WT/REG373/1  
15 November  2017 
(17-6204) Page: 1/54 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
ECONOMIC PARTNERSHIP  AGREEMENT BETWEEN JAPAN  AND MONGOLIA  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Economic Partnership  Agreement 
between Japan  and Mongolia , has been drawn up by  the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply official endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value  judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Maria Donner  
Abreu (tel: +41 22 739 5244). Any statistical questions arising from this report may 
be addressed to Mrs. Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG373/1  
 
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TABLE OF CONTENTS  
Page 
1  TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1  Merchandise trade  ................................ ................................ ................................ ........  4 
1.2  Trade in services and investment  ................................ ................................ ...................  6 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ .......................  9 
2.1  Background Information  ................................ ................................ ................................  9 
3  PROVISIONS ON TRADE IN GOODS  ................................ ................................ ............  10 
3.1  Import duties and charges, and quantitative restrictions  ................................ .................. 10 
3.1.1   General provisions  ................................ ................................ ................................ ....10 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ .......... 11 
3.1.3   Liberalization schedule  ................................ ................................ .............................. 13 
3.1.3.1   Japan  ................................ ................................ ................................ ................... 13 
3.1.3.2   Mongolia  ................................ ................................ ................................ ............... 15 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ......16 
3.2  Rules of origin  ................................ ................................ ................................ ............. 16 
3.3  Export duties and charges, and quantitative  restrictions  ................................ ................... 18 
3.4  Regulatory provisions on trade in goods  ................................ ................................ ......... 18 
3.4.1   Standards  ................................ ................................ ................................ ................ 18 
3.4.1.1   Sanitary and phytosanitary measures  ................................ ................................ .......18 
3.4.1.2 Technical regulations, standards and conformity assessment procedures  ....................... 18 
3.4.2   Safeguard mechanisms  ................................ ................................ ............................. 19 
3.4.2.1   Global safeguards  ................................ ................................ ................................ ..19 
3.4.2.2   Bilateral safeguards ................................ ................................ ................................ 19 
3.4.2.3   Balance -of-payments safeguards  ................................ ................................ ............. 20 
3.4.2.4   Agriculture safeguards  ................................ ................................ ............................ 20 
3.4.3   Anti-dumping and countervailing measures  ................................ ................................ ..20 
3.4.4   Subsidies and State -aid ................................ ................................ ............................. 20 
3.4.5   Customs -related procedures  ................................ ................................ ...................... 21 
3.5  Sector -specific provisions on trade in goods  ................................ ................................ ....22 
3.5.1   Agriculture  ................................ ................................ ................................ ............... 22 
4  PROVISIONS ON TRADE IN SERVICES AND INVE STMENT  ................................ ..........  23 
4.1  Scope and definitions  ................................ ................................ ................................ ...23 
4.2  Denial of benefits  ................................ ................................ ................................ ........ 23 
4.3  General provisions on trade in services and investment  ................................ .................... 24 
4.3.1   Market access  ................................ ................................ ................................ .......... 25 
4.3.2   National treatment and MFN ................................ ................................ ....................... 25 
4.3.3   Commercial presence  ................................ ................................ ................................ 25 
4.3.4   Movement of natural persons  ................................ ................................ ..................... 25 WT/REG373/1  
 
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  4.3.5   Performance requirements  ................................ ................................ ......................... 28 
4.3.6   Senior Managers and Boards of Directors  ................................ ................................ .....28 
4.4  Liberalization commitments  ................................ ................................ .......................... 28 
4.4.1   Japan  ................................ ................................ ................................ ...................... 28 
4.4.1.1   Services commitments ................................ ................................ ............................ 29 
4.4.1.2   Restrictions relating to investment  ................................ ................................ ........... 32 
4.4.2   Mongolia  ................................ ................................ ................................ .................. 33 
4.4.2.1   Services commitments ................................ ................................ ............................ 33 
4.4.2.2   Restrictions relating to investment  ................................ ................................ ........... 36 
4.5  Regulatory provisions  ................................ ................................ ................................ ...37 
4.5.1   Domestic regulation  ................................ ................................ ................................ ..37 
4.5.2   Recognition  ................................ ................................ ................................ .............. 37 
4.5.3   Subsidies  ................................ ................................ ................................ ................. 37 
4.5.4   Safeguards  ................................ ................................ ................................ .............. 37 
4.5.5   Other  ................................ ................................ ................................ ...................... 37 
4.6  Sector specific provisions on trade in services  ................................ ................................ .38 
4.6.1   Financial services  ................................ ................................ ................................ ......38 
4.6.2   Telecommunication services  ................................ ................................ ....................... 38 
5  GENERA L PROVISIONS OF THE AGREEMENT  ................................ ..............................  39 
5.1  Transparency  ................................ ................................ ................................ .............. 39 
5.2  Current payments and capital movements  ................................ ................................ ......40 
5.3  Exceptions  ................................ ................................ ................................ .................. 40 
5.4  Accession and Withdrawal  ................................ ................................ ............................ 40 
5.5  Institutional framework  ................................ ................................ ................................ 40 
5.6  Dispute settlement  ................................ ................................ ................................ ......41 
5.7  Relationship with other agreements concluded by the Parties  ................................ ............ 43 
5.8  Government procurement  ................................ ................................ ............................. 43 
5.9  Intellectual property rights  ................................ ................................ ........................... 44 
5.10  Other  ................................ ................................ ................................ ....................... 45 
5.10.1   Competition  ................................ ................................ ................................ ........... 46 
5.10.2   Electronic commerce  ................................ ................................ ............................... 46 
ANNEX 1  ................................ ................................ ................................ ........................  47 
ANNEX 2  ................................ ................................ ................................ ........................  53 
 WT/REG373/1  
 
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Key Facts  
 
Parties to the Agreement:  Japan and Mongolia  
 
Date of Signature:    10/02/2015  
 
Date of Entry into Force:  7/06/2016  
 
Date of Notification:   1/06/ 2016 
 
Full implementation:   2036 
 
1  TRADE ENVIRONMENT1 
1.1.  The Economic Partnership Agreement between Japan and Mongolia (hereinafter the 
"Agreement") is the first regional trade agreement (RTA) concluded by Mongolia, while for Japan it 
is its fifteenth RTA, all of which have been notified to the WTO.  
1.2.  In 201 5, Japan's GDP was estimated at US$4,123 billion , and it ranked 4th among both global 
exporters and importers of goods (excluding intra -EU merchandise trade). In the same year, 
Mongolia had a GDP of US$ 11,758 million ; its global ranking (excluding intra -EU trade) was 84 
and 106 fo r merchandise exports and imports, respectively. In 2015, Japan's world exports 
reached  US$624.9 billion and imports US$ 648.5 billion , accounting for shares of 3.79% of global 
exports and 3.88% for imports. In comparison, in 2015 Mongolia's merchandise export s and 
imports reached  US$4.7 billion and US$3.8 billion , respectively . Japan's exports are dominated by 
manufactures ; manufactures and fuels and mining products constitute the bulk of its imports. 
Mongolia's exports  in turn are largely dominated by fuels and mining products, with  imports 
concentrated  in manufactures but also fuels and mining products. For both countries, agricultural 
imports are at around 12% of their total imports. Japan 's trade to GDP ratio on average over 
2013-15 was at 18.9 and 49.9 for Mongolia.  
1.3.  In 2015, Japan ranked fourth among global exporters and importers of commercial services 
(excluding intra -EU trade), with exports valued at US$157.8 billion and imports at US$173.7  billion 
(3.32% and 3.77% of world exports and imports , respectively ). Also in 2015, Mongolia  ranked 1 14 
and 92 among global exporters and importers of commercial services with the value of services 
exports and imports  reaching respectively US$ 646 million and US$ 1.5 billion.  
1.1  Merchandise trade  
1.4.  In 201 5, Mongolia accounted for a negligible share of Japan 's global exports and imports, 
ranking 56th and 81st, respectively. In turn, Japan was the seven th largest export market for 
Mongolia and fourth largest source  of imports , with a share of respectively 0 .4% and 7.2% of its 
global exports  and imports.2 
1.5.  Chart 1.1 show s global and bilateral trends in merchandise trade for the Parties for the period 
2001-2015. Japan's import s from  the world rose from US$349 billion i n 2001 to more than US$886 
billion in 2012, after wh ich imports declined , reaching US$626 billion in 2015. Its global trade 
surplus has declined since 2007 and since 2011 it has run a trade deficit. Japan has run a 
consistent trade surplus with Mongolia ov er the period, with bilateral trade growing substantially: 
exports to Mongolia r ose by a factor of 7 in the period 2001 -2015 and imports increased by a 
factor of 5. Mongolia's global imports followed a similar trend to that o f Japan and it had a global 
trade deficit for much of the period up to 2014 . 
                                                
1 Unless otherwise indicated, all data in this section are from the UNSD C omtrade database or WTO 
Trade Profiles.  
2 UNSD, Comtrade Database. Excludes intra -EU trade.  WT/REG373/1  
 
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  Chart 1.1 Japan -Mongolia: Merchandise bilateral trade and with world, 2001 -2015  
0.00.20.40.60.81.0
012345678
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015B. Mongolia 2001 -2015
(US$ billions)
Imports from Japan (Right Axis)
Exports to Japan (Right Axis)
Total Imports
Total Exports
0.00.20.40.60.81.0
01002003004005006007008009001,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015A. Japan 2001 -2015 
(US$ billions)
Imports from Mongolia (Right Axis)
Exports to Mongolia (Right Axis)
Total Imports
Total Exports
 
Mongolia:  Mirror data: 2002 bilateral import and bilateral trade data for 2008 -2009. 
Source:  UNSD Comtrade database, ITC Trademap and WTO Statistics Database.  
 
1.6.  Chart 1.2 depicts Parties'  commodity structure of trade, as well as their imports and exports 
to the world in the period 20 13-15, on the basis of the Harmonized System (HS) sec tions.  
1.7.  Japan 's imports from Mongolia  were dominated by minerals  (60.6%), followed by machinery 
and textiles (each reaching 13.4 %); minerals  also account for the bulk of Mongolia' s global exports 
(81.3%), followed by precious stones  (7.7%). Mongolia's impor ts from Japan are even more 
concentrated, with vehicles accounting for almost three -quarters of imports (73.9%), followed by 
machinery (10.7%). Vehicles are Japan's second largest global export (23.7%), with machinery 
ranking first product of export (34.1% ). In terms of global imports, Japan's ranking comprised 
minerals, machinery and chemicals - with respectively 33.5%, 20.8% and 7.4%. Minerals and 
machinery were also Mongolia' s main global imports , followed by vehicles - with respectively 
27.1%, 20.7 and 13%. WT/REG373/1  
 
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  Chart 1.2 Japan and Mongolia: product composition of merchandise trade, annual 
average (2013 -2015)  
61
1313327Japan imports from Mongolia (%)
33
21754443333226Japan's Global Imports (%)
81865Mongolia's Global Exports (%)
74117224Mongolia's imports from Japan (%)
27
21
13107643226Mongolia's Global Imports(%)
34
2498652210Japan's Global Exports(%)Total: US$ 30 million Total: US$ 757 billion
Total: US$ 5.1 billionTotal: US$ 677 billionTotal:  US$ 4.9 billion
Total: US$ 362 million
Prepared foodsVegetablesLive animals
PlasticsChemicalsMinerals
Articles of stone, 
plaster, cementTextilesWood and articles of 
wood
MachineryBase metalsPrecious stones
MiscellaneousOpticalVehicles Other
 
Source:  UNSD, Comtrade database.  
 
1.2  Trade in services and investment  
1.8.  Chart s 1.3 and 1.4 show the breakdo wn of global commercial services trade for Japan and 
Mongolia  in 200 5-2015. In all of this period, Japan's services trade have registered a deficit - 
except as regards construction and financial services and charges for the use of intellectual 
property. Bo th Japan's  and Mongolia's largest export s and import s of services are transport , travel 
and other business services.  Mongolia has had a trade deficit in all years except 2007 . Bilateral 
services trade data is not available.  WT/REG373/1  
 
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  Chart 1.3 Japan: Trade in commercial services data with world, 2005 -2015  
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services050100150200250300
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015A. Japan imports from world
2005 -2015
(US$ Billion)
050100150200250
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015B. Japan exports to world
2005 -2015
(US$ Billion)
 
Note:  Based on BPM6.  
Exchange rates to convert yen to US$ for 2013 to 2015 are: 2013 - 97.60; 2014 - 105.94; 2015 - 121.04 . 
Source:  WTO Statistics Database and Japane se authorities (2013 -2015).  
 
Chart 1.4 Mongolia: Trade in commercial services data with world, 2005 -2015  
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services0.00.51.01.52.02.5
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015A. Mongolia imports from world
2005 -2015
(US$ Billion)
0.00.51.01.52.02.5
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015B. Mongolia exports to world
2005 -2015
(US$ Billion)
 
Note:  Based on BPM6.  
Source:  WTO Statistics Database.  WT/REG373/1  
 
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  1.9.  On FDI, Chart 1.5 depicts Japan's foreign direct  investment ( FDI) stock and flow with the 
world during 2000 -2015, while data for Mongolia is only available as regards flows for 2013-2015. 
Japan is a net exporter of global FDI in terms of both stocks and flows over the period analysed . 
FDI stock with the  world has grown consistently but in 2015 it decrease d. FDI flows with Mongolia 
have fluctuated to a large extent, but a note of caution has to be made given the short period of 
comparison available. Japan is a net investor in Mongolia.  
Chart 1.5 Japan: FDI stock and flow with Mongolia and world  
020406080100120
2013 2014 2015FDI flow with Mongolia
(US$ Million) 
2013 -2015
Outward Inward
02004006008001,0001,2001,4001,600
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015FDI stock with world
(US$ Billion )
2000 -2015 
Outward Inward
-20020406080100120140160
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015FDI flow with world
(US$ Billion )
2000 -2015 
Outward Inward
 
Note:  No data on FDI inflow from Mongolia for 2014 -2015.  
Exchange rates to convert yen to US$ for 2013 to 2015 are: 2013 - 97.60; 2014 - 105.94; 2015 - 121.04.  
Source : UNCTAD and Japanese authorities (2013 -2015).  
 
1.10.   During 2005 -2015, Mongolia was a  net importer of FDI, as shown in Cha rt 1.6, except in 
2014 when the outward flow  of FDI  was larger than the inward FDI flow. In terms of bilateral FDI, 
Mongolia remains a net recipient of FDI from Japan although the stock feel during 2013 -2015. WT/REG373/1  
 
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  Chart 1.6 Mongolia: FDI stock and flow with Japan and world  
 
050100150200250
2013 2014 2015FDI stock with Japan
(US$ Million ) 
Outward
Inward
0510152025303540
2013 2014 2015FDI flow with Japan
(US$ Million) 
Outward
Inward
051015202530
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015FDI stock with world
(US$ Billion )
Outward Inward
0.01.02.03.04.05.06.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015FDI flow with world
(US$ Billion ) 
Outward Inward
 
Note:  No FDI outward stock to Japan (2013 -2015); no FDI outward flow to Jap an (2014); no outward FDI 
flow and stock with world (2000 -2004).  
Source:  UNCTAD and Mongolian authorities (2013 -2015).  
 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement  was signed between the two Parties on 10/02/2015 . Followin g completion of 
internal ratification procedures, the Agreement entered into force on 7/06/2016 . The Agreement  
was notified to the WTO on 1/06/2016  under Article XXIV:7(a) of GATT 1994 and Article V:7(a) of 
GATS on 1/06/2016  (see WT/REG373/N/1 and S/C/N/86 3). A separate, complementary 
Agreement for implementing the Trade and Economic Cooperation Agreement (hereinafter the 
"Implementing Agreement"), consisting of six Chapters, was signed  simultaneously and entered 
into force on the same date.  The Implementin g Agreement provides detailed administrative rules 
and procedures  for the Governments of the Parties to implement the Agreement.  
2.2.  The text of both agreement s, together with the A nnexes  of the Agreement , are available on 
the Parties' official websites:  
Japan   http://www.mofa.go.jp/ a_o/c_m2/mn/page3e_000298.html  
 
Mongolia    http://www.mfa.gov.mn/?page_id=16949&lang=en  
2.3.  The Agreement is composed of 17 Chapters and 10 Annexes, while the Implementing 
Agreement contains 6 Chapters. A number of Annexes, including the Parties' tariff elimination WT/REG373/1  
 
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  schedules and the services schedules of specific commitments and MFN exemptions also form part 
of the Agreement. Table 2.1 below summarizes the structure of both agreements.  
Table 2.1 Structure of the Agreement  
Titles, Chapters and 
Annexes  Title/description  
The Agreement  
Preamble   
Chapter 1  General Provisions  
Chapter 2  Trade in Goods  
Chapter 3  Rules of Origin  
Chapter 4  Customs Procedures and Trade Facilitation  
Chapter 5  Sanitary and Phytosanitary Measures  
Chapter 6  Technical Regulations, Standards and Conformity Assessment Procedures  
Chapter  7 Trade in Services  
Chapter 8  Movement of Natural Persons  
Chapter 9  Electronic Commerce  
Chapter 10  Investment  
Chapter 11  Competition  
Chapter 12  Intellectual Property  
Chapter 13  Government Procurement  
Chapter 14  Improvement of the Business Envir onment  
Chapter 15  Cooperation  
Chapter 16  Dispute Settlement  
Chapter 17  Final Provisions  
Annex 1  Schedules in relation to Article 2.4  
Annex 2  Product Specific Rules  
Annex 3  Minimum Data Requirement for Certificate of Origin  
Annex 4  Financial Ser vices 
Annex 5  Telecommunications Services  
Annex 6  Schedules of Specific Commitments and List of Most -Favored -Nation Treatment 
Exemptions  
Annex 7  Specific Commitments for the Movement of Natural Persons  
Annex 8  Reservations for Measures referred to in Paragraph 1 of Article 10.8  
Annex 9  Reservations for Measures referred to in Paragraph 3 of Article 10.8  
Annex 10  Expropriation  
The Implementing Agreement  
Preamble   
Chapter 1  General Provisions  
Chapter 2  Customs Procedures and Trade Facilitation  
Chapter 3  Competition  
Chapter 4  Improvement of the Business Environment  
Chapter 5  Cooperation  
Chapter 6  Final Provisions  
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  A Sub -Committee on Trade in Goods is established u nder Article 2.19.   
3.2.  As foreseen in Article 2.20, the "Operational Procedures for Trade in Goods" (hereafter, the 
"Operational Procedures ") were adopted by the Agreement's Joint Committee on the date of its 
entry into force. These procedures provide detaile d regulations allowing the Parties' authorities  - 
also designated therein - to implement their functions as regards trade in goods.   
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.3.  The Agreement is implemented over a transition period lasting 20 years . The first instalment 
took place at entry into force on 7/06/2016 , and thereafter, instalments will be effective on 1 
April; the last reduction instalment will occur  on 1/04/2036 .  
3.4.  Tariffs are reduced from the base rate specified in  the Parties' schedules  – namely the 2013 
MFN rate.  The Schedules have been drawn up on the basis of the Harmonized System (HS) 2012.   WT/REG373/1  
 
