WT/TPR/M/406  
26 May 2021  
(21-4368) Page: 1/37 
Trade Policy Review Body   
17 and 19 March  2021  
  
TRADE POLICY REVIEW  
MONGOLIA  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Harald Aspelund (Iceland)  
CONTENTS  
 
1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY THE REPRESENTATIVE OF MONGOLIA  ................................ .. 4 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ................  7 
4  STATEMENTS BY MEMBERS  ................................ ................................ ........................  10 
5  REPLIES BY THE REPRESENTATIVE OF MONGOLIA AND ADDITIONAL COMMENTS  ..... 28 
6  CONCLUDING REMARKS BY THE CHAIRPERSON  ................................ .........................  34 
7  ELECTION OF A NEW T PRB CHAIR PERSON  ................................ ................................ . 36 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Mongolia  are reproduced in document WT/TPR/M/ 406/Add.1 and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/406 • Mongolia  
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  
1.1.  The third Trade Policy Review of Mongolia was held on 17 and 19 March 2021 . The Chairperson, 
H.E. Mr. Harald Aspelund (Iceland), welcomed the delegation of Mongolia , headed by 
H.E. Ms. Battsetseg Batmunkh , Minister f or Foreign Affairs ; H.E. Ambassador Mr. Lundeg 
Purevsuren , Permanent Representative of Mongolia to the WTO ; the rest of the delegation from 
Ulaanbaatar ; and the discussant H.E. Ambassador Dr. Rashidi Said (Malaysia) . 
1.2.  The Chairperson was pleased that, in addition to physical presence, the meeting also benefited 
from the Interprefy online connection, allowing for a wider participation of the Membership, in 
particular of officials who could not make the journey from Ulaan baatar given the current 
circumstances.  
1.3.  I would also like to inform you that, as indicated in the addendum to the Airgram, there will be 
a second agenda item at the end of the session on Friday, namely the election of a new Chairperson 
of the TPRB.  
1.4.  The Ch airperson recalled the purpose of TPRs and the main elements of procedures for the 
meeting. The report by Mongolia is contained in document WT/TPR/G/40 6, and that of the WTO 
Secretariat in document WT/TPR/S/40 6. 
1.5.  Questions by the following delegations were submitted in writing before the deadline: Chile; 
Canada; the European Union; Malaysia; Japan; the United States; Thailand; and China . The following 
delegations submitted written questions after the deadline: the Russian Federation; Indonesia; 
Turkey;  the Republic of Korea; the United Kingdom; Peru; Iceland; and Kazakhstan . 
1.6.  Since its l ast Review in 2014, Mongolia has maintained a relatively open t rade regime and 
continued its economic and trade growth over the period. As highlighted in its last Review, Mongolia 
had a high reliance on the mineral sector for both its economy and exports. It had faced a number 
of challenges due to its harsh climate, underdeveloped in frastructure, and landlocked status. Thus, 
Members had encouraged Mongolia to make improvements in several areas , including the 
investment climate, government procurement, minerals policy, standards, applied rates that 
exceeded bound rates, and institution al issues such as time and cost of approvals for investment 
and other bureaucratic processes. Many of these elements are also highlighted in the reports today.  
1.7.  The Chairperson focus sed on some economic developments since its previous Review. Mongolia 
continued to have steady and continued growth during 2014 -19 but the economy contracted in the 
first part of 2020 due mainly to the impact of the COVID -19 pandemic. While services remain ed the 
dominant contributor to GDP, their importanc e fell over the period f rom 51% to 45% of GDP, while 
that of mining, the second largest contributor, increased from 18 % to 26%. Thus, Mongolia remained  
heavily reliant on the mining sector, not only for its GDP but also for trade. Exports remain ed more 
heavily concentrated in 201 9 compared to 2014 both in terms of products, i.e. mining at 84%, and 
markets, i.e. China, accounting for 89%.  
1.8.  As all Members kne w, this Review was taking pl ace at a time when the world had  witnessed an 
unprecedented crisis , with COVID -19 having a signific ant impact on the economy and trade of many 
Members, including Mongolia. As a response to the pandemic, Mongolia adopted its first relief 
package in April 2020 to provide support for those affected by the economic downturn. This included 
aid to the cashmer e industry , and border measures such as temporary VAT and duty exemptions.  
1.9.  Mongolia’s trade policies remained broadly unchanged during the period under review. 
However, there were a few notable developments. These concerned the conclusion of Mongolia’s 
first free trade agreement with Japan in 2015, and Mongolia’s accession to the Asia -Pacific Trade 
Agreement (APTA) in January 2021. As a landlocked country, Mongolia also welcomed the 
developments in the trade -facilitation area, as it re mained  an issue of nat ional importance. Transit 
transportation and border cooperation with neighbouring countries were of particular significance.  
1.10.   Mongolia made several efforts to improve its investment climate since the last Review , with 
policy initiatives to increase domestic  and foreign investment and restore foreign investor 
confidence. A One -Stop Service Centre to facilitate the delivery of public services to investors was 
established in 2019, the Investor Protection Council was established in 2016 to oversee the legal WT/TPR/M/406 • Mongolia  
 
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  rights and interests of investors, and efforts were underway  to diversify investment to non -mining 
sectors.  
1.11.   The agriculture sector also remains important for the Mongolian economy and trade. During 
the review period, it accounted for between 11% and 13% of GDP  and between 25% and 30% of 
employment. Mongolia remained a net exporter of many livestock products including wool and 
cashmere, but was a net importer overall due , in part , to its climatic conditions, where as agricultural 
imports were significant for frui ts and vegetables, tobacco, and dairy pro ducts. The sector also 
continued  to be impacted by several non -tariff measures.  
1.12.   Mongolia  improved its standards/technical regulations and sanitary and phytosanitary regimes 
since the last Review , with new law s, regulations, and initiatives. H owever, there remain ed concerns , 
such as alignment to international standards and lack of notifications . 
1.13.   An examination of the advance questions  submitted for this Review showed  the wide range 
of topics of interest to Members, including: investment; customs procedures; exports; TBT; SPS; 
government procurement; intellectual property; agriculture; and servic es. The Chairperson was sure 
that these topics and themes, and many others, would  be touched upon in greater detail at the 
deliberations today and on Friday.  
1.14.   In total , Mongolia received about 32 0 advance written questions from 16 delegations  for this 
Revie w. Prior to this meeting, Mongolia already provided written replies to all advance  questions. 
The Chairperson was sure that Members would join him in commending Mongolia for its efforts in 
this respect.  
1.15.   This meeting was a good opportunity for Members to di scuss in greater detail issues of interest 
to them and of systemic importance to the multilateral trading system. It was also an opportune 
moment for Mongolia to update the Membership on the impact of COVID -19 on  its economy and 
measures it had  taken in re sponse, given that the d ocumentation prepared for this R eview might 
not cover all measures taken. The Chairperson  looked forward to a fruitful exchange.  
1.16.   The Chairperson closed his introductory remarks by wishing Mongolia a very successful third 
Trade Polic y Review.  
  WT/TPR/M/406 • Mongolia  
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF MONGOLIA ( H.E. MS. BATTSETSEG 
BATMUNKH ) 
2.1.  I am pleased to lead the Mongolian delegation to the third Review Meeting of Mongolia's Trade 
Policy by the World Trade Organization (WTO).  
2.2.  First of all, I would like to convey our appreciation to the WTO Secretariat for preparing a 
detailed report on Mongolia's trade policy, and His Excellency Harald Aspelund, the Ambassador of 
Iceland for chairing this meeting, and His Excellency Rashidi Said, the Ambassado r of Malaysia for 
taking up the task of a discussant.  
2.3.  My delegation wishes to extend our gratitude to the M ember countries for their interests and 
questions in relation to the Government trade policies and the policy measures taken in the key 
economic sect ors, its legal environment and the objectives set forward in this regard.  
2.4.  To date, Mongolia has received around 300 questions and I be lieve that inquiring M ember 
countries have received the responses to their questions, which have been prepared and sent 
through the Secretariat.  
Impact of the COVID -19 pandemic effect  
2.5.  The COVID -19 pandemic lockdowns in Mongolia's trading partners and the related business 
contraction of economic entities caused a severe negative impact on the country's economic growth 
with a GDP decline by 5.3 % in 2020. In particular, mining, service ind ustry, air transport and tourism 
sectors have been hit severely by the pandemic.  
2.6.  The revenues generated by the mining sector to the S tate budget decreased by 14.0 % by the 
end of 2020, and the foreign direct investment in Mongolia decreased by  USD 581.2 mil lion in 2020.  
2.7.  Although Mongolia's total foreign trade turnover decreased by 6.4% in 2020 in comparison with 
the previous year, the trade  balance showed a surplus of USD  2.3 billion which had a positive effect 
on the balance of payments.  
2.8.  Mongolia's mineral  export revenue accounts for about 90 % of total export revenue, and the 
implementation of the "Green Gateway" provisional regime with China to restore coal export, which 
had slowed due to the pandemic, has helped to restore mineral exports and generate the  surplus in 
trade balance.  
2.9.  On 29 April  2020, the State Great Khural (Parliament) of Mongolia passed  the Law on 
Prevention of COVID -19 pandemic and alleviating its socio -economic impacts. The Government has 
taken a series of steps since early 2020 to reduce  the impacts of the pandemic and revitalize the 
economy through the supports to businesses.  
2.10.   "A stimulus package of 10 trillion MNT in protecting public health and economic revitalization" 
has been approved by the Government in 2021 and is now under the im plementation. The package 
is designed to support small and medium enterprises, service industry, agriculture and non -mining 
export, employment opportunities and housing and to facilitate the implementation of mega projects 
of strategic importance.  
Economic  situation of Mongolia  
2.11.   The GDP growth had reached 7.9 % in 2014 when Mongolia's trade policy was reviewed for 
the second time. The growth figure fell down to 1.2 % in 2016 which wrought by the global financial 
and economic crisis, precisely, due to the decli ne in extractive commodities, an overly optimistic 
outlook for mining revenues, and a sharp increase in public spending on loans.  
2.12.   Since 2016 , the Government and the Bank of Mongolia jointly implemented an "Economic 
Recovery Program" aimed at macroeconomic stabilization, restructuring the economy, easing the 
debt burdens, and ensuring stable growth. As a result, the real GDP growth rate accelerated to 5.3% 
and 7.2% in 2017 and 2018, respectively. However, the dwindling world market prices of WT/TPR/M/406 • Mongolia  
 
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  commodities toge ther with the lower quality of the major mineral commodities slowed down the 
economic growth 10 to 5.1% in 2019.  
2.13.   Since 2017, the Government , jointly with the IMF , implemented a 3 -year "Extended Fund 
Facility" during which the economic recovery accelerated , the inflation rate remained near the target, 
and the official foreign reserve exceeded USD 4.2 billion. During 2016 -2019, the foreign reserve 
increased 3.4 times and the confidence of foreign investors in Mongolia's economy started to return.  
2.14.   Mongolia wa s covered by the "Rapid Finance Instrument" provided by the IMF to its members 
to support their efforts to fight the COVID -19 pandemic and to revive their economies.  
2.15.   In order to finance domestic securities and to respond to the troubled budgetary and fina ncial 
situation, the Government issued "Dim Sam", "Mazaalai", "Khuraldai", "Gerege" and "Nomad" bonds 
between 2015 -2020.  
2.16.   Total foreign trade turno ver reached a record high of USD  13.7 billion in 2019, and the balance 
of exports and imports has been positi ve since 2014. The Government's policy towards diversification 
of economy and promotion of non -mining exports had resulted in non -minin g export production 
reaching USD  2.9 billion or 11% of total exports in the period from 2016 to 2019.  
2.17.   In order to reduce the economic vulnerability which caus ed by the dominance of a 
single -mining sector, the Government has been consistent in diversifying the economy, promoting 
trade and  investment in other economic sectors,  and creating a favourable  legal environment.  
2.18.   In this regard, the Government approved the Mongol Export Program in 2018, which gives 
priority to the value -added and competitive exports, facilitating trade and expanding  export markets. 
The Export Promotion Council was established in 2019 to ensure cross -sectorial coordination in the 
implementation of Mongol Export Program.  
2.19.   In addition, with the support of the Geneva -based International Trade Center, the Mongolia's 
Trade and Investment Roadmap was developed in 2019. The Roadmap identified 1/ export o f the 
products of animal origin;  2/ service industry including information and commu nication technology 
and tourism;  and 3/ natural resources, including renewable energy and pr ocessed minerals as 
potential sectors for export and investment in medium term. In order to support export and 
investment in these sectors, the Government focuses on export funding, quality standards, skill 
development and marketing.  
2.20.   Mongolia stands for th e principle of imp artiality in terms of investors’  treatment. To promote 
the investment efficiency, the Government provides common legal guarantee and protection to the 
investor's  rights, properties and prioritizes stable tax environment for investment. In  this context, I 
would like to emphasize that the Investor Protection Council, the Public -Private Consultative 
Committee and the One -Stop Service Center were respectively established between 2016 to 2019.  
2.21.   Improving the legal environment for trade and bring ing it into line with the WTO principles is 
a priority policy of the Government, and in accordance with the WTO Agreement on Safeguards, the 
Cabinet adopted the Regulation of Safeguards early this year.  
2.22.   Within the framework of the Government policy to join  the regional economic and trade 
integration, Mongolia established in 2016 the "Economic Partnership Agreement between Mongolia 
and Japan" (EPA) and acceded to the "Asia -Pacific Trade Agreement ” (APTA) in 2019. The 
Government is currently conducting a join t study to explore the possibility of concluding a free trade 
agreement with the Eurasian Economic Union and the Republic of Korea.  
2.23.   Mongolia is allowed to use the Generalized System of Preferences (GSP+) of Australia, the 
United States, Canada, the Europe an Union, Japan, New Zealand, Norway,  and Switzerland. From 
1 January 2021 , Mongolia has become eligible for the preferential treatment provided by the UK. It 
should be noted that there is  a need to increase the country’ s export capacity and the range and 
quantity of products that meet the standards of the export markets in order to take full advantage 
of these preferential benefits.  WT/TPR/M/406 • Mongolia  
 
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  2.24.   As one of the initiators and founders of the International Center for Landlocked Developing 
Countries (ICLLDC), Mongolia was a key in bring ing the agreement of the Center’ s establishment 
into force and in 2018 the Center was officially launched in Ulaanbaatar.  
2.25.   In 2016, Mongolia acceded the UN Intergovernmental Agreement on Dry Ports. Mongolia is 
also preparing to accede to the A sia-Pacific General Agreement on Facilitation of Cross -Border 
Paperless Trade in order to reduce the cost and time of cross -border trade.  
Mongolia and the World Trade Organization  
2.26.   As a landlocked developing country, located between the large economies, Mon golia strongly 
supports and believes in principles and benefits of a rules -based multilateral trading system, which 
plays an important role in the global economy.  
2.27.   Mongolia believes that constructive dialogu e and engagement of developing M embers is 
essentia l in addressing the challenges facing the multilateral trading system and coming to the 
collective solution. In this context, Mongolia supports the reforms which are necessary to keep the 
relevance of the WTO and change our approach from debate to deliveri ng results, proposed by the 
new Director General Ms.  Ngozi Okonjo -Iweala.  
2.28.   As a M ember of the WTO, Mongolia participates and contrib utes to the works of the 
Organization. Mongolia served as the Chairman of the Council of the Trade Related Intellectual 
Prope rty Rights, and recently served  as the Chairman of the Council of the Trade in Goods, 
coordinating the Asian Group of Developing countries and the Group of Landlocked Developing 
Countries in Geneva.  
2.29.   Mongolia ratified the WTO Agreement on Trade Facilitation  in 2016 and the Agreement on 
Trade in Civil Aircraft in 2018.1 The National Trade Facilitation Committee was established in 2017 
and the National Road Map on Trade Facilitation was adopted acco rdingly. Mongolia also joined  the 
Agreement Establishing the Advisory Centre on WTO Law in 2020.  
2.30.   In conclusion, I am pleased to summarize that Mongolia has pursued an open and transparent 
trade and investment policies during the reporting period which prioritized export promotion, trade 
facilitation, regional trade,  and economic integration. In his re gard, please allow me to extend our 
appreciation to the WTO, our development partners and international organizations for their support 
and assistance.  
2.31.   Thank you for your kind attention.  
  
