos los bienes importados. 
Casi todas sus líneas arancelarias tienen aranceles aplicados bajos y los derechos de importación 
en algunos productos son mayores que los tipos consolidados, hecho que afecta a un reducido número de líneas arancelarias.  
3.13.  A pesar de ser una economía esencialmente impulsada por el mercado y que ha sido 
privatizada, había en Mongolia cerca de 100 empresas total o parcialmente de propiedad del Estado. Sin embargo, entre 2005 y 2011, cerca de 90 entidades fueron privatizadas, mientras que 
el proceso de privatización de varias compañías, entre ellas la línea aérea nacional (MIAT) y 
algunas plantas de energía, fue postergada. 
3.14.  Es de gran relevancia mencionar la importancia que Mongolia le atribuye al sistema 
multilateral como elemento de trascendencia en su vinculación con el comercio exterior del cual 
depende gran parte de su economía. En este sentido, Mongolia es un activo participante dentro del 
grupo de países sin litoral marítimo, además integra otros grupos como por ejemplo el de economías pequeñas y vulnerables, la coalición de l G-33 en materia de agricultura, miembros en 
desarrollo de Asia, Miembros de Reciente adhesión  (RAMs) y ha sido uno de los 40 Miembros que 
ha realizado la notificación de sus compromisos en Categoría A en materia de facilitación del comercio. 
3.15.  Por otra parte, Mongolia participa como observador en el Acuerdo Plurilateral de 
Contratación Pública de la OMC. 
3.16.  Finalmente, se comparte con el país examinado lo expresado respecto a la importancia de 
poder alcanzar de manera exitosa la culminación de la Ronda de Doha, asimismo se entiende que 
esto puede llegar a generar un impacto positivo de los Miembros de la OMC en sus esfuerzos para 
mejorar las condiciones de vida de las personas. En particular, las reformas en el sector agrícola mundial. 
Régimen de la Política Comercial – Políticas Sectoriales 
3.17.  Con respecto a la segunda parte de mi intervención relacionada con el marco de las políticas 
comerciales, y al análisis de algunos de los diferentes sectores de la economía de Mongolia, 
corresponde señalar que el Gobierno ha identificado como áreas prioritarias para su desarrollo y 
para la captación de inversión extranjera directa, a la minería; la información y tecnología; la producción agrícola y el turismo, para los cuales describe en su informe una serie de leyes que apuntan a su promoción y desarrollo. 
3.18.  En cuanto a la agricultura, representa un tercio del empleo y cerca del 15% del PBI de 
Mongolia, siendo la cachemira, el pelo de cabra peinado y el cuero (de cabras y ovejas), sus principales productos agrícolas de exportación. Por otro lado se desprende del Informe de la 
Secretaría la existencia de un déficit comercial para productos agrícolas. 
3.19.  Es de mencionar que si bien Mongolia cuenta con tierras arables, el clima duro y difícil 
impide por el momento un mejor provecho de las mismas. Por lo que se ve con agrado las 
distintas medidas que se vienen implementando en orden de reducir el impacto negativo sobre la 
agricultura que produce el severo clima de Mongolia. En esta línea, la asistencia técnica que el país pueda recibir seguramente contribuirá a mejorar la productividad de manera sostenible superando los obstáculos que hoy el clima interpone. WT/TPR/W/70 • Mongolia 
 
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3.20.  Dada la importancia del sector y la población del país, sería interesante conocer por parte 
de las autoridades mongolas algunos comentarios respecto a los objetivos de mejorar la seguridad alimentaria así como el desarrollo del medio rural, planes estos que están enmarcados en la estrategia de desarrollo del sector de la agricultura (2006-2015), el programa nacional para la 
seguridad alimentaria (2009-2016), la tercera campaña de cultivos (2008-2010) y el programa de 
ganadería (2010-2021).  
3.21.  En relación a los sectores minería y energía, es de mencionar que conforme al Informe de la 
Secretaría la minería representó en el 2012 más del 18% del PBI mientras que ese mismo año las 
exportaciones de minerales representaron cerca del 89% del total de productos exportados, siendo además uno de los mayores productores de varios minerales como carbón, cobre, minerales metálicos y fluorita. Con las explotaciones de nuevos depósitos de minerales el país espera que el 
sector siga creciendo. 
3.22.  De acuerdo al Informe de la Secretaría, la minería ilegal ha aumentado, esto tiene como 
consecuencia que se evita el pago de regalías así como el cumplimiento de leyes 
medioambientales. Sobre este punto, sería interesante conocer las medidas que han sido tomadas 
o planificadas por las autoridades para reducir esta práctica que afecta la economía del país. 
3.23.  Hay otros sectores como el de energía, el sector industrial y el desarrollo de zonas francas 
así como en el sector de los servicios en particular turismo y transporte que a los Miembros les 
gustaría abordar con más detalles. 
3.24.  Con respecto a la propiedad intelectual, es importante destacar los avances que Mongolia 
viene realizando, conforme al Índice Mundial de Innovación 2014 se ubica en el lugar 56 entre 143 
países. En esta área, sería interesante escuchar la experiencia de Mongolia en el desarrollo y 
protección de la propiedad intelectual. 
Conclusiones 
3.25.  Entrando en la parte final de mi interven ción en este primer día, quiero señalar algunos 
puntos que pueden ser considerados en un análisis futuro por las autoridades.  
3.26.  De todo el material analizado en esta ocasión se puede concluir que Mongolia ha realizado 
enormes avances desde el último examen de sus políticas comerciales en 2005. Como todo en la 
vida y a pesar de los éxitos, también hay desafíos que enfrentar y resolver en un futuro de manera 
a mantener y mejorar el porcentaje de crecimiento anual que el país viene teniendo, aumentar la competitividad de sus sectores comerciales y lograr una mejora del desarrollo inclusivo de toda la 
sociedad. En este sentido, es positivo ver las diferentes reformas que Mongolia ha venido 
realizando desde 2005 hasta el día de la fecha, que apuntan a resolver y fortalecer aquellas áreas que hoy en día podrían ser identificadas como menos fuertes.  
3.27.  Por ejemplo: la diversificación de la economía, los problemas generados por la falta de 
infraestructura, la necesidad de reducir los altos costos del transporte (aquí se beneficiaría de alcanzarse acuerdos con los países linderos), y captar mayores inversiones que provean al país de 
transferencia de tecnología y mejores beneficios para el país. 
3.28.  Ha sido un gran privilegio compartir con ustedes mis comentarios como Ponente en este 
primer día del segundo examen de las políticas comerciales de Mongolia.  
3.29.  Desgraciadamente, el escaso tiempo no es suficiente para analizar con mayor profundidad 
el proceso de apertura, integración y participación en el comercio internacional que Mongolia viene 
realizando desde un tiempo a esta parte.  
3.30.  Estoy convencido de que estos días de ejercicio serán de suma importancia para 
familiarizarnos aún más con la dinámica de este increíble país. Al mismo tiempo, considero será 
una instancia de gran utilidad para las autoridades mongolas en su proceso interno de reformas. 
3.31.  Agradezco una vez más esta oportunidad y le deseo a Mongolia un exitoso ejercicio. WT/TPR/W/70 • Mongolia 
 
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4  STATEMENTS BY MEMBERS 
CHINA 4.1.  China is glad to see that Mongolia, as our important neighbour, has achieved remarkable 
economic and social development since its last review in 2005. We are even more pleased to 
witness that the economic growth has benefitted the people of Mongolia, by raising their living 
standards and reducing the unemployment rate . We commend Mongolia for taking its WTO 
commitments seriously and its continuous effort to liberalize its trade and investment 
environment. For example, Mongolia has kept most of the applied tariff rates lower than the bond 
rates, and has upgraded the customs information system which has greatly enhanced trade facilitation during the period under review. We en courage the Government of Mongolia to continue 
in this direction. 
4.2.  Turning to the bilateral front, Mongolia and China, with geographical proximity, cultural 
affinity and economic complementarity, always enjoy close relationships in all aspects including trade and investment. We are currently the largest trading partner and investor of Mongolia, and 
notably, our investment outflow to Mongolia is accelerating. Looking ahead, we are willing to 
deepen and extend our cooperation in boarder areas,  and actively engage in Mongolia's efforts to 
diverse from its resource-dependent economy. Just last month, H.E. President Xi Jinping of China 
visited Mongolia. During his visit, both sides decided to upgrade the China-Mongolia relations to a 
comprehensive strategic partnership which surely will bring our bilateral relations to a new level. 
4.3.  At this occasion, China would encourage Mongolia to further facilitate foreign investment in 
areas of agriculture, mining, transportation, elec tric power, and renewable energy. In particular, 
we look forward to working closely with the Mongolian Government on their infrastructure to 
improve connectivity and facilitate trade. We also believe that it would be in the interests of the Government of Mongolia to simplify approval procedures for foreign investment and further 
improve transparency of its investment regime so as to protect the legitimate rights and interests 
of foreign investors.  
CANADA 
4.4.  Allow me to begin by saying a few words about Canada and Mongolia's bilateral relationship, 
before moving on to the broader trade and economic environment. 
4.5.  Canada and Mongolia have built a strong and dynamic partnership based on shared values, 
including mutual recognition of the importance of open and fair trade to economic growth and 
prosperity. This understanding underscores our important bilateral relationship and extends to the 
WTO. 
4.6.  Our bilateral relationship has its roots in trade and investment. Canada was one of the first 
"Third Neighbour" countries to participate in exploration of Mongolia's mineral resources and today 
we are one of the top foreign investors in the country. Canada accounted for the third highest FDI inflows by a single country to Mongolia betw een 1990 and 2012, increasing by 22% over the 
previous year to reach US$1.9 billion in 2012. 
4.7.  I would like to commend the efforts of Mongolia in transitioning to a market-oriented 
democracy in a peaceful fashion in just over 20 years. This is particularly remarkable given Mongolia's geographic challenges such as a lack of access to open seas, vast distances and a harsh 
climate, the latter a challenge Canada can certainly relate to. 
4.8.  The Canada-Mongolia bilateral relationship could move to a new level with the successful 
conclusion of a bilateral Foreign Investment Promotion and Protection Agreement. Our negotiating 
teams have re-engaged recently and we thank Mo ngolia for their latest communication on the 
outstanding issues regarding the Agreement. We ho pe to bring negotiations to conclusion in the 
near future. 
4.9.  Canada is committed to the growth of our relationship with Mongolia and we welcome the 
constructive dialogue in which our Governments have engaged over the years. It is in the spirit of WT/TPR/W/70 • Mongolia 
 