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  3.5.  Article III  of the GATT 1994  on National treatment is incorporated in to the Agreement 
(Article  2.3).  
3.6.  Beyond tariffs, no other duties or charges of any kind shall be imposed on or in connection 
with the importation of a good (Article 2.4.3). Internal taxes , imposed consistently with paragraph 
2 of Articles II and III  of the GATT 1994 , anti-dumping or countervailing duty appl ied pursuant to 
a Party 's law and applied consistently with the provisions of Article VI of the GATT 1994, the 
Agreement on Anti -Dumping and the Agreement on Subsidies and Countervailing Measures , and 
fees or other charges commensurate with the services re ndered may be imposed at any time.   
3.7.  Import prohibitions or restrictions which are inconsistent with a Party's obligations under 
relevant WTO's provisions are prohibited under the Agreement. The Agreement provides that a 
Party introducing a WTO -consistent i mport restriction shall inform  the other Party; it also clarifies 
that the p rovision of  such information in the WTO context fulfils the transparency obligation s under 
the Agreement  (Article 2.7) .  
3.8.  In cases where the MFN applied rate of a good becomes equal  to, or lower than, the 
preferential tariff  rate, each Party shall notify the other Party of such elimination or reduction 
without delay . If the MFN applied rate of a good  becomes lower than the preferential tariff rate, 
each Party shall apply the lower ra te for the good  (Articles 2.4.5 -2.4.6).  
3.1.2   Liberalization of trade and tariff lines  
3.9.  Tariffs are eliminated or reduced by each Party in accordance with their specific schedule s of 
liberalization , contained in Annex 1  to the Agreement  (Article 2.4) , on the bas is of eight categories 
common to both Parties  and two categories (comprising 17 sub -categories) specific to Japan, 
including a number of tariff -rate quotas (TRQs) . Products under two categories are excluded from 
liberalization; for some of them, a rendez -vous (RDV) clause for improvement is provided for  and 
negotiations for such improvements are to take place at different dates. Table 3.1 provides the 
details regarding all the categories.  
Table 3.1 Categories f or Elimination or Reduction of Tariffs under the Agreement  
Category  Schedule of Elimination  
A Free on entry into force (EIF)  
B3 Tariff eliminated in four equal instalments starting at EIF, free on 1.4.19  
B5 Tariff eliminated in six equal instalments st arting at EIF, free on 1.4.21  
B7 Tariff eliminated in eight equal instalments starting at EIF, free on 1.4.23  
B10 Tariff eliminated in 11 equal instalments starting at EIF, free on 1.4.26  
B10* Tariff eliminated in one instalment on 1.4.26  
B15 Tariff el iminated in 16 equal instalments starting at EIF, free on 1.4.31  
B20 Tariff eliminated in 21 equal instalments starting at EIF, free on 1.4.36  
P Tariff reductions by Japan for products from Mongolia (eight different sub-categories). Margins of 
preference  (MOP) on the MFN rate varying from 10% to 55.5%, implemented in either 6 or 11 
instalments from EIF.  
Q TRQs by Japan (nine different sub-categories). RDV clause for improvements also foreseen.  
R Products excluded from tariff commitment .  
Japan  has comm itted to a RDV clause for improvements in year five - i.e. as of 1.4.20 - or, for 
meat from cloven -hoofed animals, the RDV clause may be earlier if there is a favourable risk 
assessment by Japan.3 
Mongolia has committed to a RDV clause for improvements, bu t the year was not originally 
specified.4 As of October 2017, this year had not yet been defined.  
X Products excluded from tariff commitment  
Source:  WTO Secretariat based on the Agreement.  
3.10.   Table 3.2 and 3. 3 below  show the scheduled liberalization of tariff lines and trade  according 
to the estimate s by WTO , respectively by Japan and Mongolia,  with further details provided in 
Annex 1. In 2016, around 40.1% of Japan's tariff (3,643 lines) w as already duty free on an MFN 
                                                
3 Respectively notes (14) and (15) in column 5 of Japan's schedule.  
4 Note "r" in column 5 of Mongolia 's schedule.  WT/REG373/1  
 
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  basis, corresponding on average to 83.4% of its imports from Mongoli a during 201 3-2015.5 At the 
entry into force of the Agreement , a further 3,541  lines (38.9% of tariff ) were immediately 
liberalized for imports from Mongolia - with an additional 15.9%  of Japanese imports from 
Mongolia during 2013 -15 benefitting from duty -free treatment . After ten years of implementation 
(in 2026), 1,163  lines ( 12.8% of the tariff) will remain subject to duty (corresponding on average 
to 0.2% of imports from Mongolia du ring 2013 -2015). At the end of the transition period in 2031 , 
1,115 lines (12.3% of the tariff) are to remain subject to duties for imports from Mongolia , 
corresponding to around 0.1% of Japan 's imports from Mongoli a in 201 3-2015. 
Table 3.2 Japan: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Number of 
lines  % of total lines in 
Japan's tariff 
schedule  Value of Japan's 
imports from 
Mongolia  
(2013 -2015)  
US$ million  % of Japan's 
total imports 
from  
Mongolia  
2013 -2015  
MFN duty free (2016)  3,643  40.1 23.7 83.4 
2016 3,541  38.9 4.5 15.9 
2019 13 0.1 0.0 0.0 
2021 67 0.7 0.0 0.1 
2023 98 1.1 0.1 0.2 
2026 571 6.3 0.1 0.2 
2031 48 0.5 0.0 0.1 
Remain dutiable  1,115 12.3 0.0 0.1 
Total  9,096  100.0  28.3 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation .  
 Based on the HS 2012 nomenclature.   
Source:  WTO estimates based on data from the Japanese authorities and WTO -IDB. 
 
3.11.   Among thes e 1,115 lines that remain dutiable, Japan has committed to reduce tariffs on 
imports from Mongolia on  10 lines ( including vegetable  oils and margarine ). It has also foreseen a 
RDV clause for market access improvement  for 29 lines  (frozen bovine meat, chees e and curd, 
vegetable oils, sugar confectionary, etc .) and TRQs for 25 lines (see Annex 2 of this document for 
further details) .  
3.12.   In 2016, Mongolia had a flat MFN tariff rate at 5%, with few exceptions amongst which a 
negligible number of duty -free tariff lines (52 lines, around 0.9% of its tariff) that corresponded 
also to a negligible amount of imports from Japan during 2013 -2015 (1.3%). Liberalization at the 
entry into force of the Agreement was significant with a total of 3,372 lines (58.9% of tariff) 
liberalized immediately for imports from Japan – these lines correspond to 58% of Mongolia's 
imports from Japan during 2013 -15. After ten years following the entry into force of the 
Agreement (202 6), 1,103  lines ( 19.3% of the tariff) will remain subject to duty for imports from 
Japan (corresponding to 2.6% of imports from Japan during 2013 -2015). At the end of the 
transition period in 2036, 995 lines (17.4% of the tariff) are to remain subject to duties for imports 
from Japan, corresponding to around 2.6% of  Mongolia's imports from Japan in 2013 -2015. Of 
these, 483 lines shall benefit f rom improved market access by a date yet to be  negotiated.  
                                                
5 In 2016, Japan's MFN applied tariff contained 9 ,096 lines at the HS nine digit level, of which 93.12% 
carried ad valorem  rates of duty. Of the remainder, 320 lines had mixed tariffs, 228 had specific rates, 57 were 
subject to compound rates of duty and 21 had other types of duties.  WT/REG373/1  
 
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  Table 3.3 Mongolia: Tariff elimination commitments under the Agreemen t and 
corresponding average trade  
Duty phase -out period  Number of 
lines  % of total lines in 
Mongolia's tariff 
schedule  Value of 
Mongolia's 
imports from 
Japan  
(2013 -2015)  
US$ million  % of Mongolia's 
total imports 
from Japan  
2013 -2015  
MFN (2016)  52 0.9 4.2 1.3 
2016 3,372  58.9 183.3  58.0 
2021 279 4.9 8.9 2.8 
2023 6 0.1 0.0 0.0 
2026 910 15.9 111.0  35.1 
2031 98 1.7 0.1 0.0 
2036 10 0.2 0.0 0.0 
Remain dutiable*  995 17.4 8.3 2.6 
Total  5,722  100.0  315.9  100.0  
* Includes three prohibited lines: 2207 .10.00, 2207.20.00, 2208 .90.10 – undenatured ethyl alcohol.  
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from the Mongolian authorities.  
 
3.1.3   Liberalization schedule  
3.1.3.1   Japan  
3.13.   Table 3.4 below prov ide further details of Japan 's tariff liberalization under the Agreement 
by HS Section.  At the end of the Agreement's transition period , eight HS Sections will be fully 
liberalized (V, VII, X XIV, XVI -XVII, XIX, XXI). T ariff lines remaining dutiable are sp read out 
through agricultural and industrial HS Sections - with a stronger concentration in HS Sections I -IV 
(77.9% of the lines) and in particular I (live animals and animal products) and IV (prepared 
foodstuff and beverages). Elimination of duties on HS Sections I -IV tend s also to take place within 
longer transition periods.  
Table 3.4 Japan: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  MFN 
duty-
free 
lines  
2016  Number of additional duty -free lines 
under the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable ) 2016  
2019  
2021  
2023  
2026  
2031  
I 8.8 720 115 46   1 197 4 357 14.7 
II 6.0 585 183 148 3 13 44 76 5 113 20.2 
III 3.6 89 22 23  8 6 5 1 24 13.8 
IV 15.9 789 82 48  22 41 186 35 375 22.5 
V 0.7 251 170 47    34    
VI 2.4 1,058  378 668  1 1 1  9 13.0 
VII 2.4 293 103 163    27    
VIII 10.5 193 65    5 7  116 16.3 
IX 3.4 265 95 98 3 23  8 3 35 7.0 
X 0.0 167 167         
XI 6.4 1,965  83 1,876       6 5.8 
XII 16.6 104 5 23    5  71 21.5 
XIII 1.2 163 99 62      2 7.3 
XIV 1.4 76 54 22        
XV 0.9 846 609 207 7   22  1 2.5 
XVI 0.0 917 910 5    2    WT/REG373/1  
 
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  HS 
Section  MFN 
Average  
% No. of 
lines  MFN 
duty-
free 
lines  
2016  Number of additional duty -free lines 
under the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable ) 2016  
2019  
2021  
2023  
2026  
2031  
XVII 0.1 145 144 1        
XVIII 0.2 260 251 6      3 12.0 
XIX 6.9 22 0 21    1    
XX 1.8 181 101 77      3 4.7 
XXI 0.0 7 7         
Total  4.9 9,096  3,643  3,541  13 67 98 571 48 1,115  18.0 
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation . For the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
Based on the HS 2012 nomenclature  
Source:  WTO estimates based on data from the Japanese authorities and WTO -IDB. 
 
3.14.   Chart 3.1 shows MFN and preferential rates of duty , by HS Chapter , for products remaining 
dutiable once the Agreement is fully implemented. In general the preferential and MFN average 
tariff for these lines is the same suggesting no further preferences for lines that remain dutiable 
for imports from Mongoli a, except for  HS Chapters 15, 19 and 20 . Average MFN and preferential 
applied tariffs range from 2.5% in Chapter  72 (Iron and steel ) to 34.6% for Chapter 17 (Sugars 
and sugar confectionery ). HS Chapters 13 (lac, gums and resins) and 50 (silk) contain specific 
rates of duty only.  
Chart 3.1 Japan: Average of dutiable rates, by HS Chapter  
0510152025303540
1
2
3
4
7
8
10
11
12
*13
15
16
17
18
19
20
21
22
23
24
29
35
41
42
43
44
*50
63
64
70
72
91
94
96Average Duty Rate (%)
HS ChapterPreferential MFN
 
* HS Chapters 13 and 50 contain specific duties only.  
Note:  For the calculation of averages, specific rates are excluded and the ad valore m parts of alternate 
rates are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Japan and WTO -IDB. 
 WT/REG373/1  
 
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  3.1.3.2   Mongolia  
3.15.   Table 3.5 below illustrates Mongolia's tariff liberalizati on under the Agreement by 
HS Section. At the end of the Agreement's transition period, only two HS Sections - XIV (Pearls 
and stones)  and XIX  (arms and ammunition) - will be fully liberalized. T ariff lines remaining 
dutiable are spread out through agricult ural and industrial HS Sections , around one -third of the 
lines being under H S Sections I -IV.  
Table 3.5 Mongolia: Tariff elimination under the Agreement, by HS Section  
HS 
Section  
 MFN 
Average  
% No. of 
lines  MFN 
duty-
free 
lines  
2016  Number of additional duty -free 
lines under the Agreement  
Remain 
dutiable*  
 Avg. Final 
Tariff  
(Dutiable)  2016  
2021  
2023  
2026  
2031  
2036  
I 6.3 368 7 221 3  9 1  127 5.4 
II 5.6 325  194 5 1 7 6  112 5.9 
III 5.0 48  27 2  4   15 5.0 
IV 8.0 250  89 6  23 23  109 5.0 
V 5.4 198  66 28  34 5  65 5.0 
VI 5.0 828  158 72  271   327 5.0 
VII 5.0 218  48 6  141 12  11 5.0 
VIII 5.0 141  62  3 15 2 6 53 5.0 
IX 5.4 99  83 3  8   5 5.0 
X 5.2 143  90 6  22 3  22 5.0 
XI 5.1 881  846      35 5.0 
XII 5.3 59  31 5  15 1 4 3 5.0 
XIII 5.8 169  108 16  39   6 5.0 
XIV 5.0 57  12 3  42     
XV 5.0 567  350 45 2 86 45  39 5.0 
XVI 4.9 795 22 621 69  78   5 5.0 
XVII 4.9 218 3 126   57   32 5.0 
XVIII 4.5 211 20 182   5   4 5.0 
XIX 5.0 18     18     
XX 5.5 122  52 10  36   24 5.0 
XXI 5.0 7  6      1 5.0 
Total  5.3 5,722  52 3,372  279 6 910 98 10 995 5.2 
* Includes three prohibited lines: 22071000, 22072000, 22089010 – undenatured ethyl alcohol.  
Note:  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data from the Japanese authorities and WTO -IDB. 
 
3.16.   The vast majority of products excluded from liberalization are agricultural products - meat, 
dairy products, cereals, vegetables; industrial products such as automobiles are also excluded. In 
turn, the majority of the 483 tariff lines  that shall benefit from future negotiated improved market 
access concern industrial products.  
3.17.   Chart 3.2 provides an illustration of the generally flat structu re of Mongolia's MFN tariff 
schedule while also presenting the final preferential tariff rates, by HS Chapter, for products 
remaining dutiable once the Agreement is fully implemented. Preferential tariff treatment exists in 
10 out of the relevant 58 Chapte rs - namely Chapters 2, 4, 7, 16, 21, 22, 25, 39, 44 and 94. In all 
of these cases, the average MFN rate was above the flat 5% - the highest applying to Beverages, 
spirits and vinegar of Chapter 22 - while the final average preferential rate has normally b een 
brought to 5%. WT/REG373/1  
 
- 16 - 
 
  Chart 3.2 Mongolia: Average of dutiable rates, by HS Chapter  
02468101214161820
1
2
4
5
6
7
8
10
11
12
13
15
16
19
20
21
22
23
24
25
26
27
28
29
30
38
39
40
41
42
43
44
47
48
49
50
51
52
63
64
67
68
70
72
73
74
76
78
79
84
85
87
90
91
94
95
96
97Average Duty Rate 
(%)
HS ChapterPreferential MFN
 
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by the Mongolian authorities.  
 
3.1.4   Tariff rat e quotas  
3.18.   Tariff-rate quotas are o nly used by Japan , which grants them for 25 tariff lines , including 
cheese and curds, honey, prepared or preserved meat of bovine animals, and udon, somen and 
soba. The in -quota rates range from zero to 40%. The out -of-quota rates are excluded from any 
tariff commitment . The terms and conditions applying to the TRQs (category Q) are found in the 
Agreement - Annex 1, Part 2, Section 1, paragraph 1, notes (9) to (13) - while their operation is 
described in the Operational Procedures . Annex 2 of this document presents detailed information 
on the TRQs .  
3.19.   All TRQs are implemented through a " certificate of TRQ " issued by Japan on the basis of the 
certificate issued by the Mongolia for each export. For some products, an additional "c ertificate of 
a good for the preferential tariff treatment" (GPTT) - defined in Rule 2 of Section 2 of the 
Operational Procedures - is also required  (see Section 3. 4.5).  
3.2  Rules of origin  
3.20.   Rules of origin are set out in Chapter 3. The basic requirements for a good to be considered 
originating, as in Article 3.2, are:  
a. the good is wholly obtained or produced entirely in the Party;  
b. the good is produced entirely in the Part y exclusively from originating materials of the 
Party; or 
c. the good is produced entirely in  the Part y using non -originating materials ; it satisfies the 
product -specific rules specified in Annex 2 to Agreement - which may require a change in 
tariff classification (CTC), a qualifying value content ( QVC) or a specific 
manufacturing/processing opera tion; and it meets all other applicable requirements of 
Chapter  3. 
3.21.   A large number  of product -specific rules for in dustrial goods  provide for alternative rules of 
origin requirements , in particular a CTC  (at the level of heading or subheading ) or a QVC. 
Requirements for a change of Chapter apply generally for agricultural products. Rules of origin for WT/REG373/1  
 
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  HS Chapters 50 -63, textiles and textile articles  require specific manufacturing process es which are 
necessary to be accomplished in either Party , as stipulated  in the Appendix to Annex 2 .  
3.22.   Article 3.4 provides that the QVC may be calculated in terms of either the build -down or the 
build-up method.  In the former, the value of non -originating materials is deducted from the F.O.B . 
value of the good, while in the la tter the value is calculated  through adding the value of originating 
materials , direct labour  costs, direct  overhead costs  and profits .6 The threshold  is of 40% QVC 
except in one case - food supplements of HS  Subheading  2106.90 - where the QVC is 50%. 
Imported materials are evaluated in accordance with the WTO Customs Valuation Agreement and 
include freight, insurance, packaging and all transportation costs up to the port of importation; 
those acquired domestically are valued on the basis of the price actua lly paid. When QVC is used, 
the final process of production has to be performed in a Party (Part 1 of Annex 2, "General Notes", 
point (d)).  
3.23.   No outward processing is authorized under this Agreement . Once originating status has 
been granted to a good, transi t through or temporary storage in non-Parties is authorized provided 
that it does not undergo operations other than unloading, reloading or any other operation 
necessary to preserve it in good condition (Article 3.8). 
3.24.   Article 3.5 provides both bilateral cu mulation and full cumulation. Bilateral cumulation 
applies between the two Parties. Full cumulation applies provided the final good has undergone its 
last production process in the exporting Party and such production process goes beyond minimal 
operations (Article 3.5). The absorption principle - i.e. the value of non -originating materials 
incorporated in another good that has acquired originating status count towards the qualifying 
value - also applies (Article 3.4:4).  
3.25.   A de minimis  rule (Article 3.6 and P art 1 of Annex 2, "General Notes ", point (f) ) applies so 
that the good is considered originating if all non -originating materials that do not comply with the 
required CTC is less than 10% of the value  of the good; for textiles and textile articles  of HS 
Chapters 50 -63, de minimis  rule applied if  the total weight of non -originating materials which do 
not comply with CTC  or specific manufacturing process requirement  is less than 10% of  the total 
weight of the good . For goods of HS Chapters 1 -24, de minimis  rule does not apply to a 
non-originating material unless the material is of a subheading different from the one for which 
origin is being determined .  
3.26.   Articles 3.9 -3.14 concern other elements in the determination of origin, including e.g. 
unassembled or disa ssembled goods,  fungible goods, indirect materials, etc.  
Box 3.1 Rules of Origin at a Glance  
Product -specific criteria:  
 
 Wholly obtained goods  
 CTC, change of h eading  or subheading; change of Chapter for agricul tural products  and some 
industrial goods  
 QVC: 40%, except one subheading  case ( 50%) 
 Manufacturing process for textiles  
 
Bilateral and full cumulation.  
 