 
1 Regarding the Agreement on Trade in Civil Aircraft, the situation with respect to ratification is as 
explained in para graph  2.25 of WTO document WT/TPR/S/406.  WT/TPR/M/406 • Mongolia  
 
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  3  STATEMENT BY THE DISCUSSANT  
3.1.  Thank you, Chair. Good morning to thos e of you in Geneva and good evening to those 
delegation in Ulaanbataar.  
3.2.  Let me begin by welcoming the deleg ation of Mongolia to its third Trade Policy R eview, headed 
by Her Excellency Mrs Battsetseg Batmunkh, Minister of Foreign Affairs and to extend my pe rsonal 
appreciation for the remarkable work accomplished by my distinguished colleague, Ambassador 
Lundeg Pur evsuren and his competent team.  
3.3.  I would also like to thank Mongolia and the Secretariat for the high -quality reports, which will 
serve as a valuabl e basis for our discussions during this two -day review. It is an honour and a 
privilege for me to be the discussant for this Review.  
3.4.  This Review takes place under unprecedented and challenging circumstances caused by the 
COVID -19 pandemic that affects tra de, global economy, and this is a real test to multilateral trading 
system. Despite these challenges, today's review shows Mongolia's strong com mitment that it has 
put to the Trade Policy Review M echanism.  
3.5.  My role as a discussant is to make a constructive contribution to our discussion, particularly 
the development since the last review. My comments will have three parts: I will first focus on 
Mongolia's macroeconomic and trade environment; second, I will touch on trade and investment 
policies; and l astly, on the issues raised by M embers.  
Macroeconomic environment  
3.6.  Let me start my comments by highlighting a few points related to Mongolia's macroeconomic 
and trade environment. Since Mongolia's previous Review in 2014, it appears from the Secretariat's 
and the Government's reports that Mongolia generally maintains an open trade and investment 
regime.  
3.7.  The country's GDP continued to grow between 2014 and 2019, with the exception between 
2015 and 2016, where the growth rate declined to 2.4% in 2015 and further decl ined to 1.2% in 
2016 due to a worsening external environment characterized by the global economic slowdown and 
sharp drop in commodity prices. However, its economy had shown improvement where the  GDP 
grew between 5.1% and 7.2%  between 2017 and 2019. In ter m of value added, the share of services 
in GDP has declined during the period under review. However, the share of mining in GDP has grown 
steadily from 18.2% to 26%.  
3.8.  On external sector, we could observe from the reports that Mongolian trade was very much 
relying on exports of commodities such as coal and copper ore, which constituted more than half of 
the Mongolia's USD  7.6 billion in export earnings. On imports, machinery; electrical; and transport 
equipment remained the Mongolia's ma in import items since  its last R eview. On the direction of 
trade, China remained Mongolia's main trading partner, constituted close to 90% of its export 
earnings and 33.2% of its imports in 2019.  
3.9.  It is important to observe that the mining sector continued to become the main so urce of 
national reve nue to support Mongolia's socio economic development. The Secretariat's and the 
Government's reports point out that macroeconomic shocks such as Covid -19 pandemic, low import 
demand from main trading partners, and low commodity prices h ave severely impacted 
macroeconomic stability with the balance of payments coming under pressure. This underscores the 
need for a more diversified economic structure. I commend the authority's efforts to diversifying its 
export products and restructuring t he economy to reduce its dependency on mineral resources.  
3.10.   Like many other Members, the impact of COVID -19 has been severe to Mongolian economy. 
The Government introduced stimulus packages to sustain the economy that involved both fiscal and 
monetary polici es. In this regard, I also noted that the Government had adopted its first relief 
package in April 2020 to support the most affected sectors, maintain the employment and ensure 
financial stability due to economic slowdown.  WT/TPR/M/406 • Mongolia  
 
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  Trade and investment policy  
3.11.   Now, turning to the developments related to trade and investment policy. The Government 
introduced several policy instruments: (1) the Action Plan of th e Government for 2016 -2020; (2)  the 
Sustainable Development Vision 2030; and (3) Action Plan of the Government 2020 -2024, among 
others.  
3.12.   Mongolia plays an active role in the WTO and has long been a strong supporter of the 
multilateral trading system. Mongolia actively participates in th e group of landlocked countries  and 
small and vulnerable economies (SV E). I must praise the dedication of Ambassador Lundeg 
Purevsuren as the coordinator for the Asian Group of Developing Countries (AGDC) and congratulate 
him for been elected as the Chair of Council for Trade in Goods for 2021.  
3.13.   Trade facilitation is worth  to be highlighted during this R eview. Mongolia as a landlocked 
country views the transit and border cooperation with neighbouring countries are of the utmost 
importance. The Parliament of Mongolia had ratified the WTO Tra de Facilitation Agreement on 
24 Novem ber 2016 and thereafter, notified its instrumen t of ratification the WTO on 
28 November  2016. The reports also highlight Mongolia has been committed to implementing the 
TFA and I applaud the establishment of the National Trade Facilitation Committee for th is purpose.  
3.14.   New developments could also be seen during the review period on Mongol ia's participation  in 
regional and preferential trade arrangements. The Mongolia has signed its first FTA with Japan in 
2015. The Secretariat's report also highlights that Mo ngolia has also concluded its Asia -Pacific Trade 
Agreement (APTA) negotiations in December 2019. It worth to highlight that Mongolia has acceded 
to APTA in September 2020, which represents the first Mongolia's FTA with developing countr ies. It 
is also note d that the G overnment is studying the possibility of bilateral free trade agreements with 
several other countries such as with China, Republic of Korea, and Eurasian Economic Union (EAEU).  
3.15.   According to the Secretariat r eport, Mongolia's tariff regime did n ot change significantly since 
the last review with the average bound at 17.6%. The average applied remains low with 94% of the 
tariff lines are at 5%. The overall average rate increased slightly at 0.3 percentage point to 5.3%, 
mainly because of the increa se in tariffs on spirit and tobacco.  
3.16.   Mongolia considers the foreign direct investment (FDI) is an important tool for its 
development. In this regard, the Government introduced several policy initiatives to increase 
domestic and foreign investment and resto re investor's confidence. These include the establishments 
of the One -stop service Centre to facilitate public services delivery to investors and Investor 
Protection Council to protect legal rights of investors.  
Issues raised by M embers  
3.17.   Now, turning to my third part on sectoral policies and measures including the issues raised by 
Membe rs on that regard. This R eview has attracted comments and questions from 16 M embers with 
approximately 300 questions. I will only highlight several key issues.  
3.18.   Concerning Mong olia's SPS regime, it is noted from the Secretariat report that Mongolia faced 
challenges in ensuring its SPS requirements are fully harmonized with int ernational SPS standards. 
Some M embers asked questions on the lack of risk -based assessments. I commend Mongolia that it 
has started to work on improvements in infrastructure and capacity of many SPS laboratories with 
the assistance of international institutions.  
3.19.   Members also followed Mongolia's competition policy issues with great interest. A new 
development since its last R eview was the amendments made to its Competition Law in 2019, which 
seeks to ensure fair market competition and prohibit any activities impend ing competition. I noted 
that from the questions raised by M embers and the replies, there are no natural monopoly entities 
in the sector of finance, fuels and oil products, shopping centers and the coal market.  
3.20.   Although the economy is essentially market -driven, the report also shows that the state 
ownership continues to be prevalent as there were 105 state -owned enterprises in Mongolia with a 
significant number concentrated in strategic sectors of energy, mining, and transport sectors. This 
was slightly hig her than last review i.e., 98 SOEs.  WT/TPR/M/406 • Mongolia  
 
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  3.21.   Mining is a strategic sector of the Mongolia's economy. The Secretariat's report shows that 
the mining sector accounted for 23.2% of GDP, 75.8% of FDI, 90.1% of exports, and 70% of foreign 
investment stocks. One new deve lopment since its last R eview was the amendments to Mineral Law 
in 2019. Specific to this sector, M embers submitted several questions about treatments on foreign 
entities in terms of land rights in mining.  
3.22.   The a griculture sector becomes an important sector  to Mongolia's socio -economic 
development, absorbed close to one third of total employment and 10.9% of its GDP in 2019, 
although these were slightly lower than in 2013. I welcome the efforts to making the agriculture as 
part of its diversification strateg y to alleviate heavy reliance on mining sector. I also noted that 
Mongolia has developed the Food and Agriculture Policy 2015 aims to increase the productivity and 
improve the competitiveness of the sector.  
3.23.   On Mongolia's subsidy programs i n the agriculture  sector, some M embers referred to 
Mongolia's subsidy programs in various forms and so ught clarifications on how the G overnment is 
planning to reduce these trade distorting subsidies. Other question includes Mongolia's subsidies 
notification obligation and I thank for the support the WTO Secretariat's has provided to Mongolia 
so that it can improve its notification commitment.  
3.24.   On services, it should be noted that although the share of financial services is relatively high 
in GDP and open to foreign investmen t, there are no foreign banks established in Mon golia. The 
discussions in this R eview may offer greater understan ding in this regard since some M embers have 
raised questions on financial sector of Mongolia.  
3.25.   There are other sectors such as manufacturing, which can be much relevant from the 
perspective of diversified economic activities.  
Conclusion  
3.26.   To conclude, the key assessments that I would like to share fr om both review reports and the 
Governm ent statement are , in the short -term, Mongolia  needs to restore macroeconomic stability in 
collaboration with the international community at large. In the longer term, Mongolia needs to 
develop a more diversified and resilient economy. This, in turn, will require (i) well -targeted sectors 
or sub -secto rs through right policy formulations; (ii) infrastructure investments and regional 
integration to improve connectivity and access to more external markets; and (iii) developing skilled 
workforce to support these structural adjustments. The authorities may want to consider these for 
future analysis.  
3.27.   Before I end, let me express my appreciation to all the replies that Mongolia has provided. 
Let me wish this Trade Policy R eview produces results that benefit both th e Government and the 
people of Mongolia.  
3.28.   Again , I thank for this opportunity and I wish Mon golia success during its third Trade Policy 
Review. Thank you, Mr. Chair.  
  WT/TPR/M/406 • Mongolia  
 
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  4  STATEMENTS BY MEMBERS  
CANADA  
4.1.  We would like to express our appreciation to Mongolia’s G overnment and the Secretariat f or 
their high -quality reports.  
4.2.  We would first like to acknowledge Mongolia’s efforts to minimize the negative impacts of the 
COVID -19 pandemic while working closely with regional and international partners to ensure the 
continuous free flow of essential goods. Canada is pro ud to stand with Mongolia as a friend as we 
work towards an inclusive and sustainable global economic recovery.  
4.3.  I would now like to highlight areas where Mongolia is making significant progress . 
4.4.  Canada welcomes Mongolia’s pursuit of more open and inclusive  trade. We also welcome 
Mongolia’s acceptance of the Trade Facilitation Agreement, and its support for the full 
implementation of the Buenos Aires Declaration on Women’s Economic Empowerment. We 
encourage Mongolia to participate actively in the implementat ion of the 2nd phase of the Buenos 
Aires Declaration.  
4.5.  We applaud Mongolia’s efforts to negotiate trade and investment agreements during the review 
period. As Mongolia’s leading investor in the mining sector, Canada was particularly pleased to 
conclude the Canada -Mongolia Foreign Investment Promotion and Protection Agreement (FIPA).  
4.6.  Canada commends Mongolia for its ambitious Vision 2050 Development Plan, which aims to 
strengthen good governance, citizen -based government services and implement economic polici es 
that strengthen Mongolia’s potential, including increasing economic integration, nurturing the 
development of current and aspiring women -owned businesses and fighting against climate change.  
4.7.  We congratulate Mongolia on efforts to strengthen governance practices. The implementation 
of the Civil Service Law, which will help create a more stable, impartial professional and 
citizen -centred civil service, including the establishment of gender quotas for administrative posts. 
In addition, E -Mongoli a’s initiative will enhance public services. We encourage Mongolia to continue 
building towards a highly skilled and gender balanced public service. Canada stands by to assist 
these efforts.  
4.8.  Along with these promising initiatives and progress, there remain  areas that would benefit from 
further focus by Mongolia:  
4.9.  Canada acknowledges the changes made by Mongolia to attract more foreign investment in the 
mining sector such as the establishment of the Investors’ Protection Council and One Stop Service 
Centre. H owever, efforts to enhance regulatory certainty and reduce investment risk are still 
necessary. Predictability, transparency and reliability are core elements of a solid investment 
environment, which must be supported by the rule of law and independence of  the judiciary, and we 
encourage Mongolia to continue pursuing comprehensive measures that make the country a more 
preferred destination for FDI.  
4.10.   Canada welcomes Mongolia’s participation in the WTO’s Micro, Small and Medium -sized 
Enterprises (MSMEs) Inform al Working Group, and the Joint Statement Initiatives on Electronic 
Commerce, and on Investment Facilitation. Moving forward, Mongolia could also consider joining the 
Joint Statement Initiative on Services Domestic Regulation. Canada also encourages Mongol ia to 
address its outstanding notifications, including on agriculture domestic support, agriculture export 
subsidies, and its new and full subsidy notifications, which are critical to providing transparency and 
predictability to all Members. We wish to ack nowledge Mongolia’s expression of interest to join the 
Agreement on Trade in Civil Aircraft and reiterate our willingness to work with Mongolia on its 
accession.  
4.11.   Canada has submitted written questions that reflect our interests and concerns regarding a 
number of trade -policy related measures. We look forward to Mongolia’s responses and more 
generally to a constructive exchange of views on all aspects of Mongolia’s trade policy. We wish 
Mongolia a productive and useful Trade Policy Review.  WT/TPR/M/406 • Mongolia  
 