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this dialogue that I would like to highlight three broad themes, addressing issues which I believe 
could foster greater economic participation by Mongolia in the global economy. 
4.10.  First, I would like to commend the efforts of Mongolia to liberalize the foreign investment 
approval regime by repealing the "Strategic Entities Foreign Investment Law 2012" and replacing it 
with "Investment Law 2013". This should ease the approval process for foreign investments in 
Mongolia in two key respects. First, the law provides for a consistent application of rules across industry sectors and outlines a consistent role for Government in the decision-making process. 
Second, the law includes a supermajority clause as a prerequisite for any amendment or repeal, 
which provides considerable and much sought after stability in Mongolia's legislative framework governing investment. However, th e new Law, which has also repealed the previous "Investment 
Law 1993", has significantly narrowed the number and range of stabilized and domestic investors 
through minimum paid-in capital requirements. More over, other pieces of legislation provide for a 
margin of preference for domestic suppliers of goods and services. In light of slumping economic growth and a drop in foreign investment, increased stability for private investment, both foreign 
and domestic, will help Mongolia to return to a robust growth path. 
4.11.  Second, Canada recognizes and supports th e need for Mongolia to diversify its economy to 
promote sustainable growth. One way to do so would be to further open areas of the economy to 
private sector participation by reducing Government participation, including with respect to mineral 
exploration and production, power generation, and railway transportation. In the last 18 months, 
there has been notable increase in State's role in the economy of Mongolia with 14 new state-owned enterprises created since 2012. A ccording to some estimates, the assets of 
state-owned enterprises reached 33% of GDP at the end of 2012, while their combined profitability 
is reported to be near zero. Canadian market participants report that Mongolian legislation and regulations governing trade and investment often lack clear definitions, allowing for subjective and 
inconsistent interpretation by the authorities. Diminishing the State's role in the economy through 
reduction of the State ownership of assets, as well as increasing clarity and transparency in legislation and regulation, will help reverse the outflow of foreign investment as well as free up the 
important macroeconomic levers in order for the Government to advance its "Action Plan 
2012-2016". 
4.12.  Third, as Mongolia seeks to modernize its hard infrastructure, particularly in rail transport, 
Canadian companies have reported a rather unorthodox treatment in regards to participation in 
public tenders. I cannot underscore enough the im portance of predictability, transparency and 
fairness in government procurement procedures. These help ensure best value for Government resources, increase the confidence of suppliers and underline the importance of the rule of law. 
Further, a fair and transparent process is likely to attract better and more technologically 
advanced suppliers to Mongolia, thereby contributing to the effective development of the country's infrastructure. 
4.13.  Canada has submitted written questions that reflect our concerns regarding a number of 
trade-policy related measures that may impede market access or otherwise constrain mutually beneficial growth in trade and investment between our two countries. We look forward to Mongolia's responses, and more generally to a co nstructive exchange of views on all aspects of 
Mongolia's trade policy.  
EUROPEAN
 UNION 
4.14.  This is the second review for Mongolia. During the years under review, Mongolia has 
continued its progress towards free market, free trade and diversification of its economy. Certainly 
there is still room for improvement and we have seen some difficulties in the investment environment particularly in the last two years but, considered in perspective, we should commend 
Mongolia for its efforts. 
4.15.  While the Russian Federation and the People's  Republic of China are the main trade partners 
for Mongolia accounting for more than 70% of Mongolian total foreign trade, the EU represents, nevertheless, an important trading partner accounting for about 9.3% of Mongolia total trade. 
4.16.  A word on the EU's bilateral relationship with Mongolia. Formal relations between the EU 
and Mongolia are overall positive and, in 2013, we signed the EU-Mongolia Partnership Agreement WT/TPR/W/70 • Mongolia 
 
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that provides a comprehensive framework for enhancing relations in political, economic and 
sectoral areas such as agriculture people-to-people, research and innovation, environment, culture and education. In the field of trade, the EU and Mo ngolia have agreed to cooperate in the following 
priority areas: (1) diversification of the economy and of its export base; (2) stable and predictable 
business and investment environment; and (3) raw materials. 
4.17.  Regarding the diversification of its economy, Mongolia became eligible to GSP+ in 2006 
already. The EU congratulates Mongolia on qual ifying for the GSP+ also under the reformed 
EU-GSP as from 1 January 2014 and invites the count ry to ensure effective implementation of the 
relevant international conventions in order to keep  those preferences. Part of the EU development 
assistance (€65 million for 2014-2020) is in support of SMEs and approximation of EU standards which, in the end, should help strengthen Mongolia's production and export capabilities. 
4.18.  At a multilateral level, the EU praises the positive recognitions that Mongolia attributes to 
the Trade Facilitation Agreement reached in Bali and congratulates Mongolia for having notified its Category A commitments in July. 
4.19.  Turning now to Mongolia's request to receive additional technical assistance to ensure the 
full implementation of the agreements, the EU wo uld like to underline that it stands ready to 
support the Government in trade-related capacity areas and considers it as a priority of our 
relations. However, we are concerned by the fact that the existing organizational structure of the 
Ministry of Economic Development makes it very  difficult to "absorb" additional technical 
assistance programmes. We understand that the trade portfolio is managed by the department of economic cooperation, loan and aid policy which seems to be understaffed. Therefore, we would 
invite Mongolia to indicate whether it intends to "strengthen" the operational resources allocated to 
trade in the Ministry of Economic Development and to clarify its overarching trade policy strategy so that the EU and other donors could more easily earmark funds in this area. 
4.20.  Coming now to our second priority with Mongolia, that is to reach a stable and predictable 
business and investment environment, I would like to  underline first of all the need of an increased 
transparency of the import procedures put in place. This is an issue that the EU has been trying to 
clarify for a long time but unfortunately we ha ve not yet received the necessary answers. We 
would recall Mongolia that replies are an important aspect of any TPR and that, more broadly, it is in the interest of Mongolia to set up a business environment that is transparent and stable enough. 
In some areas, it seems that the environment still raises questions from companies and we would 
encourage Mongolia to work with us in the coming months to provide more detailed and reassuring 
answers, for instant on issues like import licensing or water services. 
4.21.  The EU welcomes the improvement brought to the investment framework in 2013; it should 
contribute to reassure and bring back investors. The EU believes that the steps taken to approve 
the largest public-private partnership globally in  the energy sector, the so-called combined heat 
and power plant CHP5, represent a visible and positive decision that will help Mongolia restore the 
confidence of the international investors. 
4.22.  Regarding our third priority with Mongolia, we are interested in receiving more clarity on the 
new Mineral Law and we stand ready to exchange expertise on environment and safety regulations 
in the mining sector. 
4.23.  Concluding, the EU is confident that this TPR will help Mongolia in reviewing its policies so as 
to ensure that they are most favourable for attaining its economic objectives while respecting their international commitments in this forum. 
AUSTRALIA 
4.24.  We have been pleased to witness Mongolia's rapid development of recent years, powered by 
strong economic growth which we hope to see co ntinue for the benefit of all Mongolia's people. 
4.25.  Australia's bilateral relationship with Mongolia is strong, particularly in the area of mining 
investment, development cooperation, education, and people-to-people links. WT/TPR/W/70 • Mongolia 
 