Absorption principle.  
 
Tolerance rule.  
 
No outward -processing authorized.  
 
3.27.   A Sub -Committee on Rules of Origin is established in Article 3.25.  
                                                
6 Valuation of goods  is done on the basis of the WTO Agreement on Implementation of  Article VII of the 
GATT 1994. Adjustments may however differ from F.O.B . when non -originating materials are bought already in 
the territory of the Party.  WT/REG373/1  
 
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  3.3  Export duties and charges, and quantitative restrictions  
3.28.   The Agreement does not provide for any reduction of customs duties on the exportation or 
sale for export of any good destined to the other Party.7 
3.29.   Export prohi bitions or restrictions which are inconsistent with a Party's obligations under 
relevant WTO's provisions are prohibited under the Agreement. The Agreement provides that a 
Party introducing a WTO -consistent export restriction shall inform the other Party; it also  clarifies 
that the p rovision of such information in the WTO context fulfils the transparency obligations under 
the Agreement (Article 2.7).  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.30.   Chapter 5 of the Agre ement covers Sanitary and Phytosanitary  (SPS)  Measures. The Parties 
reaffirm their rights and obligations relating to SPS measures under the WTO SPS Agreement 
(Article  5.2).  
3.31.   Articles 5.3 and 5.4 , respectively , include disciplines relating to harmonization  and 
equivalence  that are in line with obligations under the WTO SPS Agreement.  Enquiry Points shall 
be designated by the Parties and a Sub -Committee on SPS Measures is established to, inter alia, 
review the implementation and operation of Chapter 5.8 
3.32.   Chapter 5  related measures cannot be subject to the Agreement's dispute settlement  
mechanism  (Article 5.7).  
3.33.   Technical assistance on harmonization and recognition of equivalence of SPS measures is 
identified as the form  for cooperation in the Implementing Agre ement (Article 5.1(a)(x) of the 
Implementing Agreement)  
3.4.1.2 Technical regulations, standards and conformity assessment procedures  
3.34.   Chapter 6 of the Agreement covers Technical Regulation s, Standards and Conformity 
Assessment Procedures , excluding those i n the context of government procurement  and SPS 
measure . The Parties reaffirm their rights and obligations relating to TBT measures under the WTO 
TBT Agreement (Article 6.4). As in the WTO Agreement, the Parties are to establish an enquiry 
point to answer all reasonable enquires from the other Party regarding TBT issues (Article 6.8).9 
3.35.   The following disciplines are additional to those under the WTO TBT Agreement:  
a. cooperation between the Parties' national standardizing bodies in the context of 
international standardization activities shall be encouraged (Article 6.5);  
b. upon request, information aimed at helping the other Party to develop a technical 
regulation similar to that of the Party shall be provided, to the extent practicable  (Article 
6.6:1); 
c. in case s where the equivalence of a technical regulation is not granted, or the results of 
conformity assessment procedure not accepted, the Party shall, upon request by the 
other Party, explain the reasons thereof (Article 6.6:3  and 6.7:3, respectively ); 
                                                
7 Japan does not apply export duties.  Mongolia has eliminated export duties on all goods, except for 
wood and logs, on which the duties are applied due to environmental concerns.  
8 For Japan: Second China and Mongolia Division, Asian and Oceanian Affairs Bureau, Ministry of Foreign 
Affairs . For Mongolia: the enquiry point and the Mongolian side of the Sub -Committee is designated to the 
Ministry of Food, Agriculture and Light Industry . 
9 For Japan: Second China and Mongolia Division, Asian and Oceanian Affairs Bureau, Ministry of Foreign 
Affairs . For Mongolia: The Mongolian Agency for Standards and Metrology . WT/REG373/1  
 
- 19 - 
 
  d. whenever p ossible, accreditation, designation or recogni tion of  conformity assessment 
bodies in the other Party  on terms no less favourable  than those it accords to bodies in 
its Party shall be accord ed. If a Party refuses to accredit, designate or recognize a body 
assessing conformity , the Party  shall, upon request, explain the reasons therefor  
(Article  6.7:4) . 
3.36.   Article 5.2 of the Implementing Agreement focus es on cooperation in the area of TBT, 
including with respect to encouraging enforcement  of Chapter 6 and the W TO TBT Agreement , 
strengthening relevant bodies and human resources . 
3.37.   Chapter 6 is not subject to the Agreement's dispute settlement mechanism  (Article 6.10) .  
3.38.   A Sub -Committee on Technical Regulations, Standards and Conformity Assessment 
Procedures is estab lished in Article 6.9.  
3.4.2   Safeguard mechanisms  
3.39.   Section 2 of the Trade in Goods Chapter deals with safeguard provisions; a review of the 
Section is foreseen within 10 years from entry into force, if necessary  (Article 2.16) .  
3.4.2.1   Global safeguards  
3.40.   Article 2.14 se ts out the relation ship between safeguard measures under the Agreement 
and under the WTO Agreement. The Parties remain free to  apply safeguard measures on an 
originating good of the other Party in accordance with Article XIX of the GATT 1994 and the 
WTO Agreement on Safeguards . However, simultaneous application of a global safeguard and a 
bilateral safeguard on the same product is not possible (paragraph 2).  
3.41.   A Party shall not apply nor seek to extend application of a bilateral safeguard measure on a 
good t hat is subject to a measure that the Party has applied pursuant to Article XIX of the GATT 
1994 and the Agreement on Safeguards, or Article 5 of the Agreement on Agriculture.  
3.42.   In cases where a bilateral safeguard measure was applied prior to the application  of a global 
safeguard measure, the duration of the global  safeguard shall be counted as a part of the total 
duration of the bilateral safeguard. Application of the bilateral safeguard may be resumed upon the 
termination of the global safeguard, up to the remaining period foreseen for th e bilateral safeguard 
measure.  
3.4.2.2   Bilateral safeguards  
3.43.   Bilateral safeguards are authorized if, as a result of the elimination/reduction of tariffs under 
the Agreement, imports of an originating good have increased in such quant ities - in absolute 
terms or relative to domestic production - and under such conditions that they cause, or threat en 
to cause, serious injury to a domestic industry of the other Party  (Article 2.8) . Subject to fulfilment 
of the required conditions, bilate ral safeguard measures may be imposed even after the end of the 
transition period.  
3.44.   The following conditions apply to the imposition of bilateral safeguards  (Articles 2.8 -2.9): 
a. a safeguard measure is to be applied for the minimum extent necessary to preven t or 
remedy the serious injury to domestic industry and to facilitate adjustment ; 
b. authorized measures are either the suspen sion of the further tariff reduction foreseen or 
the increase of tariff to a level not exceed ing the lesser of  the MFN applied tariff (i) on 
the day of application of the safeguard  and (ii) on the day  immediately preceding the 
Agreement's entry into  force; 
c. a safeguard measure cannot be imposed for more than three years; in highly exceptional 
circumstances, it can be extended but its tot al duration shall not exceed six years;  
d. a safeguard measure imposed for more than one year shall be progressively liberalized;  WT/REG373/1  
 
- 20 - 
 
  e. no bilateral safeguard measure shall be applied again on the same good for a period of 
time equal to the duration of the previou s safeguard measure or one year, whichever is 
longer;  
f. upon its termination, the applied tariff on the concerned good shall be th at originally 
foreseen under the tariff elimination schedule;  
g. a bilateral safeguard measure shall not be applied if the share o f imports of the good 
concerned in the importing Party does not exceed 3%; and  
h. each Party shall adopt or maintain equitable, timely, transparent and effective 
procedures relating to bilateral  safeguards.  
3.45.   Under Article 2.1 3 provisional safeguards are permit ted in critical circumstances where 
delay would cause damage which would be difficult to repair. Provisional safeguards may be taken 
pursuant to a preliminary determination of serious injury or threat thereof; prior written notice  is 
required and consultat ions shall be initiated immediately after its imposition. The maximum 
duration of a provisional safeguard is 200 days , which shall be counted as part of the overall 
period of the safeguard. Any duties charged as part of the provisional safeguard shall be r efunded 
if the investigation does not reveal serious injury to domestic industry.  
3.46.   Article 2.10 states that investigation is to be carried out in accordance with the WTO 
Agreement on Safeguards and shall be completed within one year of its initiation, excep t in 
exceptional circumstances in which case the period is extended to 18 months. Article 2.11 
describes additional formalities for written notice of initiation of an investigation and the 
application or extension of a bilateral safeguard measure, includin g the possibility for prior 
consultation.  
3.47.   Article 2.1 2 concerns compensation in respect of the application of bilateral safeguard 
measures. If the Parties are unable to agree on compensation within 30 days after the 
commencement of consultations, the affe cted Party may suspend substantially equivalent tariff 
concessions for the minimum period necessary to achieve the substantially equivalent effects , and 
only while the safeguard lasts.  
3.4.2.3   Balance -of-payments safeguards  
3.48.   Article 2.18 (Section 3 of the Trade in  Goods Chapter, "Other Provisions") allows the 
application of measures to safeguard the balance -of-payments (BOP) in accordance with the 
conditions established under Article XII of the GATT 1994  and its BOP Understanding. It also 
clarifies that the Parties  may use exchange controls or exchange restrictions , in accordance with 
the Articles of Agreement of the International Monetary Fund.  
3.4.2.4   Agriculture safeguards  
3.49.   Disciplines under paragraph 3.40.  apply mutatis muta ndis to safeguards applied under 
Article 5 of the Agreement on Agriculture.  
3.4.3   Anti-dumping and countervailing measures  
3.50.   Article 2.17 clarifies that any application of anti -dumping and countervailing measures are 
to be in accordance with the relevant WTO Agree ments.  
3.4.4   Subsidies and State -aid 
3.51.   The Agreement 's unique discipline regarding subsidies or State -aid is that of Article 2.6, 
which prohibits the use of export subsidies on agricultural products (as defined by the WTO 
Agreement on Agriculture) inconsistently with each Party's obligations under the WTO.  WT/REG373/1  
 
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  3.4.5   Customs -related procedures  
3.52.   Customs -related procedures in terms of granting preferential tariff treatment are de alt with 
in Articles 3.15 -3.26 - as well as in the Operational Procedures . More general customs pro cedures 
required for the clearance of goods as well as trade facilitation measures are dealt with in Chapter 
4 as well as Chapter 2 of the Implementing Agreement . 
3.53.   Goods are valued in accordance with Part I of the WTO Customs Valuation Agreement, 
mutatis mu tandis  (Article 2.5).  
3.54.   Preferential tariff treatment is granted on the basis of a presentation of the required 
Certificate  - there are three different Certificates specified under the Agreement:  
a. a Certificate  of Origin (Article 3.16) , required  for all impor ts under preferential tariff 
treatment. T he Certificate of Origin is issued by the exporting Party's competent 
governmental authority or designated entities/bodies; the minimum data to be included 
is specified in Annex 3 to the Agreement . The Format of  Certificate of Origin was 
established by the Parties .10 The Operational Procedures also apply to the Certificate of 
Origin.  
b. An export certificate i s to be used for TRQs - in accordance with Rule 1 of Section 2 of 
the Operational Procedures - issued by Mongoli a's MFA or its authorized bodies . This 
Export certificate is different from the Certificate of Origin. The Ministry of Food, 
Agriculture and Light Industry is the authorized body to issue the certificate.  
c. a Certificate of GPTT - in accordance with Rule 2 o f Section 2 of the Operational 
Procedures - issued by Mongolia's MFA  or its authorized bodies , needed for some 
products subject to TRQs and for one tariff line that has become duty -free at entry into 
force - namely  fermented beverages prepared from Seabuck thorn , HS 2206.00.229 .11 
The Ministry of Food, Agriculture and Light Industry is the authorized body to issue the 
certificate.   
3.55.   The Operational Procedures provide  as follows:  
a. as for e xport certificate for TRQs and a Certificate of GPTT, the competent govern mental 
authorities are, for Japan, the Ministry of Agriculture, Forestry and Fisheries (MAFF) and 
for Mongolia the Ministry of Food and Agriculture (MFA) of Mongolia;  
b. for products subject to TRQs : 
i. an export certificate (in English) , issued by  Mongolia's MF A or its authorized bodies, 
is needed for each export . The mini mum data to be included therein is specified in 
paragraph 2, Rule 1 of Section 2 of the Operational Procedures . Upon entry into force 
of the Agreement, Mongolia notif ied Japan of the format of the certificate and of its 
authorized bodies  etc. The Ministry of Food, Agriculture and Light Industry of 
Mongolia is the authorized body.  
ii. upon presentation of the export certificate, the  importer may apply for a TRQ 
certificate to Japan' s MAFF;  and 
iii. the Pa rties and their relevant authorities will exchange information related to TRQs 
and in particular on the aggregate amount of allocated quotas ;  
c. for products subject to a GPTT certificate:  
                                                
10 The Certificate of Origin and the designated entities/bodies appointed can be found in: 
http://www.tokyo -cci.or.jp/shomei_center/country_of_origin/coo02/  and 
http://www.mongolchamber.mn/en/serviceDetail/29 .  
11 The format of the Certificate of GPTT can be found 
in:http://www.customs.go.jp/kyotsu/kokusai/gaiyou/mongol/mongol_certificate.pdf  WT/REG373/1  
 
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  i. the importer  will submit that Certificate to the Japanese customs aut horities;  
ii. upon request and through diplomatic channels, the Japanese importing authorities 
may request Mongolia's MFA to authenticat e the Certificate;  
iii. preferential tariff treatment may be denied if no reply is given within 90 days or if 
Mongolia's MFA  fails to authenticate the Certificate and/or all information contained 
therein; suspension of such preferential tariff treatment is also possible pending 
authentication.  
3.56.   Detailed p rocedures are also defined regarding verification of origin ( in particular in 
Articles 3.18-3.19 but also  in the Operational Procedures  for Rules of Origin ). The competent 
authorities of the importing Party may request information  related to the origin of the goods from 
the competent authority  of exporting Party ; replies are to be pro vided within four months. 
Additional information may also be requested, to which replies shall be provided within two 
months. If the importing authorities are not satisfied, they may request a verification visit by both 
the importing and exporting authorit ies. Timeframes are specified regarding the timing of the 
request and of the reply as regards to the proposed date of visit; written consent of the 
exporter/ producer is also required.  Non-compliance with these timeframes, or a refusal to conduct 
a visit, a llows the importing Party to deny preferential tariff treatment. Information provided in the 
context of Chapter 3 shall be only used for the purpose of proper implementation of the Chapter 
and shall not be used in any criminal proceeding unless the informa tion is exchanged via 
diplomatic channels  or other channels established in accordance with the applicable laws and 
regulations of the exporting Party . 
3.57.   Chapter 2 of the Implementing Agreement provides for cooperation between the customs 
authorities of both Parties in areas such as research, development and testing of new customs 
procedures and enforcement, communications technology, risk management, combating illicit 
trafficking and trade in goods suspected of infringing intellectual property rights, etc.  Trade 
facilitation is an objective and best endeavour disciplines are therefore spelled out. The sharing of 
customs authorities' best practices in some of these areas is also encouraged. The Parties' risk 
management systems are to concentrate inspection on h igh risk goods while low risk goods are to 
benefit from simplified clearance and movement. Disciplines are also included regarding the 
exchange of information while protecting confidentiality. Finally, it details the composition of the 
Sub-Committee on Cus toms Procedures and Trade Facilitation , established under Article  4.8.  
3.58.   Chapter 4 applies to customs procedures required for the clearance and customs control of 
goods traded between the Parties, including the means of transport enter ing or leaving  their 
customs territory. It establishes a framework to ensure transparency, proper application of 
customs laws and prompt clearance of goods.  
3.59.   Customs procedures are to be applied in a predictable, consistent and transparent manner. 
Transparency involves inter ali a the setting of  enquiry points (Article 4.3:4). In order to guarantee 
prompt customs clearance , the Parties are to promot e the use of information and communication 
technologies (Article 4.4:2)  and, to the extent possible, harmonize their customs procedure s with 
relevant international standards.  Easily accessible processes of administrative and judicial reviews 
are to be available (Article 4.4:3). Advanced rulings (Article 4.6) are only subject to a  best 
endeavour provision . Disciplines on temporary ad mission of goods in transit and  cooperation and 
exchange of information mechanisms (Article s 4.5 and 4.7 respectively)  are also provided for .  
3.5  Sector -specific provisions on trade in goods  
3.5.1   Agriculture  
3.60.   Export subsidies on agricultural products  are prohibited, as indicated in paragraph 
3.51.    above . 
3.61.   The Implementing Agreement in its Chapter 5 provides for cooperation in the area of  
agriculture, forestry and fisheries, including matters related to SPS measures . Cooper ation on 
genetic resources for foods and agriculture, irrigation and seed production, production of dairy 
products, beef, organic foods, grains and vegetables have inter alia  been singled out.  WT/REG373/1  
 
