WT/REG373/2  
 
26 March 2018 
(18-1860) Page: 1/10 
Committee on Regional Trade Agreements  Original: English /Spanish  
 
ECONOMIC PARTNERSHIP  AGREEMENT BETWEEN JA PAN AND MONGOLIA  
(GOODS  AND SERVICES ) 
QUESTIONS AND REPLIE S 
 The following communication, dated 23 March 2018, is being circulated at the request of the 
delegations of Japan and Mongolia.  
 
_______________  
 
 
Question from the delegation of Canada  
 
1.1.  Paragraph 5.20 in Section 5.8 notes that Mongolia has been an observer to the WTO 
Government Procurement Agreement (GPA) since 1999.  
 Does Mongolia  have any intention of becoming a Party to the GPA in the coming 
years? If yes, when?  
 
 Mongolia has not yet acceded to the GPA. There is an intention to accede ; however, the 
specific time -frame cannot be identified at present.  
 
Questions from the delegation of the European Union  
 
Provisions on trade in goods  
Standards  
Sanitary and phytosanitary measures   
 
1.2.  Paragraph 3.33 : According to the Factual Presentation (FP), technical assistance on 
harmonization and recognition of equivalence of SPS measure s is identified as the form 
for cooperation in the Implementing Agreement (Article 5.1(a)(x) of the Implementing 
Agreement).  
 Could the Parties submit additional information about the technical assistance 
granted on harmonization and recognition of equival ence of SPS measures? Is there any 
specific project in place? What are the achievements reached so far in terms of 
cooperation on SPS issues?  
 
 The Parties have implemented the training courses for laboratory technicians  of the National 
Reference Laboratory for Food Safety in Mongolia, in the area of genetically modified organisms 
and food additives. The trainees have acquired  advanced knowledge and skills for laboratory 
analysis through the intensive training in Japan. T he Parties are expecting that the assistance  will 
improve the risk assessment function of imported/exported foods.  
 
Subsidies and State -aid  
 
1.3.  Paragraph 3.51 : According to the FP, the Agreement's unique discipline regarding 
subsidies or State -aid is that of  Article 2.6, which prohibits the use of export subsidies 
on agricultural products (as defined by the WTO Agreement on Agriculture) 
inconsistently with each Party's obligations under the WTO.  WT/REG373/2  
 
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   Could the Parties provide an overview of the discipline on sub sidies and State -aid 
rules clearly illustrating the differences with each Party's obligations under the WTO?  
 
 Article  9.4 of the Agreement on Agriculture exempts developing countries from the 
commitments in respect of the export subsidies. Article  2.6 of the Agreement between Japan and 
Mongolia for our Economic Partnership (herein after referred  to as "the Agreement ") is made to 
make clear that nothing has been modified to the exemption.  
 
 Mongolia does not use export subsidies on agricultural products. Ho wever it implements 
National food security programs to ensure sustainable supply of nutritious, secure and accessible 
food, which enables a healthy livelihood and high labour productivity of the population . 
 
Customs -related procedures  
 
1.4.  Paragraphs 3.57 to 3.59: According to the FP, trade facilitation is an objective and 
best endeavour disciplines are therefore spelled out.   
 Could the Parties illustrate the procedures put in place to combat illicit trafficking 
and trade in goods suspected on infringing IPRs  under the agreement? Is there any 
concrete example that could be shared with Members as best practice?  
 
 The procedures for combating illicit trafficking and trade in goods suspected of infringing 
IPRs and  for exchange of information are illustrated in the provision s of Article 2.4,  2.5 and 2.6  of 
the Implementing Agreement between the Government of Japan and the government of Mongolia 
pursuant to Article 1.12 of the Agreement . The Implementing Agreement can be accessed here : 
http://www.mofa.go.jp/files/000067727.pdf  
 
 The provisions of the Agreement  enable the competent authorities to determine, within a 
reasonable period, whether the suspected goods infringe rights of trademarks and/or copyrights 
and related rights, which  exceeds  the scope of  the TRIPs Agreement. The provisions can be 
accessed here: http://www.mofa.go.jp/files/000067716.pdf  
 
 Moreover, Japan has be en sharing information on illicit drug trafficking to Mongolia on a 
regular basis . 
 