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4.26.  Education has been an important part of our development assistance programme in 
Mongolia, it is important in promoting and sustaining economic growth and reducing poverty. Since 1995, the Australian Government has supported over 350 Mongolians and their families to study in 
Australia on postgraduate scholarships, with many graduates going on to achieve success in 
government and business in Mongolia. In recognition of the success of this programme, Australia 
announced in March that, from this year, it would be increasing the number of postgraduate scholarships it provided to Mongolians each year from 38 to 43. 
4.27.  Like Mongolia, Australia is a resource-rich country whose mining industry has undergone 
rapid expansion in recent years. Australia is a ssisting the Mongolian Government to help ensure 
that the benefits of the timing sector are realized for the entire population. 
4.28.  If any country wants to make the most out of its resources, good governance and a stable 
regulatory and investment climate are crucial. Australia was pleased to announce earlier this year 
the Australia-Mongolia Extractives Program, which will help the Mongolian Government to strengthen governance and transparency in the mining sector, level the playing field for both 
domestic and foreign investors, and improve access for Mongolians to technical and vocational 
education, training and jobs. 
4.29.  Foreign investment has played an important role in Australia's own economic growth, 
particularly in the mining industry. Australia welcomes recent efforts by the Mongolian Government 
to improve Mongolia's foreign investment climate, particularly the repeal of the Strategic Entities Foreign Investment Law and the passing of the new investment law and minerals policy at the end of 2013. Noting the importance of maintaining tr ansparent and predictable rules, we encourage 
Mongolia to take further steps to support fore ign investment and promote investor confidence. 
This could include improving the speed and transp arency of decision-making as well as enhanced 
consultation with investors on draft legislation. In this regard, we welcome the establishment of 
Invest Mongolia as a separate agen cy to promote foreign investment. 
4.30.  Australian investors have a significant stake, alongside the Government of Mongolia, in the 
US$6.5 billion Oyu Tolgoi copper and gold mine, the largest single investment in Mongolia's 
history. A joint venture between Rio Tinto and the Mongolian Government, Oyu Tolgoi is expected 
to account for between 20 and 30% of Mongolia's GDP once it starts full commercial ore production. Australia encourages the Mongolian Government to exercise every effort to reach an agreement on financing of Stage 2 of Oyu Tolgoi. 
4.31.  Australia thanks Mongolia for its notification of Category A commitments under the 
Agreement on Trade Facilitation. Achieving progress on the WTO Agreement on Trade Facilitation and development of a post-Bali work programme in these areas is of utmost importance to the 
ongoing success of the multilateral trading system. We also encourage the Mongolian Government 
to address the concerns of foreign businesses around restrictions on freedom of movement of foreign nationals, and the use of the criminal justice system to resolve commercial disputes. 
4.32.  Australia notes that high levels of inflation can diminish investment returns and negatively 
affect investor confidence. Australia recognizes the step taken by the Bank of Mongolia to raise interest rates in 2012, which brought down inflat ion. Noting the continued persistence of high 
levels of inflation in the economy, we encourage the Bank of Mongolia and the Mongolian 
Government to work together to bring inflation down further, including by undertaking further 
regulatory reform to free up markets and increase the capacity of the Mongolian economy. 
COLOMBIA 
4.33.  Mongolia realiza su segundo examen de política comercial en medio de resultados 
económicos favorables: alto crecimiento económico, aumentos sustanciales en el PIB per cápita, bajo desempleo y mejoras en el nivel de vida. Todo esto impulsado por la inversión y el comercio 
en el sector de los minerales y en el marco de grandes reformas estructurales y de un régimen de 
comercio abierto. 
4.34.  La continuidad de estos positivos resultados dependerá en gran medida de cómo Mongolia 
enfrente importantes desafíos estructurales: diversificar su economía altamente dependiente del 
sector de explotación de minas y diversificar igualmente sus socios comerciales: en 2012, el 84% WT/TPR/W/70 • Mongolia 
 
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de sus exportaciones estaban relacionadas con un solo sector, el de la minería y con un solo 
mercado, China, que adquiría el 92% de esas exportaciones; y mejorar la infraestructura, particularmente en el sector de transporte por carretera y ferrocarril. La Estrategia Global de Desarrollo Nacional de 2008 y el amplio proceso de reformas acometido durante el proceso de 
examen son importantes iniciativas que contribuyen a hacer frente a estos desafíos. 
4.35.  Durante el período objeto de examen, Mongolia ha adoptado medidas que facilitan el 
comercio. Destacamos y celebramos el establecimiento del Sistema Automatizado de Información 
Aduanera (CASI) y el pago en línea de los derechos de aduana, medida que permitió disminuir el 
plazo para el despacho de 3,06 horas a 23 minutos. Estas medidas, así como la implementación a futuro del Acuerdo de Facilitación al Comercio tendrán un positivo impacto para Mongolia, como quiera que al ser país sin litoral sus costos comerciales son más elevados. 
4.36.  A pesar de los avances respecto al anterior examen de política comercial realizado en 2005, 
persisten algunas medidas restrictivas al comercio que consideramos pertinente mencionar en este examen: 
 A nivel arancelario, la persistencia de 60 líneas arancelarias con un tipo aplicado superior 
al consolidado. 
 La prohibición de importaciones de varios productos como el alcohol etílico y las licencias 
no automáticas para algunos productos como los animales reproductores. 
 Al alto número de normas técnicas obligatorias, alrededor de 3 000, que no se ajustan a 
las normas internacionales. 
4.37.  De otra parte, nos llama la atención que Mongolia sea el único país de la OMC que no 
participe en ningún acuerdo comercial regional con otros países. Ya lo mencionaba el informe 
sobre comercio mundial de 2011 de la OMC, indicado que Mongolia era la excepción en una tendencia cada vez más creciente a negociar acuerdos comerciales bilaterales, regionales, 
plurilaterales. Nos preguntamos si el explorar estas esferas de la política comercial, podrían 
contribuir a una mayor integración de Mongolia a la economía mundial. En el marco de la OMC, encontramos a su vez que Mongolia no ha sido parte ni tercero en ninguna diferencia examinada 
en el marco del mecanismo de solución de diferencias; no ha adoptado ninguna medida 
antidumping, ni de salvaguardia y no ha establecido una autoridad investigadora para aplicar medidas de defensa comercial. 
4.38.  Para concluir, deseamos a Mongolia éxitos en su examen de política comercial y los 
alentamos a proseguir en sus esfuerzos por reducir la dependencia del sector de explotación de 
minas, por lograr un desarrollo sostenible a largo plazo y por crear una economía competitiva y diversificada. En el logro de estos objetivos serán fundamentales los programas gubernamentales 
relacionados con la creación de infraestructura, el aumento en el número de productos de 
exportación y la creación de un entorno favorable a la IED. 
UNITED
 STATES 
4.39.  In the 17 years since it acceded to the WTO, Mongolia has recognized the importance of 
market-oriented economic development, as eviden ced by its focused efforts to promote economic 
growth, as well as its recognition of the need for increased transparency. Open and transparent trade and investment regimes will further enha nce the business environment in Mongolia and 
improve Mongolia's attractiveness to its trading partners and foreign investors. We recognize the 
particular challenges that landlocked developing countries (LLDCs) face in participating in international trade and note that the United States is committed to close cooperation with LLDCs 
to address such challenges and, specifically, to continuing to work hard to advance trade and 
economic ties with Mongolia. 
4.40.  We took particular note of Mongolia's discussion of the importance of trade facilitation to 
landlocked developing countries. We hope that the actions of a few will not continue to block the 
benefits of the Trade Facilitation Agreement to the many, including many developing countries. With regard to the Trade Facilitation Agreement, we also thank Mongolia for its hard work and commitment in submitting its Category A notification. WT/TPR/W/70 • Mongolia 
 
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4.41.  Trade between Mongolia and the United States has grown in recent years. In 2005, when 
Mongolia's first Trade Policy Review took place, total two-way trade in goods stood at US$166 million. By 2012, this figure had increased to a high of US$707 million before declining in 
2013. In the coming years, further growth in trade with Mongolia will likely be affected significantly 
by how well Mongolia handles its economic engine and its biggest economic challenge – the mining 
sector. We encourage Mongolia to figure out how to manage the development of its mineral resources in a manner that will ensure steady growth. It is well-known that the mining sector is 
the key driver of Mongolia's economy. It is Mongolia's major source of exports and foreign direct 
investment, and many of Mongolia's imports also feed the mining sector. Since 2010, Mongolia has 
experienced double-digit GDP grow th, led by higher commodity prices for copper, gold, zinc, coal 
and other minerals and by large capital inflows su pporting Mongolia's pursuit of world-class mining 
development projects.   
4.42.  Mongolia's economy has achieved this growth despite a number of problematic challenges 
that impede economic development. These includ e inadequate transparency in regulatory and 
legislative processes, weak rule of law, corruption and frequent abuse of inspection, and permitting 
and licensing regimes to protect existing state and private sector interests. The Mongolian government's economic policymaking has often been unpredictable, and almost always, it has 
lacked the transparency that foreign investors and traders need and expect in today's global 
trading system. 
4.43.  For example, in May 2012, Mongolia's Parliament hastily passed the Strategic Entities 
Foreign Investment Law, apparently in reaction to  an attempt by a foreign state-owned enterprise 
to gain a majority interest in a coal company. Unfortunately, this law created a great deal of 
uncertainty about Mongolia's investment climate. In the aftermath, implementing regulations were 
delayed, companies reported that they could neithe r register nor complete permitting actions, and 
investors openly questioned whether or not Mongolia was serious about attracting foreign direct 
investment (FDI). Following a significant downturn  in FDI in 2012 and 2013, Mongolia's Parliament 
passed a new investment law in October 2013, which has started to win back investor confidence. 
While it is hoped that some vague language in the new investment law will soon be clarified, key 
provisions in this law include its equal treatment of domestic and foreign investors and its provisions regarding tax stability. 
4.44.  Another example involves the ongoing amendment process to Mongolia's 2006 Minerals 
Law, which, among other things, sets forth the regime for issuing exploration and mining licenses. 
In 2010, after the President of Mongolia criticized the existing minerals licensing regime, Mongolia 
embarked on a process to amend the entire law.  This process has produced numerous proposed 
amendments. While changes to important laws often take time, in this case the lengthy 
amendment process has adversely affected the mi ning sector. Even though the Minerals Law 
remains in force, officials at all levels of Government now delay or even refuse to process normal 
requests for extending or issuing exploration and mining licenses, ostensibly out of concern that 
actions taken under the current law might eventually become invalid or require alteration under the new law being considered. The effect has been to generate long and costly bureaucratic delays in several commercial sectors, which has increase d investment risk. Many investors are hopeful 
that Parliament's January 2014 adoption of a new Stat e Minerals Policy will lead to greater stability 
in the mining sector and sound amendments to the Minerals Law. 
4.45.  Another problematic area involves the tendering process under Mongolia's Public 
Procurement Law. Recently, companies from a number of countries, including the United States, 
have expressed serious concerns about inadequate  transparency and lack of fairness in this 
process.   
4.46.  We are encouraged that the Mongolian Government took an important step toward 
addressing transparency and corruption concerns in September 2013 when it signed an agreement 
with the United States promoting legislative and regulatory transparency in matters affecting trade and investment and calling for adherence to anti-b ribery and anti-corruption principles. While the 
Mongolian Parliament still must ratify this agreement, once it is in effect and has been 
implemented, it should enhance not only trade and investment but also create an even more attractive business environment in Mongolia. 
4.47.  In conclusion, we look forward to continuing our work with Mongolia to expand the 
U.S.-Mongolia trade and investment relationship. WT/TPR/W/70 • Mongolia 
 