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  EUROPEAN  UNION  
4.12.   On behalf of the European Union, I would  like to welcome the Mongolian d elegation led by 
H.E. Mrs. Battsetseg Batmunk, Minister for Foreig n Affairs, Head of delegati on. I would also like to 
thank the WTO Secretariat and the Government of Mong olia for their reports and the d iscussant, 
H.E. Dr. Rashidi Said (Ambassador of Malaysia) for his contribution.  
4.13.   Mongolia has been a persistent and continuous supporter of the  multilateral trading system 
and has pursued  a liberal trade policy since joining the WTO in 1997 . Open trade has, in fact, been 
a continuous key feature in Mongolia ’s history. The East -West Mongol trade routes became the fabled 
Silk Road, which for the first time linked Europe to Asia, allowing the free flow of ideas, technologies 
and goods  mainly from Europe to Europe, from Asia to Europe and sometimes in the other direction 
but we were a grateful receiver of all that came our way from Asia . The stability bro ught by Mongol 
rule opened these ancient trade routes to a largely undisturbed exchange of goods between the 
peoples of Asia and Europe . Aside from facilitating trade, the Mongol influence also improved the 
communication along the Silk Road by establishing  a postal relay system.  
4.14.   Since joining the WTO, Mongolia has pursued rigorous market -oriented reforms and is  now 
one of the most open economies in the world .  
4.15.   The EU's bilateral relationship with Mongolia has also developed positively since the last TPR 
with the EU -Mongolia Partnership and Cooperation Agreement (PCA) entering into force in 2017. The 
Agreement provides a comprehensive framework for enhancing relations in political, economic,  and 
sectoral areas such as agriculture, people -to-people exchanges,  research and innovation, 
environment, culture,  and education.  
4.16.   The EU is Mongolia's fourth largest tra ding partner and our exports have  grown steadily in the 
last years, reflecting positive changes in Mongolian business environment.  
4.17.   We are fully supporti ve of Mongolia's efforts to  continue to  diversify its economy with the 
special incentive arrangement under the EU Generalized System of Preferences plus (GSP+). Its 
utilisation rate stands at around 84%, but there is room for improvement.  
4.18.   Further facilitation of the exports of non -mineral products will contribute to  an even greater  
diversification of the Mongolian economy. Capacity building is an essential issue, and the EU is 
supporting Mongolia through the dedicated trade -related development assi stance (TRAM – “Trade -
Related Assistance to Mongolia”), which has delivered promising results in trade policy, trade 
facilitation and export promotion.  
4.19.   In the participation  with the EBRD, the EU is supporting the development of small and 
medium -sized ente rprises (SMEs) in Mongolia. The support focuses on improving access to finance 
and transfer of know -how. As a part of the EU COVID -19 response package in Mongolia, we have 
secured a further grant of EUR 11 million for the next phase of this project, focusi ng on minimizing 
the long -term impact of COVID -19 related slowdown for Mongolian SMEs.  
4.20.   EU priorities are to create  and promote  a level playing field and opportunities for exporters 
from both countries and EU investors in Mongolia by supporting the develop ment of a predictable 
business and investment environment. We would like to underline the need for increased 
transparency of the procedures that have been put  in place in Mongolia. This includes in particular 
transparency of the government procurement, inv estments laws and regulations, and requirements 
for imported goods.  
4.21.   In our experience, foreign investors are usually not treated on the same footing as domestic 
ones. Moreover, frequent amendments of investment laws and regulations prevents the 
development  of a stable and predictable environment for foreign investors in Mongolia.  
4.22.   We would like also to stress the importance to secure the independence of the judiciary and 
the fight against the corruption: both these two principles of good governance are put on an equal 
footing in our bilateral agreement. In this context, the EU follows closely the implementation of the 
Laws on the Legal Status of Judges, Public Prosecutor's Office and Anti -corruption, which, while WT/TPR/M/406 • Mongolia  
 
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  ensuring the independence and integrity of ju dges and prosecutors, have a critical impact on the 
business climate.  
4.23.   We are interested to hear more on Mongolia’s plans to establish a new Ministry of Planning 
and Economic Developmen t and its role in trade policy  making and implementation.  
4.24.   We are also lo oking forward for Mongolia’s replies to our questions on the new alcohol law. 
We support the efforts to establish a regulatory framework and the aim to limit alcohol consumption 
and promote a healthier way of life. However, we are concerned that the draft law is not compatible 
with the WTO rules and obligations. It seems to grant less favourable treatment to imported goods 
and foreign producers than to domestic goods and domestic producers and  seems to impose 
unjustifiable technical barriers to trade. The E U would like also to invite Mongolia to notify this law 
and other outstanding regulations to the relevant WTO committees.  
4.25.   Finally, let me use this opportunity to congratulate H.E. Mr. Lundeg Purevsuren, Mongolia’s 
Permanent Representative and Ambassador, on his recent appointment as a Chair of the Council for 
Trade in Goods and wish him every success.  
4.26.   In conclusion, on behalf of the EU, I wish Mongolia  and the colleagues in Ulaanbaatar  a very 
productive and successful Review.  
JAPAN  
4.27.   Let me first extend a  warm welcome to this t hird TPR meeting to the distinguished delegation 
of Mongolia headed by H.E. Mrs. Battsetseg Batmunkh, Minister for Foreign Affairs. We sincerely 
appreciate the dedicated efforts made by Mongolia and the WTO Secretariat to prepare the in sightful 
reports shared with the Members in advance of today's R eview. And we are also grateful to the 
discussant, H.E. Dr Rashidi Said, Ambassador of Malaysia, for his insightful remarks.  
4.28.   Mongolia is an important trading partner for Japan, as is clear from the fact that our two 
countries have been developing a strategic partnership since 2013. Japan has been consistently 
supporting Mongolia’s transition to a democracy and market economy sin ce the country began its 
process of democratisation in the 1990s. In 2020, trade between our two countries reached a value 
of USD 360 million in total. At the same time, our FDI amounted to a total of USD 950 million in 
2020.  
4.29.   Mongolia has concluded two fre e trade agreements with seven Members. In June 2016, as a 
first EPA for Mongolia, the Japan -Mongolia EPA came into effect. This EPA has significantly 
contributed to a favourable relationship between our two countries and the strengthening of our 
strategic partnership. Since the enactment of the Japan -Mongolia EPA, the volume of bilateral trade 
has been increasing steadily. We commend the steps taken by Mongolia towards greater trade 
liberalization and we believe that Mongolia’s efforts and cooperation under  these RTAs will 
complement the reinforcement of the Multilateral Trading System.  
4.30.   Japan appreciates Mongolia’s joining of the Trade Facilitation Agreement (TFA) in 2016 and 
its participation in the Joint Statement Initiative (JSI) on e -commerce and investm ent facilitation 
towards further trade facilitation. We expect Mongolia to continue actively engaging in both 
multilateral and plurilateral frameworks under the WTO to further strengthen the Multilateral Trading 
System.  
4.31.   When it comes to domestic measures f or trade facilitation, Japan welcomes the fact that 
Mongolia introduced several systems and regimes such as the single window system, electronic data 
exchange, and advance rulings through the amendment of its domestic laws during this review 
period.  
4.32.   With r egard to the action for the promotion of FDI, Japan welcomes the various reforms that 
have been adopted towards the improvement of the business environment in Mongolia. These 
include, most notably, the launch of the One -Stop Service Centre for foreign owne d companies, the 
establishment of the Investors Protection Council, the creation of the trade information portal 
website, and the reduction of the corporate tax for medium and small sized enterprises from 10% WT/TPR/M/406 • Mongolia  
 
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  to 1% through the enactment of the new tax law in 2020. We expect the Mongolian government to 
continue to lead efforts for the further improvement of the business and investment climate.  
4.33.   NUBIA (New Ulaanbaatar International Airport) is being constructed through cooperation 
between Japan and Mongolia as  a new symbol of our bilateral relationship. While the opening 
schedule has been postponed due to COVID -19, We hope that upon its completion this project will 
enhance regional air connectivity. The Japanese consortium is currently playing a partial role in  the 
management of the airport, and we would like to continue this bilateral cooperation towards the 
efficient opening of the airport and its management thereafter so that our collaboration becomes a 
best practice. In addition, once the current COVID -19 situation calms down, we expect NUBIA, as a 
new gateway to the skies, to have a huge positive impact on Mongolian development, including in 
the tourism and logistics fields.  
4.34.   In conclusion, Japan appreciates Mongolia making this TPR meeting possible in spite of the 
current pandemic situation. We expect that a stable business environment will contribute to the 
sustainable development of the Mongolian economy and , also, underpin foreign companies’ 
performance in the country to the maximum extent. Last, but not l east, we wish Mongolia a 
successful and productive TPR.  
UNITED  STATES  
4.35.   The United States is pleased to welcome H.E. Mrs. Battsetseg Batmunkh and the rest of the 
Mongolian delegation to the third Trade Policy Review (TPR) of Mongolia. We welcome the Secretariat 
and Government r eports and appreciate the opportunity to gain a clearer sense of the changes to 
Mongolia’s trade and investment policies  since its last review in 2014.  
4.36.   Since its last TPR, Mongolia has taken steps toward a more open and transparent trade and 
investment regime that should enhance the business environment in Mongolia and improve 
Mongolia's attractiveness to its trading partne rs and foreign investors. We recognize the particular 
challenges that landlocked developing countries (LLDCs) face in participating in international trade. 
The United States is committed to close cooperation with LLDCs to address such challenges and, 
specifically, to continuing to work hard to advance trade and economic ties with Mongolia.  
4.37.   Trade between Mongolia and the United States has grown in recent years. In 2005, when 
Mongolia's first Trade Policy Review took place, total two -way trade in goods stood at 
USD 166 million. In 2019, two -way trade in goods was USD 217.5 million. In the coming years, 
further growth in trade with Mongolia will likely be affected significantly by how well Mongolia handles 
its economic engine and its biggest economic challenge – the mining sector. We encourage Mongolia 
to manage the development of its mineral resources in a manner that will ensure steady growth. It 
is well -known that the mining sector is the key driver of Mongolia's economy. It is Mongolia's major 
source of expo rts and foreign direct investment, and many of Mongolia's imports also feed the mining 
sector. At the same time, we are supportive of ways to diversify Mongolia’s economy beyond its 
extractive industries.  
4.38.   We commend Mongolia’s efforts to improve intellectu al property protection, implement its 
trade facilitation commitments, and improve its customs regime.  We encourage Mongolia’s adoption 
of international practices in areas where TBT and SPS commitments apply, which should also 
increase opportunities for tr ade and investment. However, there remain a number of problematic 
challenges that impede Mongolia’s economic development. These include inadequate transparency 
in regulatory and legislative processes, weak rule of law, corruption, and frequent abuse of 
inspection, permitting, and licensing regimes to protect existing state and private sector interests. 
The ongoing amendment process for Mongolia's 2006 Minerals Law seems to suffer from many of 
these types of problems. All too often, the Mongolian government' s economic policymaking has been 
unpredictable and has lacked the transparency that foreign investors and traders need and expect 
in today's global trading system.  
4.39.   We were encouraged that the Mongolian Government took an important step toward 
addressing tr ansparency and corruption concerns in September 2013 when it signed an agreement 
with the United States promoting legislative and regulatory transparency in matters affecting trade 
and investment and calling for adherence to anti -bribery and anti -corruptio n principles. However, 
even though the agreement has been in force since 2017, implementation remains incomplete, and WT/TPR/M/406 • Mongolia  
 
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  there is still work to be done.  Full implementation of the agreement is needed and should enhance 
not only trade and investment but also create an even more attractive business environment in 
Mongolia.  
4.40.   We thank Mongolia for responding to our questions and concerns, and we look forward to 
further discussion of Mongolia’s trade policy regime ove r the next two days.  
THAILAND  
4.41.   Thailand welcomes the opportuni ty to participate in the third Trade Policy R eview of Mongolia. 
We wish to extend a warm welcome to the delegation of Mongolia led by H.E. Mrs. Battsetseg 
Batmunkh, Minister for Foreign Affairs, to this virtual TPR.  
4.42.   We would like to t hank you, Chair, for your comments and  summary, the Secretariat for a 
high-quality report, and the d iscussant, H.E. Dr Rashidi Said of Malaysia for his comprehensive 
analysis of Mongolia’s trade policy and economic developments during the review period.  
4.43.   Thailand notably welcomes the robust macroeconomic performance of Mongolia, with the 
economy growing at an annual average rate of 4.9% between 2014 and 2019. Moreover, GDP per 
capita increased from USD 4,158.5 in 2014 to USD 4,295.2 in 2019.  
4.44.   In terms of trad e, Thailand and Mongolia have enjoyed growing bilateral trade relations. We 
are pleased to highlight that total trade between our two countries have more than doubled since 
the last review, expanding from USD 14 million in 2014 to USD 37 million in 2020. M ost of the 
exports from Thailand to Mongolia are paper and paperboard, machinery and mechanical appliances, 
as well as miscellaneous edible preparations. On the other hand, Thailand largely imports ore, 
metals, raw hide, and leather from Mongolia. Thailand  hopes that our bilateral trade will continue to 
grow to further strengthen economic relations.  
4.45.   Economic performance and improvement in international trade are reflected by Mongolia’s 
commitment to facilitate trade and remain open to foreign trade. However , outstanding economic 
developments are not without challenges. It is noticed that Mongolia’s economy largely relies on a 
small range of sectors. Accordingly, the need to diversify economic structures and trade relationships 
are among the top priorities fo r Mongolia’s national policy.  
4.46.   Thailand is pleased to learn that Mongolia has placed great importance on trade -facilitation 
and implemented a broad range of trade -related programs, including the Action Plan of the 
Government, the Mongolia Sustainable Develo pment Vision 2030, and the Mongolian Export 
Program. Thailand is optimistic that these constructive policies will bring about greater economic 
resilience leading towards sustainable economic prosperity in the long run.  
4.47.   On the participation in the WTO, we w elcome Mongolia’s ratification of the Trade Facilitation 
Agreement (TFA) and the fact that they joined the WTO Agreement on Trade in Civil Aircraft. 
Furthermore, Thailand commends Mongolia’s ambitions to expand bilateral and regional FTAs with 
several coun tries. Thailand would like to encourage Mongolia to further engage in trade negotiations 
and thus utilize greater benefits from a multilateral trading system. In this opportunity, Thailand 
would like to express our appreciation for Mongolia’s dedication an d the efforts as a coordinator of 
Asia Group of Developing Members.  
4.48.   In this Review, Thailand submitted questions covering specific aspects of trade and economic 
policies of Mongolia, including a customs valuation, incentives, subsidies/support programs, as  well 
as a trade policy in the energy sector. Thailand would like to thank Mongolia for their written 
responses and will study them with great interest.  
4.49.   In closing, Thailand would like to express our appreciation to Mongolia for their cooperation. 
Thailand  looks forward to further expanding our partnership. We wish Mongolia a successful outcome 
in this third Trade Policy Review . 
  WT/TPR/M/406 • Mongolia  
 