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  4  PROVISIONS ON TRADE IN SERVICES  AND INVESTMENT  
4.1  Scope and defin itions  
4.1.  Trade in services is governed by Chapter 7 (Trade in Services) together with Chapter 8 on 
the Movement of Natural Persons ; specific Annexes exist for financial and telecommunications 
services (Annexes 4 and 5, respectively) . Investment is dealt with  in Chapter 10 and in Annexes 8 -
10. 
4.2.  Article 7.2 include s definitions regarding trade in services.  All the four GATS modes of 
delivery are covered by the Chapter on Trade in Services  (item (m) of Article 7.2); m easures 
covered are those  adopted or maintaine d by a Party  at any level of government as well as by non -
governmental bodies in the exercise of powers delegated by government authorities, including 
taxation measures to the extent these are covered by the GATS.  Measures affecting trade in 
services  are defined to include (i) the purchase, payment or use of a service; (ii) the access to and 
the use of services offered to the public generally , including the production, distribution, 
marketing, sale and delivery of a service; (iii) the presence , including co mmercial presence, of 
persons of the other Party in the Area of a Party. 
4.3.  Excluded from the Services Chapter 's coverage are (a) cabotage  in maritime transport 
services;12 (b) measures affecting traffic rights or services directly related to the exercise of t raffic 
rights; (c) government procurement ; (d) subsidies provided by a Party or a state enterprise , 
including grants, government -supported loans, guarantees and insurance;13 (e) measures 
pursuant to immigration laws and regulations; (f) measures affecting n atural persons of a Party 
seeking access to the employment market of the other Party, or measures regarding nationality or 
citizenship, or residence or employment on a permanent basis; and (g) services supplied in the 
exercise of governmental authority (Ar ticle 7.1). As in the GATS, aircraft repair and maintenance 
services, the selling and marketing of air transport services and computer reservation services  are 
however covered by the Agreement (Article 7.1 :3).  
4.4.  Chapter 10 on Investment covers investment in  all sectors, including on services. More 
specifically, the Chapter applies to measures adopted or maintained by a Party relating to 
investors of the other Party, investments of investors of the other Party  – including those made 
prior to the entry into fo rce of the Agreement - and, as regards disciplines of Articles 10.7 and 
10.17 (prohibition of performance requirements, and no derogation of health, safety, 
environmental measures or labour standards for attracting investment),  and all investments in the 
Area of a Party, including those from non -Parties . Measures pursuant to immigration laws and 
regulations are outside the scope of the Chapter (Article 10.1).  
4.5.  Given the coverage of Chapters 7 and 10, their provisions need to be read together for a 
complete p icture of the inter -relationship between services and investment. In practice, the 
delivery of services under Mode 3 is addressed under Chapter 7 on Trade in Services, and in 
respect of investment made in the territory of a Party , it will also be governed by the provisions of 
Chapter 10. In the event of inconsistency between the two Chapters, Chapter 7 shall prevail with 
respect to national and MFN treatment, and prohibition of performance requirements; for other 
matters, Chapter 10 shall prevail to the ext ent of the inconsistency (Article 10.1:2).  
4.2  Denial of benefits  
4.6.  Under Article 7.15, a Party may deny the benefits of Chapter 7 to a service supplier of the 
other Party that is a juridical person of the other Party, where the former Party establishes that 
the enterprise is owned or controlled by persons of a non -Party, and the former Party: (a) does 
not maintain diplomatic relations with the non -Party; or ( b) adopts or maintains measures with 
respect to the non -Party that prohibit transactions with the juridic al person or that would be 
violated or circumvented if the benefits of Chapter 7 were accorded to the juridical person. 
Moreover, subject to prior notification and consultation, a Party may deny the benefits of Chapter 
                                                
12 In the GATS, Japan excludes cabotage services from all its Specific commitments on Maritime 
transport services.  
13 In the GATS, Japan has an horizontal limitation that excludes research and development subsidies 
from all its Specific commitments.  WT/REG373/1  
 
- 24 - 
 
  7 to a service supplier of the other Party that is a juridical person owned or controlled by persons 
of a non -Party and that has no substantial business activities in the Area of the other Party.  
4.7.  For the purposes of investment, Article 10.16 permits a Party to deny the benefits of Chapter  
10 to an investor of the other Party that is an enterprise of the other Party, and to its investment, 
if the enterprise is owned or controlled by an investor of a non -Party, and  
a. the denying Party does not maintain diplomatic relations with the non -Party; or  
b. the denying Party maintains restrictive measures with respect to the non -Party that 
would otherwise be violated or circumvented; or  
c. the enterprise has no substantial business activities in the Area of the other Party.  
4.3  General provisions on trade in servic es and investment  
4.8.  The Agreement uses a positive -list approach for trade in services along the lines of the GATS . 
For trade in services, Parties inscribe d in their respective Schedules of Specific Commitments of 
Annex 6 the sectors where they undert ook comm itments with respect to national treatment and 
market access , along with any terms, limitations and conditions  (Article 7.7) . An addit ional 
provision (Article 7.7:2 and the Explanatory notes of Annex 6 ) provides for a standstill obligation 
in sectors/subse ctors where an "SS" is inscribed in Annex 6 - i.e. the level of non -conformity of 
market access and national treatment limitations cannot be increased, unless these are pursuant 
to immigration laws and regulations.14 As in the GATS, t he Schedules may also c ontain 
undertakings relating to issues not subject to scheduling, including e.g. qualifications, standards, 
licensing (Additional Commitments, Article 7.6).  
4.9.  For transparency purposes  only, the Parties are to prepare a non -legally binding list of 
measures inconsistent with the Agreement's disciplines on national treatment, MFN and market 
access  (Article 7.14) . The list shall be exchanged with the other Party and made publicly available 
by mid -2021; it shall also be subject to future review and revision wher e necessary or as agreed 
between the Parties.  As of October 2017, this list had not been exchanged.  
4.10.   The Parties foresee the possibility to review the Services Chapter in due course, with the 
objective of further liberalizing trade in services; the modifica tion of the format of the schedules 
may also be envisaged in such a review (Article 7.17). In cases where a Party has undertaken 
autonomous services liberalization, it shall consider in due course requests from the other Party to 
incorporate such liberaliz ation into the Agreement.   
4.11.   Disciplines on investment mirror to a large extent those of the Trade in Services Chapter , 
with the exception that  the investment chapter  adopts a negative -list approach to the scheduling 
of liberalization commitments . Thus, the Parties have taken reservations in Annexes 8 and 9, 
respectively, concerning sectors, sub -sectors or activities in which non -conforming existing or 
future measures may be maintained . Non -conforming measures maintained by local governments 
at the date of en try into force of the Agreement are also exempted from these disciplines; th is also 
applies to their r enewal/amendment provided that their level of non -conformity is not increased.  
4.12.   Chapter 10 also contains disciplines regarding expropriation and compensati on, protection 
from strife, transfers, subrogation, temporary safeguard measures, prudential measures, and 
denial of benefits. The Bilateral Investment Agreement that was in force between the Parties was 
terminated at the entry into force of the Agreement.  In case of termination of the Agreement, 
Chapter 10 and other Agreement's relevant provisions will apply for a period of 10 years after its 
termination.  
4.13.   Sub-Committee s on Trade in Services and on Investment are  established (Article s 7.16 and 
10.18, respec tively).  
                                                
14 The standstill provision can be full or partial: "SS" refers to full standstill, "SS*"  means that  standstill 
applies to marke t access and national treatment limitations on modes 1 -3, while for "SS**" the standstill only 
applies to national treatment limitations on mode 4.  Partial standstill only applies in the case of Japan.  WT/REG373/1  
 
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  4.3.1   Market access  
4.14.   Article  7.5 mirrors  Article XVI (a) -(f) of the GATS , by stating that market access is to be 
granted in accordance with the terms, limitations and conditions included in the Schedules of 
Specific Commitments of Annex 6. Prohibited me asures on sectors/sub -sectors in which 
commit ments are made , which shall not be maintained or adopted either on the basis of a regional 
subdivision or the entire territory of the Party , are listed; th ey are those of  GATS Article XVI .  
4.3.2   National treatment an d MFN  
4.15.   As in the GATS, national treatment (Articles 7.3) only applies with respect to those services 
sectors and sub -sectors for which specific commitments have been undertaken. The Parties agree 
to accord to services and service suppliers of the other Part y treatment no less favourable than 
that accord ed to their own like services and service suppliers. Part ies are not  to compensate for 
any inherent competitive disadvantages which result from the foreign character of the relevant 
servicers or service suppli ers.  
4.16.   MFN treatment is provided for u nder Article 7.4 , with each Party agree ing to accord to 
services and service suppliers of the other Party treatment no less favourable than it accords to 
like services and service suppliers of any non -Party. As in the G ATS, the Parties have take n MFN 
exemptions, which are listed in Annex 6.  
4.17.   Each Party also accords national treatment and MFN to investors of the other Party and their 
covered investments, with respect to investment activities in its Area (Articles 10.3 -10.4). National 
treatment and MFN also applies as regards access to courts of justice, administrative tribunals and 
agencies by investors of the other Party with respect to covered investments (Article 10.6). 
Further, the minimum required standard of treatment  granted to them (Article 10.5) are to be in 
accordance with international law, including fair and equitable treatment and full protection and 
security. Obligations under Articles 10.5 and 10.6 also apply to taxation measures.  
4.3.3   Commercial presence  
4.18.   Chapter 7 contains no specific provision on commercial presence per se ; any applied 
limitation is included in Annex 6.  
4.3.4   Movement of natural persons  
4.19.   Chapter 8 of the Agreement covers entry and temporary stay of  natural persons of a Party  
who enter the other Party for business purposes. Chapter 8 does not apply to measures affecting 
access to the employment market, nationality or citizenship, or residence or employment on a 
permanent basis. Moreover, nothing in the Chapter shall prevent a Party from regulating the ent ry 
and temporary stay of natural persons from the other Party, provided any such measures are not 
applied in such a manner as to nullify or impair the benefits accruing to the other Party under 
Annex 7  (Article 8.2) .  
4.20.   Entry and temporary stay for nationals  of the other Party for business purposes is granted 
for the categories identified in Annex 7  in accordance with relevant terms and conditions , and 
provided the natural persons comply with existing immigration measures ; see Table 4.1-and 4.2 
below. Quotas are not authorized under the Agreement . 
4.21.   Compared to their GATS commitments in mode 4, under the Agreement both Japan and 
Mongolia have further liberalized mode 4 by extending their GATS commitments to also cover 
investors and accompanying spouse s and children, and by providing additional opportunities to 
natural persons with technical knowledge. Further more, the length of stay has been made more 
flexible in that it allows extension of the original period of stay.  WT/REG373/1  
 
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  Table 4.1 Summary of Japan's commitments regarding natural persons of Mongolia  
Category  Condition s/Activities  Length of Stay  
Short -term business visitors  (i) no remuneration from within Japan and  
(ii) not enga ging in direct sales to the general 
public nor in supplying services himself or herself  90 days, extendable  
Intra-corporate transferees  (i) at least one year of previous employment by the 
organization;  
(ii) intra -corporate transfer;  
(iii) Head; Board memb er or Auditor; Directors; 
Specialists  
(iv) Specialists require, in principle, a bachelor 's 
degree or higher education  
3 months/1 year/     3 
years/5 years, 
extendable  Investor s Investor, Manager, natural person conducting a 
foreign investment  
Natural p ersons of Mongolia 
who engage in professional 
services  qualified under 
Japanese laws and regulations  (i) supply of legal, accounting or taxation services;  
(ii) qualified under the laws and regulations of 
Japan;  
(iii) includes an exhaustive list of authoriz ed 
activities  
Natural persons of Mongolia 
who engage in business 
activities which require 
technology or knowledge at an 
advance level on the basis of a 
contract with a public or private 
organization in Japan  (i) Supply of services relating to physical s ciences, 
engineering or other natural sciences, or to human 
sciences; or  
(ii) "Engineer/Specialist in Humanities/ 
International Services " as regards a foreign 
country; and  
(iii) Under (i), an in principle requirement of a 
bachelor 's degree or higher educat ion, or having 
passed examinations on information processing 
technology  
Accompanying spouse and 
children  (i) applies to all categories except short term 
business visitors  
(ii) maintained from the natural person;  
(iii) spouses may, upon application, be  allowed to 
work subject to Government's approval  Same length as the 
natural person 's stay, 
in principle  
Source:  Part 1 of Annex 7 to the Agreement.  
Table 4.2 Summary of Mongolia's commitments regarding natu ral persons of Japan  
Category  Condition  Length of Stay  
Short -term business visitors  (i) no remuneration from within Mongolia ; and 
(ii) not engaging in direct sales to the general 
public nor in supplying services himself /herself  30 days, extendable  
Intra-corporate transferees  (i) intra -corporate transfer;  
(ii) Manager, an executive or a specialist  
(definition provided)  1 year, extendable 
subject to the term of 
operation of commercial 
presence  
Investor s Investor, Manager, natural person conducting a 
foreign investment  1 year, extendable  
Natural persons of Japan  who 
engage in professional services  
qualified under the laws and 
regulations of Mongolia  (i) service supplie r qualified under the laws and 
regulations of Mongolia  1 year, extendable  
Natural perso ns of Japan who 
engage in supplying services 
which require technology or 
knowledge at an advance level 
on the basis of a contract with 
public or private organizations 
in Mongolia  
 - contract with a natural person  
(i) technical, advisory or supervisory posi tion  1 year, extendable  
 
- contract between a juridical person of Japan 
and a juridical person of Mongolia  
(i) contract between the juridical persons  
(ii) may involve establishing the bona fide 
character of the contract  
(iii) natural person must posses s university 
degree/qualification; professional qualification 
pursuant to  the laws and regulations of 
Mongolia ; and at least one year of previous 
employment by the juridical person   
90 days or the duration of 
the service contract  
Accompanying spouse and 
children  (i) applies to all categories except short term 
business visitors  Same length as the 
natural person 's stay 
Source:  Part 2 of Annex 7 to the Agreement.  WT/REG373/1  
 
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  4.22.   Tables 4.3 and 4.4 provide a breakdown of statistics regarding the bilateral movement of 
natural persons for the period 2013 -2015, by different categories. The evolution of the number of 
persons from Mongolia in Japan fluctuated during 2013 -2015, while that of Japanese in Mongolia 
has increased steadily.  
Table 4.3 Japan: Movement of Natural Persons from Mongolia  
Categories  2013  2014  2015  
Intra-corporate transferees  2 6 5 
Contractual Service Suppliers (CSS)  24 33 60 
Service sellers/persons responsible for setting up commercial presence  2,953  3,072  3,017 
Source:  Japan authorities.  
 
Table 4.4 Mongolia: Movement of Natural Persons from Japan  
No Categories  2013  2014  2015  
1 "GB-4" HG,T,S family  31 40 50 
2 "GB-1" Married with a citizen of Mongolia  35 42 44 
3 "GB-2" A child(age 0 -16) born to Mongolian citizen  93 113 116 
4 "GB-3" Foreign citizen married to a Mongolian citizen and foreign citizen's 
spouse, children  1 0 1 
5 "Н-1" Foreign citizen previously held Mongolian citizenship status  3 5 5 
6 "H-2" A person (age up to 16) born to Mongolian citizen  1 1 2 
7 "Н-3" Foreign citizen contributed to Mongolia, and those whose profession is 
regarded as much needed in Mongolia. A  foreign citizen who contributed to 
the development of science and those who possess such potential  1 1 1 
8 "Н-5" A foreign citizen who intends to reside with other private purpose  2 4 4 
9 "S" Student  50 71 121 
10 "A" A foreign citizen who has public an d the government entities invitation  77 126 159 
11 "O" NGO and International Humanitarian organization staff and other related 
individuals.  13 17 14 
12 "HG" A foreign citizen employed in Mongolia  88 116 140 
13 "T" Investors  56 70 62 
14 "TS" A foreign  citizen with an intention to immigrate  1 1 1 
15 "SH" A foreign citizen intents to Mongolia work in religious purpose  3 6 7 
16 Temporary visitors  349 295 323 
Total number  804 908 1,050  
Source:  Mongolian authorities.  
 