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TURKEY 
4.48.  We observe that since its last trade revi ew, Mongolia has achieved successful GDP and trade 
growth as well as macroeconomic performance. Acco rding to the data of 2013, its capita per GDP 
has more than doubled in the last five years. Unemployment also fell from 11.6% in 2009 to 7.6% 
in 2013. Despite the sluggish performance of it s trade volume in 2013, exports of Mongolia 
reached US$4.27 billion, representing 37.1% of its GDP, while its imports reached US$6.36 billion. Furthermore, trade deficit decreased by 13% in 2013 compared to 2012. 
4.49.  In this context, although its economic growth is highly dependent on the exports of 
minerals, and it is subject to the fluctuations in the global mineral markets, Mongolia recently managed to minimize the negative outcomes of gl obal economic crisis and put into place a rapid 
recovery and continued substantial economic growth since 2010. 
4.50.  Although being a small economy, Mongolia i s  a  c o u n t r y  i n  f a v o u r  o f  a n  o p e n  t r a d e  a n d  
i n v e s t m e n t  r e g i m e  w i t h  a  t r a d e  v o l u m e  m o r e  t h a n  9 0 %  o f  i t s  G D P .  T h e  c o u n t r y  h a s  a  r a t h e r  simple tariff regime having no tariff escalation or tariff peak, and for most of the lines the applied 
rates are lower than the bound rates. To diversify its economy and to minimize the effects of 
fluctuations of the price and export volume of the minerals, Mongolia is also well aware of the importance of a private sector-led, high-tech manufacturing and services sector. 
4.51.  In this regard, the Comprehensive National Development Strategy of Mongolia aims at 
increasing exports of processed products rather than minerals and raw materials of animal origin. Establishment of the Development Bank of Mongolia in 2011 will also be helpful in diversifying its exports. 
4.52.  We are also of the view that the Govern ment's recent legislative steps such as the new 
Foreign Investment Law, the newly introduced Fiscal Stability Law, the Integrated Budget Law, the Social Welfare Law are also important instruments in improving its overall trade and economic 
performance and in restoring confidence to its investment environment.  
4.53.  We are also happy to see that Mongolia is also dedicated to review its business 
environment, to reduce red tape, to simplify its customs procedures such as the post clearance 
customs control and the submission of electron ic documents and electronic payments system. 
4.54.  Mongolia's recent regional trade initiatives such as the Asia-Pacific Trade Agreement and the 
negotiation of an economic partnership agreement with Japan are important steps in further liberalizing its overall trade regime. 
4.55.  That being said, we wish to mention that, as for all Members, there is still room for 
improvement in its trade and economic policy framew ork. In this respect, the Secretariat report 
underlines the high dependency on minerals of exports to a single market and its application of 
non-aligned standards such as mandatory technical requirements and the diminishing number of 
inspections conducted in recent years regarding intellectual property rights and the unnecessary licences applied in foreign trade. 
4.56.  As also stated in the Government report, Mongolia can also improve its institutional trade 
policy making capacity and enhance its transparency  by publishing the necessary legislation of the 
WTO Agreements. 
4.57.  When it comes to bilateral relations, Tu rkey has been one of the strong supporter of 
Mongolia since the collapse of the planning syst em more than two decades ago and Turkey is 
helping its transition from planning to the market system. We currently enjoy excellent political and economic relations with Mongolia although our economic relations are under our potential.  
4.58.  Turkish technical cooperation and development of agencies is quite active in Mongolia and is 
actively cooperating with the Mongolian Government in several social and economic sectors. WT/TPR/W/70 • Mongolia 
 
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CHINESE  TAPEI 
4.59.  Looking back at Mongolia's economic performance over the last few years, we see that it 
recovered well after the 2008 global financial crisis, and it has enjoyed a high level of economic growth at an average of 14% annually since 2011. Furthermore, several new laws have been 
introduced in 2013 in the areas of investment, fiscal stability, integrated budget, social welfare and 
customs reform, which could produce greater transparency in law enforcement and help to attract more foreign investment in the future. 
4.60.  Mongolia's main exports are products of natural resources such as mining, which account for 
28% of its GDP. The second largest exporting sector is livestock agriculture, with a similar share of 
GDP. We also note that the main destination for these exports is its closest neighbour, China. We would suggest, therefore, that Mongolia might like to encourage its industries to widen the scope 
of their export product lines and reach out to new export markets in order to increase the potential 
for expansion. 
4.61.  It would appear that the main challenges facing Mongolia's economy today are the external 
imbalances caused by a rapid decline in the amount of inward foreign direct investment and the 
weakening of some of its mineral exports. And, as  I mentioned before, Mongolia's export market is 
very concentrated and reliant at present on just one particular country. Aside from these concerns, 
the latest forecasts are for economic growth to moderate in 2014 and remain broadly stable in 
2015, for inflation to decline, and for the current account balance to improve over the next two years, assuming appropriate policies are applied. This all suggests that Mongolia's main policy priorities should be to address pressures on its balance of payments and foreign exchange 
reserves, and to generally tighten fiscal and moneta ry policies towards gaining economic stability. 
4.62.  Regarding bilateral relationship between Mongolia and the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu, the total value of two-way trade between us amounted to 
around US$23 million in 2013. The total amount of investment from our private sectors into 
Mongolia stands cumulatively at about US$20 million. We have a trade and economic representative office in Ulaanbaatar and Mongolia has the same in Taipei. All-in-all, a good 
relationship exists between us in terms of trade and economic affairs. 
4.63.  My delegation has already submitted several written questions to Mongolia in advance, on 
such topics as the economic environment, FD I, regional and bilateral trade agreements, 
government procurement, and rail transport. We  are grateful to Mongolia for preparing the 
answers to these questions. We would also like to encourage it to continue to maintain an open 
trade regime and to further tighten fiscal and monetary policies in its Action Plan for 2012-2016. And, last but not least, we look forward to Mongolia joining the GPA as it promised at the time of 
its WTO accession. 
BRAZIL 4.64.  It is a matter of great satisfaction for Braz il to participate in this Trade Policy Review of 
Mongolia. Brazil's commitment to Mongolia may be observed by the number of cooperation 
instruments, comprising different fields, which have been negotiated by the countries over the last years. 
4.65.  Since Mongolian first Trade Policy Review in 2005, its economy has grown substantially, 
despite some growth fluctuation during this period. There was also a considerable progress 
towards improving living standards. 
4.66.  According to the Secretariat report, Mongolia has resisted protectionist pressures and 
continued to maintain a generally open trade and investment regime. We see it as a clear 
commitment of Mongolia to the multilateral trading system. 
4.67.  Trade flows between Brazil and Mongolia have also intensified since Mongolia's first Trade 
Policy Review in 2005. Despite this, it remains at relatively unstable and modest levels. In this 
sense, we believe that bilateral trade is well below its potential and could be further expanded, both in terms of value and diversification. WT/TPR/W/70 • Mongolia 
 