 Japan and Mongolia  collaborate to protect the IPR s of the companies that have lodged 
request with the Mongolian Customs for the protection of  their IP Rs. 
 
1.5.  According to the  FP, the Parties' risk management systems are to concentrate 
inspections on high risk goods while low risk goods are to benefit from simplified 
clearance and movement.  
 Could the Parties give further information on the risk management system in 
place?  
 
 In Japan, import declarations are classified into three categories by the Risk Assessment 
System . 
 
 Three categories are:  simplified examination  (category 1) , document examination  
(category  2) and physical inspection  (category 3). 
 
 In Mongolia, import decla rations are classified into three categories  by the Risk Assessment 
System.  
 
 Three categories are : simplified examination  (category "Green "), document examination 
(category "Orange ") and  physical inspection (category "Red"). 
 
Provisions on Trade in Servi ces and Investment   
Telecommunication services  
 
1.6.  Paragraph 4.71: According to the FP, the Parties may impose restrictions on access 
and use also for protecting the personal data of their users whenever public WT/REG373/2  
 
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  telecommunications transport networks and services are used for the movement of 
information within and across borders. This seems to be more restrictive than the GATS 
annex on Telecoms article 5.  
 The EU would like to understand the rationale behind this clause.  
 
 As provided  for in Article XIV of the GATS （General exceptions, WTO Members  may adopt  or 
enforce  measures to protect personal data , and this provision is applied to telecommunication 
services.  
 
Therefore, the  relevant  provision of  the Agreement  is in accordance with  the GATS.  
 
(Reference ) 
Article XIV: General Exceptions  
 
 Subject to the requirement that such measures are not applied in a manner which would 
constitute a means of arbitrary or unjustifiable discrimination between countries where li ke 
conditions prevail, or a disguised restriction on trade in services, nothing in this Agreement shall 
be construed to prevent the adoption or enforcement by any Member of measures:  
 
a. necessary to protect public morals or to maintain public order;  
b. necessar y to protect human, animal or plant life or health;  
c. necessary to secure compliance with laws or regulations which are not inconsistent with 
the provisions of this Agreement including those relating to:  
i. the prevention of deceptive and fraudulent practices o r to deal with the effects of a 
default on services contracts;  
ii. the protection of the privacy of individuals in relation to the processing and 
dissemination of personal data and the protection of confidentiality of individual 
records and accounts;  
iii. safety;  
d. inconsistent with Article XVII, provided that the difference in treatment is aimed at 
ensuring the equitable or effective imposition or collection of direct taxes in respect of 
services or service suppliers of other Members;  
e. inconsistent with Article II, pr ovided that the difference in treatment is the result  of an 
agreement on the avoidance of double taxation or provisions on the avoidance of double 
taxation in any other international agreement or arrangement by which the Member is 
bound.  
Other  
 
1.7.  Paragraph 5.33: According to the FP, cooperation is also foreseen besides other 
areas, in SMEs.  
 Could the parties provide further information and/or examples of actual 
cooperation in respect to SMEs?  
 
 As SMEs are the dominant stakeholder of private sector in Mongolia, the Parties have been 
supporting SMEs in various aspects such as (1) improving access to finance (providing 
concessional  loans through Two -step Loan Project), (2) strengthening competitive ness of SMEs 
(providing business training courses at the Mongolia -Japan Center for Human Resources 
Development) and  (3) promoting business opportunities among companies of Japan and Mongolia 
(information dissemination , business matching etc .). 
 WT/REG373/2  
 
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  Questions f rom the delegation of Mexico  
 
General provisions on trade in services and investment  
 
1.8.  Paragraph 4.9: For transparency purposes only, the Parties are to prepare a 
non-legally binding list of measures inconsistent with the Agreement's disciplines on 
nationa l treatment, MFN and market access (Article 7.14). The list shall be exchanged 
with the other Party and made publicly available by mid -2021; it shall also be subject to 
future review and revision where necessary or as agreed between the Parties. As of 
Octo ber 2017, this list had not been exchanged . 
 Mexico would be grateful if Japan and Mongolia could provide more information on 
how the list will  be prepared and on the progress of this exercise. Mexico would also like 
to know the reasons for listing measures that are inconsistent with the Agreement, in 
particular with the disciplines on national treatment, MFN and market access, and how 
this list would relate to the schedule of  commitments set forth in Annex  6 of  
the Agreement (Schedules of Specific C ommitments and List of Most -Favoured -Nation 
Treatment Exemptions) . 
 