4.23.   The Parties will publish or make av ailable , at the Agre ement's e ntry into force,  information 
regarding the requirements for entry and temporary stay in accordance with Annex 7 conditions, 
including any changes or modifications. Upon request of a natural person of the other Party, the 
Party shall also endeavour to provide this information . The Parties are to ensure that f ees for 
processing applications a re not an unjustifiable impediment to entry and temporary stay. A best 
endeavour provision is included regarding simplification of requiremen ts and facilitation of 
procedures (Article 8 .5).  
4.24.   A Sub -Committee on Movement of Natural Persons  is established, inter alia , to review the 
implementation and the operation of Chapter 8 of the Agreement (Article 8.6). 
4.25.   A Party may not initiate the Agreement' s dispute settlement procedures regarding a refusal 
to grant entry and temporary stay under Chapter 8, except if there is a recurrent pattern of  
practice, and if the affected natural  person has exhausted all domestic  administrative re medie s 
available  (Article 8.7) - i.e. no final determination issued within one year from its institution and 
such a delay cannot be attributed to the natural person.  WT/REG373/1  
 
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  4.3.5   Performance requirements  
4.26.   The Agreement does not contain any specific provision s on performance requirements  as 
regards trade in services.   
4.27.   As regards investment, Article 10.7 provide three sets of disciplines on performance 
requirements in connection with investment activities of an investor of a Party or a non -Party: 
a. 11 types of p erformance requirements  are prohibi ted (paragraph 1), many of which 
concern both goods (with TRIM s types of prohibitions) and services. They cover  
requirements relating to export, local content or domestic purchase, trade  balancing, 
restriction s on domestic sales, export restrictions, natio nality of executive or senior 
managers , enterprise location,  quotas for nationals of the Party, supply to particular 
destinations,  and licence contract s;15  
b. the receipt  of any advantage  granted by a Party  shall not require compliance with five 
types of perf ormance requirements – namely local content, domestic purchase, trade 
balancing or export restrictions (paragraph 2);  
c. conversely, the following are authorized (paragraph 3) : 
i. granting of advantages conditional on compliance with four types of requirements - 
on production location,  supply a service, train or employ workers, construct or 
expand particular facilities, or carry out research and development;  
ii. in the case of licence contracts, when the requirement is imposed /enforced by a 
court or competition autho rity to remedy an alleged violation of laws controlling the 
anti-competitive activities;  
iii. certain otherwise prohibited performance requirements when applied in relation to  
foreign aid programs;  and  
iv. domestic content/purchase requirements necessary for benef itting from preferential 
tariffs or quotas.  
4.28.   The list s of prohibited performance requirements under paragraphs 1 and 2 of Article 10. 7 
are exhaustive (Article 10.7:4)  
4.3.6   Senior Managers and Boards of Directors  
4.29.   As regards covered investments, the Agreement proh ibits requiring the appointment, "as 
executives, managers or members of boards of directors, individuals of any particular nationality" 
(Article 10.7:1(g)) , as already indicated in paragraph 4.27.   above .  
4.4  Liberalization commitments  
4.30.   The sub -sections below provide an overview of the liberalization commitments of both 
Parties with respect to trade in services  (Annex 6) , as well as the restrictions they will continue to 
apply vis -à-vis investment  (Annexes 8 and 9).  
4.31.   The following sub -sections identify, for each Party, some of the main differences, by sector, 
between their respective GATS schedules and the sector -specific commitments under the 
Agreement. They should also be read in conjunction with the Agreement's  Annex 6 (for trade in 
services) and Annexes 8 and 9 (for investment). The Party's restrictions in relation to investment 
are also briefly described in separate sub -sections.  
4.4.1   Japan  
                                                
15 Refers to licence contracts concerning transfer of technology, production process or other proprietary 
knowledge.  WT/REG373/1  
 
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  4.4.1.1   Services commitments  
4.32.   Under the GATS, Japan has scheduled horizontal market  access and national treatment 
limitations on mode 4 – these are lifted in the sectors/subsectors in which it has commitments  
with respect to the entry and temporary stay of natural persons with managerial /technical  skills 
who are intra-corporate transfere es, professional s under contract  who are  qualified under 
Japanese law , and business visitors . National treatment limitations apply for research and 
development (R&D) subsidies. Under the Agreement, horizontal limitations have not been listed, 
but in some cases have been included as sector -specific limitations. Since subsidies are excluded 
from the Agreement's coverage  in any case , limitation s scheduled for  R&D-specific subsidies 
became redundant.  
4.33.   Japan has no MFN exemptions under the GATS but under the Agre ement it has registered 
four MFN reservations (Part 2 of Annex 6). The two exemptions on transport services - on 
maritime freight forwarding business and international shipping services, including passenger and 
freight transportation - may be lifted on the  basis of reciprocity from Mongolia. The other two MFN 
exemptions allow the granting of preferential tariff treatment to non -Parties with respect to energy 
services and fisheries related services, and are of indefinite duration.  
4.34.   In its GATS schedule, Japan  made specific commitments in all services sectors; sub -sectors 
in which commitments were not made include  integrated engineering; postal and courier services; 
some audio -visual and telecommunication s services; some health and social services; space and 
some rail transport services. Japan also took additional commitments in telecommunications 
services, is a signatory to the Fourth Protocol on basic telecommunications, and made additional 
commitments in financial services.   
4.35.   Table 4.5 below summarizes Japan's services commitments under the Agreement in 
comparison with its GATS commitments ; also indicated therein are whether standstill 
commitments have been undertaken with respect to the sectors/sub -sectors listed . The Table 
disregards MFN and horizontal limitations, as well as Mode 4 commitments/limitations. Also to be 
taken into account when analysing the table is the fact that subsidies are excluded from the 
Agreement's coverage.  
Table 4.5 Japan: Comparison between GATS and Agreement specific commitments 
(excluding mode 4 and horizontal limitations)  
Sectors and Sub -sectors  GATS  Specific commitments  
Compared 
to the 
GATS  Under the Agreement  
Commitment  Standstill  
1. Business services      
A. Professional  Services  Partial  Improved  Partial  SSa 
B. Computer  and Related  Services  Partial  Improved  Full SS 
C. Research  and Development  Services  Partial  Improved  Full SS 
D. Real  Estate  Services  Partial  Similar  Partial  SS 
E. Rental  and Leasing  Services  without  Operators  Partial  Improved  Partial  SSa 
F. Other  Business  Services  Partial  Improved  Partial  SSa 
2. Communication services      
A. Postal  services  .. New Partial  SS 
B. Courier  services  .. New Partial  SS 
C. Telecommu nication  services  Partial  Improved  Partial  SSa 
D. Audiovisual  services  Partial  Improved  Partial  SSa 
E. Other  .. Similar  .. .. 
3. Construction and related engineering services      
A. General  construction  work for buildings  Partial  Similar  Partial   
B. General  construction  work for civil Engineering  Partial  Similar  Partial   
C. Installation  and assembly  work  Partial  Similar  Partial   
D. Building  completion  and finishing  work  Partial  Similar  Partial   WT/REG373/1  
 
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  Sectors and Sub -sectors  GATS  Specific commitments  
Compared 
to the 
GATS  Under the Agreement  
Commitment  Standstill  
E. Other  Partial  Improved  Partial   
4. Distribution  services      
A. Commission  agents'  services  Partial  Improved  Partial  SS 
B. Wholesale  trade services  Partial  Improved  Partial  SS 
C. Retailing  services  Partial  Improved  Partial  SS 
D. Franchising  Partial  Improved  Partial  SS 
E. Other  .. Similar  .. .. 
5. Education services      
A. Primary education services  Partial  Improved  Partial  SS*a 
B. Secondary education services  Partial  Similar  Partial   
C. Higher education services  Partial  Improved  Partial  SS 
D. Adult education  Partial  Similar  Partial   
E. Othe r education services  .. New Partial   
6. Environmental services      
A. Sewage services  Partial  Similar  Partial  SS 
B. Refuse disposal services  Partial  Improved  Partial  SS 
C. Sanitation and similar services  Partial  Similar  Partial  SS 
D. Other  Partial  Similar  Partial  SS 
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Improved  Partial  SS* 
B. Banking  and other  financial  services  Partial  Improved  Partial  SS* 
C. Other  .. Similar  .. .. 
8. Health related and social servi ces     
A. Hospital services  Partial  Similar  Partial  SS** 
B. Other Human Health Services  .. New Partial  SS** 
C. Social Services  .. New Partial  SS** 
D. Other  .. Similar  .. .. 
9. Tourism and travel related services      
A. Hotels  and restaurants (inclu ding catering)  Partial  Similar  Partial  SSa 
B. Travel  agencies  and tour operators  services  Full Similar  Full SS 
C. Tourist  guides  services  Partial  Improved  Full SS 
D. Other  .. Similar  .. .. 
10. Recreational and cultural and sporting services      
A. Ent ertainment  services  Partial  Improved  Full SS 
B. News agency services  Full Similar  Full SS 
C. Libraries, archives, museums and other cultural 
services  Partial  Improved  Full SS 
D. Sporting and other recreational services  Partial  Improved  Partial  SS 
E. Other .. Similar  .. .. 
11. Transport services      
A. Maritime Transport Services  Partial  Improved  Partial  SSa 
B. Internal Waterways Transport  Partial  Improved  Partial  SS 
C. Air  Transport  Services  Partial  Similar  Partial  SS 
D. Space  Transport  .. New Partial  
E. Rail  Transport  Services  Partial  Improved  Partial  SS 
F. Road  Transport  Services  Partial  Improved  Partial  SS 
G. Pipeline  Transport  Partial  Improved  Partial  SSa 
H. Services  auxiliary  to all modes  of transport  Partial  Improved  Partial  SS 
I. Other Transport  Services  .. Similar  .. .. WT/REG373/1  
 
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  General Note:  MFN and Horizontal limitations, as well as Mode 4 and Investment (under Chapter 10) 
commitments/limitations not considered.  Subsidies are excluded from the Agreement's 
coverage.  
Partial:  Specific co mmitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
..: No specifi c commitment.  
New: New commitments under the Agreement (full or partial, with or without limitations) which can, in 
most but not all cases, be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the G ATS. 
Similar:  Similar commitments (Agreement vs GATS); though possibly, in individual cases, with limited 
improvements and/or limited additional reservations.  
SS Standstill regarding market access and national treatment limitations.  
SS* Partial standstill  regarding market access and national treatment limitations on modes 1 -3.  
SS**  Partial standstill regarding on national treatment limitations on mode 4.  
a The standstill does not apply to all of the su b-sector s committed . 
Source:  Draft Consolidated GATS  Schedule of Specific Commitments (S/DCS/W/JPN), prepared by the 
Secretariat (in  2003), and Section 1A, Part 1 of Annex 6 to the Agreement.  
 
4.36.   Business services liberalization has been improved as compared to that under the GATS. In 
respect of professional services, Japan has lifted some of its GATS market access and national 
treatment limitations, and has generally fully granted Mongolia national treatment on mode 4, 
generally unbound in the GATS. Japan undertook new commitments on inter alia , urban plannin g, 
medical and dental, veterinary, midwives and qualified  physiotherapists services.  
4.37.   Computer and Related Services as well as Research and Development (R&D) Services have 
been fully liberalized under the Agreement; regarding the former, mode 4 was unbound  in the 
GATS while for the latter commitments were added regarding R&D on natural sciences and 
interdisciplinary fields.  
4.38.   Japan's commitments on rental and leasing services without operators relating to vessels 
and aircrafts are new compared to those under the GATS. Under other business services Japan has 
listed new sub -sectors as compared to the GATS, including technical testing; services incidental to 
(i) agriculture, hunting and forestry; (ii) mining, (i ii) manufacturing; and ( iv) energy distribution. 
These have been generally fully liberalized, with the exception of mining services, which remain 
subject to nationality requirements, and manufacturing and energy distribution, f or which Japan 
has reserved the right to limit the number of licences granted. Pl acement services/supply services 
of personnel from Mongolia have been extended to all occupations and business except those 
related to port transport services, construction work and some health related services. 
Investigation services, security guard servi ces, related scientific and technical consulting services 
related to petroleum, credit reporting, collection agency services, telephone answering and 
duplication services, mailing list compilation and mailing services, trade fair and exhibition 
organizatio n services and finally services incidental to energy manufacturing are also new in 
comparison to Japan's  GATS commitments.  
4.39.   In Communication Services, Japan has undertaken new commitments on Postal and Courier 
service with respect to Special Correspondence Delivery Business, which has been fully liberalized. 
Under Telecommunication s services, the foreign -equity threshold for Nippon Telegraph and 
Telephone Corporation under basic telecom has been increased from less than 2 0% in the GATS to 
less than 33.3% und er the Agreement; that same threshold applies to Value added services. 
Japan's audio -visual commitments under the Agreement are broader vis-a-vis its GATS 
commitments: radio and television and their transmission services have been added, mode 2 has 
been fu lly liberalized while modes 1, 3 and 4 remain unbound.  
4.40.   In Construction and related engineering services Japan has added commitments on those of 
that related to mining, subject to nationality requirements and prior notification.  WT/REG373/1  
 
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  4.41.   Under Distribution Service s, Japan has improved its GATS  commitments , by (i) fully 
liberalizing the sale of rice, tobacco and salt, and (ii) providing a partial opening of distribution  
services related to petroleum products  and alcoholic beverages , and distribution services provide d 
at Public Wholesale Market services.  
4.42.   Commitments regarding Primary and Higher Education Services have been improved as 
regards the GATS: in pre -school education, modes 2 and 3 were fully liberalized and in higher 
education that was the case regarding mo des 1 and 2. Further more, Other Education Services 
were added as regards GATS and fully liberalized.  
4.43.   In Financial Services, for insurance services, Japan has removed its 60% limitation in 
respect of modes 1 -3 on market access, and removed the requirement f or commercial presence in 
mode  3; the scope of its commitments under the Agreement are therefore improved in comparison 
to the GATS. Regarding Banking and other financial services, the GATS commercial presence 
requirement on mode 3 for investment trust man agement services has been lifted under the 
Agreement.  
4.44.   Under Maritime transport, Japan has entered new commitments on passenger and freight 
transportation, from unbound in the GATS to free under the Agreement subject to limitations. 
Under mode 1, access to Japanese ports and loading/unloading operations therein may require 
reciprocity; for mode 3, there is a nationality requirement for vessels to fly a Japanese flag and on 
mode 4, the general rule is that the crew of vessels flying the Japanese flag are Japa nese 
nationals, except for seafarers. New commitments, as compared to the GATS, were taken 
regarding rental of vessels with crew - which has been fully liberalized. Also as an addition to the 
GATS, commitments were made on numerous auxiliary transport serv ices. Pilotage (maritime but 
not for internal waterways) has been opened up but only as regard s mode 2, national treatment 
on all modes of supply is granted with respect to port and waterway operation (excluding  cargo 
handling) but remains unbound with res pect to market access. Maritime cargo handling, container 
station and depot services, and maritime freight forwarding services have also been liberalized; 
the latter remain however subject to commercial presence and the granting of a permit on 
reciprocal b asis. Another addition as compared to the GATS is the clarification that notwithstanding 
the partial liberalization of transport services, a multimodal transport operator shall have the 
ability to access transport equipment on reasonable and non -discrimina tory terms and conditions 
for the purpose of carrying out multimodal transport operations.  
4.45.   Rail transport services have also been further liberalized as compared to the GATS: pushing 
and towing services are fully liberalized , and  supporting services for r ail transport services are 
liberalized subject to prior notification as regards mode  3; passenger and freight transportation 
and are also subject to that requirement, in addition to having mode 1 unbound  due to technical 
infeasibility caused by geographica l character  of Japan .  
4.46.   Under road transport, in comparison with the GATS, Japan undertook new commitments on 
passenger transportation and supporting services for road transport services; limitations may 
apply, including some quantitative restrictions. The rental of commercial vehicles with operator has 
been fully liberalized.  
4.47.   Pipeline transport services have also been further opened up to Mongolia's suppliers as 
compared to the GATS, whereby transportation of natural gas and petroleum  on a fee or contract 
basis are partially opened to suppliers from Mongolia.  
4.4.1.2   Restrictions relating to investment  
4.48.   Japan has a total of 22 reservations regarding investment in Annex 8, out of which 10 are 
related to transport services (air, water, rail and road), six to other ser vices categories (heat 
supply, security, telecommunications, water supply and water works, banking), two applying to 
both goods and services (agriculture, forestry and fisheries and related services, and oil industry), 
one concerning intellectual property,  and the rem aining  three referring to investments in the area 
of goods (production of biological preparations such as vaccine or blood products, manufacturing 
of leather and leather products, mining). The vast majority of these reservations do not conform to 
national treatment obligations, in particular by requiring prior notification for foreign investment in 
the sectors listed. Reservations regarding a given ratio of Japanese nationals in executive boards WT/REG373/1  
 
- 33 - 
 
  and of Japanese nationality apply for Telecommunic ations, Air transport services, Freight 
forwarding services, and investments in the mining and oil industry. In Banking, the deposit 
insurance system only covers financial institutions which have their head offices within the 
jurisdiction of Japan.  
4.49.   Japan has 10 reservations under Annex 9, of which three are horizontal to all investments 
(goods and services). Through its horizontal reservations, Japan has reserved its right to apply 
measures that do not conform with specific obligations, as follows:  
a. when tr ansferring Japan's equity interests in a state enterprise or a governmental entity, 
or if liberalization of certain sectors16 occur, national treatment and prohibition of 
performance requirements do not apply; and  
b. national and MFN treatment may not be accor ded to investors from Mongolia and their 
investments with respect to subsidies.   
The seven other reservations cover aerospace; arms and explosives; energy; fisheries; 
broadcasting; land transactions; and public law enforcement and correctional services and  social 
services. For all of these sectors, reservations are taken with respect to national treatment and the 
prohibition of performance requirements (with the exception of land restrictions). In addition, MFN 
non-conforming reservations are made  as regard s fisheries, public law enforcement and social 
services, and land restrictions. In the latter case, the lifting of all reservations is subject to 
reciprocity.   
 
4.4.2   Mongolia  
4.4.2.1   Services commitments  
4.50.   Under the GATS, Mongolia has scheduled one horizontal market acce ss and national 
treatment limitation on  mode 4; these are lifted in the sectors/subsectors committed as regards 
the entry and temporary stay of natural persons with managerial/technical skills in short supply in 
Mongolia and who are either business visitor s, intra -corporate transferees and professionals under 
a service contract. Under the Agreement, the limitations are maintained but the level of 
non-conformity is reduced in that they are also lifted for the other categories covered under 
Chapter 8 - in par ticular inve stors and accompanying spouse s and children.  
4.51.   Mongolia has no MFN exemptions under either the GATS or the Agreement.  
4.52.   In its GATS schedule, Mongolia ha s limited specific commitments. In particular, no 
commitments were made on Education services,  Environmental services, Health related and social 
services, Recreational and cultural and sporting services and Transport services.  
4.53.   Table 4.6 below summarizes Mongolia's services commitments under the Agreement i n 
comparison with its GATS commitments. The Table disregards horizontal limitations, as well as 
Mode 4 commitments/limitations. Also to be taken into account when analysing the table is the 
fact that subsidies are excluded from the Agreement's coverage.  
Table 4.6 Mongolia: Comparison between GATS and Agreement specific commitments 
(excluding mode 4 and horizontal limitations)  
Sectors and Sub -sectors  GATS  Specific commitments  
Compared 
to the 
GATS  Under the Ag reement  
Commitment  Standstill  
1. Business services      
A. Professional  Services  Partial  Improved  Partial   
B. Computer  and Related  Services  .. New Full  
C. Research  and Development  Services  .. New Full  
                                                
16 Telegraph and postal services, betting and gambling services, manufacture of tobacco products and of 
Bank of Japan notes, and minting and sale of coinage in Japan  WT/REG373/1  
 
- 34 - 
 
  Sectors and Sub -sectors  GATS  Specific commitments  
Compared 
to the 
GATS  Under the Ag reement  
Commitment  Standstill  
D. Real  Estate  Services  .. New Partial   
E. Rental/Leasing  Services  without  Operators  .. Similar  ..  
F. Other  Business  Services  Partial  Improved  Partial   
2. Communication services      
A. Postal  services  Full Similar  Full  
B. Courier  services  Full Similar  Full  
C. Telecommunication  services  Partial  Improved  Partial  SSa 
D. Audiovisual  services  .. New Partial   
E. Other  .. Similar  ..  
3. Construction and related engineering services      
A. General  construction  work for buildings  .. New Partial   
B. General  construction  work for civil Engin eering  .. New Partial   
C. Installation  and assembly  work  Partial  Similar  Partial   
D. Building  completion  and finishing  work  Partial  Similar  Partial   
E. Other  .. Similar  ..  
4. Distribution services      
A. Commission  agents'  services  .. New Full  
B. Wholesale  trade services  Full Similar  Full  
C. Retailing  services  Partial  Similar  Partial   
D. Franchising  .. New Full  
E. Other  .. Similar  ..  
5. Education services      
A. Primary education services  .. Similar  ..  
B. Secondary education services  .. Similar  ..  
C. Higher education services  .. New Full  
D. Adult education  .. New Full  
E. Other education services  .. New Full  
6. Environmental services      
A. Sewage services  .. Similar  ..  
B. Refuse disposal services  .. New Partial   
C. Sanitati on and similar services  .. Similar  ..  
D. Other  .. New Partial   
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Similar  Partial   
B. Banking  and other  financial  services  Partial  Improved  Partial   
C. Other  .. Similar  ..  
8. Health related and social services      
A. Hospital services  .. New Full  
B. Other Human Health Services  .. New Full  
C. Social Services  .. New Full  
D. Other  .. Similar  ..  
9. Tourism and travel related services      
A. Hotels  and restaurants  (including catering)  Full Similar  Full  
B. Travel  agencies  and tour operators  services  Full Similar  Full  
C. Tourist  guides  services  Full Similar  Full  
D. Other  .. New Partial   
10. Recreational and cultural and sporting services      
A. Entertainment  services  .. New Full  
B. News agency services  .. Similar  ..  WT/REG373/1  
 
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  Sectors and Sub -sectors  GATS  Specific commitments  
Compared 
to the 
GATS  Under the Ag reement  
Commitment  Standstill  
C. Libraries, archives, museums and other cultural 
services  .. New Full  
D. Sporting and other recreational services  .. New Partial   
E. Other  .. Similar  ..  
11. Transport services      
A. Maritime Transport Services  .. New Full  
B. Internal Waterways Transport  .. Similar  ..  
C. Air  Transport  Services  .. Similar  ..  
D. Space  Transport  .. Similar  ..  
E. Rail  Transport  Services  .. New Partial   
F. Road  Transport  Services  .. Similar  ..  
G. Pipeline  Transport  .. New Partial   
H. Services  auxiliary  to all modes  of transport  .. New Full  
I. Other  Transport  Services  .. Similar  ..  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations and Investment 
(under  Chapter 10) not considered.  Subsidies are excluded from the Agreement's coverage.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment.  
New: New commitments under the Agreement (full or partial, with or without limitations) which can, in 
most but not all cases, be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:  Similar commitments (Agreement vs GATS); though possibly, in individual cases, with limited 
improvements and/or limited additional reserv ations.  
SS Standstill regarding market access and national treatment limitations.  
a The standstill does not apply to all of the sub -sectors committed.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/MNG), prepared by the 
Secreta riat (in  2003), and Section 1B, Part 1 of Annex 6 to the Agreement.  
 