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4.68.  In what concerns direct investment between our countries, it is still a field to be strongly 
developed, and we hope that Mongolia's new Investment Law of 2013 will help our countries achieve this goal. 
4.69.  As regards non-tariff measures, although Mongolia has the objective of increasing the 
number of national standards that are identical to international standards, we note that currently 
only 14.6% of its agricultural standards are aligned with international standards. In this sense, we recall that domestic standards shall only be applied when in conformity with WTO rules. 
4.70.  Brazil has submitted a few questions to Mongolia in connection with its investment and 
mining policies and agricultural standards, to  which we expect to receive the corresponding 
answers during this exercise. 
4.71.  Let me conclude by reiterating that Brazil  stands ready to further enhance its cooperation 
and trade with Mongolia. 
JAPAN 4.72.  Recently, Mongolia has recorded its economic growth by more than 10% a year. In addition, 
the Mongolian Government is promoting diversification of its economy, recognizing that fluctuation 
of commodity prices are likely to affect the Mongolian economic growth rate due to the economic structure depending on the commodity. Japan, which has continuously supported Mongolian 
economic growth since Mongolia began its transition to democracy and a market economy, 
welcomes efforts of the Government of Mongolia for its economic diversification.  
4.73.  Now let me move to trade policies. We have two points here: the WTO and RTAs. 4.74.  As for the WTO, Mongolia has reformed its domestic regulations in order to implement the 
WTO Agreement since its accession in 1997. Japan encourages Mongolia to continue its endeavour 
for reforming the regulations in consistency with the WTO Agreement. 
4.75.  Concerning RTAs, Mongolia does not have any RTAs with other countries. However, it has 
finished negotiation of the Asia-Pacific Trade Agreement and reached an agreement in principle on 
the Japan-Mongolia EPA this July. Japan expects that these efforts will be complementary to the multilateral trading system as long as they  are implemented consistently with the WTO 
Agreements.  
4.76.  Let me turn to specific points. We have four points here: investment and business 
environment, procedures for licenses and perm issions, telecommunications, and excise tax. 
4.77.  To begin with, Japan welcomes Mongolian measures to reform its legislation to realize a 
better environment for investment and business. In particular, Japan commends that the new 
Investment Law of 2013 improved its foreign investment and business environment removing discrimination on foreign investment. Japan also stresses that the transparency is the key element 
in the implementation of the laws on investment and business environment. 
4.78.  On the other hand, we think Mongolia still has some issues to address with respect to the 
investment and business environment. First, the minimum threshold of investment required to 
foreigners, which is an obstacle to attract a small amount of investment, is at US$100,000. This 
could interrupt the activity of foreign investors. Second, Mongolia does not permit acquisition of land by foreigners thus far. Third, there is a complicated license system in the construction services sector subject to types of construction. Japan requests Mongolian efforts to tackle these 
obstacles in order to improve the investment and business environment. 
4.79.  Next, procedures for licenses or permissions, such as renewal of licenses of 
telecommunication services. They often take a long time because of a lack of legal provisions on 
the clear deadline for administrative decisions. Even in the case that there is a legal provision on 
the deadline, some procedures are delayed without any reasonable backgrounds. We would like to 
know whether domestic enterprises in Mongolia are struggling with this problem as well and how 
the Mongolian Government addresses, for example, reforming laws and improving its operation. WT/TPR/W/70 • Mongolia 
 
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We emphasizes that discriminatory treatment to foreigner is very harmful for Mongolian 
investment and business environment. 
4.80.  On telecommunications, we understand that resale related to telecommunications service 
suppliers providing MVNOs, ISPs, and so on are actively implemented in many countries in order to 
expand the market. We would like to know whether Mongolia has some regulations on such resale 
and hopes that the Mongolian Government will promote it in a proper manner, including relaxing the regulations. 
4.81.  Finally, excise tax. Considering the answ er about excise tax on alcohol to our written 
question, Japan requests Mongolian efforts to improve the current situation by an appropriate measure. We emphasize that imposing the excise tax in a discriminatory manner would not be consistent with the WTO Agreement, in particular GATT.  
4.82.  Mongolia also mentioned in the written answer that "there is no intention to differentiate 
domestic and imported goods" on the excise tax on passenger vehicles and so forth. However, according to the Mongolian domestic law on the excise tax, the provision can be considered as the 
excise tax is imposed only on imported automobiles. Japan requests Mongolian efforts to make the 
provision consistent with the WTO Agreements. 
KOREA 
4.83.  As the Secretariat report noted, the Mongolian economy has grown substantially thanks to 
its large mineral exports and inflow of FDI during  the period under review. But Mongolia has faced 
fluctuations of growth rates caused by its high depe ndence on mineral exports. In this regard, it is 
worthwhile to note that the Mongolia has actively pursued economic diversification under the 
Comprehensive National Development Strategy of 2008, and along similar lines, has improved its 
investment climate by introducing the Investment Law of 2013.  
4.84.  As for trade policy, it is quite pleased to note that Mongolia maintains an open trade regime 
with its bound tariffs of around 20%, although the applied rate is, in most cases, much lower. It 
has also taken measures to improve customs procedures, including a revision of Customs Law and the Law on Customs Duties and Tariffs of 2008, as well as the introduction of the Customs 
Automated Information System. We also welcome the notification of Mongolia to the WTO with its 
Category A commitments under the Agreement on Trade Facilitation 
4.85.  We certainly recognize that the mining in dustry has been the driving force of Mongolian 
economic growth. The FDI inflow has turned Mongolian mining into a competitive modern industry 
and has created the possibility to expand into re lated up and down stream industries, including 
heavy manufacturing such as copper, iron, and steel production. 
4.86.  Taking into account such positive aspects, we would like to put forward suggestions as 
follows. 
4.87.  First, Mongolia is encouraged to continue to diversify its export products and mitigate its 
dependence on the mining industry. In this regard, we would like to say that as mineral resources 
are hidden and invisible ones, Mongolia is encouraged to cultivate invisible capacity of determined 
Mongolian people which can lead to development of various industries including high-tech industry. 
4.88.  Second, while doing so, Mongolia should make further efforts in improving its infrastructure 
in the areas of railroads, electricity and transpor tation systems, and draw FDI into these areas to 
make economic growth more sustainable. In this regard, Korea wishes to express its willingness to 
be consulted when needed, and participate in Mong olia's ongoing endeavours as well as share our 
expertise. 
4.89.  Third, while we note that Mongolia has maintained quite an open trade regime, and has 
diligently introduced relevant law and related customs procedures, the lack of WTO notifications needs to be improved. As the Secretariat noted, applied tariff rates that are above WTO bound 
rates would need to be solved in a prompt manner. WT/TPR/W/70 • Mongolia 
 
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4.90.  Last but not least, as the Secretariat report  pointed out, Mongolia applies higher excise tax 
rates on certain imported goods than like domestic products, particularly on alcoholic beverages as well as passenger vehicles, gasoline and diesel fuel. We believe that applying higher excise tax rates on certain imported goods is not consistent with Article III:2 of the GATT. 
4.91.  On the bilateral front, Korea and Mongolia have maintained close economic ties. The 
bilateral trade volume has grown 75 times since the establishment of diplomatic relations between the two countries in 1990, reaching US$426 million in 2013 and Korea's total stock of investment 
in Mongolia amounted to US$719 million in 2013, making Korea the 4th largest trader as well as 
investor. Taking this opportunity, Korea would like to express its sincere hope to further expand our already strong bilateral relations on all fronts. 
4.92.  My delegation submitted some written questi ons to Mongolia on certain aspects of its trade 
and trade-related policies and measures. We would like to thank Mongolia for providing us with 
written answers. We will look into them ca refully and come back later, if necessary. 
4.93.  In closing, we very much hope that toda y's TPR will provide a good opportunity for both 
Mongolia and its trading partners, including Korea, to assess the progress as well as to help 
identify further ways forward.  
THE
 RUSSIAN  FEDERATION 
4.94.  The Russian Federation and Mongolia have a long history of friendly relations and develop 
broad, deep and robust bilateral cooperation spanning vast economic, trade and investment areas. Russia for long has been keeping the status of one of the major trade partner of Mongolia in terms 
of Mongolia's import. It is noteworthy that during the recent official visit of the President of the 
Russian Federation to Mongolia, both sides ha ve arranged to further expand and intensify 
economic and commercial ties. During the visit,  a number of documents were signed enhancing 
cooperation in such spheres as transport infrastructure modernization, energy supply, power 
generation, border-crossing facilitation. All these enable us to affirm that Mongolian-Russian 
relationship does enjoy a promotion to a new level. 
4.95.  We highly appreciate current economic reforms ongoing in Mongolia aiming at promoting 
exports and imports, fiscal stabilization as well as trade in minerals. Moreover, we are pleased to 
note recent considerable improvements in the country's investment climate, taxation policy, 
banking regulations, infrastructural development, all this despite restrained economic base, unfavourable geographic location and other given constraints. 
4.96.  Nevertheless, we would like to highlight some of trade and investment measures that, we 
believe, need more attention. Russia has submi tted some questions for this review concerning 
certain TBT aspects in national food safety regulations as well as foreign access to open tendering, 
which are of particular commercial interest to us. We would appreciate any clarifications from the 
Mongolian side on the above matters. 
PARAGUAY
  