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  CHINA  
4.50.   I would like to join others to wa rmly welcome the d elegation of Mongolia led by 
H.E. Mrs. Battsetseg Batmunkh, and our gra titude also goes to the discussant, His Excellency 
Ambassador Rashidi Said for his informative report. W e would also like to thank the C hair and the 
Secretariat for the  contributions to the R eview.  
4.51.   China recognizes that Mongolia maintained a generally open  trade regime in the review period. 
We are supportive of the efforts of Mongolia to stabilize and develop its economy including 
implementation of the "Economic Recovery Program" in 2016 and measures taken to diversity its 
economy. We are impressed by the e conomic measures taken by Mongolia to combat the pandemic.  
4.52.   We commend Mongolia’s constructive participation in the WTO, especially Ambassador 
H.E. Mr. Lundeg Purevsuren’s active role and his personal contribution to this Organization. And we 
congratulate h im as the incoming CTG chair.  
4.53.   We commend Mongolia’s efforts to implement TFA and look forward to its full implementation 
as early as possible.  
4.54.   Mongolia is an important neighbour  and cooperative partner of China. The bilateral trade 
increased continuously between 2014 and 2019. In 2020 our bilateral trade suffered seriously due 
to the pandemic. We appreciate the efforts that the two sides have actively responded to the 
pandemic by  jointly implementing the "Green Access" policy at border ports, which has ensured the 
smooth flow of bilateral trade.  
4.55.   China welcome Mongolia’s participation in the Asia -Pacific Trade Agreement (APTA) and we 
are pleased to see the implementation of APTA fr om the beginning of 2021. The APTA members 
account for 65% of Mongolia's foreign trade. And we hope that participation in the APTA and FTAs 
consistent with WTO will help Mongolia better integrated into regional and global trade.  
4.56.   Finally, we thank Mongolia’ s response to our questions,  and I wish Mongolia every success in 
the third review.  
RUSSIAN  FEDERATION  
4.57.   I would like to extend a warm welcome to the delegation of Mongolia headed by the Minister 
of Foreign Affairs H.E. Ms. Battsetseg Batmunkh. We appreciate the comprehensive reports by the 
Government and the WTO Secretariat. Our thanks also go to the discussant, H.E. Dr. Rashidi Said, 
for his thoughtful remarks. We hope that this TPR will contribute significantly to the transparency of 
the trade re gime of Mongolia.  
4.58.   For decades, Mongolia has been Russia’s closest neighbour  and strategic partner in Asia, 
sharing common economic interests and similar approaches to current issues on international 
agenda. I am pleased to note that this year marks the 100 th Anniversary of the establishment of 
diplomatic relations between our countries.  
4.59.   Russia remains Mongolia’s second largest trade partner. Total bilateral trade turnover 
amounted in 2019 to almost USD 1,8 billion, demonstrating a 7% growth in comparison t o the 
previous year. Russian exports comprise of petrochemicals, food and agricultural commodities, 
textiles, metals and metal products. Imports are dominated by raw minerals.  
4.60.   Economic cooperation between our countries is guided by the Intergovernmental co mmission 
on trade, economic, science and technology cooperation. The Commission oversees the bilateral 
collaboration and implementation of joint ventures in such areas as banking and investment, 
transport, especially rail traffic, agricultural industry,  and protection of environment.  
4.61.   Russia views Mongolia as a valuable partner in promotion of Eurasian economic integration 
processes, noting with appreciation Ulaanbaatar’s engagement with the EAEU, based on the 
Memorandum on cooperation, signed in 2015. We we lcome the establishment of a joint research 
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  4.62.   While we highly estimate trade and economic cooperation with our Mongolian friends, we 
would like to use this opportunity t o highlight a few issues that are of significant concern to us and 
are being discussed in relevant WTO Committees.  
4.63.   Namely, we are seriously worried by the existing quota regime for import of wheat flour and 
milk that almost completely halted Russian export s of these products in 2017 -2019. The delays in 
establishment of quotas for abovementioned products, are creating uncertainty for our companies 
and resulted in suspension of Russian flour exports once again in 2021.  
4.64.   This regime continues to be inconsisten t with Mongolia’s obligations under WTO Agreements, 
in particular, Article XI of the GATT 1994 and article 4.2 of the Agreement on Agriculture, as well as 
Mongolia’s accession commitments under para. 20 of the Working Party Report.  
4.65.   Another problem for us i s mandatory requirement for vitamin enrichment of wheat flour, which 
we consider as a less favourable treatment for imported flour than for domestic one.  
4.66.   We urge Mongolia to take action on restoring normal conditions for trade in these products in 
line wit h its obligations in the WTO.  
4.67.   Russia has submitted a number of written questions on the mentioned issues as well as some 
others. We look forward to receiving comprehensive replies.  
4.68.   In conclusion, we would like to thank you, Mr. Chairman, the delegation of Mongolia, the 
Secretariat,  and the discussant, for the impressive work done so far and wish Ulaanbaatar a 
successful Trade Policy Review.  
INDONESIA  
4.69.   I would like to extend a very warm welcome to Mongoli a’s delegation led by 
H.E. Mrs. Battsetseg Batmunkh , Minister for Foreign Affairs of Mongolia. Let me also thank the 
discussant, Ambassador Dr Rashidi Said from Malaysia , for his contribution to this R eview, as well 
as to the Government of Mongolia and the Secretariat for their insightful and comprehensive rep orts. 
4.70.   First of all, I would like to commend Mongolia’s active role and contribution in WTO, not only 
in the discussion and negotiating process, but also on its able leadership as Coordinator of Asian 
Group of Developing Countries which has contributed in a dvancing the agenda of developing 
Members in WTO.  
4.71.   In bilateral context, Indonesia and Mongolia have relished a long history of friendship and 
cooperation. Having almost 65 years of diplomatic engagements, the relationship between the two 
countries has been  progressing well, including in economic and trade relations. Between 2014 and 
2020, the total bilateral trade showed an increasing trend and reached USD 24.3 million in 2020, 
rose by 98% from the previous year. However, I believe that there are still larg e rooms for 
improvement and opportunity to strengthen the relationship.  
4.72.   Indonesia commends Mongolia for maintaining and recovering its economy since the last TPR 
amidst a decline in international mineral commodity prices, where Mongolia’s revenue relies on  these 
commodities. As such, Mongolia witnessed a negative 1.2 % growth rate in 2016.  
4.73.   According to the data from Mongolia, Indonesia notes that Mongolian mineral exports reached 
USD 6.9 billion in 2019 and contributed 24.5% of Mongolian total revenue. Rela ted to this matter, 
due to the recently revised constitution of Mongolia, Indonesia is interested to understand the 
implementation of the revised Constitution, including its impact on Mongolian natural resources 
export performance.  
4.74.   On another note, the Gov ernment of Mongolia launched a "Mongolian Export" programme, 
aiming to diversify the export of non -mineral commodities and to sustain the export of value -added 
commodities. Indonesia wishes to seek detailed information regarding the implementation of this 
programme, especially with regard to the Financing and Export Guarantee Fund scheme, with 
Mongolia’s commitment to the SCM agreement.  WT/TPR/M/406 • Mongolia  
 
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  4.75.   In terms of investment, during the review period, the foreign direct investment inflow has 
been increased considerably. Ho wever, a substantial amount of the FDI is concentrated in the mining 
sector. Indonesia would like to enquire further on Mongolia´s draft Investment Policy Statement in 
order to attract and expand potential investment across a wide spectrum of business sect ors, so 
that the FDI can be diffused to other industries.  
4.76.   Indonesia has submitted a set of questions, covering these policies and measures of our 
interests, including Mongolian SPS requirements and practices; privatization; import restrictions of 
some stra tegic food items through licensing and annual quota; and other measures which may deter 
imports.  
4.77.   On that note, Indonesia highly appreciates Mongolia’s great efforts in providing written 
responses addressing Indonesia’s questions and concerns in this TPR as  reflected in document 
RD/TPR/1245. I believe that such practice would be useful for both countries to enhance trade and 
economic cooperation between Indonesia and Mongolia.  
4.78.   Finally, I would like to commend H.E. Mr. Lundeg  Purevsuren  and the Mongolian delegation in 
Geneva for their hard work on this Trade Policy Review. On behalf of Indonesia delegation, I wish 
Mongolia a very productive and successful Review.  
TURKEY  
4.79.   We would like to join previous speakers in extending a very warm welcome to the delegation 
of Mongolia, headed by Her Excellency Battsetseg Batmunkh, Minister for Foreign Affairs.  
4.80.   We took note of her introductory remarks with great interest. We thank the delegation  of 
Mongolia and the Secretariat for their comprehensive reports , as well as our discussant Ambassador 
Rashidi Said of Malaysia for his invaluable comments.   
4.81.   We are pleased to see that the Mongolian economy grew steadily between 2014 -2019 and 
that the Mongolian Government has introduced several fiscal measures to alleviate the contraction 
due to COVID pandemic and to assist the recovery process.  
4.82.   We commend Mongolia’s efforts to diversify its export products with a view to reduce 
dependency on mineral reso urces. As Minister Batmunkh implied, we also see Mongolian Export 
Program launched in 2018 to support research and marketing of priority export products as a timely 
and well -designed policy instrument in this regard. Thanks to this program, we observe some  
improvement has already been made in the percentage of non -mining products in the total export 
structure.   
4.83.   We welcome the implementation of trade facilitating measures during the review period as 
well as the steps taken under the National Strategy for the Development of Intellectual Property.  
4.84.   We are also pleased to see that the country’s ranking in the UNDP Hu man Development Index 
made progress in recent years.  
4.85.   Turkey has strong historical and cultural ties with Mongolia. In this regard, we are pleased to 
see that Mongolia named Turkey as one of her “third neighbours”.  
4.86.   Our bilateral trade has seen an increase o f around 20% between 2014 and 2019. However, 
the total volume is still lagging behind strong historical ties and great potential.  
4.87.   Turkey sees our Joint Economic and Technical Cooperation Committee and Turkish -Mongolian 
Business Council present a useful too l to further strengthen bilateral trade relations.  
4.88.   Last January, Turkey and Mongolia signed a Memorandum of Understanding Regarding 
Cooperation in the Field of Free Zones. We believe that it will contribute to untap the great potential 
between our countrie s. 
4.89.   We are also pleased that Turkish Airlines started its flights between Istanbul and Ulaanbaatar  
last year which will also serve as a steppingstone  to further connect our economies.  WT/TPR/M/406 • Mongolia  
 
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  4.90.   The Turkish International Cooperation Agency, TİKA, has completed more th an 500 projects 
in Mongolia, and Turkey conducted very successful official development assistance programs in 
cooperation with Mongolian Government.   
4.91.   Before concluding, we want to thank Ambassador Lundeg and to his team in Geneva for their 
active work inv aluable contribution to the negotiations under this roof.  
4.92.   Turkey will continue to work closely with Mongolia in bilateral and multilateral for a, and we 
wish Mongolia very successful completion of its third Trade Policy Review.  
REPUBLIC  OF KOREA  
4.93.   I would l ike to extend a warm welcome to the delegates who are in Geneva as well as in 
Ulaanbaatar for the 3rd (third) Trade Policy Review of Mongolia. In particular, I would like to thank 
Minister Battsetseg Batmunkh for her comprehensive presentation.  
4.94.   My special  appreciation also goes to Ambassador Rashidi Said (Malaysia) for his contribution 
as today’s discussant and Ambassador Purevsuren Lundeg and his team for their hard work.  
4.95.   We note that Mongolia achieved a satisfactory GDP per capita growth of 5.1% during the 
review period (2014 -2019), which is prior to the Covid -19 pandemic. The volume of trade (export 
and import) and FDI increased as well.  
4.96.   Moreover, we highly commend the prompt measures that the Mongolian government enforced 
to combat the Covid -19 outbre ak in 2020 as well as the establishment of the “Action Program of the 
Government of Mongolia for 2016 -2020” which deals with trade policies.  
4.97.   Meanwhile, we see room for improvement for the causes of the current account deficit, namely 
the disproportionate t rade with certain countries and the trade system which is reliant on mineral 
exports.  
4.98.   In terms of multilateral trade policy, Mongolia ratified the TFA in 2016 and has been 
participating as an observer in plurilateral initiatives such as the GPA. However, in contrast with the 
notifications for TBT, RO (Rule of Origin), and TFA, we encourage Mongolia to make further efforts 
in its notification obligations for CV (Customs Valuation), QR (Quantitative Restriction), and import 
licensing.  
4.99.   The Republic o f Korea and Mongolia have conducted a Joint Study for Free Trade Agreement 
since 2017. In the near future, the potential negotiation for FTA between both countries is expected 
substantially.  
4.100.   My delegation has submitted a written question on corporate diffi culties due to the customs 
clearance service which lacks transparency, such as the inconsistent inspection for sample quantity. 
We appreciate Mongolia’s response which we will forward to our headquarters for review.  
4.101.   Korea would like to once again recogniz e Mongolia’s efforts to improve the trading 
environment. Let me conclude by expressing my deep appreciation to the delegation of Mongolia for 
its hard work and wishing the delegation every success in this 3rd TPR.  
UNITED  KINGDOM  
4.102.   On behalf of the British  Government, I welcome the Mongolian delegation led by Her 
Excellency Mrs. Battsetseg B atmunkh , Minister for Foreign Affairs. I am grateful to the Government 
of Mongolia and to colleagues from the WTO Secretariat for their respective reports prepared for this  
Trade Policy Review. We would also like to add our thanks and appreciation to  you, Chair, and to 
the discussant, Ambassador Said, for your contributions today.  
4.103.   The UK and Mongolia have long and historic ties, with the UK being the first western country 
to establish diplomatic relations with Mongolia. UK companies are among the biggest foreign 
investors in Mongolia, and the UK has historically been an important export destination for Mongolian WT/TPR/M/406 • Mongolia  
 