 Japan and Mongolia have not yet started discussion  on the terms of how to prepare  the 
transparency list.   
 
 The aim of prepar ing a non -legally binding list of measures inconsistent with t he 
Agreement 's disciplines on MA, NT and MFN, namely transparency list, is to secure transparency in 
what kind of domestic regulations are implemented within each country .  
 
 Possible cases where domestic measures may be inconsistent  with MA, NT or MFN are  only 
limited to situations where there will be no commitment  made  or where the commitment is made 
only under certain restriction.  
 
Performance requirements  
 
1.9.  Paragraph  4.27: As regards investment, Article 10.7 provide three sets of 
disciplines on performance requirements in connection with investment activities of an 
investor of a Party or a non -Party:  
a. 11 types of performance requirements are prohibited (paragraph 1), m any of 
which concern both goods (with TRIMs types of prohibitions) and services. 
They cover requirements relating to export, local content or domestic purchase, 
trade balancing, restrictions on domestic sales, export restrictions, nationality 
of executive or senior managers, enterprise location, quotas for nationals of the 
Party, supply to particular destinations, and licence contracts;1  
b. the receipt of any advantage granted by a Party shall not require compliance 
with five types of performance requirements  – namely local content, domestic 
purchase, trade balancing or export restrictions (paragraph 2);  
c. conversely, the following are authorized (paragraph 3):  
i. granting of advantages conditional on compliance with four types of 
requirements - on production locat ion, supply a service, train or employ 
workers, construct or expand particular facilities, or carry out research and 
development;  
ii. in the case of licence  contracts, when the requirement is imposed/enforced 
by a court or competition authority to remedy an alleged violation of laws 
controlling the anti -competitive activities;  
                                                
1 Refers to licence contracts concerning transfer of technology, production process or other proprietary 
knowledge.  WT/REG373/2  
 
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  iii. certain otherwise prohibited performance requirements when applied in 
relation to f oreign aid programs; and  
iv. domestic content/purchase requirements necessary for benefitting from 
preferential tariffs or quotas.  
 Mexico would like to know which of these prohibited performance requirements 
are directly related to trade in services .  
 
 Article 10.1  (Scope ) Paragraph 2 of the Agreement stipulates that "In the event of any 
inconsistency between this Chapter  (Investment) and Chapter 7  (Trade in Services) : 
 
a. with respect to matters covered by Articles 10.3  (National Treatment ), 10.4 
(Most-Favored -Nation  Treatment ) and 10.7  (Prohibition of Performance Requirements ), 
Chapter 7  (Trade in Services ) shall prevail to the  extent of the inconsistency; and  
b. with respect to matters not falling under  subparagraph (a), this Chapter shall prevail to  
the extent of the inconsistency. " 
 Therefore, as far as it is consistent with Chapter 7 of the agreement, the prohibition of the 
performance requirement applies to investment activities in the area of Trade in Services.  
 
Services commitments  
 
1.10.   Paragraph 4.33: J apan has no MFN exemptions under the GATS but under the 
Agreement it has registered four MFN reservatio ns (Part 2 of Annex 6). The 
two exemptions on transport services - on maritime freight forwarding business and 
international shipping services, including passenger and freight transportation - may be 
lifted on the basis of reciprocity from Mongolia. The other two MFN exemptions allow the  
granting of preferential tariff treatment to non -Parties with respect to energy services 
and fisheries related services, and are of indefinite duration.  
 If the intention is to liberalize trade between the Parties, what is Japan's reason 
for including fou r MFN reservations not included under the GATS?  
 