4.97.  Estimamos positivamente la participación de Mongolia en este ejercicio, en este momento 
de buen desempeño económico y de expansión comercial. 
4.98.  En ese sentido, la economía de Mongolia ha experimentado una recuperación importante 
tras la crisis financiera y económica mundial de 2009, prueba de ello es que en el 2013 la tasa de 
crecimiento económico se sitúo en el 11,7%, una de las más altas del mundo. En ese mismo año, 
la balanza comercial arrojó un déficit de 2.082 millones de dólares EE.UU., un 13% menos que en 2012 y el sector comercial contribuyó en un 17.4% al PIB total y proporcionó empleo al 12,4% de 
la fuerza laboral, por lo que se le considera un sector que absorbe una gran cantidad de mano de 
obra y en franco crecimiento. 
4.99.  En ese contexto, el logro más resaltante de Mongolia ha sido la introducción de reformas 
para el régimen de concesiones y de esta manera dar un empuje a la economía a través de 
alianzas público privadas. WT/TPR/W/70 • Mongolia 
 
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4.100.  Por otro lado, quiero destacar que Mongolia y Paraguay comparten características 
similares, ambos países nos encontramos en continentes pujantes, estamos entre dos grandes países y carecemos de salida directa al mar. En ese contexto, Mongolia es un aliado estratégico del Paraguay y dentro del Grupo de Países en Desarrollo sin Litoral, tanto en la OMC como en la 
UNCTAD. Esto quedó demostrado en la activa participación de nuestro grupo en las negociaciones 
para el Acuerdo sobre Facilitación del Comercio. 
4.101.  También vale la pena destacar que gracias al apoyo del Gobierno de Mongolia, funciona en 
Ulan Baaton el "International Think Tank for Landlocked Developing" que con el tiempo se 
convertirá en una importante herramienta de apoyo para nuestros países. 
4.102.  En el período en estudio, los flujos de comercio entre Paraguay y Mongolia se han 
mantenido muy por debajo de su potencialidad, por lo  cual creemos que esta es un área en el cual 
nuestros gobiernos deben dar mayor énfasis. 
4.103.  Para concluir, vale la pena destacar que el Paraguay y Mongolia comparten la misma visión 
sobre el futuro del sistema multilateral de del comercio, apoyamos la pronta implementación del 
Acuerdo sobre Facilitación del Comercio y un futuro Programa de Trabajo centrado en el 
Desarrollo. 
ARGENTINA 
4.104.  La Argentina observa con bene-plácito el desempeño de la economía de Mongolia en los 
últimos años. Asimismo, queremos destacar que en el mes de marzo de este año una delegación de parlamentarios de Mongolia visitó la Argentina y se interesó por las características de la ganadería en nuestra región de la Patagonia, en la producción de vacunas y en el control de 
enfermedades. 
4.105.  En esa ocasión, nuestro Ministerio de agricultura, ganadería y pesca manifestó que se 
encontraba en condiciones de otorgar cooperación a Mongolia en materia de desarrollo de 
tecnología, de sanidad animal, de control de enfermedades, de genética animal, siembra directa y 
almacenamiento. 
4.106.  Esa disposición expresada por Argentina en  cooperación continúa vigente y estimamos que 
avanzar en ello constituirá un paso importante en le profundización de la relación entre la 
Argentina y Mongolia. 
INDIA 4.107.  As brought out in the reports by the Secretariat and Mongolian Government, after a 
negative growth rate in 2009 due to fall in commodity prices, Mongolia has achieved an 
unprecedented economic growth during the period  2010-13. In 2013, Mongolia's GDP growth rate 
was 11.7% and the total trade was over US$10.6 billion which has grown more than four fold in 
comparison to trade in 2005. Mongolia's achievem ents are commendable despite challenges facing 
their economy (landlocked country). 
4.108.  Since its accession to the WTO, the Mongolian Government has undertaken a number of 
measures directed towards making trade laws and regulations in line with the WTO disciplines. 
Since its first TPR, we note that a number of laws and regulations have been introduced by Mongolia which, amongst other things, are intended to improve the investment and business climate and promote fiscal stabilization. As a result of these measures, Mongolia has achieved 
steady economic growth and its trade engagement with Members has expanded. 
4.109.  While Mongolia has registered positive growth, it continues to face several challenges. 
Recognizing challenges that can arise from depe ndence on a narrow basket of export items, 
fluctuations in commodity prices, vulnerability to external environment and for broadening 
economic base, we note that Mongolian authorities are pursuing the Millennium Development Goals-Based Comprehensive National Development Strategy of 2008. 
4.110.  We have noted that Mongolia has successfully concluded the negotiations with all 
participating States for its accession to the Asia-Pacific Trade Agreement (APTA) and started the WT/TPR/W/70 • Mongolia 
 
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negotiation for an Economic Partnership Agreement with Japan. We welcome Mongolia's 
participation and commitment to the multilateral trading system. We fully appreciate Mongolia's continued need for technical assistance to ensure the full implementation of the WTO agreements and to participate in the DDA negotiations. 
4.111.  On the bilateral front, India and Mongo lia enjoy very close and cordial relations. Our 
bilateral trade grew five-fold during the peri od 2009-12. We look forward to working with 
Mongolian authorities in further expanding our trade and investment ties for mutual benefit. India 
has been extending developmental assistance as part of South-South cooperation to Mongolia in 
varied sectors, including training and capacity building activities under Technical and Economic Cooperation Programme. 
NIGERIA 
4.112.  Nigeria appreciates the impressive progre ss in Mongolia's transition from a centrally 
planned economy to a market economy, particularly, the steps taken by the authority in pursuing the policy liberalization, deregulation, privatization and macroeconomic stabilization. We are happy 
to note that through its persistent pursue of liberal policies, Mongolia remains one of the most 
open trading regimes in the world, with low import tariffs and limited non-tariff barriers. It is worthy of note that the discovery of huge mineral resources paved the way to rapid economic and 
social development which further re-integrates Mongolia into the global economy. The real growth 
was estimated at 1.3% in 2009 and 17.5% in 2011. Mongolia's GDP per capita was around US$3,480 in 2012 to US$4,069 in 2013. The real growth of the economy is attributed to mining exports that accounted for 18% in 2012 against the 17% in 2004. 
4.113.  Nigeria believes that open markets, non-discrimination and global competition in 
international trade are conducive to global and national welfare. My delegation commends Mongolia for its economic development and reducing poverty as we note the medium term outlook 
remains favourable, underpinned by developments in  mining sector. We also welcomed the recent 
steps by the Government, particularly in the areas of fiscal and exchange rate policies towards addressing rising domestic demand and balance of payments pressures. However, my delegation 
calls for further decisive recalibration of policies  to address vulnerabilities and to build buffers 
against external shocks and to ensure sustainable strong growth. 
4.114.  As indicated in the Secretariat report, Mongolia has made considerable progress towards 
improving living standards and investment and trad e in minerals have contributed considerably. 
However, managing the resource ba sed boom along with legislative, and institutional challenges it 
presents, and the investment in infrastructure it requires, constitute the biggest challenge facing the Government. At the same time, the geographical and climatic situation of Mongolia makes 
these tasks more difficult than in some other countries. 
4.115.  As a Member of the WTO, Mongolia has continued to create an enabling investment 
environment for investors, by increasing transpar ency of its trade policies with regard to the 
principles of the multilateral trading system. Mongolia has also contributed to the multilateral 
trading system and is active in advancing the WTO and strengthening its role in sustaining trade liberalization as key to driving international trade and economic development, in particular, for the developing and least developed countries. Nigeria also wishes to express its appreciation for the 
role Mongolia is playing in the WTO and how it has used market opening's and foreign investment 
as instruments for economic growth and development. 
4.116.  As a landlocked country, with very specif ic and peculiar challenges, we are not surprised 
that Mongolia's priority is trade facilitation as far as the DDA is concerned. Therefore, it is our 
expectation that the Trade Facilitation Agreement, particularly with respect to the need for uniform procedures for clearing transit goods, which ensu res transparency and predictability, will benefit 
Mongolia tremendously. 
4.117.  In conclusion, Nigeria looks forward to collaborating with Mongolia in the ongoing Doha 
Development Agenda (DDA) negotiations to ensure its successful conclusion based on its development mandate.  WT/TPR/W/70 • Mongolia 
 