4.54.   Mongolia's commitments under the Agreement include (at least partially) all of the services 
sectors that were not committed to under the GATS, as follows:  
a. full liberalization of the foll owing sub -sectors:  
i. in Education services, for higher, adult and other education services;  
ii. in Health related and social services, for hospital services, other human health 
services as well as social services;  
iii. in Recreational and cultural and sporting servi ces, for entertainment services,  and 
libraries, museums etc .; and  
iv. in Transport services, for maritime transport and services auxiliary to all modes of 
transport . 
b. partial liberalization of the following sub -sectors:  
i. in Environmental services, advisory servi ces regarding solid/hazardous waste 
management are free for modes 1 -2, mode 3 is free for services not subject to WT/REG373/1  
 
- 36 - 
 
  exclusive rights; otherwise, they may be subject to a concession. Environmental 
impact assessment and environmental risk analysis services are  fully open to 
Japanese service suppliers; and  
ii. some sub -sectors under sporting services (Sporting services, recreation parks and 
beach services, other recreational services)  were also fully liberalized . 
4.55.   In Business services, computer and related services and R&D services,  not committed to 
under the GATS were fully liberalized. Certain profession al services - architectural, medical and 
dental, veterinary services - were partially liberalized. Real estate services were liberalized but 
Japanese nationals remain subject to the prohibition on foreigners to own land - leasing remaining 
however an option. New commitments were also made on inter alia  advertising, services incidental 
to manufacturing, packaging and printing services.  
4.56.   In Communication services, some basic telecom services - telex and facsimile, and other 
basic services - were liberalized as compared to the GATS. In cases where a Japanese state -owned 
enterprise  (SOEs)  holds 33% or more of the  domestic  enterprise , prior approval is needed. 
Audiovisual s ervices have been partially opened up, except radio and TV transmission services 
which remain s closed to Japanese suppliers: motion picture and  video tape production and 
distribution services  as well as sound recording services were fully liberalized for modes 1 -3, 
motion picture projection services were liberalized for modes 1 and 2 while radio and TV services 
were only opened as regards mode  2. 
4.57.   In Construction and related engineering services, general construction work for buildings 
and for civil engineer ing is liberalized as regards modes 2 and 3.  
4.58.   In Distribution services, commission agent's services and franchising were fully liberalized 
except for mode 4.  
4.59.   In Financial services, other credit granting services , financial leasing services , other services 
auxiliary to financial intermediation, other financial intermediation services other than insurance 
and pension fund services, and other financial market administration services were opened up to 
Japanese service suppliers  for modes 1 -3; prior approval is r equired in cases where the equity of  a 
Japanese state -owned enterprise is above 33%. That same requirement applies to other sub -
sectors.  
4.60.   In Tourism, computer reservation systems and travel marketing have been fully liberalized 
for modes 1 -3. 
4.61.   Finally in Transport services,  and in addition to those sub -sectors fully liberalized as 
described above,  rail freight transportation has been liberalized for mode 2, pipeline transport has 
been fully liberalized for modes 1 -3 for goods other than fuels and for modes 2 -3 for fuels . 
4.4.2.2   Restrictions relating to  investment  
4.62.   Mongolia has a total of 18 reservations regarding investment in Annex 8, out of which four 
are horizontal – foreigners are not allowed to own land, foreign workers are subject to a quota, a 
minimum investme nt of US$100,000 is required for all foreign investment and environmental 
impact assessment is reserved for nationals from Mongolia. Two of the reservations covering 
financial services require a permit for investment from Japan; if the investor is a SOE an d its 
equity is greater than 33%, prior approval is required and performance requirements may be 
applied. The third reservation in financial services restricts Savings and Loan Cooperatives to 
nationals/investments from Mongolia. The reservation for SOEs a lso applies to the m edia sector, 
telecommunications and broadcasting and mining activities (but no performance requirement may 
be applied). Collection of natural plants is also reserved for Mongolia's natural persons/investors, 
while Japanese investment in  the trading of agricultural products requires a person from Mongolia 
as intermediate. Japanese equity is limited to 49% in investments in the sectors of nuclear energy 
and the explosive s industry. Investment in the sectors of petroleum and water research require 
prior approval; other limitations also apply as regards petroleum if a Japanese entity controls more 
than 30% of its imports into Mongolia. Finally, reservations on national treatment and performance 
requirements apply to hunting and to the tannery  and leather processing industry  WT/REG373/1  
 
- 37 - 
 
  4.63.   The seven other reservations cover the food industry, wool and cashmere industry, railway 
transportation, real estate development and trading, radio and television services radio and 
television transmission services and min ing. For all of these sectors, reservations are taken with 
respect to national treatment and the prohibition of performance requirements. In addition, MFN 
non-conforming reservations are made  as regards railway transportation.  
4.5  Regulatory provisions  
4.5.1   Domes tic regulation  
4.64.   Article 7.8 contains disciplines on domestic regulations applicable where a Party requires 
authorization for the supply of a service. It lists conditions to be met relating to qualification 
requirements and procedures, technical standards an d licensing requirements of service suppliers 
of the other Party, in order to ensure that the measures adopted or maintained by a Party do not 
constitute an unnecessary barrier to trade in services. Obligations under the Agreement go beyond 
those of the GA TS, since they apply to all services sectors and not only to those for which a Party 
has undertaken specific commitments - which is the case under the GATS.  
4.5.2   Recognition  
4.65.   Article 7.9 of the Agreement covers recognition. Where a Party recognises, by agreement  or 
arrangement, the education or experience obtained, requirements met or licences or certifications 
granted in the territory of a non -Party, that Party shall accord the other Party adequate 
opportunity to negotiate its accession to the agreement or arran gement or to negotiate a 
comparable agreement or arrangement with it. In the case of automatic recognition granted by a 
Party, it shall afford adequate opportunity for the other Party to demonstrate that the education or 
experience obtained, requirements m et or licences or certifications granted in the territory of the 
other Party should also be recognized.  
4.5.3   Subsidies  
4.66.   Subsidies provided by a Party or a state enterprise are excluded from the scope of the  Trade 
in Services Chapter (Article 7.1:2(d)) .  
4.5.4   Safeguar ds 
4.67.   In the event of serious balance -of-payments difficulties or threat thereof, a Party is free to 
adopt or maintain restrictions on trade in services, including on payments or transfers for 
transactions ( Article 7.13) . The requirements associated with the imposition of such safeguard 
measures mirror those under GATS Article XII. Measures taken, or modified, shall be promptly 
notified to the other Party.  
4.5.5   Other  
4.68.   The following issues, also addressed in the Agreement, have disciplines that mirror the 
relevant W TO provisions:  
a. monopolies and exclusive service suppliers under Article 7.10 mirror the disciplines of 
GATS Article  VIII and aim at preventing that such suppliers do not act in a manner 
inconsistent with  Party's national treatment MFN and market access obl igations; and  
b. business practices under Article 7.11 mirror the disciplines of GATS Article IX.  WT/REG373/1  
 
- 38 - 
 
  4.6  Sector specific provisions on trade in services  
4.6.1   Financial services  
4.69.   Annex 4 to the Agreement complements  Chapter 7 with disciplines affecting the supply of 
financial services . Beyond reaffirming certain  disciplines of the GATS Annex on financial services 
(i.e. definitions specific to financial services ; provisions on  domestic regulation , recognition of 
prudential measures , need of expertise in cases of dispute set tlement ), it also provid es the 
following  additional disciplines  (Articles 4 -9 and 11 of the Annex, respectively) : 
a. the Parties are required to open up their respective market to suppliers of any "new 
financial service" but remain free to regulate these acti vities, including the determination 
of the institutional and juridical form through which the new financial service may be 
supplied and by requiring authorization for the supply of the service ; 
b. national treatment is extended to payment and clearing systems  operated by public 
entities and to official funding and refinancing facilities available in the normal course of 
ordinary business, but not to the Party 's lender of last resort facilities;  
c. each Party is to ensure that its self-regulatory bodies accord nat ional treatment to 
financial service suppliers of the other Party resident in its Area (Article 6) whenever 
membership/participation is required for supplying the service or if these bodies are 
granted advantages in the supply of the service;  
d. defining meas ures for promoting regulatory transparency in financial services;  
e. establishing pro cedures aiming to ensure that the Parties process without undue delay 
the application to supply a service made by the other Party 's service suppliers ; and 
f. a best endeavour c lause to ensure effective and transparent regulation of financial 
service th rough  the implementation and application of internationally -agreed 
standards ;17 and 
g. the Parties are prohi bited from preventing:  
i. information transfers into/out of their Area;  
ii. the pro cessing of financial information; and  
iii. the transfer of equipment, subject to international agreement rules , 
in cases where these are necessary for the conduct of the ordinary business of a 
financial service supplier of the other Party. The Parties remain fr ee to protect personal 
data, personal privacy and the confidentiality of individual records and accounts so long 
as such a right is not used to circumvent the Agreement's disciplines.   
4.6.2   Telecommunication services  
4.70.   Annex 5 on Telecommunication Services applie s to measures affecting telecommunications 
services except broadcasting services  (Article 1) .  
4.71.   Compared to the GATS, the Parties are subject to the following additional disciplines:  
a. regarding  access to and use of public telecommunications transport network s and 
services , dealt with in Article 3  of Annex 5 : 
                                                
17 The Basel Committee’s “Cor e Principles for Effective Banking Supervision”, the standards and 
principles of the International Association of Insurance Supervisors and the International Organization of 
Securities Commissions’ “Objectives and Principles of Securities Regulation” . WT/REG373/1  
 
- 39 - 
 
  i. ensuring that such access/use by other Party's service supplier is done in a timely 
and transparent manner ;18  
ii. whenever these are used for the movement of information within and across borders, 
the Parties  may impose restrictions also for protecting the personal data of their 
users ;19 
iii. conditions cannot be imposed on their access/use as a way of ensuring that other 
Party's service suppliers only supply services that are subject to commitments; and  
iv. the GATS sp ecial and differential provision allowing developing country Members to 
impose restrictions aimed at strengthening their domestic telecommunications 
infrastructure and service capacity and to increase its participation in international 
trade in telecommuni cations services is not included in the Agreement.  
b. other issues, dealt with respectively in Articles 5, 9, 10, 11 and 12  of Annex 5  are: 
i. ensuring that each Party's  suppliers of public telecommunications transport networks 
or services do not impose unreason able or discriminatory conditions or limitations on 
the provision of the resale services by suppliers of the other Party;  
ii. notification to the applicant of the outcome of a licence request without undue delay;  
iii. allocation and use of scarce resources  are su bject to additional disciplines  including 
making publicly available the state of allocated frequency bands ; the Parties 
maintain , however , their right to limit the number of suppliers of public 
telecommunications transport networks or services ; 
iv. improved tr ansparency provisions; and  
v. specific disciplines regarding  the settlement of telecommunication s disputes .  
4.72.   Annex  5 has no provision for technical cooperation in telecommunication s services.  
5  GENERAL PROVISIONS OF  THE AGREEMENT  
5.1  Transparency  
5.1.  Article 1.3 of the  Agreement provides that each Party shall ensure that its laws, regulations 
and judicial decisions of general application as well as international agreements to which the Party 
is a party with respect to any matter covered by this Agreement are promptly pu blished or 
otherwise made publicly available  (paragraph 1) . Each Party shall, upon request of the other Party, 
respond within a reasonable period of time to specific questions from, and provide information to, 
the other Party with respect to matters referr ed to in Article 1.3 :1, in the English language to the 
extent possible. When introducing or changing laws or regulations that significantly affect the 
implementation and operation of the Agreement, each Party shall endeavour to provide a 
reasonable interva l between their publication and entry into force - except in emergency situations 
and to the extent covered by its domestic laws.  
5.2.  Article 1.4 provides  that, to the extent practicable and in accordance with  its laws and 
regulations , each Party maintain publ ic comment  procedure s with respect to any matter covered 
by the Agreement. Article 1.5 sets out requirements in relation  to administrative proceedings. 
Disciplines relating to the confidential nature of information are included in Article 1.8 . 
5.3.  Article 1.15  requires that each Party designate a contact point to facilitate communication. 
These are , for Japan the  Ministry Foreign Affairs and for Mongolia, t he Ministry of Foreign Affairs 
under the current structure of the Government.  
                                                
18 The GATS only require "on reasonable and non -discriminatory terms and conditions".  
19 Under the GATS this was only possible for ensuring security and confidentiality of messages.  WT/REG373/1  
 
- 40 - 
 
  5.2  Current payments and capita l movements  
5.4.  Disciplines on payments and transfers under Article 7.12 mirror the disciplines of GATS 
Article XI: restrictions on international transfers and payments can only be applied in case of BOP 
problems (see paragraph 3.48.    above ).  
5.3  Exceptions  
5.5.  Article 1.10 includes the Agreement's general and security exceptions. GATT 1994 Articles XX 
and XXI are incorporated into and form part of the Agreement, mutatis mutandis; these do not 
apply however in the context of services , movement of natural persons  and intellectual property - 
Chapters 7, 8 and 12.   
5.6.  The GATS exceptions under Articles XIV and XIV bis are incorporated into and form part of 
the Agreement, mutatis mutandis , as regards  services, movement of natural persons, elec tronic 
commerce and  investmen t (Chapters 7 -10 of the Agreement ). 
5.7.  Consultation s among the Parties may take place in the cases  where : 
a. the export earnings of a Party the economy of which depend s on exports of a small 
number of primary commodities may be serio usly reduced by a decline in the sales or 
the world prices of such commodities; or  
b. promoting the establishment of a particular industry of a Party may be required with a 
view to raising the general standard of living of its people.  
5.8.  A note to Article 1.10 clarifies that environmental measures necessary to protect human, 
animal or plant life or health and measures related to the conservation of living and non -living 
exhaustible natural resources are covered by the exceptions under this Article.   
5.9.  Article 1.9 of the Agreement excludes taxation measures from its coverage, unless otherwise 
provided for. It also clarifies that nothing in the Agreement shall affect the rights and obligations of 
either Party under any tax convention, and that in the event of any inc onsistency between these 
instruments, the convention shall prevail to the extent of the inconsistency. In cases where 
Agreement's provisions are applicable taxation measures, these are subject to disciplines on 
transparency and protection of confidential i nformation (Articles 1.3 and 1.8).  
5.4  Accession and Withdrawal  
5.10.   There are no accession provisions in the Agreement.  
5.11.   Either Party may terminate the Agreement by written notification to the other Party through 
diplomatic channels; termination will take effect 1  year after the notification.  With respect to 
investments acquired  prior to the date of termination of the Agreement, the provisions of 
Investment Chapter, as well as provisions of the Agreement which are directly related to 
Investment Chapter shall contin ue to be effective for 10 years from the date of termination of the 
Agreement (Article 10.20).  
5.5  Institutional framework  
5.12.   The Agreement's overarching institutional body is the Joint Committee , established in 
Article  1.13. Amongst its functions, the Joint Com mittee is responsible for reviewing and 
monitoring the implementation and operation of the Agreement, as well as elaborating 
recommendations vis-à-vis e.g. amendments to it. The Joint Committee is composed of 
representatives of the Governments of the Parti es; its first meeting took place at entry into force 
of the Agreement and other meetings are to be jointly agreed by the Parties.   
5.13.   The Agreement also foresees the establishment of numerous Sub -Committees (Article 1.14) 
to facilitate and monitor the Agreeme nt's implementation; these are indicated in the relevant 
sections of this document .  WT/REG373/1  
 