 With regard to maritime transport services,  since there was no agreement reached on 
commitments under the GATS at the time of the negotiation, no country including Japan have 
taken MFN reservation. As of no w, the GATS negotiation has not been concluded and accordingly, 
the commitment on MFN reservation for maritime transport services has not entered into force yet. 
Article II of the GATS and the Annex on Article II Exemptions will not enter into force until the time 
of the conclusion of the negotiations in the WTO, by the effect of (1) the Annex on Negotiations on 
Maritime Transport Services and (2) the subsequent "Decision on maritime transport services" 
(adopted by the Council for Trade in Services on 28 Ju ne 1996).  Therefore, the MFN reservation 
for this service  cannot simply be compared between the  GATS and th is Agreement.  
 
 For services other than maritime transport services, where GATS MFN reservation has 
already come into effect: Japan  refrained from ma king any MFN reservation so as to ensure strong 
commitment in promoting liberalization in trade in services.  
 
 With regard to Japan's commitments on  energy services, the industry  has become a 
sensitive field since the GATS negotiation.  Japan is currently undertaking a major policy changes  in 
energy industry,  and therefore, decided to withhold MFN treatment  in this sector.   
 
 With regard to fisheries related services , the industry requires a sensitive treatment in order 
to ensure conservation and management  of fishery resources . 
 
 Japan believes that the Agreement, as a whole, ha s further liberalized services trade 
compared to the GATS commitments . 
 WT/REG373/2  
 
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  1.11.   Paragraph 4.35: Table 4.5 below summarizes Japan's services commitments under 
the Agreement in comparison with its GATS commitments; also indicated therein are 
whether standstill commitments have been undertaken with respect to the 
sectors/sub -sectors list ed. The Table disregards MFN and horizontal limitations, as well 
as Mode 4 commitments/limitations. Also to be taken into account when analysing the 
table is the fact that subsidies are excluded from the Agreement's coverage.  
 If the intention is to libera lize trade between the Parties, why did Japan undertake 
partial commitments similar to those under the GATS in subsectors such as construction, 
maritime services, and hotels and restaurants?  
 
 Japan believes that the Agreement, as a whole, ha s further libe ralized services trade 
compared to the GATS commitments. The further liberalization does not necessarily mean the level 
of commitment of every sector or sub -sector is higher than that of the GATS. W ith respect to the 
hotel and restaurants services under th e Agreement, there are no MA or NT restrictions for the 
Mongolian services supplier.  
 
Mongolia  
Services commitments  
 
1.12.   Paragraph 4.55: In Business services, computer and related services and R& D 
services, not committed to under the GATS were fully liberalized. Certain professional 
services - architectural, medical and dental, veterinary services - were partially 
liberalized. Real estate services were liberalized but Japanese nationals remain sub ject 
to the prohibition on foreigners to own land - leasing remaining however an option. New 
commitments were also made on inter alia  advertising, services incidental to 
manufacturing, packaging and printing services.  
 Why have business services not been f ully liberalized? Mexico would welcome 
further details or additional information.  
 
 Foreign natural or legal persons are not allowed to own land in Mongolia. However, they 
may lease one for period up to 60 years. The exact duration of the lease shall be de termined by 
contract and subject to the relevant laws and regulations.  
 
 Mongolia 's GATS commitment is already liberal.  
 
 However, Mongolia has opened up 23 sub -sectors fully or partially.  
 
1.13.   Paragraph 4.56 : In Communication services, some basic telecom services - telex 
and facsimile, and other basic services - were liberalized as compared to the GATS. In 
cases where a Japanese state -owned enterprise (SOEs) holds 33% or more of the 
domestic enterprise, prior  approval is needed. Audiovisual services have been partially 
opened up, except radio and TV transmission services which remains closed to Japanese 
suppliers: motion picture and video tape production and distribution services as well as 
sound recording ser vices were fully liberalized for modes 1 -3, motion picture projection 
services were liberalized for modes 1 and 2 while radio and TV services were only 
opened as regards mode 2.   
 Mexico would like further information on the exception made for radio and 
TV transmission services, and on why this sector remains closed.  
 The Schedule of Mongolia sets out, in accordance with Article 10.8, the reservations taken 
by Mongolia with respect to Communication sector (Radio and TV transmission services ) for which 
it ma y maintain existing, or adopt new or more restrictive measures that do not conform with 
obligations imposed by Article 10.3 (National treatment), Article 10.4 (MFN treatment) and 
Article  10.7 (Prohibition of performance requirements).  
 