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  goods. UK business interests span a range of sectors, including  Mongolia’s dynamic mining sector, 
renewable energy, and provide world -leading services.  
4.104.   The UK is keen to deepen these trade ties further, working with Mongolia on market access 
to the United Kingdom, including taking full advantage of the benefits under the UK’s new trade 
preferences scheme.  Recognising the need for a smooth transition and for minimising disruption to 
our trading relationships, the UK brought an ‘Enhanced Framework’ into force on 1 January 2021, 
which replicated the GSP+ that applied bef ore the Transition Period ended.  
4.105.   However, there remain several areas which we would like to bring to the Government of 
Mongolia’s attention, and we hope that in doing so we can address these areas to facilitate increased 
trade between our countries.  
4.106.   The UK  commends Mongolia’s efforts to improve the legal environment in a number of fields, 
including Intellectual Property Rights (IPR) protection through amendments to relevant laws. The 
UK would welcome further efforts from Mongolia to improve enforcement of t hese laws and to put 
in place the conditions and services needed by the private sector to deal with IPR -related issues.  
4.107.   The UK also welcomes Mongolia’s efforts to open up  investment in large infrastructure 
projects to international bidders. However, the procurement processes for these projects would 
benefit from greater transparency in order to increase the number and quality of bidders and reduce 
the risk of corruption an d inefficient use of public resources. With this in mind, the UK recogni zes 
that Mongolia ha s been an observer of the GPA for several years and would encourage Mongolia to 
consider accession to the agreement to support best practice in public procurement.  
4.108.   Given Mongolia’s strong interest of attracting investment in sectors other than mining, the 
UK would also encourage Mongolia to work towards providing a more favourable environment for 
investors by improving governance and coordination in the public sector  and considering removal of 
the USD 100,000 threshold for foreign investors in non -mining sectors.  
4.109.   Mongolia’s prioriti zation of simplifying the customs services and upgrading facilities at border 
posts will be important in facilitating trade, reducing the  flow of illegal and counterfeit products, and 
ensuring revenue collection.  
4.110.   We encourage Mongolia to move quickly to bring all applied tariffs into line with their bound 
rates, and to notify its import restrictions and import licensing requirements.   
4.111.   The UK notes that many of Mongolia’s new laws and regulations contain significant trade 
elements, like the draft law on alcohol and the technical regulations for certain beverages. The UK 
appreciates Mongolia’s efforts to inform WTO Members about new laws and  regulations through the 
WTO consistent with relevant notification obligations.   
4.112.   The UK welcomes Mongolia’s participation in the Joint Statement Initiatives on e -commerce 
and MSMEs. We look forward to working with Mongolia in this context to advance discu ssions to 
create new rules fit for the 21st century. In light of the potential for Mongolia to expand exports of 
renewable energy, identified in the Roadmap for Trade and Investment, we urge Mongolia to 
consider participating in the work of the Trade and E nvironmental Sustainability Structured Dialogue.  
4.113.   In closing, we thank Mongolia for its engagement in this Trade Policy Review and for its 
responses to our written questions in due course. We look forward to continuing our work with 
Mongolia to expand the UK-Mongolia trade and investment relationship.  
ICELAND  
4.114.   Iceland joins others in welcoming Mrs Battsetseg Batmunkh , Minister of Foreign Affairs , and 
the distinguished delegation of Mongolia to their Trade Policy Review.  
4.115.   We also express appreciation for the reports prepared, as well as to the discussant, 
Ambassador Said for his excellent framing of the issues for our discussion today.  WT/TPR/M/406 • Mongolia  
 
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  4.116.   Mongolia and the EFTA countries, Iceland, Liechtenstein, Norway and Switzerland, signed a  
Joint Declaration on Cooperation (JDC) addressing cooperation on trade -related issues in 2007 and 
since then Mongolia and the EFTA countries have explored possibilities of entering in negotiations 
on a free trade agreement.  
4.117.   Prior to the COVID -19 pandemic,  Mongolia had been experiencing economic growth of 5.1%, 
with improvement in the fiscal balance. However, affected by the COVID -19 pandemic, exports 
declined by 40% in the first quarter of 2020, and the economy contracted 9.7% in the first half of 
2020.  
4.118.   Iceland welcomes the various initiatives undertaken by Mongolia seeking to boost exports 
and reap the benefits of international trade.  
4.119.   As the impact of the COVID -19 pandemic are still unfolding, new challenges arise related to 
trade and trade -related activi ties. It is now widely recognised that women are likely to be harder hit 
than men by trade disruptions caused by the pandemic.  
4.120.   The trade policy review provides an excellent opportunity to share best practices of 
respective experiences relating to policies  and programs to encourage women's participation in 
national and international trade and thus promoting sustainable socioeconomic development.  
4.121.   Iceland submitted advance written questions on the participation of women in the economy 
of Mongolia. The answer s will be useful as we gather best practices.  
4.122.   Iceland appreciates Mongolia’s active engagement in the WTO and its continued support for 
the multilateral trading system. We wish the delegation of Mongolia every success for its Trade Policy 
Review.  
KAZAKHSTA N 
4.123.   Kazakhstan warmly welcomes the delegation of Mongolia led by Minister for Foreign Affairs 
of Mongolia H.E. Mrs. Battsetseg Batmunkh . We express our gratitude to the Government of 
Mongolia for its informative Report and Statement. We also thank Ambassador  Dr. Rashidi Said 
(Malaysia) for his insightful comments as a discussant and the WTO Secretariat for its comprehensive 
report.  
4.124.   Kazakhstan closely follows Mongolia's economic growth and attaches high importance to 
strengthening bilateral cooperation with M ongolia with the objective to deepen economic and trade 
relationship.  
4.125.   Mongolia has been Kazakhstan's long-time economic and trading partner. The total trade 
turnover amounted in 2020 to approx. USD 30 million, decreasing by almost 50 percent compared 
to the previous year due to disruptions caused by COVID and fall in global prices for commodities. 
As the volume of foreign trade turnover between Kazakhstan and Mongolia does not meet the two 
countries' existing capabilities, it is important to make use of ava ilable opportunities for the 
development of trade relations between Kazakhstan and Mongolia.  
4.126.   Currently, the EAEU Member States and Mongolia are conducting negotiations on the 
feasibility of concluding an Agreement on a Free Trade Zone. A favorable trade re gime, which can 
be built in the case of FTA between the EAEU and Mongolia, will help remove barriers in technical 
regulation, customs procedures, and other areas, thus opening the way for further expansion of 
cooperation and increasing trade turnover.  
4.127.   We w ere particularly encouraged by a number of positive developments since the previous 
review, highlighted in the reports from the Secretariat and Government of Mongolia. These measures 
include ratification of the WTO Agreement on Trade Facilitation (on 24 No vember 2016), Agreement WT/TPR/M/406 • Mongolia  
 
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  on Trade in Civil Aircraft (on 12 October 2018),2 and the approval of the Protocol of Accession of 
Mongolia to the Agreement Establishing the Advisory Centre on WTO Law (on 2 September 2020).  
4.128.   We also note that, in order to address economic challenges, the Government of Mongolia 
has launched the "Economic Recovery Program" aimed at macroeconomic stabilization, restructuring 
the economy, easing the debt burdens, and ensuring stable growth. As a result, the economy of 
Mongolia quickly recovered thanks to the positive developments in budget performance, improved 
macroeconomic policy coordination, relatively high level of commodities prices, and a sharp rise in 
private investments.  
4.129.   We believe that, with the concerted efforts of the Gover nment and private sector, Mongolia 
will achieve macroeconomic sustainability and advance the country's development.  
4.130.   Kazakhstan has submitted a number of  written questions on a range of issues of specific 
interest, such as import tariffs, import restrictions, SPS, TBT measures, etc. Kazakhstan looks 
forward to receiving replies from Mongolia to our questions.  
4.131.   In conclusion, I would like to congratulate the  delegation of Mongolia and the Secretariat of 
the WTO for the hard work and efforts that went into preparing for this TPR.  
4.132.   Using this opportunity, I also would like to express our gratitude to Ambassador Purevsuren 
for his active role in the WTO as regio nal coordinator for Asia as well as for his hard work promoting 
trade interests of a group of Land -locked countries, where both Kazakhstan and Mongolia do belong!  
4.133.   We wish the delegation of Mo ngolia every success for their t hird Trade Policy Review.  
SINGAPORE  
4.134.   The Singapore delegation warmly welcomes Mrs. Battsetseg Batmunkh, Minister for Foreign 
Affairs, and her delegation who are participating virtually. We thank Mongolia for its Government 
Report and Statement and acknowledge the contributions of th e Mongolian Mission to WTO led by 
Ambassador Purevsuren Lundeg. We also express our appreciation to Ambassador Aspelund, the 
Secretariat, and the discussant , Ambassador Rashidi Said , for the useful reports and invaluable 
insights. Allow me to make three po ints. 
4.135.   First, Mongolia and Singapore share a longstanding friendship since the establishment of our 
diplomatic ties in 1970. During the period under review, Singapore’s Prime Minister Lee Hsien Loong 
visited Mongolia in 2016 to deepen ties, and we commemora ted the 50th anniversary of diplomatic 
relations in 2020. During the official visit to Singapore by the then -Mongolian Foreign Affairs Minister 
in 2019, the Singapore Business Federation and the Mongolian National Chamber of Commerce and 
Industry jointly o rganized the Singapore -Mongolia Business Dialogue, which was attended by many 
representatives from the Government and private enterprises of both countries, signalling a high 
level of mutual interest in business opportunities and collaboration. Singapore i s Mongolia’s largest 
export market in ASEAN as well as a major source of foreign investment. At the end of 2019, 6.4% 
of the total foreign direct investment in Mongolia came from Singapore. We commend Mongolia’s 
policies to promote and protect foreign inve stments, which encourage more foreign investors, 
including Singapore companies, to consider Mongolia as an attractive destination for investment.  
4.136.   Second, Singapore applauds Mongolia’s contributions to the WTO multilateral trading 
system. Mongolia has cont inued to support and strengthen the rules -based multilateral trading 
system. The Mongolian Mission to WTO and Ambassador Purevsuren Lundeg in particular, has been 
actively involved in various WTO committees. He served as Chair of the TRIPS Council in 2019-2020 
and has just been elected to chair the Council for Trade in Goods this year. Ambassador Lundeg is 
also playing an important role as the Coordinator of the Asian Group of Developing Members, which 
Singapore is a member. We also welcome Mongolia’s parti cipation in the various Joint Statement 
Initiatives (JSI), including the JSI on E -Commerce. Mongolia’s continued support for the JSIs 
underlines its progressive trade policy and will help to ensure that the WTO remains relevant.  
 
2 Regarding the Agreement on Trade in Civil Aircraft, the situation with respect to ratification is as 
explained in para graph  2.25 of WTO document WT/TPR/S/406.  WT/TPR/M/406 • Mongolia  
 
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  4.137.   Third, Singapore has confi dence that Mongolia can further harness its economic potential 
through diversification and readying itself for the digital transformation. This will put Mongolia on 
track for post -pandemic economic recovery. We are pleased to note the various laws and poli cies 
which promote sustainable growth in production. These include the 2019 Law on Support to SME 
Production and Services and policy documents such as the National Program of SME Support, and 
the National Program on Development of Manufacturing. There are also encouraging efforts to 
achieve economic diversification by growing exports in non -mining products. Mongolia has also 
undertaken significant efforts to improve trade facilitation, by ratifying the WTO Trade Facilitation 
Agreement (TFA), and continual m odernisation of customs procedures, including embarking on the 
development of a single window application for customs procedures.   
4.138.   At the same time, there are areas where Mongolia could make improvements. In respect of 
WTO notifications, although the Secr etariat has observed that Mongolia has made some important 
notifications, Mongolia can continue to work on submitting outstanding notifications in areas such as 
customs valuation, quantitative restrictions, import licensing, and agriculture. We note that M ongolia 
has been an observer to the Government Procurement Agreement (GPA) since 1999 and we 
encourage Mongolia to take steps to become a party. We also encourage Mongolia to consider joining 
the Information Technology Agreement, which will complement Mong olia’s digital policy and efforts 
to develop this sector.   
4.139.   Finally, let me wish Mongolia every success for this TPR.  
BRAZIL  
4.140.   Brazil would like to thank the G overnment of Mongolia for engaging in its third Trade Policy 
Review and  in providing Members with an overview of the country’s economic performance and 
adherence to the multilateral trading system.  
4.141.   We would also like to express our appreciation to the WTO Secretariat for its thorough and 
comprehensive report, as well as to you, Chair, and the discussan t, Ambassador Rashidi Said 
(Malaysia), for your contribution to a successful trade monitoring exercise.  
4.142.   Mongolia has continued to maintain a generally open trade regime since its previous Review 
in 2014 and, apart from 2020, has experienced continued and c onsistent GDP growth in the past 
years. Inflation is still, overall, relatively high. Figures also show that the unemployment rate has 
varied from 8 to 10% during the period. The COVID -19 crisis has had a significant impact on the 
Mongolian economy, as in most of our countries.  
4.143.   Mongolia recognizes the importance of trade facilitation for streamlining and simplifying 
trade flows. We commend Mongolia’s ratification of the Trade Facilitation Agreement in 2016 and its 
efforts to implement its obligations under the Agreement, adopting a number of trade facilitating 
measures.  
4.144.   We note with satisfaction developments in the Intellectual Property front, such as the 
adoption of a National Strategy for Intellectual Property in 2015. The reports also highlight significan t 
progress in aspects related to enforcement, with the entry into force of the Law on Infringement in 
2017 and the creation of an enforcement department in Mongolia’s IP office, which, since 2013, has 
conducted a number of cases on IP infringement.  
4.145.   Challen ges remain in the realm of notifications and SPS requirements and practices. The 
Secretariat’s report outlines some notifications outstanding, such as on customs valuation, 
quantitative restrictions, import licensing, and agriculture.  
4.146.   With regard to SPS re quirements, my delegation had noted in our last Review in 2014 the 
relatively low percentage of agricultural standards that were aligned with international standards at 
the time. Despite some improvements, the SPS regulatory framework continues to be a cha llenge 
in Mongolia. We firmly encourage the Mongolian authorities to keep on promoting initiatives that 
address this issue and increasingly align domestic practices with international SPS standards.  
4.147.   Brazil sees enormous potential in Mongolia’s agricultural  sector, which is a promising area 
for bilateral cooperation. We also positively acknowledge Mongolia’s initiatives in the field of WT/TPR/M/406 • Mongolia  
 
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  sustainable agriculture, which are reflected in the document “Mongolia Sustainable Development 
Vision 2030”. In that regard,  we would be more than glad to share with the Mongolian side our own 
successful experiences in promoting a sustainable and productive agriculture.  
4.148.   Brazil is aware of Mongolia’s efforts towards creating a favorable environment for foreign 
investors. With t hat in mind, we would kindly encourage Mongolia to join the structured discussions 
on investment facilitation for development. Brazil is convinced that a meaningful outcome in those 
negotiations could be particularly beneficial for developing countries and  LDCs, providing the 
conditions for a more transparent and friendly environment for investors.  
4.149.   Trade flows between Brazil and Mongolia are still very modest compared to its potential. In 
2020, the bilateral trade flow has been severely hit by the economic and sanitary crisis that has 
fallen upon us all. Notwithstanding this temporary fluctuation, we believe there is a wide range of 
trading opportunities to be harnessed.   
4.150.   We wish Mongolia a successful Trade Policy Review.  
THE PHILIPPINES  
4.151.   The Philippine delegation warmly welcomes and c ongratulates the delegation of Mongolia led 
by Foreign Affairs Minister Battsetseg Batmunkh and Amba ssador Lundeg Purevsuren of the 
Permanent Mission of Mongolia to the WTO on their third Trade Policy Review. We a lso thank 
Ambassador Rashidi Said of Malaysia for his insightful comments as discussant, and the WTO 
Secretariat for its comprehensive report.   
4.152.   The Philippines formally established its bilateral relations with Mongolia in October 1973. As 
we mark the 48th  anniversary of our diplomatic ties this year, we continue to strengthen our bilateral 
relationship through cooperation in various fields which include trade and investment, defense and 
security, people -to-people exchange, culture, education and sports. We  signed a Memorandum of 
Understanding (MOU) on Policy Consul tations in October 2018, which institutionalizes the regular 
holding of policy consultations and bilateral dialogue between our two countries. These Policy 
Consultations is a dialogue mechanism be tween the Philippines and Mongolia where  in both countries 
meet at the Undersecretary -Deputy Minister level to discuss bilateral relations and issues of mutual 
concern.  
4.153.   While trade between our two economies remains modest, we envision to increase two -way 
trade through exchanges of business delegations, holding of business promotion activities, and 
strengthening linkages between our countries’ business sectors, particularly through our chambers 
of commerce. We also signed a Bilateral Investment Treaty in Se ptember 20 00 which entered into 
force in November 2001. The Philippines looks forward to furthering facilitating trade and investment 
promotion activities under this bilateral treaty and  engaging with Mongolia on increasing tourism 
and people to people exc hanges.  
4.154.   Cognizant of Mongolia’s significant mining sector accounting for 23.2% of its GDP and 90% 
of its exports in 2019, we would also welcome constructive policy dialogue with a particular focus 
on the adoption of sustainable development principles.  
4.155.   The Philipp ines also notes the various national programs introduced by Mongolia on its trade 
policy during the review period, including the Action Plan of the Government for 2016 -2020, the 
Mongolia Sustainable Development Vision 2030, and the Action Plan of the Gover nment for 
2020-2024. We appreciate the significant developments in Mongolia’s economic policies, and we 
appreciate the opportunity to learn more about these through this trade policy review process.   
4.156.   Further, we acknowledge that due to its landlocked geog raphic condition, Mongolia attaches 
great importance to trade facilitation issues, including transit and border cooperation, and 
streamlining and simplifying procedures and regulations at the border. Thus, we recognize 
Mongolia’s active participation in th e multilateral trading system, particularly its valuable 
contributions to the WTO negotiations and its ratification of the Trade Facilitation Agreement.  
4.157.   We also commend Mongolia’s active role in the various work of the WTO Committees, 
including Ambassador  Purevsur en’s chairmanship of the TRIPS Council and the Asian Group of WT/TPR/M/406 • Mongolia  
 