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URUGUAY 
4.118.  Uruguay felicita los esfuerzos y cambios realizados por Mongolia desde su ingreso a la OMC 
a pesar de todos los desafíos que ello ha significado. 
4.119.  Es importante recordar que ambos países mantienen relaciones diplomáticas desde octubre 
de 1997, y es intención de los dos países en mejorar el relacionamiento en distintas aéreas. 
4.120.  El comercio entre Uruguay y Mongolia en los últimos años no ha sido muy relevante en 
números, por lo cual se pretende explorar áreas de complementariedad para poder incrementar el 
intercambio comercial. 
4.121.  En este sentido, corresponde destacar que en marzo de este año, una delegación de 
Mongolia visitó Uruguay. En dicha oportunidad, ambos países firmaron un Memorándum de Entendimiento a los efectos de aumentar la cooperación bilateral entre ambos países en los 
sectores agrícola y de alimentos. 
4.122.  En dicho Memorándum se establece un Comité Consultivo en materia sanitaria y 
fitosanitaria que funcionará como un Foro de Alto Nivel para facilitar la negociación, cooperación y 
coordinación en los asuntos relacionados con la salud animal y vegetal, incluidas la forestación, la 
piscicultura y la calidad y seguridad de los alimentos de ambos países. Dicho foro incluirá las siguientes materias, aunque no estará limitado exclusivamente a ellas: 1) acceso a mercados; 
2) cooperación en leyes y reglamentos relevantes para seguridad alimentaria; 3) cooperación en 
ganadería en materia de identificación y trazabilidad del sistema; 4) investigación y desarrollo en materia de salud animal y vegetal y seguridad alimentaria, incluyendo intercambio técnico y 
tecnológico; 5) establecer y revisar los estándares internacionales para sanitarios y fitosanitarios y 
seguridad y calidad alimentaria. 
4.123.  Tal como lo señala el informe del Gobier no de Mongolia, Uruguay comparte plenamente la 
visión expresada en cuanto a la importancia y compromiso para una exitosa culminación e 
implementación de la Ronda de Doha para el Desarrollo. 
MR
 OCHIRBAT  CHULUUNBAT 
4.124.  Let me first thank you, Madam Chair, for your leadership for today's discussions. I would 
like to thank H.E. Mr Francisco Pirez Gordillo for his positive comments and assessment to 
Mongolian trade and policy. I especially would like to thank all delegates and particularly 
distinguished Ambassadors who have made very valuable contributions to today's discussions. 
4.125.  We very highly appreciate the positive comments on the Mongolian trade policies. We have 
made progress since the first Trade Policy Review but we still have challenges and difficulties. 
Some of them have been mentioned in the speeches like issues related to corruption, handling of foreign investment in Mongolia, and transparency.  
4.126.  We have tried to do our best to provide all possible comprehensive answers to your 
questions. We think that there will still be some questions and issues for clarification and we will 
do that on the second day of the meeting. Thank you again for your very active participation and 
we look forward to see more interesting exchange of views and discussions. WT/TPR/W/70 • Mongolia 
 
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5  REPLIES BY THE REPRESENTATIVE OF  MONGOLIA AND ADDITIONAL COMMENTS 
5.1.  The delegation of Mongolia appreciates the comments and questions raised by the Members 
during the first session of our TP R. We find them of much relevance and use to our trade policy. 
5.2.  Let me briefly respond to Members' questions.  
5.3.  Our investment regime and the future plans in the area of promoting investment were of 
much concern to Members. Taking the opportunity, I would like to inform Members that our investment policy was reviewed by UNCTAD in April this year, where the Governments and the 
international businesses expressed great interest in the developments in this area and where they 
positively received the recent improvements. 
5.4.  Through the comments and questions, WTO Memb ers also gave us some insightful guidelines 
as to where our policy should be directed. Some negative impacts to investors were caused by the 
Law on Foreign Investment in Entities Operating in Strategic Sectors adopted in 2012. However, 
we are glad to hear positive reactions and welcoming comments that Mongolia has repealed this law quickly and adopted a new Investment Law, which is more liberal and friendly for foreign 
investors. We are fully aware of the fact that we have to pay more attention to the effective 
enforcement of the law and take much more active actions to improve our business and investment environment based on the principles of transparency, credibility, accountability and 
predictability. The comments made by the WTO Members as well as the recommendations drawn 
in the Investment Policy Review Report by UNCTAD will be given due consideration in our future measures and decisions in this area. 
5.5.  As for trade policy, it was mentioned earlier that Mongolia keeps maintaining a relatively 
open trade regime: tariff average is still one of the lowest in the world at 5%; very few restrictions 
and technical barriers on trade compared to other countries. 
5.6.  Due to the recent developments in the mining sector, a lot of debates continue to rise 
regarding our trade-related policies. This, we contend, is natural and inevitable for a country like 
Mongolia, which is trying to overcome the le gacy of the transition period and of the 
centrally-planned economy and still paving the way for the prospective future. Despite, the 
Government continues to believe that a more open trade regime contributes to the overall 
sustainable development of the economy. It is tr ue that, as the Members rightly noted, there are 
issues that we have to solve. Members are concerned about the differentiated application of excise taxes on certain goods and the administration of licensing procedures. We are working on these: 
the draft amendments to the Law on Excise Tax w ill be submitted to the Parliament during the 
upcoming autumn session to open on the first of October. Food security has become a serious issue in Mongolia, especially as regards food safety, nutrition and self-sufficiency. As for all the 
Members, human health protection is a fundamenta l policy objective. The Law on Food Security 
and related Regulation on the Exportation and Im portation of Strategic Food were adopted last 
year. The National Food Security Program until 2 016 is being implemented. It aims at ensuring 
food supply, quality and safety. As said, the Government shall continue working to improve the 
enforcement of the Law on Food Security and the administration of related regulations, including 
licensing. 
5.7.  The Members raised concerns on our tari ffs. There are items on which applied rates are 
higher than the bound ones. The Government has reviewed the tariffs and an amendment is being 
submitted to the Parliament this autumn.  
5.8.  With regard to taxation, a significant reform was carried out in 2006. The General Taxation 
Law was renewed to cut the taxes to a single rate of 10% instead of progressive rates of 10%, 
20% and 30%. Annual tax credits for individuals we re increased, including such as for housing, 
education, etc. The VAT was cut from 15% to 10%. In this regard, the Government of Mongolia is 
taking measures to create a more tax-friendly and favourable environment for the businesses.  
5.9.  Pertaining to specific trade-related measures, Members questions focused on privatization 
and intellectual property. WT/TPR/W/70 • Mongolia 
 
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5.10.  The private sector shares around 80% in GDP today. This is a significant share in the 
economy. However, the Government of Mongolia co ntinues to undertake privatization measures of 
state-owned enterprises. It has planned to priv atize 22 state-owned large enterprises between 
2013 and 2016; 13 of them should be privatized fully, and in nine, state ownership should be 
reduced. These concern large entities including the Mongolian Stock Exchange, Telecom Mongolia, 
the Mongolian Airlines, Information and Communication Network, Crop Promotion Fund, the Mongolian Agricultural Commodity Exchange, the Mongol Post, and two coal mines (Shivee-Ovoo 
and Baganuur). 
5.11.  The Government is continuing to ensure a higher-level protection of IP. As such, it has 
formulated a Draft National IP strategy, which main ly aims at strengthening the IP protection and 
its enforcement. The Draft is ready to be submitte d to the Cabinet. Also, Mongolia is joining the 
Beijing Treaty on Audiovisual Performance and the Marrakesh Treaty to Facilitate Access to 
Published Works by Visually Impaired Persons an d Persons with Print Disabilities. Accordingly, 
amendments are being made to the respective laws such as the Patent and Copyright Laws. 
Mongolia fully complies with the TRIPS Agreement. 
5.12.  Members raised considerable concern regarding transparency. In this regard, I would like to 
inform Members that the Law on Information Transparency and the Access to Information is in 
force since 2011 and was amended in July 2014. According to the amendments, the governmental 
bodies have an obligation to make information related to their operation, human resource, budgeting and finance, and procurement publicly a ccessible. Also, issues related to tendering are 
now regulated by the Law on Cristal Account which was adopted two months ago. Other laws 
related to transparency are being initiated such as the Draft Law on Public Hearing. These 
measures show that the Government of Mongolia is taking seriously the concerns of businesses. 
5.13.  As for specific sectors, Members were more interested in mining and agriculture.  
5.14.  Mining has been the driving force of the country's economy in recent years. The boom of 
extractive business has also had side effects by pr ovoking illicit practices. According to statistics, 
100 thousand people are engaged in illegal mining. These practices bear a range of issues that the 
Government needs to solve, including environment and safety. Mongolia is planning to join Safety 
and Health in Mines Convention. Various safety regulations have been formulated and some of them have been introduced. Additionally, the State Policy on Mining sets to improve the regulatory framework for fighting illegal practices. Additional ly, the Draft Law on Transparency in Mining has 
been approved by the Cabinet and is being submitted to the Parliament this autumn.  
5.15.  In agriculture, the Government of Mongolia has been implementing several policies and 
programs. The State Policy on Food and Agriculture until 2015, the Food Security Program, and 
the Crop Campaign III have succeeded in their objectives to reach self-sufficiency in wheat and 
potato. The Government of Mongolia is working to maintain the achievements and attract investment in agriculture to promote integrated agriculture.  
5.16.  The Government continues to direct its trade and investment policy to creating a more 
favourable environment for traders and investors. In the aftermath of the painful transition period and a sudden explosion of extractive industry, some erroneous measures may have been taken. 
However, we contend that the timely correction of  such measures is important and we were able 
to do that. We will keep working in this direction in the future.  
5.17.  Please allow me to take this opportunity  to bring to the attention of the Members the 
importance of the Trade Facilitation Agreement for a landlocked country like Mongolia. Reaching a 
consensus on the adoption of the Agreement sha ll greatly contribute to easing the constraints 
faced by the traders and reducing the cost of trade. 
5.18.  Taking the opportunity, I wish to thank the Secretariat team for arranging a meeting with 
Director-General Azevêdo which took place yester day. We had a very interesting meeting and a 
productive exchange of views on how to upgrade our cooperation in the years to come. We also 
thank the WTO for the assistance it has been providing to Mongolia in recent years.  WT/TPR/W/70 • Mongolia 
 