 According to the do mestic law and regulations, radio and television transmission services 
required licenses.  
 WT/REG373/2  
 
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  Restrictions relating to investment  
 
1.14.   Paragraph 4.62: Mongolia has a total of 18 reservations regarding investment in 
Annex 8, out of which four are horizontal – foreigners are not allowed to own land, 
foreign workers are subject to a quota, a minimum investment of US$100,000 is 
required for a ll foreign investment and environmental impact assessment is reserved for 
nationals from Mongolia. Two of the reservations covering financial services require a 
permit for investment from Japan; if the investor is a SOE and its equity is greater than 
33%, prior approval is required and performance requirements may be applied. The 
third reservation in financial services restricts Savings and Loan Cooperatives to 
nationals/investments from Mongolia. The reservation for SOEs also applies to the 
media sector, t elecommunications and broadcasting and mining activities (but no 
performance requirement may be applied). Collection of natural plants is also reserved 
for Mongolia's natural persons/investors, while Japanese investment in the trading of 
agricultural produ cts requires a person from Mongolia as intermediate. Japanese equity 
is limited to 49% in investments in the sectors of nuclear energy and the explosives 
industry. Investment in the sectors of petroleum and water research require prior 
approval; other limi tations also apply as regards petroleum if a Japanese entity controls 
more than 30% of its imports into Mongolia. Finally, reservations on national treatment 
and performance requirements apply to hunting and to the tannery and leather 
processing industry  
 Please provide further information on the permit that is required for investment 
from Japan.  
 
 Regarding the specific information concerning investing in Japan, please refer to the 
following website, or contact JETRO (Japan External Trade Organization) or a governmental agency 
in charge of specific business sector.  
 
 Investing in Japan: https://www.jetro.go.jp/en/invest  
 
Questions from the delegation of Thailand  
 
Services commitments  
 
1.15.   Paragraph 4.42 : Commitments regarding Primary and Higher Education Services 
have been improved as regards the GATS: in pre -school education, modes 2 and 3 were 
fully liberalized and in higher education that was the case regarding modes 1 and 2. 
Furthermore, Other Educati on Services were added as regards GATS and fully 
liberalized.  
 Accordi ng to paragraph 4.21, could the parties explain the definitions of 
Pre-School and Other Education regarding GATS?  
 
 As Defined in the Central Product Classification (CPC Provisional ) code, pre-school education 
services (92110) means  'Pre-primary school education services. Such education services are 
usually provided by nursery schools, kindergartens, or special sections attached to primary 
schools, and aim primarily to introduce very youn g children  to anticipated school -type 
environment.  
 
 Exclusion: Child day -care services are classified in subclass 93321. ' 
 
 Among pre -school education services in the Agreement between Japan and Mongolia for an 
Economic Partnership, the full liberalization of modes 2 and 3 is limited to nursery service s. 
 
 Other education  services (92900) are 'education services at the first and second levels in 
specific subject -matters not elsewhere classified, and all other education services that are not 
definable by level.  
 
 Exclusions: Education services primarily concerned with recreational matters  are clas sified in 
class 9641 (Sporting services).  
 WT/REG373/2  
 
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   Education services provided by governesses or tutors employed by private  households are 
classified in subclass 98000 (Private households with employed  persons). ' 
 
1.16.   Paragraph 4.55 : In Business services, computer an d related services and R&D 
services, not committed to under the GATS were fully liberalized. Certain professional 
services - architectural, medical and dental, veterinary services - were partially 
liberalized. Real estate services were liberalized but Japa nese nationals remain subject 
to the prohibition on foreigners to own land - leasing  remaining however an option. New 
commitments were also made on inter alia advertising, services incidental to 
manufacturing, packaging and printing services.  
 According t o paragraph 4.55, "leasing " may be an option for Japanese nationals. 
Therefore, we would like Mongolia to clarify whether "leasing " also includes "renting " or 
not?  
 Foreign natural or legal persons are not allowed to own land in Mongolia. However, they 
may lease one for period up to 60 years. The exact duration of the lease shall be determined by 
contract and subject to the relevant laws and regulations.  
 