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  5.6  Dispute settlement  
5.14.   Chapter 16 applies to disputes related to the interpretation or application of the Agreement. 
The Parties shall make every attempt to arrive at a prompt  and mutually satisfactory resolution of 
any matter through cooperation, consultations or other means (Article 16.2). The complaining 
Party may select the forum in which to settle the dispute if it concerns obligations under the 
Agreement, any other intern ational  agreement to which both Parties are party  including  the WTO  
Agreement . Once the complaining Party has requested the establishment of arbitral tribunal under 
the Agreement, or under any other international  agreement including the WTO  Agreement , the 
corresponding procedures shall be used to the exclusion of others (Article  16.3).  
5.15.   Dispute settlement involves consultations and the establishment of an Arbitral Tribunal 
(AT), composed of three arbitrators, which will examine the case and present a final r eport to the 
disputing Parties. The system provides for a preliminary report on which the Parties can comment, 
a final report and an implementation mechanism that may lead to authorization to retaliate but 
also a review of these measures (see  Chart 5.1). Appeal is not possible. Good offices, conciliation 
or mediation may be requested at any time by either Party (Article 16.5); upon agreement, these 
can be held in parallel to AT procedures.  Termination of the proceed ings is possible at any time by 
agreement (Article 16.10).  
5.16.   Dispute settlement is not applicable to the following Chapters of the Agreement: 5 (SPS 
Measures), 6 (Technical Regulations, Standards and Conformity Assessment Procedures), 
8 (Movement of Natural Person) unless as indicated in paragraph 4.25.   above  , 11 (Competition), 
14 (Improvement of the Business Environment), 15 (Cooperation) nor to Chapters 3 
(Competition), 4 (Improvement of the Business Enviro nment) and 5 (Cooperation) of the 
Implementing Agreement.  
5.17.   Special procedures apply with respect to disputes relating to investment. Consultations are 
the preferred manner to settle investment disputes between a Party and an investor of the other 
Party (Ar ticle 10.13); if those fail, recourse to arbitration - in the context of the ICSID Convention 
or Additional Facility Rules, the UN Commission on International Trade Law or, upon agreement, 
any other arbitration procedures – is foreseen.  WT/REG373/1  
 
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  Chart 5.1 Specific Dispute Settlement Mechanism established by the Agreement  
Max. 40 (20) days  
 Comments by the Parties (Art. 16.9:7) 
 Final AT report presente d  
to the Parties  (Art. 16.9:8 )  
 Implementation (Art. 16.11 ) 
Immediate 
compliance  
 60 days  Recourse to AT by the o ther Party   
(Art. 16.11:6 -7) 
 AT's Final decision (Art. 16:11: 7)   Suspension of benefits  
by the Complaining Party    
(Art. 16.11:3(b)  & :4)  
Termination   Request for c onsultations (Art. 16.4)  
 Consultations  
  (Art. 16.4) 
)  
 Technical advice requested 
(Art. 16.8:3 )  Request for establishment  of an Arbitral Tribunal  (Art. 16.6) 
 Establishment of AT  (Art. 1 6.7) 
 AT proceedings (Art. 16.9)  No consultations held    Art. 1 6.6:1(b)  
 Art. 1 6.6:1(a)  
 Max. 45 days 
Appointment 3rd arbitrator or otherwise chosen 
(10 days)  (Art. 16.7:3 -4) Max. 60 (30)  days 
 120 (60)  days, 
extendable: max. 150 d  
 Draft AT  report (Art. 16.9:7 ) 
 30 days 
 Max. 15 days 
 
Definition of "reasonable 
period  of time" (Art. 16.11:2)  Max. 45 days  
AT determines "R PT" 
(Art. 16.11:2 ) If no 
agreement  
Compensation 
consultation  
(Art. 16.11:3(a))  
30 days  Non-Implementation  10 days  
If no agreement  
 Request for consultations  by the other Party  
(Art. 12.13:6 ) 
Consultations within 10 days  
30 days to consult  WT/REG373/1  
 
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5.7  Relationship with other agreements concluded by the Parties  
5.18.   In Article 1.11,  the Parties reaffirm their rights and obligations under the WTO Agreement or 
any other agreements to which both Parties are party. In cases of inconsistency:  
a. between the Agreement and the WTO Agreement, the WTO Agreement shall prevail to 
the extent of the  inconsistency;  
b. between the Agreement and any other agreement, the Parties shall immediately consult 
with each other with a view to finding a mutually satisfactory solution, taking into 
consideration general principles of international law.  
5.19.   Table 5.1 lists all other RTAs notified and not notified to the GATT/WTO and in force to 
which Japan and Mongolia are Party.  
Table 5.1 Japan and Mongolia: Participation in other RTAs (notified and non-notified in 
force), as of 13 October 2017  
RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
JAPAN  
Japan - Australia  15-Jan-15 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Japan - Peru 01-Mar-12 Goods & Ser vices 2012 GATT Art. XXIV & GATS Art. V  
India - Japan  01-Aug-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
Japan - Viet Nam  01-Oct-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Japan - Switzerland  01-Sep-09 Goods & Services  2009 GATT Art . XXIV & GATS Art. V  
Japan - Philippines  11-Dec-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
ASEAN - Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
Brunei Darussalam - 
Japan  31-Jul-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
Japan - Indon esia 01-Jul-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
Japan - Thailand  01-Nov-07 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
Chile - Japan  03-Sep-07 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
Japan - Malaysia  13-Jul-06 Goods &  Services  2006 GATT Art. XXIV & GATS Art. V  
Japan - Mexico  01-Apr-05 Goods & Services  2005 GATT Art. XXIV & GATS Art. V  
Japan - Singapore  30-Nov-02 Goods & Services  2002 GATT Art. XXIV & GATS Art. V  
MONGOLIA  
Asia Pacific Trade 
Agreement (APTA) - 
Access ion of 
Mongolia  26-Oct-13a Goods & Services  Not notified  
a The Standing Committee of the APTA reached a consensus officially welcoming Mongolia as the 
7th member of the Agreement. This was done on the occasion of its 42nd session, which was held 
from 25 to 26/10/2013 . Ratification procedures are pending.  
Source:  WTO Secretariat.  
 
5.8  Government procurement  
5.20.   Chapter 1 3 on Government Procurement  establishes  that further negotiations to with a view 
to achieving a comprehensive Chapter on Government Procurement wi ll take place once Mongolia 
express es its intention to become a party to the WTO Agreement on Government Procurement 
(hereinafter, the "GPA"). Japan is already party to the  GPA (Article 13.3) . 
5.21.   Chapter 13 requires the Parties to ensure the transparency of g overnment procurement 
measures and that these are implemented in a fair and effective manner. A best endeavour clause 
is included , providing for the timely exchange of information, at the central government level, on 
the Party's laws and regulations, polic ies and practices on government procurement, as well as on 
any reforms to their existing government procurement regimes. Further, Article 13.4 provides that 
if after the entry into force of the Agreement, a Party offers a non -Party any advantages in the WT/REG373/1  
 
- 44 - 
 
  area of government procurement, upon request of the other Party, it  shall afford adequate 
opportunity to the other Party to negotiat e the extension of such advantages to it on a reciprocal 
basis.  
5.22.   A Sub -Committee on Government Procurement is established in A rticle 13.5  
5.9  Intellectual property rights  
5.23.   Intellectual Property , defined as including all categories under the WTO Trade -Related  
Intellectual Property rights (TRIP S) Agreement,  is addressed in Chapter 1 2. The Parties' rights and 
obligations under the TRIP S Agreement , as well as under other international agreements relating 
to intellectual property, are reaffirmed (Article 12.1); in particular, Article 73 of the TRIPS 
Agreement on Security Exceptions is incorporated into the Agreement, mutatis mutandis  (12.19 ). 
Other general principles include granting and ensuring adequate, effective and non -discriminatory 
protection of intellectual property, providing enforcement measures against their infringement, and 
promoting efficiency and transparency in the administra tion of intellectual property system.   
5.24.   National treatment is granted in line with Articles 3 and 5 of the TRIPS Agreements  
(Article  12.3).  
5.25.   Compared to the TRIP S Agreement,  simplification/improvement of procedural matters  are 
foreseen  (Article 12.4) , as fo llows:  
a. authentication of signatures or other means of self -identification shall not be required for 
documents to be submitted to the competent authority of the Party in the course of 
application procedure or other administrative procedures on patents, util ity models, 
industrial designs or trademarks. These may however be required if (i) the law of the 
Party so provides , where the above signatures  or other means  concern the surrender of 
a patent or a registration of utility models, industrial designs or trad emarks; and (ii) 
there is reasonable doubt as to the authenticity  of the documents submitted;  
b. according a filing date to an application shall not be dependent on the submission of a 
power of attorney;  
c. endeavour  clause regarding  improve ment of patent attor ney or registered intellectual 
property rights authorized representative system;  
d. where the acquisition of an intellectual property right is subject to the right being 
granted or registered, each Party shall ensure that these are granted/registered within a  
reasonable period of time so as to avoid undue curtailment of the period of protection, 
subject to compliance with the substantive conditio ns for acquisition of the right;  and 
e. as a system for the registration of  trademarks, industrial designs and patents , the 
applicant (i) should be informed in writing of the decision  with reasons for a refusal of 
the application ; (ii) has an opportunity to appeal  against administrative refusal ; (iii) has 
an opportunity  to ask for judicial review  of the final administrativ e refusal , and also the 
interested part ies have an opportunity  to petition to oppose an application or a 
registration, and to seek its cancellation or invalidation, if these are so provided in the 
Party's laws  and regulation . 
5.26.   Additional transparency provis ions are also foreseen  to the extent possible in accordance 
with domestic laws and regulations  regarding publication of information regarding (i) intention to 
grant patents and rights of industrial designs; (ii) applications  for, and the granting of, paten ts and 
trademarks  registration; and (iii) registrations of utility models  and industrial designs  (Article 
12.5). Relevant  information  contained in these files shall be provided at least to interested persons 
upon request. Enforcement - and other intellectua l property system -related information shall also 
be made publicly available . Further, the Parties agree to promote public awareness concerning 
protection of intellectual property (Article 12.6).  
5.27.   With respect to the intellectual property rights categories, the following disciplines are 
additional to those contained in the TRIP S Agreement:  WT/REG373/1  
 
- 45 - 
 
  a. Patents  (Article 12.7) : (i) a patent application cannot be rejected on the sole ground that 
it relates to a computer program, nevertheless patentability of computer program s as 
such may be determined  in accordance with domestic laws and regulations; and (ii) upon 
request of the applicant, a patent application can be divided into various divisional 
patent applications;  
b. the protection of i ndustrial designs (Article 12.8) exten ds both to the article as a whole 
and, where appropriate , and a part thereof;  
c. trademarks (Article 12.9) (i) registration that is identical or similar to a well -known 
trademark shall be refused or cancelled if it is used for unfair intentions  and/or if the use 
would result in a likelihood of confusion ; and (ii) the examination of an application for 
trademark registration shall, where appropriate, be accelerated upon request from its 
applicant, subject to reasonable grounds  and procedural requirements;  
d. in ter ms of copyright and related rights (Article 12.10), the rights of authors, 
performers, producers of phonograms and broadcasting organizations are updated to 
take into account the development of wireless means of accessing their works;  
5.28.   With respect to prote ction against unfair competition, Article 12. 12 makes it clear that  the 
Parties' obligations under Article 10 bis of the Paris Convention to also cover services.  
5.29.   Articles 12.14 -12.17 include disciplines regarding intellectual property enforcement in terms 
of border measures  (Article 12. 14), civil  (Article 12. 15) and criminal  (Article 12. 16) remedies and 
the digital environment  (Article 12. 17) that correspond and go beyond the TRIP S agreement . In 
particular, they provide that: 
a. the suspension of the release of  import s suspected of infringement may result from an 
act of the customs authorities themselves or upon the request of the right holder. The 
determination or otherwise of trademarks  and/or copyrights infringement shall be made 
within a reasonable period af ter the suspension of the release of goods  and that the 
importer and the right holder shall be promptly notified in case of import s being  
suspen ded;  
b. right holders shall have the right to claim damages against the infringer;  
c. in cases of commercial scale wilful trademark counterfeiting or copyright piracy , the 
Party's competent authorities shall have the authority to order the forfeiture or 
destruction of all infringing goods; and  
d. enforcement procedures will be extended to infringement of copyright or relate d rights 
over digital networks, provided they are implemented in a manner that avoids the 
creation of barriers to legitimate activity, including electronic commerce, and, consistent 
with the laws and regulations of that Party, preserves fundamental princip les such as 
freedom of expression, fair process and privacy.  
5.30.   A Sub -Committee on Intellectual Property is established in Article 12.18  
5.10  Other  
5.31.   Article 1. 7 of the Agreement requires that each Party shall, in accordance with its laws and 
regulations, take appr opriate measures to prevent and combat corruption of its public officials 
regarding matters covered by the Agreement.  
5.32.   Chapter 14 of the Agreement as well as Chapter 4 of the Implementing Agreement address 
the improvement of business environment; they enco urage the Parties to further improve the 
business environment for the persons of the other Party and to cooperate towards that goal. A 
Sub-Committee on Improvement of the Business Environment is established, aimed at inter alia  
improving transparency and s implification of administrative procedures; to that effect, the Parties 
are to appoint a Liaison Office. Dispute settlement is not applicable to both Chapters.  WT/REG373/1  
 
- 46 - 
 
  5.33.   Chapter 15 of the Agreement provides for the promotion of cooperation; the areas and 
forms of co operation are defined in Chapter 5 of the Implementing Agreement. Besides issues 
referred to elsewhere in this Factual Presentation, cooperation is also foreseen in the 
manufacturing industry; small and medium enterprises (SMEs); trade and investment; 
infrastructure, construction and urban development; science and technology and intellectual 
property; financial services; education and human resources development; tourism; environment; 
mining and energy; healthcare; competition; and information and communica tions technology. For 
each of these, an illustrative list of areas and forms of cooperation are provided for; in particular, 
cooperation is foreseen both in terms of research and development, exchange of information, 
seminars, capacity -building, etc. Artic le 2.21 of the Agreement provides specifically for cooperation 
in the field of used four -wheeled motor vehicles exported from the exporting Party. A Sub -
Committee on Cooperation is established in Article 15.4 of the Agreement.  
5.34.   Dispute settlement is not app licable to Chapters 3 to 5 of the Implementing Agreement.  
5.10.1   Competition  
5.35.   Chapter 3 of the Implementing Agreement deals with cooperation in the area of 
competition, in accordance with  Article 11.2 of the Agreement.  Special attention is given to 
enforcement act ivities , through notification , cooperation in enforcement activities,  exchange of 
information, coordination of enforcement activities, cooperation regarding anticompetitive activities 
in a Party that adversely affect the interests of the other Party and av oidance of conflicts over 
enforcement activities . Detailed disciplines address confidentiality of information , in particular as 
regards cases where information other than that publicly available can be communicated between 
the Government other than th ose directly receiving it, as well as restriction on the use of the  
information for criminal proceedings . Finally, the Chapter also contains disciplines that increase 
transparency, conclude  technical cooperation and consultations on matters covered by the 
Compe tition Chapter.  
5.10.2   Electronic commerce   
5.36.   Electronic commerce is dealt with in Chapter 9 of the Agreement. Definitions used in the 
Chapter are set out in Article 9.2. Article 9.3 provides that the Parties shall continue their practice 
of not imposing customs du ties on electronic transmissions between the Parties. Article 9.4 
extends MFN and national treatment to digital products, subject to few exclusions (described in its 
paragraph 2: government procurement, subsidies, MFN exemptions, non -committed sectors or i n 
accordance with conditions and limitations under A nnex 6, and non -conforming measures on 
investment, as foreseen in Article 10.8.). Article 9. 10 prohibits  a Party from subject ing the other 
Party's  service supplier, investor or investment to an obligation  of use or location of computing 
facilities in its Area . However, the Parties are not prevented to apply measures affecting their use 
or location necessary to achieve a legitimate public policy objective, provided that such measures 
are not applied in a ma nner which would constitute a means of arbitrary or unjustifiable 
discrimination or a disguised restriction on trade . Article 9.11 prohibits the Parties from requir ing 
the transfer of, or access to, the source code of software owne d by a person of the othe r Party as 
a condition for the import, distribution, sale or use of such software or products including such 
software.  
5.37.   Other issues addressed include inter alia the use of electronic signature, consumer 
protection,  paperless trade administration  and domes tic regulation  (respectively, Articles 9.5, 9.6, 
9.8 and 9.9) . Under Article  9.12 Parties agree to, whe re appropriate, cooperate and participate 
actively in regional and multilateral fora to promote the development of electronic commerce. A 
Sub-Committee o n Electronic Commerce is established in Article  9.13.  
 WT/REG373/1  
 
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  ANNEX 1  
DETAILS OF TRADE LIB ERALIZATION UNDER TH E AGREEMENT  
1. A comparison based on the estimates by WTO between the tariff rates scheduled for 
elimination under the Agreement on the Parties' mutual im ports and the MFN applied rates on 
imports of total, agricultural (WTO definition), and non -agricultural products is shown in Table A1.1 
(Japan) and A1.2 (Mongolia) below.  
2. Prior to the entry into force of the Agreement (2016), Japan's average applied rate  on all 
products was 4.9%, with 40.1% of lines being duty -free. On agricultural products, the applied rate 
was 11.2%, with 25.3% of lines being duty -free; on non -agricultural products , the applied rate  
was 3.4%, with 43.7% of lines being duty free. Upon th e Agreement's entry into force, Japan's 
overall tariff rate fell to 2.6%  overall (10% for agricultural products and 1% for non -agricultural 
products) , with the share of duty -free tariff lines rising to 79% overall, and 40.3% and 88.6% 
respectively for agri cultural and non -agricultural products imported from Mongolia. After ten years 
of implementation in 2026, 87.2% of all tariff lines are due to become duty -free for imports from 
Mongolia ( 60.2% for agricultural products and 93.9% for non -agricultural produc ts). Further 
liberalization will take place until 2031, when 87.7% of all tariff lines will become duty -free (62.7% 
for agricultural products and 94% for non -agricultural products).  
Table A1.1 Japan: Indicators of MFN tariff rates and preferential rates f or imports from 
Mongolia  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural products a Non-agricultural 
products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of duty -
free tariff lines 
(%) Average 
applied tariff  Share of duty -
free tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2016 4.9 8.3 40.1 11.2 15.7 25.3 3.4 6.1 43.7 
Mongolia  2016 2.6 13.9 79.0 10.0 18.3 40.3 1.0 9.0 88.6 
 2017 2.5 13.5 79.0 9.7 17.7 40.3 0.9 8.7 88.6 
 2018 2.5 13.1 79.0 9.4 17.2 40.3 0.9 8.4 88.6 
 2019 2.4 12.7 79.1 9.1 16.7 40.5 0.9 8.3 88.7 
 2020 2.3 12.3 79.1 8.8 16.1 40.5 0.9 8.1 88.7 
 2021 2.2 12.4 79.9 8.5 16.3 42.8 0.8 8.1 89.1 
 2022 2.2 12.0 79.9 8.2 15.8 42.8 0.8 7.8 89.1 
 2023 2.1 12.4 80.9 7.9 16.9 47.6 0.8 7.7 89.2 
 2024 2.0 12.0 80.9 7.7 16.4 47.6 0.8 7.5 89.2 
 2025 2.0 11.7 80.9 7.5 16.0 47.6 0.7 7.3 89.2 
 2026 1.9 17.4 87.2 7.2 21.9 60.2 0.7 11.9 93.9 
 2027 1.9 17.4 87.2 7.2 21.8 60.2 0.7 11.9 93.9 
 2028 1.9 17.3 87.2 7.2 21.7 60.2 0.7 11.9 93.9 
 2029 1.9 17.2 87.2 7.1 21.5 60.2 0.7 11.9 93.9 
 2030 1.9 17.2 87.2 7.1 21.4 60.2 0.7 11.9 93.9 
 2031 1.9 18.0 87.7 7.1 23.2 62.7 0.7 12.0 94.0 
a WTO Definition.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from the Japanese authorities and WTO -IDB. 
 