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  Developing Countries, and wish to express our support in welcoming him as the new Chair of the 
Council for Trade in Goods this year.  
4.158.   In closing, the Philippines looks forward to furthe r enhancing the mutually beneficial 
economic relations with Mongolia in the bilateral, regional, and multilateral fora.   
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.159.   On behalf of the Separate Customs Territory of Taiwan, Penghu, Kinm en and Matsu, I would 
first like to extend a very warm welcome to the delegation of Mongolia for its third Trade Policy 
Review. I also wish to thank the discussant, His Excellency Dr. Rashidi Said, for his insightful 
remarks, and the WTO Secretariat as wel l for its comprehensive Report.  
4.160.   With certain disadvantages of being a landlocked  country, Mongolia has been performing 
very well in its economic development. We are pleased to see that Mongolia’s economy expanded 
over the review period from 2014 to 2019, a nd that it grew on average by nearly 6 % in the last 
three years of that period, resulting in some welcoming improvements in poverty levels for the 
people of Mongolia. We therefore commend Mongolia on its successful economic performance. 
Mongolia’s economy,  like so many others, was badly affected in 2020 by COVID -19, forcing it to 
take various relief and other related measures to mitigate the impact of the pandemic. Nevertheless, 
we still believe that Mongolia’s economic growth in the medium term can be expe cted to accelerate.  
4.161.   As the Secretariat report confirms, Mongolia continues to maintain a generally open trade 
regime. For example, in terms of its transparency obligations, Mongolia has registered some 
important notifications on rules of origin, technical barriers to trade and free trade agreeme nts. 
These demonstrate its recognition of the crucial importance of transparency. We have also noticed, 
however, that some of its notifications remain outstanding, such as on customs valuation, 
quantitative restrictions, import licensing and agriculture. W e therefore encourage Mongolia to make 
efforts to fulfil its notification obligations in these particular areas.  
4.162.   On its participation in the WTO, we appreciate the leadership and services provided by 
Ambassador Lundeg for the Asian Group for Developing Cou ntries Members (AGDC). Also, very 
importantly, Mongolia ratified the WTO Agreement on Trade Facilitation as early as in 2016. It has 
also adopted the National Trade Facilitation Roadmap with the National Trade Facilitation Committee 
to set out its future e ndeavours in trade facilitation. It has also taken steps to engage in the WTO’s 
plurilateral initiatives, including the Joint Initiative on Electronic Commerce, the Investment 
Facilitation Agreement for Development,  and the Working Group on Micro, Small an d Medium -sized 
Enterprises (MSMEs). We applaud its active engagements in these initiatives. We also understand 
that Mongolia has been observer to the GPA Committee since 1999. We look forward to seeing 
Mongolia’s intention of becoming a GPA Party in the no t-too-distant future.  
4.163.   Concerning our bilateral ties with Mongolia, we are pleased to see that the value of our 
bilateral trade reached a record high of more than USD 40 million in 2018. Mongolia’s great wealth 
in raw materials and our own expertise and exp erience in adding value to raw materials are surely 
a natural basis for a mutually beneficial partnership.  
4.164.   In conclusion, we would encourage Mongolia to continue its programme of structural reforms 
aiming at further improvement of its business environment  and would also look forward to 
strengthening our bilateral trade and investment relations in the future.  
4.165.   We wish Mongolia a successful Trade Policy Review.  
HONDURAS  
4.166.   On behalf of the Republic of Honduras, we welcome and congratulate the Mongolian 
authorit ies on the occasion of their third Trade Policy Review.  
4.167.   We extend a warm welcome to the entire distinguished delegation, led by the Head of 
delegation, his excellency Battsetseg Batmunkh, Minister of Foreign Affairs, and extend our greetings 
to our colleag ues from the Mongolian Mission to the WTO in Geneva.  WT/TPR/M/406 • Mongolia  
 
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  4.168.   We thank the discussant for his informative analysis, the WTO Secretariat for the quality of 
the content of its report, and the Mongolian authorities for presentation of their policy statement.  
4.169.   An assess ment of the reports provided reveals that Mongolia's economy continued to grow 
between 2014 and 2019. In 2016, the growth rate declined by 1.2% due to the sharp fall in mineral 
prices, and in 2019, the economy grew by 5.1%, as the fiscal balance improved, and reserves and 
GDP per capita continued to increase.  
4.170.   We observe that, in line with its Sustainable Development Vision 2030, the Mongolian 
Government plans to create a favourable business environment by, inter alia , improving services, 
developing transpor tation and logistics networks, simplifying the issuance of special licences, and 
improving tax payments.  
4.171.   We note that, in accordance with the Mongolian Government's digital policy, the 
Communications and Information Technology Authority has launched the E -MONGOLIA project with 
a view to digitalizing all public services and providing citizens with a single window system.  
4.172.   We note that the legal framework for standards, technical regulations, accreditation and 
conformity assessment was revised and replaced, a  new list of products and services subject to 
mandatory conformity assessment was published, and the new Law on Metrology was adopted.  
4.173.   Mongolia reorganized its legislative and strategic framework for electricity and adopted two 
important policies defining plans for the expansion of the renewable energy model, which is 
visionary.  
4.174.   We agree with Mongolia that the tourism sector can and should be a driver of inclusive 
economic growth and poverty reduction, and should be developed in line with the principles of 
sustainable development and best practices.  
4.175.   Similarly, we note that, in 2019, travel and tourism accounted for 7.2% of GDP and 7.65% 
of employment, and that value added in the travel and tourism sector increased by 11.9%.  
4.176.   We are pleased to observe that the  Government of Mongolia approved the Protocol of 
Accession of Mongolia to the Agreement Establishing the Advisory Centre on WTO Law, which will 
enable it to establish the foundations for training experts in WTO jurisprudence and cooperate with 
this importa nt body. We therefore look forward to working together in this and other contexts.  
4.177.   Lastly, we congratulate Mongolia on its important achievements and efforts during the review 
period and wish it every success.  
NEPAL  
4.178.   First, my delegation would like to welcome the delegati on of Mongolia led by 
H.E. Mrs. Battsetseg Batmunkh, Minister for Foreign Affairs and appreciate her for detailed 
presentation made this morning.  
4.179.   My delegation thanks H.E. Dr Rashidi Said, Ambassador of Malaysia,  for his insightful 
remarks as a discussant.  
4.180.   At the outset, let me congratulate the Government of Mongolia for its comprehensive report 
and commend the Secretariat for the detailed report of the trade policy review of Mongolia.  
4.181.   We appreciate Mongolia’s continuous commitment to rule-based, just and predictable 
multilateral trading system and active role played by H.E. Ambassador Lundeg and  the Mongolian 
Mission in Geneva at the WTO functioning.  
4.182.   While going through the reports, it is evident that Mongolia has taken significant re forms to 
improve its trade and economic policies over the review period.  
4.183.   Significant progress in decreasing unemployment rate, increasing international trade and 
FDI, improvement in HDI, increase in share of mining and manufacturing in GDP, and more WT/TPR/M/406 • Mongolia  
 
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  impor tantly positive trade balance since 2014 are some of the notable achievements that Mongolia 
has made over the period.  
4.184.   The introduction of number of national programmes addressing trade policy, including the 
Action Plan of the Government for 2016 -2020 and 2020-24, the Mongolia Sustainable Development 
Vision 2030, and the creation of Export Promotion Council , among others , are some of the impressive 
initiatives taken by Mongolia.  
4.185.   Necessary changes in some legislations such as in public procurement process, intellectual 
property, taxation system and amendments in numerous regulations regarding banking services are 
also commendable.   
4.186.   The goals that the current Government has envisioned , mainly in promotion of foreign trade, 
prevention and protection of citize ns from illegal and counterfeit products, simplifying customs 
services, step-by-step construction and development of infrastructure for free trade zones, creating 
an environment conducive to the development of trade, services and light industry aimed at ex port 
and domestic market, and expansion of the throughput capacity of border ports and to upgrade 
them to the standards of ports of neighbouring countries , among others , are highly supportive in 
achieving future socio -economic objectives of the country.  
4.187.   I hope this trade policy review will provide relevant information to all WTO Members on the 
existing international trade and investment regimes of Mongolia including laws, regulations, 
procedures and practices , and enable traders for conducting informed bus iness with their trading 
partners of Mongolia.  
4.188.   I would like to recall the continuous cordial relation s that Nepal and Mongolia have been 
maintaining since the establishment of diplomatic relations in 1961.  
4.189.   Since Mongolia and Nepal have commonalities in ge ographical, economic and cultural 
aspects, such as both are landlocked States, located between two big neighbours , we share common 
views in numbers of international fora, hold strong faith on the principles enshrined in the UN 
Charter, the Non -aligned Move ment and Panchasheela in general and towards the interests of 
landlocked developing countries in particular.  
4.190.   Exchanges of high -level visits from both sides have further contributed to widening the 
relationship in different dimensions.  
4.191.   For instance, the Minister for Foreign Affairs , Hon. Mr. Pradeep Kumar Gyawali , visited 
Mongolia in 2018 to participate in the Inaugural Conference of the International Think Tank for 
Landlocked Developing Countries (ITT -LLDCs). During the visit, a Memorandum of Understanding  
on Establishment of Bilateral Consultation Mechanism between the Foreign Ministries was also 
signed.  
4.192.   Similarly, a Framework Agreement on Bilateral Co -operation was signed between the two 
countries in 2001 during the visit of the Mongolian President Mr. N atsagiin Bagabandi to Nepal.  
4.193.   Nepal and Mongolia also signed a bilateral Trade Agreement in 1992 on the basis of Most 
Favoured Nation (MFN) treatment. Similarly, a Cultural Agreement was signed between the two 
countries in 1995 during the visit of the then Prime Minister Mr. Man Mohan Adhikari to Mongolia.  
4.194.   The Two countries have signed  the Agreement on the Exemption from Visa Requirements 
for the holders of Diplomatic and Official (Special) Passports during the visit of the Mongolian Foreign 
Minister to Nepal in 2016.  
4.195.   Though Nepal and Mongolia follow liberalized economic policies, economic ties between them 
are limited. For instance, trade data shows that Nepal imported various goods from Mongolia worth 
of about 80 million Nepali rupees while exported to Mongolia worth of only about 6 million Nepali 
rupees in the year 2019 resulting favorabl e trade balance for Mongolia. This figure is far below from 
the potentials.    WT/TPR/M/406 • Mongolia  
 