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DISCUSSANT 
5.19.  The second Trade Policy Review of Mongolia allowed us to better understand the evolution 
of its trade policies and practices and has helped us to understand the past and future challenges facing this interesting country. 
5.20.  Progress on the level of economic openne ss through its various reforms and the growth of 
10% observed during the last three years that Mongolia has achieved deserve a special appreciation as most Members have expressed. 
5.21.  It is also important to note that many Members highlighted Mongolia´s low tariffs and in 
particular that despite the different financial and economic worldwide crises, it has largely refrained from taking protectionist measures. 
5.22.  I have noted that Members encouraged Mong olia to continue the reform process in several 
areas, for instance: in the investment framework, in the diversification of the economy, in the 
infrastructure front, in the minerals policy, in the adjustment of some institutional issues to improve the efficiency and transparency and in the area of State-own Enterprises among others. 
5.23.  There is no question that the transformation process of one country does not happen 
overnight, so it is important to consider not only what needs to be done but also what Mongolia has achieved so far during this short period of time. 
5.24.  I am confident as I have noticed in the dial ogue held with the authorities of Mongolia, after 
the first day of examination, that this exercise w ill be useful to continue the process of internal 
reforms that the country has started even before the accession to the WTO in 1997. 
5.25.  The gradual and progressive opening of the economy of a country means adopting a hard 
road to travel that it is not an easy one for any Member, so I congratulate again Mongolia with the 
progress made so far and also for the constructive attitude adopted during its second trade policy review. This attitude gives me the confidence that in the next TPR many of the comments we have 
made will be collected in the different future policies that the country will implement. 
5.26.  Finally, I want to express once again the honour and privilege of having participated as a 
Discussant in the second TPR of Mongolia and I wish the country every success in the future. 
EUROPEAN
 UNION 
5.27.  The EU has learned a lot from the inte rventions of the delegation of Mongolia, the 
discussant and questions and statements from WTO Members and Mongolia's replies. 
5.28.  The EU is grateful to Mongolia for their efforts demonstrated in replying to our questions 
although we feel that some areas need to be further clarified known to be with reference to import 
licensing or water services. 
5.29.  For this reason, I would like to reiterate our encouragement to Mongolia to work with us in 
the coming months to provide more detail and reassuring answers on those issues. I would also 
take this opportunity to underline the EU availab ility to support the Government in creating a 
friendly business and investment environment in Mongolia. 
5.30.  Let me reiterate the appreciation of the EU  for  th is  T P R  wh ic h  we  hop e  w il l b e  us e fu l t o 
Mongolia in their further efforts. 
JAPAN 5.31.  Japan would like to express its sincere appreciation for the hard work by the Mongolian 
delegation to provide us with a comprehensive and informative presentation. 
5.32.  Japan did not submit any follow-up question in written format before this meeting. I share 
Mongolia's oral explanation in particular concerning its efforts to our concerns. WT/TPR/W/70 • Mongolia 
 
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5.33.  Japan hopes that the views and opinions given by Members during this TPR will help 
Mongolia to further its reforms. I wish the delegation a safe trip back to Ulaanbaatar. 
CANADA 5.34.  I would like to join my colleagues in thanking the delegation from Mongolia for their hard 
work during this Trade Policy Review, particularly the responses to the written questions that 
Canada submitted prior to the review. 
5.35.  My colleagues and I have reviewed Mongo lia's responses and very much do appreciate the 
information that was provided. We do have a couple of follow-up questions which will be 
submitting in writing to the Secretariat. WT/TPR/W/70 • Mongolia 
 
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6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This second Trade Policy Review of Mongolia has provided us an excellent opportunity to 
improve our understanding of the trade and investment policies of Mongolia. Thirteen Members submitted about two hundred questions before th e meeting and 17 delegations took the floor to 
make statements. Our discussion was greatly helped by the comprehensive comments of the 
discussant, Ambassador Pirez Gordillo of Uruguay, and the statement made by the head of the 
delegation for Mongolia, Deputy Minister for Economic Development, Mr. Ochirbat Chuluunbat. 
6.2.  This review has taken place at an interesting time for Mongolia. After several years of rapid 
economic growth, rising incomes, and greater pr osperity, some bottlenecks and barriers to trade 
and investment have been identified as hinderin g  r e a l  p r o g r e s s .  T h i s  r e v i e w  t h u s  i s  a  g o o d  
opportunity to reflect on what could be done to address these issues so that growth can be 
sustained into the future.  
6.3.  The economic expansion of the past few years has been based on investments in mining and 
exports of minerals and, as we heard from the Deputy Minister, the discussant, and delegations as 
well as from the Government and Secretariat reports, more investment is expected in this sector 
and growth should continue. 
6 . 4 .   H o w e v e r ,  w h i l e  e x p l o i t a t i o n  o f  m i n e r a l s  i s  a n  o p p o r t u n i t y  f o r  M o n g o l i a  i t  a l s o  p o s e s  r i s k s ,  
particularly the narrow economic base and dependence on a small range of products exported to a 
few markets which make the economy vulnerable to sudden swings in prices and demand. The Mongolian delegation recognized these risks and, along with several Members, stressed the importance of diversification and suggested areas like agriculture, tourism and high technology 
products as possible sectors for development. However, with the mining sector attracting human 
and financial resources it is no easy task to create an environment that encourages investment in alternative areas.  
6.5.  Despite the growth of the minerals sector, ag riculture, especially livestock, is still important 
and employs more people than any other sector of the economy. Although  the cold winters and 
dry conditions make farming difficult, the Government has implemented several programmes to 
improve productivity and I noted the statements by  some delegations about bilateral contacts with 
other countries on agriculture practices, animal and plant health, and food safety and security. 
6.6.  Mongolia does not have any regional trade agreements - although it does qualify under a 
number of Members' GSP schemes. However, it is no t just in agriculture that Mongolia has started 
to increase its level of bilateral contacts. It is also negotiating with Japan on an Economic 
Partnership Agreement and intends to accede to the Asia-Pacific Trade Agreement. Furthermore, 
several delegations insisted they have had high-level meetings and concluded agreements related 
to trade and investment with Mongolia. In the WT O, Mongolia is a Member of several negotiating 
groups and the importance it attaches to the mu ltilateral trading system was highlighted by its 
notification of its Category A commitments on trade facilitation in July of this year. And we also 
welcome the statement by Deputy Minister on th e need to conclude and implement the TFA on 
Trade Facilitation Agreement.  
6.7.  Members noted Mongolia's challenge that it is a large landlocked country with a harsh climate 
making development of infrastructure difficult and expensive. And underdeveloped infrastructure 
adds to the cost of transport, and therefore to tr ade. Improving Mongolia's road and rail links with 
other countries as noted is a priority by the Government and there are ambitious plans for improvements. 
6.8.  Some delegations noted in their interven tions that, while needed improvements should 
continue, during the review period Mongolia ha s shown that it continuous to make progress 
towards allowing more competition, reducing trade barriers, and introducing measures to 
encourage diversification of its economy.  
6.9.  However, several issues were also raised which delegations believe could impede trade and 
investment. Among the issues that I noted which Mongolia might consider for further improvement are the following: WT/TPR/W/70 • Mongolia 
 
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 Investment:  it was widely recognized that the new Investment Law of 2013 and the 
simplified investment procedures have improved the investment climate but there were some concerns about the new legislation and its implementation. These concerns included the differentiation between foreign and domestic investors through minimum 
paid-in capital requirements and the narrowing of the range of stabilized fees and taxes; 
 Government procurement and in vestment in infrastructure:  in noting the 
importance of improving infrastructure, particularly in road, rail, and electricity, several 
delegations suggested the Government could improve the tendering procedures and 
transparency in selection process. It was suggested that Mongolia would benefit from acceding to the Government Procurement Agreement in the WTO and exploring greater participation by the private sector in infrastructure projects; 
 Minerals policy:  the new law on investment has improved the climate for investment 
generally, but Members had raised the issue that the development of a new minerals law has led to delays in issuing exploration and mining licences. We also heard from the 
Deputy Minister that better things are to come when the new law will be put in place to 
ease investment in the sector; 
 Bound versus applied tariffs:  in general, Mongolia applies tariffs well below their 
bound rates but there are some products which have bound tariffs of zero but applied 
tariffs of 5%. Furthermore, excise duties on  some domestically produced products are 
lower than on imports and import prohibitions apply to some products; 
 Standards:  many of the technical regulations, standards, and SPS measures in place in 
Mongolia are not aligned with international standards. Although the official objective is to 
increase the number of standards they subscribe to international ones more progress could be made in this area; and 
 Institutional issues:  it was noted by some delegations that, in many areas, including 
import licensing, investment approval, and even technical assistance, a lot of time and cost was involved while waiting for approval. Of course, every country can improve its 
bureaucratic efficiency but steps should therefore be taken to improve institutional 
capacity and transparency in these areas. 
6.10.  In conclusion, as a large landlocked developing country with a relatively low population, 
Mongolia faces many challenges to its development. Nevertheless, Mongolia has made 
considerable progress to improve its trade and investment regimes and it has recognized the need 
to improve efficiency and transparency in the publ ic sector and to deal with corruption and related 
issues.  
6.11.  I would like to thank Mongolia for its participation in this Review, the Deputy Minister and 
the discussant for their statements and I note the interest of a wide number of WTO Members through their questions and contributions. I hope  that this exercise has given Mongolia the 
opportunity to review its trade and investment polici es and, in six years' time at the next review, 
to hear how the economy has continued to grow and benefit the people of Mongolia. 
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