the only country in Asia to transition from com-
munism to democracy. Mongolia shares land borders 
with only the Russian Federation and the People’s 
Republic of China. With a large land area and a 
population of only 3,000,000, Mongolia is the 
world’s most sparsely populated country, and Mon-
golia’s sovereignty is thought to be at risk from the 
overwhelming influence of its much larger and more 
populous neighbors. 
(2) Mongolia has shown its commitment to a 
‘‘third neighbor’’ relationship with the United States 
by sending troops to support United States combat 
operations in Iraq and Afghanistan, and has a 
strong record of troop contributions to international 
peacekeeping missions. Mongolia’s success as a de-
mocracy, strategic location, sovereignty, territorial 
integrity, and ability to pursue an independent for-
eign policy are highly relevant to the national secu-
rity of the United States. 
(3) Mongolia describes the United States as its 
most important ‘‘third neighbor’’, but United States- 
Mongolia trade is substantially lower than many 
other bilateral trading relationships, and trade has 
declined in recent years. Total trade between the 
countries in 2012 measured $707,000,000, but in 
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2017 the United States exported only $82,200,000 
in goods to Mongolia and imported only $9,400,000 
in goods from Mongolia. 
(4) After mining, agriculture is the second most 
important sector contributing to the Mongolian econ-
omy. The livestock sector accounts for 87 percent of 
agricultural production in Mongolia and employs 
around one-third of the working population. 
(5) Since the 1940s, the annual mean air tem-
perature in Mongolia has risen at three times the 
global rate. Average precipitation is declining and 
extreme weather disasters are more frequent, posing 
acute challenges for livestock herding in the country. 
In 2017, an estimated 700,000 of the country’s live-
stock population were killed due to the post-drought 
extreme winter phenomenon known as ‘‘dzud’’. This 
phenomenon is unique to Mongolia and has in-
creased in frequency and severity in recent years, 
causing a rise in livestock mortality and diminishing 
livelihoods for herders which has led to widespread 
rural poverty and a contraction in the national econ-
omy. 
(6) Mongolia would greatly benefit from pref-
erential treatment for United States imports of cer-
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tain Mongolian products to help address some of the 
economic impacts of the dzuds. 
(7) The cashmere trade is particularly impor-
tant to Mongolia’s economy, but while Mongolia pro-
duces over one-third of the world’s raw cashmere, it 
produces few finished cashmere products. Most Mon-
golian raw cashmere is exported to China, and the 
United States buys nearly all of its cashmere prod-
ucts from China. Preferential treatment for United 
States imports of certain Mongolian products, in-
cluding cashmere products, would benefit the United 
States by facilitating increased trade with Mongolia. 
(8) The development of Mongolia’s garment in-
dustry would also promote women’s employment and 
empowerment. Women have historically participated 
in Mongolia’s garment industry at high rates, and 
the garment industry has historically provided safe 
and stable employment for women in Mongolia. 
(9) In developing and expanding Mongolia’s 
cashmere industry, it is critical for Mongolia to take 
steps to ensure the protection of its grasslands and 
prevent overgrazing of cashmere goats. 
(10) Preferential treatment for United States 
imports of such Mongolian products would benefit 
Mongolia at this critical time. 
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SEC. 3. DUTY-FREE TREATMENT FOR CERTAIN IMPORTS 
FROM MONGOLIA. 
(a) IN GENERAL.—Subject to the eligibility require-
ments in subsection (c), the President is authorized to pro-
vide duty-free treatment for any article described in sub-
section (b) that is imported directly from Mongolia into 
the customs territory of the United States. 
(b) ARTICLE DESCRIBED.— 
(1) IN GENERAL.—An article is described in 
this subsection if— 
(A) the article is the growth, product, or 
manufacture of Mongolia; 
(B) the article is classified under chapter 
51, 57, 60, 61, 62, 63, or 94 of the Har-
monized Tariff Schedule of the United States; 
(C)(i) the article is an apparel or textile 
article made of fabrics or fibers containing not 
less than 23 percent by weight of cashmere; or 
(ii) the sum of the cost or value of cash-
mere components of the article is not less than 
51 percent of the appraised value of the article 
at the time it is entered; 
(D) in the case of an article that is a tex-
tile or apparel article, the yarn and fabric used 
to manufacture the article— 
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(i) are wholly produced in Mongolia; 
and 
(ii) are wholly formed and cut, or are 
components wholly knit-to-shape, in Mon-
golia; 
(E) the sum of the cost or value of the ma-
terials produced in, and the direct costs of proc-
essing operations performed in, Mongolia or the 
customs territory of the United States is not 
less than 50 percent of the appraised value of 
the article at the time it is entered; and 
(F) the President determines that the arti-
cle is not import-sensitive, after receiving the 
advice of the United States International Trade 
Commission in accordance with section 503(e) 
of the Trade Act of 1974 (19 U.S.C. 2463(e)). 
(2) EXCLUSIONS.—An article shall not be treat-
ed as the growth, product, or manufacture of Mon-
golia for purposes of paragraph (1)(A) by virtue of 
having merely undergone— 
(A) simple combining or packaging oper-
ations; or 
(B) mere dilution with water or mere dilu-
tion with another substance that does not mate-
rially alter the characteristics of the article. 
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