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  4.196.   There is huge possibility of enriched collaboration and partnership between both the 
countries in the areas of trade, tourism,  and investment for our mutual benefit. For instanc e, 
religious tourists from Mongolia can be encouraged to go to Nepal by promoting the Buddhist shrines 
including Lumbini - the birthplace of Lord Buddha. Similarly, wool processing, handicrafts, livestock, 
highland pasturing and horse breeding, and knowledg e sharing , among others , may be some of the 
potential areas of bilateral cooperation in the days ahead.  
4.197.   My delegation wishes for a successful Trade Policy Review of Mongolia.  
KYRGYZ  REPUBLIC  
4.198.   The Kyrgyz Republic welcomes the delegation of Mongolia on the t hird Trade Policy Review 
lead by H.E.Mrs. Battsetseg Batmunkh (Ministry for Foreign Affairs).  
4.199.   We thank the WTO Secretariat and the Government of Mongolia for preparing such 
comprehensive and detailed Trade Policy Review reports. We would also like to thank  the discussant, 
H.E. Dr Rashidi Said (Malaysia) for the insightful comments.  
4.200.   Since the beginning of its membership to the WTO, Mongolia has demonstrated highest 
dedication to the WTO rules and , as it has been said at the latest TPR in 2014 , has convincin gly 
shown its commitment to trade liberalization under the multilateral trading system centered on the 
WTO continuously.  
4.201.   Among many other successful steps on the WTO platform are the acceptance of Trade 
Facilitation Agreement and Protocol Amending the TRI PS Agreement.    
4.202.   Bilateral trade and economic cooperation between the Kyrgyz Republic and the Republic of 
Mongolia is developing steadily and systematically starting from establishing diplomatic relations in 
1992. The Kyrgyz Republic and Mongolia cooperate bilaterally, as well as multilaterally within the 
organizations and initiatives such as the UN and the WTO. Nowadays , the Eurasian Economic Union, 
Shanghai Cooperation Organization from the one side and Mongolia from the other  are having 
dialogue  regarding possibilities of further cooperation.  
4.203.   On the bilateral basis, during the last contact of the highest officials of our States, it was 
noted that there are further prospects to increase the bilateral trade volumes and deepen the 
cooperation in oth er spheres such as enhancing the transport connection and changing of experience 
in mining.  
4.204.   Our countries have established beneficial mutual trade. The dynamics of trade from 2016 to 
2019 demonstrate stability.  
4.205.   The main share of imports from Mongolia to th e Kyrgyz Republic is represented by products 
of the mining , production of livestock, different types of manufacture such as carpets and others.  
4.206.   Exports from Kyrgyzstan to Mongolia today consist of avia fuel, different types of meet, 
hygienic goods, fruits and vegetables, chocolates and others.  
4.207.   In terms of services, it is worth to note that tourism has the potential to increase its share 
of trade i n services.  
4.208.   The Kyrgyz Republic is interested on further fruitful economic cooperation and deepening 
trade -economic relations with Mongolia.  
4.209.   The Kyrgyz Republic wishes a successful third Trade Policy Review to Mongolia.  
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  5  REPLIES BY THE REPRESENTATIVE OF MONGOLIA  AND ADDITIONAL COMMENTS  
5.1.  It is a pleasure to make concluding remarks on  behalf of the Foreign Minister, H.E. Battsetseg 
Batmunkh, head of the delegation of Mongolia to this third Trade Policy Review Meeting.  
5.2.  My delegation would like to extend our appreciation to the Chair, Ambassa dor Harald Aspelund, 
the d iscussant Ambassador Rashidi Said for facilitating the review meeting and providing their 
insights. We would also sincerely appreciate all delegations who took the floor for their comments 
and opi nions on Mongolia's economic and trade policies.  
5.3.  It is the v iew of our delegation that the M ember countries had positive assessment on the 
efforts of Mongolia to minimize the COVID -19 impact s and to revitalize the country’ s economy. Many  
delegations appra ised Mongolia’ s pursuit of generally open and inclusive trade regime and  welcomed 
the robust macroeconomic performance in the reporting period. We also heard encouraging view s 
in relation to the Government’ s commitment to the economic diversification, non -mining exports, 
and integration to the regional and global economy.  
5.4.  Being a landlocked developing country, Mongolia attaches great importance to trade  facilitation. 
In this regard, M embers also commended country's efforts to improve trade facilitation, 
modernization of customs procedures, including embarking on the development of a single window 
application, streamlining and simplifying customs procedures and regulations at the cross border.  
5.5.  My delegation is e ncouraged by the words of the Me mber countries  in terms of Mongolia's 
participation in the multilateral trading system, particularly the negotiations of the TFA, and joint 
statement initiatives on e -commerce, investment for development, and MSMEs. Many other 
delegations commended Mongolian delegations ' role in the various works of the WTO Committees. 
Mongolia stands ready to continue our efforts in this regard.  
5.6.  While commending Mongolia's efforts , Members encouraged to enhance regulatory certainty in 
investment, government procurement, and import restr ictions and technical req uirements. Further, 
Members advised Mongolia to implement its notification obligations, and to move quickly to bring 
some applied tariffs into the line with its bound rates.  
5.7.  Enhancing regulatory certainty in investment, the Investm ent Law amendment is underway. 
The Public -Private Consultative Committee was established in 2017 under the purview of the 
Investor Protection Council to provide an avenue for reviewing investment -related draft legislation 
and policy documents.  
5.8.  Turning to t he issue on the accession to the GPA, I would like to state that Mongolia is in the 
early stage of conducting a comprehensive study on the provisions of the agreement (GPA) to 
identify and study potential risks and effects towards the economy.  
5.9.  The existing  import restrictions are generally emanating from the international treaties to which 
Mongolia is a party. However, a few laws and regulations need to be aligned with the WTO principles 
and those are listed in the current "Guidance on developing legislatio n until 2024", including the Law 
on Food which regulates the import of food items.  
5.10.   Regarding the TBT issue, Mongolia approved the Law on Standardization, Technical Regulation 
and Accreditation of Conformity Assessment (Law on Standardization) in December 2017 to improve 
product safety and quality in line with international standards . In 2020, more than 150 Mongolian 
standards were aligned with international and regional standards. We acknowledge that further 
improvements are needed in this field.  
5.11.   Mongolia follows international standards as a reference to protect the health and welfare of  
humans, plants, and animals. It is very difficult to build an appropriate infrastructure for inspection 
and testing of SPS measures in a short period of time. The capacity of many SPS laboratories have 
been upgraded with the assistance of the World Bank, the International Fund for Agricultural 
Development, the European Union, and the United States Agency for International Development. A 
framework for risk based  SPS control over imports has been developed under the support of the 
International Finance Corpo ration.  WT/TPR/M/406 • Mongolia  
 
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  5.12.   As a response to the M embers' concerns on Mongolia's tariffs, I would like to state that 
Mongolia is preparing t o bring all applied tariffs in  line with the WTO commitments on bound rates.   
5.13.   Mongolia adopted the revised Law on Courts in 2021. It w as a major step towards a fair and 
independent judicial system and avoiding from any influences and interests. To further strengthen 
the legal environment for the judiciary, the relevant amendments will be made to procedural laws 
accordingly.  
5.14.   The Prime Min ister of Mongolia has recently announced that information technology is one of 
the priority sectors of the economy and  called for a digital transition in all public sectors. The 
Government initiative 'E -Mongolia' window is integrating all government servic es which will 
ultimately reduce public costs from 30% to 40%. The Government plans to complete 90% of this 
e-transition by 2024. We believe that these efforts will effectively counter inspection abuses and 
corruption in trade related public services.  
5.15.   I thank you all for your attention.  
DISCUSSANT  
5.16.   Thank you, Mr. Chair. Good morning and good afternoon to all.  First, let me congratulate Her 
Excellency Mrs. Battsetseg Batmunkh and her team for the outstanding work done in this R eview. I 
commend them for their hard work in responding  to over 300 questions from 16 M embers 
beforehand and in preparing for today's pre sentation.  It is fair for me to say that M embers have had 
very constructive discussions on a range of important is sues. I sincerely congratulate M embers for 
all their active participations in this two -day review to make it a success.  
5.17.   I would like to share my final comments, as a discussant, before we end our undertakin g 
today. The participations of M embers on Wednesday and today reflect the imp ortance of this 
institution to Members. This R eview allows us to better understand the developments of Mongolia's 
trade policies and measures since M embers last meeting in 2014. This has helped us to better 
understand the challenges it is facing and comprehend the policy actions that it has put in place to 
overcome those challenges.  
5.18.   With regards to tr ade policy, it is notable that M embers commended Mongolia's progress on 
the level of economic openness through various reforms and the GDP growth between 5.1 % and 
7.2% during period under review. Mongolia deserves a special appreciation on these achievements.  
5.19.   Members recognized that the external environment , in particular the Covid -19 pandemic , has 
substantially affected the Mongolian economy and they welcomed various measures it had 
formulated in response to the pandemic. Members commended Mongolia's efforts to minimi ze the 
negative impacts through fiscal and monetary policies  and steps to ensure continuous flow of 
essential goods by working closely with the international partners.  
5.20.   Members also acknowledged that, like in  the previous review, Mongolia maintained its low  
tariffs and has largely refrained from taking protectionist measures.  
5.21.   I also noted that Members congratulated Mongolia for its active participations in th e 
multilateral trading system, particularly  its ratification to the WTO Trade F acilitation Agreement and 
some M embers also welcomed Mongolia's participation in the joint statement initiatives on Informal 
Working Group of Micro, Small and Medium -sized Enterprises (MSMEs), Electronic Commerce, and 
JSI on Investment Facilitation for Development. Of cou rse, there are many other areas  which I would 
not be able to highlight here because of time constraints.  
5.22.   Notwithstanding the achie vements, there are areas where M embers encouraged Mongolia to 
further improve. Mongolia shall continue its reform in several areas: these include in the investment 
framework; in diversification of the economic base and exports; in the infrastructure; in the mineral 
policy; in transparency in the area of state -owned enterprises; and in WTO notification commitment.  
5.23.   As I have already shar ed on Wednesday, all these would require long term goals and 
strategies. I am glad that from the statement on Wednesday and today, the G overnment has put 
appropriate measures to address all the challenges and to achieve those goals.  WT/TPR/M/406 • Mongolia  
 
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  5.24.   Before I end, I congrat ulate again Mongolia with the progress made thus far and for the 
constructive engagements during the preparatio n of the reports and during these  two-days Review. 
I am confident that the fourth TPR will bring more good news in term of key improvements.  
5.25.   Finally, it is an honour and a privilege for me  to participate  as a discussant in the third TPR of 
Mongolia. I thank you for this opportunity and wish the country every success in the future.  
TAJIKISTAN  
5.26.   Tajikistan is pleased to participate in the third Trade P olicy Review of Mongolia and would like 
to extend warm welcome to entire delegation of Mongolia led by H.E. Mrs. Battsetseg Batmunkh, 
Minister for Foreign Affairs.  
5.27.   Diplomatic relations between the Republic of Tajikistan and Mon golia were established in 
April 1992 and economic and trade relationships between the two countries have been gradually 
developing.  
5.28.   The State visit of the President of the Republic of Tajikistan to Mongolia has laid a solid and 
reliable political and legal basis for the development of relations between the two friendly countries.  
5.29.   The priority areas of cooperation between Tajikistan and Mongolia include mining industry, 
the creation of joint ventures for the exploration and production of minerals, animal husbandry, the 
creation of joint ventures for the processing of raw leather materials, wool etc. 
5.30.   We appreciate the efforts of the Government of Mongolia and the Secretariat in producing the 
reports circulated well ahead of the meeting and the discussant, Ambassador of Malay sia 
H.E. Dr Rashidi Said for his comments. The Reports provide comprehensive details on the 
developments of the Mongolia's economic and trade policy since its previous review.  
5.31.   The Republic of Tajikistan commends the Government of Mongolia for all that it h as since 
achieved. Important steps have been taken to integrate its economy into the global trading system.  
5.32.   We welcome the efforts of Mongolia, particularly the national programmes that address trade 
policy, including the Action Plan of the Government for  2016-2020, the Mongolia Sustainable 
Development Vision 2030, and the Action Plan of the Government for 2020 -24. 
5.33.   My delegation acknowledges the measures taken by the Government of Mongolia regarding 
economic and trade policies, including maintaining a gene rally open trade regime.  
5.34.   Since its previous review, Mongolia ratified the Trade Facilitation Agreement and we applaud 
the efforts by Mongolia's Government to implement this Agreement. A number of trade facilitating 
measures were implemented, including risk  management, electronic payment systems, the 
authorized economic operator programme and customs cooperation.  
5.35.   To conclude , the Republic of Tajikistan commends the hard work and strong commitment and 
wishes Mongolia a very successful and productive Trade Pol icy Review.  
CAMBODIA  
5.36.   I would like to express our warm welcome to the delegation of Mongolia led by 
H.E. Mrs. Battsetseg Batmunkh, Minister for Foreign Affairs. Our thanks also go  to the discussant, 
Ambassador Rashidi Said of Malaysia for his insightful ass essment reflecting the current trade policy 
and performance of Mongolia. We also thank the Trade Policy Review Division and Mongolia for their 
reports for this Review.  
5.37.   We would like to congratulate Mongolia for a remarkable economic growth between 2014 and  
2019, with a real GDP growth rate of 5.3% in 2017 to 7.2% in 2018 and 5.1% in 2019.  
5.38.   Cambodia and Mongolia have established diplomatic relations in the 1960s. In 2014, the two 
countries signed a Memorandum of Understanding on the Establishment of Bilateral Consultations 
and extending join t cooperation in the field of economy, trade, invest ment and tourism.  WT/TPR/M/406 • Mongolia  
 
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  5.39.   In 2016, both have signed bilateral air services a greement. The Cambodia -Mongolia free trade 
negotiations have been kick-started in the first inter -ministerial meeting in October 2020. Trade 
between the two countries in 2020 increased by 167% compared to 2019 . 
5.40.   We would like to take the opportunity to encourage investors of Mongolia to invest in 
Cambodi a's tourism sector and consider to import more pro ducts from Cambodia including rice.  
5.41.   In the multilateral context, we would like to commend Mongolia for putting its efforts in 
supporting the rules -based multilateral trading system and for fulfilling the WTO obligations including 
the notifications.  
5.42.   We woul d also like to commend Mongolia for its important and active role in the WTO, 
including the role of Chair of the CTG and under other WTO Bodies.  
5.43.   I particularly appreciate the insight of Ambassador Lundeg Purevsuren and his team.  
5.44.   Finally, we commit to worki ng closely with Mongolia to strengthen the cooperation , including 
the cooperation within the WTO.  
5.45.   I wish Mongolia a successful Trade Policy Review.  
INDIA  
5.46.   My delegation is very pleased to participate in the third Trade Policy Review of Mongolia and  
would li ke to extend a very warm welcome to the delegation of Mongolia. My delegation would like 
to commend the Government of Mongolia and the WTO Secretariat for their comprehensive reports 
and would also thank the discussant , H.E. Dr. Rashidi Said of Malaysia,  for his insightful comments.  
5.47.   India and Mongolia share ancient spiritual and cultural ties. India is regarded as a “spiritual 
neighbour”, a declared "third neighbo ur", a "strategic partner " and a center for pilgrimage by 
Mongolia. Our bilateral relations underwent a paradigm shift in May 2015 with the historic and first 
ever visit of Indian Prime Minister Shri Narendra Modi to Mongolia, which elevated our partnership 
to ‘Strategic’ level and paved way for expansion of economic cooperation.  
5.48.   India-Mongolia bilateral trade has registered significant growth during the last five years 
(2016 -2020) from USD 26.9 million in 2016 to USD 35.34 million in 2020. Mongolia’s imports consist 
of machinery and equipment, fuel, cars, food products, industrial goods, chemica ls, building 
materials, sugar and tea while the exports consist largely of coal, copper, fluorspar, other nonferrous 
metals, apparel, livestock, animal products, cashmere, wool and hides. India’s single largest 
assistance project outside our neighbourhood  is the soft loan of USD 1.236 billion for construction 
of Mongolia’s first Oil Refinery capable of producing 1.5 million MTPA. India as a concerned friend 
has gifted 1,50,000 doses of COVID vaccines to Mongolia in February 2021.  
5.49.   The Secretariat report hig hlights that during the review period Mongolia has maintained open 
trade regime, the economy expanded between 2014 and 2019, with registering 5.1% growth in 
2019, coupled with an improvement in the fiscal balance and an increase in both reserves and GDP 
per capita. It is noteworthy that various national programmes, including the Action Plan of the 
Government for 2016 -2020, the Mongolia Sustainable Development Vision 2030, and the Action Plan 
of the Government for 2020 -24 have been launched with a view to st rengthen and boost the trading 
environment. India commends Mongolia’s improvement in overall Human Development Index, 
ranking which has come up to 92 position in 2019 from 108th position in  2012.  
5.50.   The conclusion of its first two free trade agreements: an Ec onomic Partnership Agreement 
(EPA) with Japan, and the Asia -Pacific Trade Agreement (APTA) bears witness to Mongolia’s 
ambitions to integrate and benefit from the regional trading architecture. Being a landlocked country 
Mongolia’s impetus to trade facilit ation work is appreciable. The country has made strides in 
improving inter  alia the legal frameworks in areas of technical regulations, standards, IPRs etc. 
however much work is expected in areas like trade remedies and SPS.  
5.51.   Despite the setback we all hav e experienced owing to the pandemic, India hopes that Mongolia 
will continue to work steadily towards greater development and prosperity. To conclude, I extend WT/TPR/M/406 • Mongolia  
 