Annex 1 Details of trade liberalization under the agreement  
 
1.17.   Paragraph 2: Prior to the entry into f orce of the Agreement (2016), Japan's 
average applied rate on all products was 4.9%, with 40.1% of lines being duty -free. On 
agricultural products, the applied rate was 11.2%, with 25.3% of lines being duty -free; 
on non -agricultural products, the applied r ate was 3.4%, with 43.7% of lines being duty 
free. Upon the Agreement's entry into force, Japan's overall tariff rate fell to 2.6% 
overall (10% for agricultural products and 1% for non -agricultural products), with the 
share of duty -free tariff lines rising  to 79% overall, and 40.3% and 88.6% respectively 
for agricultural and non -agricultural products imported from Mongolia. After ten years of 
implementation in 2026, 87.2% of all tariff lines are due to become duty -free for 
imports from Mongolia  (60.2% for a gricultural products and 93.9% for non -agricultural 
products). Further liberalization will take place until 2031, when 87.7% of all tariff lines 
will become duty -free (62.7% for agricultural products and 94% for non -agricultural 
products).  
 Paragraph 2 sh ows that  the f urther liberalization of Japan which  will tak e place in 
2026 (87.2%) and 2031  (87.7 %) of all tariff lines will become duty -free is slightly 
increased. Therefore, we would like Japan  to clarify whether there are any principles or 
reasons for not further  liberalization  than 0.5%?   
 
 Japan and Mongolia  sincerely negotiated liberalization  on agricultural and non -agricultural 
products with the objective of advancing free trade with higher liberalization . 
 
Annex 6 referred to in Chapter 7: Schedule s of Specific Commitments and List of 
Most -Favo ured-Nation Treatment Exemptions  
1A: Schedule of Japan; C: Telecommunication Services (Page 637 ) 
 
1.18.   With respect to Japan's schedule of specific commitments with Mongolia in 
telecommunication services, it is obs erved that there is no specific requirement 
regarding foreign capital participation in Nippon Telegraph and Telephone Corporation 
(NTT) in Mode 3 while Japan reserves this measure in her specific commitment under 
AJCEP. In this regard, would this be unders tandable that such measure under AJCEP has 
no longer existed in the normal regime and Japan may need to revise her schedule of 
specific commitments with ASEAN in that particular sector?  
 In Annex 6  of the Agreement , there is a specific requirement regarding foreign capital 
participation in Nippon Telegraph and Telephone Corporation (NTT) . 
 WT/REG373/2  
 
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  Questions from the delegation of Trinidad and Tobago  
 
Merchandise trade  
 
1.19.   Paragraph 1.4 : "In 2015, Mongolia accounted for a negligible share of Japan's 
global exports and imports, ranking 56th and 81st, respectively. In turn, Japan was the 
seventh largest export market for Mongolia and fourth largest source of imports, with a 
share of respect ively 0.4% and 7.2% of its global exports and imports."  
 What percentage of current trade between Japan and Mongolia is eligible for 
preferential access under the Agreement and what proportion of this is actually utilizing 
the Agreement?  
 
 86.3% of current trade between Japan and Mongolia is for preferential access. The ratio of 
goods imported from Japan on which the preferential  tariff rate was imposed was 32.6% and  
goods exported to Japan was 24.5 % in 2017 . 
 