3. In 20 16, Mongolia 's average applied tariff was 5.3% on all products, with 0.9% of its tariff 
being duty -free for imports from all sources. On agricultural products, the applied rate was 6.6%, WT/REG373/1  
 
- 48 - 
 
  with 0.8% of lines being duty -free, and on non -agricultural products the corresponding figures 
were 5.1% and 0.9 %. Upon the Agreement's entry into force, Mongolia's overall tariff rate fell to 
1.9%  (3% for agricultural products and 1.7% for non -agricu ltural products) , with the share of 
duty-free tariff lines rising to 59.8% overall, and 42.8% and 62.9% respectively for agricultural 
and non -agricultural products  imported from Japan. After ten years of implementation, an 
additional 20.9% of all tariff li nes will become duty -free for imports from Japan  (an additional 
8.1% for agricultural products and 23.2% for non -agricultural products). Further liberalization will 
take place until 203 6, when 8 2.6% of all tariff lines will become duty -free ( 54.3% for agri cultural 
products and 87.7% for non -agricultural products).  
Table A1.2 Mongolia: Indicators of MFN tariff rates and preferential rates for imports 
from Japan  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural products a Non-agricultural 
products  
Average app lied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of duty -
free tariff lines 
(%) Average 
applied tariff  Share of duty -
free tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2016 5.3 5.3 0.9 6.6 6.6 0.8 5.1 5.1 0.9 
Japan  2016 1.9 4.8 59.8 3.0 5.2 42.8 1.7 4.6 62.9 
 2017 1.8 4.5 59.8 2.9 5.1 42.8 1.6 4.3 62.9 
 2018 1.7 4.2 59.8 2.9 5.0 42.8 1.5 3.9 62.9 
 2019 1.6 3.9 59.8 2.8 5.0 42.8 1.3 3.6 62.9 
 2020 1.4 3.6 59.8 2.8 4.8 42.8 1.2 3.2 62.9 
 2021 1.3 3.8 64.7 2.7 4.9 44.6 1.1 3.4 68.4 
 2022 1.2 3.5 64.7 2.7 4.8 44.6 1.0 3.1 68.4 
 2023 1.2 3.3 64.8 2.6 4.8 44.7 0.9 2.9 68.5 
 2024 1.1 3.1 64.8 2.6 4.7 44.7 0.8 2.6 68.5 
 2025 1.0 2.9 64.8 2.6 4.6 44.7 0.7 2.4 68.5 
 2026 0.9 4.8 80.7 2.5 5.1 50.9 0.6 4.6 86.1 
 2027 0.9 4.8 80.7 2.5 5.1 50.9 0.6 4.6 86.1 
 2028 0.9 4.7 80.7 2.5 5.1 50.9 0.6 4.5 86.1 
 2029 0.9 4.7 80.7 2.5 5.0 50.9 0.6 4.5 86.1 
 2030 0.9 4.7 80.7 2.5 5.0 50.9 0.6 4.5 86.1 
 2031 0.9 5.1 82.4 2.4 5.4 54.3 0.6 4.9 87.5 
 2032 0.9 5.1 82.4 2.4 5.4 54.3 0.6 4.9 87.5 
 2033 0.9 5.1 82.4 2.4 5.4 54.3 0.6 4.9 87.5 
 2034 0.9 5.1 82.4 2.4 5.4 54.3 0.6 4.9 87.5 
 2035 0.9 5.1 82.4 2.4 5.4 54.3 0.6 4.9 87.5 
 2036 0.9 5.2 82.6 2.4 5.4 54.3 0.6 5.0 87.7 
a WTO Definition.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from the Mongolian authorities.  
 
4. Table A1.3 shows market access opportunities for Mongolia's top 25 exports in Japan over 
the period 2013 -2015, which accounted for nearly all (96.7%) of its global exports and covered a 
total of 71 tariff lines. Before the Agreement's entry into force, 43 of these products, accounting 
for 95.4% of Mongolia's global exports and covering mineral and oils , were already duty -free on a 
MFN basis . Of the rem aining 28 lines, 14 were liberalized at entry into force of the Agreement, 
while another 13 will be liberalized in 2026. At the end of implementation, all but one  product  - 
bovine hides and skins under HS 4104.11 - will be fully liberalized ; this is currently subject to an 
MFN tariff of 15% . WT/REG373/1  
 
- 49 - 
 
  Table A1. 3 Japan: Market access opportunities under the agreement for Mongolia's top 
25 exports to the world  
Mongolia's top export products in 2013 -2015  Access Conditions to Japan's import markets  
HS number  and description of the 
product  Share in 
global 
exports 
(%) MFN 2016  No. of duty -
free lines 
under the 
agreement  
Remain 
Dutiable  Average 
MFN 
applied 
rate 
(%) No. of 
lines  Duty -free 
Dutiable  
2016  
2026  
260300  Copper ores and concentrates  39.4 0.0 1 
 
 
  
270112  Bituminous coal, whether or not 
pulverised, non -agglomerated  16.9 0.0 5     
270900  Petroleum oils and oils obtained 
from bituminous minerals, crude  10.4 0.0 2     
260111  Non-agglomerated iron ores and 
concentrates  9.0 0.0 1     
710813  Gold, incl. gold plated with 
platinum, in semi -manufactured 
forms, for non -monetary purposes  5.6 0.0 2     
510211  Hair of kashmir "cashmere" goats, 
neither carded nor combed  4.3 0.0 1     
260800  Zinc ores and concentrates  2.3 0.0 1     
710812  Gold, incl. go ld plated with 
platinum, unwrought, for non -
monetary purposes  2.1 0.0 1     
252921  Fluorspar containing by weight <= 
97% calcium fluoride  1.4 0.0 1     
510531  Hair of kashmir "cashmere" goats, 
carded or combed  1.1 0.0 1     
740311  Copper, refined, in t he form of 
cathodes and sections of cathodes  0.8 2.0 1 2  2  
261390  Molybdenum ores and concentrates 
(excl. roasted)  0.5 0.0 1     
120590  High erucic rape or colza seeds 
"yielding a fixed oil which has an 
erucic acid content of >= 2% and 
yielding a solid  component of 
glucosinolates of >= 30 
micromoles/g", whether or not 
broken  0.3 0.0 1     
261610  Silver ores and concentrates  0.3 0.0 1     
261100  Tungsten ores and concentrates  0.3 0.0 1     
410510  Skins of sheep or lambs, in the wet 
state "incl. wet -blue", tanned, 
without wool on, whether or not 
split  0.3 0.0 1     
270119  Coal, whether or not pulverised, 
non-agglomerated  0.2 0.0 2     
880240  Aeroplanes and other powered 
aircraft of an of an unladen weight 
> 15.000 kg  0.2 0.0 1     
410621  Hides and  skins of goats or kids, in 
the wet state "incl. wet -blue", 
tanned, without wool on, whether 
or not split  0.2 0.0 1     
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, 
not containing biodiesel, n.e.s.  0.2 2.2 9 22 11 11  
050400  Guts, bladders and stomachs of 
animals (other than fish), whole 
and pieces thereof, fresh, chilled, 
frozen, salted, in brine, dried or 
smoked  0.2 0.0 5     WT/REG373/1  
 
- 50 - 
 
  Mongolia's top export products in 2013 -2015  Access Conditions to Japan's import markets  
HS number  and description of the 
product  Share in 
global 
exports 
(%) MFN 2016  No. of duty -
free lines 
under the 
agreement  
Remain 
Dutiable  Average 
MFN 
applied 
rate 
(%) No. of 
lines  Duty -free 
Dutiable  
2016  
2026  
610690  Women's or girls' blouses, shirts 
and shirt -blouses of textile 
materials, knitted or croche ted  0.2 9.7  3 3   
261310  Roasted molybdenum ores and 
concentrates  0.2 0.0 1     
410411  Full grains, unsplit and grain splits, 
in the wet state "incl. wet -blue", of 
hides and skins of bovine "incl. 
buffalo" or equine animals, tanned, 
without hair on  0.1 15.0 1 1   1 
510121  Shorn wool, degreased, non -
carbonised, neither carded nor 
combed  0.1 0.0 1     
TOTALS  96.7  43 28 14 13 1 
Source:  WTO estimates based on data from Japanese authorities, WTO -IDB and UNSD -Comtrade database.  
Based on the HS 2012 nome nclature.  
 
5. Table A1.4 shows market access opportunities for Japan's  top 25 exports in Mongolia over 
the period 2013 -2015, which accounted for around one -third of its global exports and covered a 
total of 7 6 tariff lines. Before the Agreement's entry into f orce, four of these products - accounting 
for 4.1% of the global exports  and covering integrated circuits and semiconducto rs - were already 
duty-free on a n MFN basis. At the entry into force of the Agreement 18 lines were liberalized, to be 
followed by 8 a nd 28 lines in 2021 and 2028 respectively. By the end of implementation, 10 
products will not be fully liberalized , five categories of cars under 8703 will only be partially 
liberalized with a total of 17  lines (out of 50) remaining dutiable, and one chemi cal product will 
remain subject to duties  - but will have its market access revisited in the future.  
Table A1.4 Mongolia: Market access opportunities under the agreement for Japan's top 
25 exports to the world  
Japan's top export products in 2013 -2015  Acces s Conditions to Mongolia's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
lines  duty-free 
dutiable  
2016  
2021 
2026  
870323  -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc  7.2 5.0  10 2  5 3 
870324  -- of a cylinder capacity exceeding 
3,000 cc  3.7 5.0  15 2  7 6 
870840  - gear boxes and parts thereof  2.2 5.0  1 1    
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, 
not containing biodiesel, n.e.s.  1.6 5.0  7  7   
890190  - other vessels for the transport of 
goods and other vessels for the 
transport of both persons and goods  1.6 5.0  1 1    
854239  Electronic inte grated circuits (excl. 
such as processors, controllers, 
memories and amplifiers)  1.4 0.0 1      WT/REG373/1  
 
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  Japan's top export products in 2013 -2015  Acces s Conditions to Mongolia's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
lines  duty-free 
dutiable  
2016  
2021 
2026  
844399  Parts and accessories of printers, 
copying machines and facsimile 
machines, n.e.s. (excl. of printing 
machinery used for printing by means 
of plates, cy linders and other printing 
components of heading 8442)  1.4 5.0  1 1    
854232  Electronic integrated circuits as 
memories  1.3 0.0 1      
848620  -machines and apparatus for the 
manufacture of semiconductor 
devices or of electronic integrated 
circuits  0.9 5.0  1 1    
842952  -- machinery with a 360? revolving 
superstructure  0.9 5.0  1 1    
901380  - other devices, appliances and 
instruments  0.8 5.0  1 1    
870322  -- of a cylinder capacity exceeding 
1,000 cc but not exceeding 1,500 cc  0.8 5.0  5 1  3 1 
870422 -- g.v.w. exceeding 5 tonnes but not 
exceeding 20 tonnes  0.7 5.0  1 1    
840991  -- suitable for use solely or principally 
with spark -ignition internal 
combustion piston engines  0.7 5.0  1   1  
870332  -- of a cylinder capacity exceeding 
1,500 cc but no t exceeding 2,500 cc  0.7 5.0  5 1  3 1 
880330  - other parts of aeroplanes or 
helicopters  0.7 5.0  1 1    
852580  -television cameras, digital cameras 
and video camera recorders  0.7 5.0  1  1   
854231  -- processors and controllers, 
whether or not combined  with 
memories, converters, logic circuits, 
amplifiers, clock and timing circuits, 
or other circuits  0.7 0.0 1      
870899  Parts and accessories, for tractors, 
motor vehicles for the transport of 
ten or more persons, motor cars and 
other motor vehicles pr incipally 
designed for the transport of persons, 
motor vehicles for the transport of 
goods and special purpose motor 
vehicles, n.e.s.  0.7 5.0  1   1  
847989  Machines and mechanical appliances, 
n.e.s.  0.7 5.0  1   1  
854140  - photosensitive semiconductor 
devices, including photovoltaic cells 
whether or not assembled in modules 
or made up into panels; light emitting 
diodes  0.7 0.0 1      
853690  - other apparatus  0.6 5.0  1 1    
870333  -- of a cylinder capacity exceeding 
2,500 cc  0.6 5.0  15 2  7 6 
845710  -machining centres  0.6 5.0  1 1    
382490  Chemical products and preparations 
of the chemical or allied industries, 
incl. those consisting of mixtures of 
natural products, n.e.s.  0.6 5.0  1    1 WT/REG373/1  
 
- 52 - 
 
  Japan's top export products in 2013 -2015  Acces s Conditions to Mongolia's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2016  No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
lines  duty-free 
dutiable  
2016  
2021 
2026  
TOTALS  32.5  4 72 18 8 28 18 
Note:  Based on the HS 2012 no menclature  
Source:  WTO estimates based on data from the Mongolian authorities and UNSD -Comtrade database.  
 WT/REG373/1  
 
- 53 - 
 
  ANNEX 2  
TARIFF  REDUCTIONS BY JAPAN AND TRQ COMMITMENTS  
1. The tables below provide details regarding the implementation of Japan's tariff reduction 
commitments and TRQs for products from Mongolia in accordance with categories "P" and "Q" .  
Table A2. 1 Japan: Summary of Category "P" Reduction Commitments  
HS and Notea Base rate  Reduced Rates  Instalments  
Initial  Final  Initia l Final  
Soybean oil, other than crude oil  
1507.90 - (1) 13.20 yen/kg  12.98 yen/kg  11.88 yen/kg  EIF: 7.6.16  1.4.21  
Rice bran oil and its fractions 
1515.90 - (2) 8.50 yen/kg  7.71 yen/kg  3.78 yen/kg  EIF: 7.6.16  1.4.21  
Margarine, excluding liquid 
margarine  -- 1517.10 - (3) 29.8%  29.0%  25% EIF: 7.6.16  1.4.21  
Couscous  -- 1902.40 - (4) 24 yen/kg  22.91 yen/kg  12 yen/kg  EIF: 7.6.16  1.4.26  
Waffles and wafers  --  
1905.32 - (5) 18% 16.7%  10% EIF: 7.6.16  1.4.21  
Pizza, chilled or frozen   
1905.90 - (6) 24% 23.2%  15% EIF: 7.6.16  1.4.26  
Ground -nuts containing added 
sugar, other  -- 2008.11 - (7) 23.8%  23.0%  19% EIF: 7.6.16  1.4.21  
Ground -nuts, other, 2008.11 - (8) 21.3%  20.6%  17% EIF: 7.6.16  1.4.21  
a Note in Column 5 of Japan's Schedule contained in Annex 1 to the Agre ement.  
Source : WTO Secretariat on the basis of the Agreement.  
Table A2. 2 Japan: Summary of Category "Q" TRQs  
HS and Noteb MFN 
2016  In-quota 
rate Annual quota  
(MT)  Conditions  Other  
Other, with a basis of 
curds 0404.90.112, 
0404.90.122 - (9) 29.8%+
400yen/
kg Free 1 TRQ certificate  
GPTT Certificate  RDV clause in Y5; 
RDV clause in the 
year following a 
year when the 
imported amount 
exceeds one MT  
Other cheese  
0406.90.090 - (10) 29.8%  Free 1 TRQ certificate  " 
Natural honey  
0409.00 .000 - (11) 25.5%  12.8%  Y1: 1, Y2: 1.1, 
Y3: 1.2, Y4: 
1.3, 
Y5: 1.4,  
Y6 onward: 1.5  TRQ certificate  RDV clause in Y5  
Other prepared or 
preserved meat, meat 
offal or blood, of bovine 
animals  
1602.50.210, 
1602.50.292, 
1602.50.299, 
1602.50.320, 
1602.50.391, 
1602.50.399, 
1602.50.490, 
1602.50.600, 
1602.50.700 - (12) 21.3%  17% Y1: 60, Y2: 88 , 
Y3: 116,  
Y4: 144,  
Y5: 172,  
Y6 onward: 200  
 TRQ certificate  
 RDV clause in Y5 
or other (see Table 
3.1 of the FP)  
 
Other prepare d or 
preserved meat, meat 
offal or blood, of bovine 
animals  
1602.50.291, 
1602.50.410, 25% 20% WT/REG373/1  
 
- 54 - 
 
  HS and Noteb MFN 
2016  In-quota 
rate Annual quota  
(MT)  Conditions  Other  
1602.50.420 - (12) 
Beef jerky  
1602.50.510, 
1602.50.520, 
1602.50.590 - (12) 10% 8% 
Y1: 60, Y2: 88 ,  
Y3: 116 , Y4: 
144 ,  
Y5: 172 ,  
Y6 onward: 200  
 TRQ certif icate RDV clause in Y5 
or other (see Table 
3.1 above)  Other prepared or 
preserved meat, meat 
offal or blood, of bovine 
animals  
1602.50.810 - (12)  45% 36% 
Other prepared or 
preserved meat, meat 
offal or blood , of bovine 
animals -  
1602.50.910, 
1602.50.991, 
1602.50.999 - (12) 50% 40% 
Udon, somen and soba; 
other; not containing 
rice 1902.19.092, 
1902.19.099 - (13)  Free 1 TRQ certificate  
GPTT Certificate  RDV clause in Y5 
RDV clause in the 
year following a 
year when the 
imported amount 
exceeds one MT  
b    Note in Column 5 of Japan's Schedule contained in Annex 1 to the Agreement.  
GPTT Certificate   Certificate of a good for the preferential tariff treatment . 
Mt   Metric tonnes  
TRQ Certificate  Certificate of T RQ issued by the importing Party on the basis of the certificate issued by 
the exporting Party for each export . 
Source:    WTO Secretariat on the basis of the Agreement.  
 
__________