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  my congratulations to H.E. Ambassador and Permanent Representative and his delegation for their 
positive contributions and wish the entire delegation a successful Trade Policy Review.  
EUROPEAN  UNION  
5.52.   On behalf of the EU, let me first thank Mongolia for the comprehensive overview presented 
on Wednesday. The EU also appreciates the detailed responses a nd documents provided by Mongolia 
to our advance questions.  
5.53.   The EU welcomes Mongolia’s ongoing and planned policies and initiatives to diversify its 
economy, develop a predictable business and investment environment, and strengthen its regulatory 
framework , including by increasing transparency of procedures, as well as Mongolia’s efforts to 
improve its capacity for the compliance with the WTO TBT Agreement and notification obligations.  
5.54.   In this regard, we are looking forward in the near future to Mongolia’s notification  both the 
final draft of alcohol law and the planned amendments to the existing technical regulation on 
imported alcohol beverages.  
5.55.   The EU hopes that its comments, and those by other Members, will support Mongolia in further 
reforming its econ omic and trade policies.  
5.56.   The EU would like to thank the delegation of Mongolia for undergoing this important 
transparency exercise in a virtual format and despite of challenging circumstances. We thank 
Mongolia for their support to multilateral trading sys tem and are confident that our cooperation will 
contribute to a sustainable socio -economic recovery from the pandemic and to economic growth.  
5.57.   In anticipation to the next Agenda item, Mr. Chairman, let me express our gratitude to you in 
your role as the Cha ir and we welcome the new incoming Chairman for this Body.  
UNITED  KINGDOM  
5.58.   The United Kingdom appreciates Mongolia’s active participation in this Trade Policy Review 
under the leadership of H.E. Mrs. Batmunkh who has undoubtedly had great support from the 
Mongolian Mission here in Geneva.  
5.59.   The United Kingdom values Mongolia’s engagement in the work of the WTO, including in this 
third Trade Policy Review.  
5.60.   The United Kingdom looks forward to continuing our trade ties and developing opportunities 
to do more, including working with Mongolia to address market access barriers and taking full 
advantages of the  benefits under the UK 's new trade preferences scheme.  
5.61.   We are grateful to Mongolia for its very quick responses to our original set of questions. The 
United Kingdom has now submitted follow -up questions covering support measures to the cashmere 
industry. We look forward to receiving detailed answers to these follow -up questions within the usual 
timeframe.  
5.62.   We extend our best wishes to the Mongolian delegation for a successful Trade Policy Review.  
UNITED  STATES  
5.63.   The United States would like to thank the delegation of Mongolia for their presence online 
here today in addition to expressing appreciation for the work that has gone into Mongolia’s third 
Trade Policy R eview. As mentioned on day one, trade between the US and Mongolia continues to 
grow, and we look forward to increased engagement on several trade issues m oving forward.  
5.64.   We again encourage Mongolia to manage the development of its mineral resources in a 
manner that will ensure steady growth as it is well known that the mining sector is the key  driver of 
Mongolia's economy. At the same time, we are supportive  of ways to diversify Mongolia’s economy 
beyond its extractive industries to ensure resilience and longevity.  WT/TPR/M/406 • Mongolia  
 
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  5.65.   Further, we commend Mongolia’s efforts to improve intellectual property protection, 
implement its trade facilitation commitments, and improve its  customs regime. We’ve submitted a 
number of follow -up questions in these areas, and we look forward to  reviewing Mongolia’s replies. 
We additionally want to highlight the steps the Mongolian Government took toward addressing 
transparency and corruption co ncerns in September 2013 and encourage them to fully implement 
the agreement, as this is necessary to enhancing not only trade and investment, but also creating 
an attractive bu siness environment in Mongolia.  
5.66.   Finally, we would like to reitera te the concern  voiced by other M embers during this TPR 
regarding challenges that impede Mongolia’s economic development. These include inadequate 
transparency in regulatory and legislative processes, weak rule of law, corruption, and frequent 
abuse of inspection, permit ting, and licensing regimes that seem to protect existing stat e and private 
sector interests.  All too often, the Mongolian government's economic policymaking has been 
unpredictable and lacked the transparency that foreign investors and traders need and exp ect in 
today's global trading system.  
5.67.   In conclusion, we would like to thank Mongolia for their responses to our questions, which are 
currently  being reviewed in Washington. We look forward to continued discussion regarding multiple 
themes and co ncerns hig hlighted during this Review  and would also like to thank the Mongolian 
team for all their efforts put in this Trade Policy Review and  wish them a successful conclusion . 
5.68.   As the EU did, if I could also let know our appreciation and acknowledgement to you, Ch air, 
for your stewardship over the past year. Thank you for your service and we will welcome the 
incoming Chair.  
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON  
6.1.  Mongolia's third Trade Policy Review has provided us a good opportunity to examine its 
economic, trade, and investment developments since the previous Review, as well as to learn about 
the unique challenges caused by the COVID -19 pandemic that has impacted trade and the global 
economy. I would like to thank the Mongolian delegation, headed b y H.E. Ms. Battsetseg Batmunkh, 
Minister for Foreign Affairs, for her remarks and participation from capital. My appreciation also goes 
to our discussant, H.E. Ambassador Dr. Rashidi Said of Malaysia for his thoughtful comments and 
remarks and , of course , to the 23 delegations that took the floor during these two days and those 
that participated through the advance question s and answer s process.  
6.2.  Members commended Mongolia on its overall open trade and investment regime, including its 
policy orientation tow ard more inclusive trade. Its economic performance over the review period had 
been impressive as there was generally continued economic growth until early 2020. The impact of 
COVID -19 has severely affected the Mongolian economy, albeit with Government inte rvention, 
mainly in the form of stimulus packages, it was hoped that the economy would recover quickly and 
accelerate. Despite these positive trends, Mongolia's economy remained heavily reliant on a few 
sectors and its trade was concentrated in terms of pr oducts and markets, thus Members felt that 
there was a strong need to diversify. This issue was recognized by the Government as one of its top 
national policy priorities, as addressed in Mongolia's Economic Recovery Program and the Mongolian 
Export Program , among others. Merchandise exports and imports re ached a record high of 
USD 13.7 billion in 2019 and the trade balance remained positive for many years, but several 
Members noted that Mongolia had yet to reach its trade potential.  
6.3.  Mongolia was a key trad e partner particularly to its regional neighbours  and its move to deepen 
regional economic and trade integration was welcomed. It was noted that Mongolia had concluded 
its first FTA with Japan and had recently implemented the Asia -Pacific Trade Agreement ( APTA). 
Furthermore, it was examining possibilities for future free trade agreements. Mongolia benefitted 
from a number of GSP programs from other Members that could help in diversifying its exports.  
6.4.  Many Members applauded Mongolia's contributions to the Mu ltilateral Trading System including 
through its coordinating role in the Asian Group of Developing Countries and its contribution to the 
group of Landlocked Developing Countries. Mongolia's ratification of the Trade Facilitation 
Agreement, its support of t he Buenos Aires Declaration on Women's Economic Empowerment, and 
its participation in various Joint Statement Initiatives were viewed as particularly welcome 
developments during the period. Several Members inquired about the status of the initiative for 
joining the WTO's Agreement on Government Procurement and encouraged Mongolia to become a 
party to the Agreement in the near future. It was also suggested that Mongolia engage s further in 
multilateral and plurilateral trade negotiations in order to reap grea ter benefits from the Multilateral 
Trading System.  
6.5.  Foreign investment had featured prominently in many interventions and in the advance written 
questions. Several Members noted they were a significant source of foreign direct investment in 
Mongolia and wel comed the initiatives of the One -Stop Service Center and the Investors Protection 
Council. Although investment policies and practices had generally promoted and protected foreign 
investors, some Members noted that there was still room for improvement. Freq uent amendments 
of investment laws and regulations were seen as unpredictable and created an unstable 
environment. In the view of some Members, there was a need to enhance regulatory certainty, 
reduce investment risk, improve transparency and the business environment, and create a level 
playing field for foreign investors.  
6.6.  Mongolia's positive developments in the area of trade facilitation were recognized as it had 
undertaken significant efforts to improve trade facilitation and modernize its customs procedu res. 
This was particularly important given Mongolia's geographical location as a landlocked country and 
as an important transit corridor along the Silk Road. The adoption of the National Trade Facilitation 
Roadmap, the establishment of the National Trade F acilitation Committee, the development of the 
single window application, and creation of electronic data exchange were all important steps taken 
to make improvements in this area. Nevertheless, some Members noted that they still faced 
difficulties with Mon golia's customs clearance and inspection procedures.  WT/TPR/M/406 • Mongolia  
 
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  6.7.  In their interventions, Members referred to remaining challenges in a number of areas. 
Mongolia's SPS regime was characterized as lacking alignment with international SPS standards and 
Mongolia was encou raged to make improvements in this area. Import quotas on certain agricultural 
products were seen as problematic on several fronts, including what some Members saw as possible 
inconsistency with WTO obligations. The regulatory framework and new laws propos ed on alcoholic 
beverages were also of concern; and at least one Member referred to disruption to trade flows over 
mandatory enrichment standards for wheat flour.  
6.8.  The importance of strengthening good governance, improving transparency and the legal 
environ ment were also recurrent themes during our discussions. Transparency was identified by 
several Members as needing improvement on a number of fronts, including in the areas of 
government procurement, investment laws and regulations, regulatory and legislati ve processes, 
and permits and licensing processes for imported goods. Securing an independent judiciary and 
upholding the rule of law were identified as key elements in enhancing governance.  
6.9.  While Mongolia had made notifications in a number of areas during  the review period, several 
were noted as lacking and Mongolia was encouraged to make further efforts to remedy the situation. 
Notifications on agriculture, customs valuation, quantitative restrictions, subsidies, and import 
licensing were consistently not ed as being outstanding. Members highlighted that it was important 
for Mongolia to improve transparency in its trade policies and practices through notifications in the 
future.  
6.10.   These were the main areas of discussion at this Review that has allowed us to g ain a better 
understanding of Mongolia's trade, investment, and related polic ies. Mongolia received over 
300 advance written questions and it was commended for having replied to all of them prior to this 
meeting. In a month's time, Mongolia is expected to reply to any late submissions and follow -up 
questions at which time the third Trade Policy Review of Mongolia will be successfully conclude d. 
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  7  ELECTION OF A NEW T PRB CHAIR PERSON  
7.1.  You may recall that the Airgram of 5 March 2021 (WTO/AIR/TPR/105/Rev.1/Add.1) presented 
us with an additional task today, that is the election of a new Chair. At its meeting on 1, 2 and 4 of 
March 2021, the General Council noted consensus on the slate of n ames of Chairpersons for WTO 
bodies, including  my dear friend,  the Permanent Representative of Botswana, H.E. Dr. Athaliah 
Lesiba Molokomme as the Chairperson of the Trade Policy Review Body.  
7.2.  In accordance with the Rules of Procedure of this Body, I have the pleasure to propose that 
Members of the Trade Policy Review Body elect, by acclamation, H.E. Ambassador Molokomme as 
the Chairperson for 2021.  
7.3.  It is so agreed. Thank you  all. I would suggest that Members of the TPRB confirm their support 
for her electi on with a round of virtual applause.  
7.4.  Now, I would like to invite Ambassador Molokomme to join me at the podium.  
7.5.  As I hand  over the gavel and wish Ambassador Molokomme every success in the year ahead, 
I would like to thank you all for your cooperation and i nvaluable assistance during this past year. 
Since I was elected Chairperson at the end of the TPR of Australia on 13 March 2020 under 
particularly special circumstances, I have had the privilege to chair many TPRB meetings all via the 
Interprefy platform , some of them in hybrid format and some fully virtual. We had  10 meetings to 
consider Members' trade policies, and two meetings to consider the Director -General's trade 
monitoring reports , and I also led  informal consultations by Members on the functioning of the Trade 
Policy Review  Mechanism. It was remarkable to witness how quickly the Secretariat and the Members 
managed to adapt this complex process to the new virtual reality. This must have been a very 
challenging task for the interpreters and we didn’t notice at all which proves how well they have 
managed. And , last but not least, I had the hono ur, due  to my role as the Chair of this Body, to 
serve as the facilitator in the process for selecting a new Director General. Even though this role was 
extremely  time-consuming, it was six full working weeks, I enjoyed every minute. I had the 
opportunity to meet with all my colleagues three times , and to my two colleagues , Ambassador 
David Walker and Ambassador Dacio Castillo , with whom I spent so much time, you m ade these 
weeks unforgettable and it was a great pleasure working with you.  
7.6.  I am very grateful for the support given to me during this period by all Members, in particular 
the flexibility shown by the Members under review and the commitment of the Discussa nts. I am 
convinced that the work we did  under these difficult circumstances in the new online format has in 
a way improved the participation from capitals and increased transparency in the multilateral trading 
system including improved internal policy debate in the reviewed Members. During these times of 
uncertainty, it is important that we preserve and continue the important work of the TPRM and , 
more generally , the transparency aspect of the multilateral trading system . 
7.7.  I do wish to especially appreciate the TPR Secretariat team , headed by Director Willy Alfaro , 
who have shared their invaluable pro fessional guidance and suppo rt. And , as a Chair of the Trade 
Policy Review Body, as well as a facilitator for the Director General selection process, I have 
witnessed the professionalism and the integrity of the Secretariat , and I can assure you that the 
WTO is in good hands.  
7.8.  I would  again like to sincerely thank everyone for your confidence and cooperation during the 
past year, and I now hand over to Ambassador Molokomme . 
H.E.  DR. ATHALIAH  LESIBA  MOLOKOMME  
7.9.  Let me  take this opportunity to express my gratitude on my behalf and on behal f of the 
Botswana delegation to all WTO Members for the confidence they have in me to take up this role; 
Chair of the WTO Trade Policy Review Body (TPRB). As I take up this role today, I reaffirm my 
delegation’ s commitment to work wi th the WTO Secretariat and all M embers to continue to take this 
mechanism from strength to strength.  WT/TPR/M/406 • Mongolia  
 
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  7.10.   To the outgoing Chair, my colleague  and friend , Ambassador Aspelund, I wish to thank you 
for the excellent job you undertook in the conduct of this very important mechanism over  the past 
year.  
7.11.   My personal experience in working with Ambassador Aspelund in the Gender Working Group, 
I know that he did all this in spite of the unprecedented challenges brought about by the COVID -19 
pandemic; your efforts and dedication cannot go unno ticed. I intend to carry on from where you left 
off to ensure the continuity and effectiveness of this important process.  
7.12.   The only change on a lighter note that will take some getting used to I guess - and will come 
with time I am sure - is that the Chair will now expect to be addressed as such, or  as “chairperson”, 
and not “ Chairman” - to ensure inclusivity of language.  
7.13.   With this, ladies and gentlemen, I declare this meeting closed. But before to do that, I have 
been advised that some delegations might want to take the floor for whatever purpose they may 
wish to do so.  
UNITED  STATES  
7.14.   We just wanted to extend a warm welcome to you and assure you of our continued cooperation 
as you take over the helm of this very important Committee. So wa rm welcome to you and again 
thanks and congratulations to Ambassador Aspelund.  
EUROPEAN  UNION  
7.15.   Thank you very much , Madam Chair. Again, just to welcome you and wish all the success with 
this important role and again our thanks to the outgoing Chairman for h is performance.  
TAJIKISTAN  
7.16.   I would like to join other colleagues in welcoming you as the new Chair of this Body and assure 
you our support and constructive cooperation. I would also like to say a few words to the outgoing 
Chair for his excellent performan ce during his chairmanship and  to wish him every success in his 
future endeavours.  
CHAIRPERSON  
7.17.   I decla re the meeting closed. I thank you for your engagement. Just to remind you that the 
next meeting of the Trade Policy Review Body will be on 6 and 8 April, when the TPRB will discuss 
the TPR of Qatar . 
__________