(data source from international  merchandise trade statistics 2017, prepared by Mongolian Customs 
General Administration , and portal site for Japanese Government Statistics)  
 
Liberalization on trade and tariff lines  
 
1.20.   Paragraph  3.10: "Table 3.2 and 3.3 below show the scheduled liberalizat ion of 
tariff lines and trade according to the estimates by WTO, respectively by Japan and 
Mongolia, with further details provided in Annex 1. In 2016, around 40.1% of Japan's 
tariff (3,643 lines) was already duty free on an MFN basis, corresponding on ave rage to 
83.4% of its imports from Mongolia during 2013 -2015.  At the entry into force of the 
Agreement, a further 3,541 lines (38.9% of tariff) were immediately liberalized for 
imports from Mongolia - with an additional 15.9% of Japanese imports from Mongol ia 
during 2013 -2015 benefitting from duty -free treatment. After ten years of 
implementation (in 2026), 1,163 lines (12.8% of the tariff) will remain subject to duty 
(corresponding on average to 0.2% of imports from Mongolia during 2013 -2015). At the 
end of  the transition period in 2031, 1,115 lines (12.3% of the tariff) are to remain 
subject to duties for imports from Mongolia, corresponding to around 0.1% of Japan's 
imports from Mongolia in 2013 -2015. " 
 How has Trade in Goods between Japan and Mongolia been affected since the date 
of entry into force? i.e. Has it increased or decreased? Is the trade balance positive or 
negative?  
 
 One year after the Economic Partnership Agreement  entered into force , total trade  volume  
between Mongolia and Japan was US$ 377 million, of which Mongolia n imports are US$363 million 
and exports are US$14 million. Total trade volume has increased  by 8.8 % in 2017 . Japanese 
export mainly contributed to total trade increase. Mongol ia still h as a trade deficit .  
 
(data source from international merchandise trade statistics 2017, prepared by Mongolian Customs 
General Administration )  
 
Service commitments  
 
1.21.   Table 4.5 : "Japan: Comparison between GATS and Agreement specific 
commitments (excluding mode 4 and horizontal limitations) " 
Table 4.6 : "Mongolia: Comparison between GATS and Agreement specific 
commitments (excluding mode 4 and horizontal limitations) " 
 
 How has Trade in Services and Investment between Japan and Mongolia been 
affect ed since the date of entry into force? i.e. Has it increased or decreased? Is the 
trade balance positive or negative?  
 
 Since the date of entry into force the Economic Partnership Agreement, investment from 
Japan to Mongolia still hasn't  shown improvement .  WT/REG373/2  
 
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   In addition to the EPA, Japan recommends the Mongolian side to take measures necessary 
for the facilitation of trade and investment between the two countries.  
 
 Japan  expects Mongolia to achieve structural  reform in accordance with the  IMF program  
from 2017 to 2020.  The government of Mongolia has taken actions to promote  economic growth 
through implementing economic revitalization program and fiscal adjustment. Via those policies 
toward improving business and investment environment,  it is expected that  Japanese investors 
would be  encouraged to invest in Mongolia.  
 
 Economic re vitaliz ation and fiscal rebuilding  are important for Mongolia 's further economic 
growth, and those could encourage  Japanese  investors and  enterprises  to invest in Mongolia.  
 
 Japan  also expects Mongolia  to introduce  measures  to improve  Mongolia 's trade and 
investment environment  for Japanese investors and enterprises.  For example, establishment of  
One Stop Shop will make  Japanese companies  easier to access all necessary information about 
Mongolia.  As expected by Japan, Mongolia  set to take concrete action in setting up One Stop shop 
designed to make Japanese investors to have access to information related to doing business in 
Mongolia.  
 
 Mongolia expressed its interest to hold 2nd  meeting of the Joint Committee and meetings of 
the Sub-Committees of the EPA to facilitate trade and investment as agreed on the EPA. Japan is 
sincerely considering Mongolia 's proposal  internally. Dispute Settlement  
 
1.22.   Paragraph  5.14: "Chapter 16 applies to d isputes related to the interpretation or 
application of the Agreement. The Parties shall make every attempt to arrive at a prompt 
and mutually satisfactory resolution of any matter through cooperation, consultations or 
other means (Article  16.2). " 
 Have th ere been any disputes to date regarding failure to implement any agreed 
provisions within the Agreement?  
 
 No disputes have been registered so far . 
 
__________