I 
118TH CONGRESS 
1ST SESSION H. R. 6539 
To promote United States-Mongolia trade by authorizing duty-free treatment 
for certain imports from Mongolia, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 30, 2023 
Ms. TITUS (for herself and Mr. BUCHANAN) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To promote United States-Mongolia trade by authorizing 
duty-free treatment for certain imports from Mongolia, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mongolia Third Neigh-
bor Trade Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) In 1992, Mongolia adopted a constitution 
establishing a parliamentary democracy, becoming 
the only country in Asia to transition from com-
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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 3,255,000, Mongolia is the 
world’s most sparsely populated country, and its 
economy is highly dependent on its much larger and 
more populous neighbors. 
(2) Mongolia’s success as a democracy, stra-
tegic location, sovereignty, territorial integrity, and 
ability to pursue an independent foreign policy are 
highly relevant to the national security of the United 
States. 
(3) 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, including nearly 900 per-
sonnel serving in the United Nations mission in 
South Sudan and other missions. 
(4) Mongolia describes the United States as its 
most important ‘‘third neighbor’’, but trade between 
the United States and Mongolia is substantially 
lower than in many of Mongolia’s other bilateral 
trading relationships, and has declined in recent 
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years. Total trade between the United States and 
Mongolia in 2012 was valued at approximately 
$707,000,000, but in 2022 the United States ex-
ported only $149,000,000 in goods to Mongolia and 
imported only $26,000,000 in goods from Mongolia. 
(5) While the mining industry accounts for 
more than 80 percent of Mongolia’s exports by value 
and more than 20 percent of gross domestic product, 
agriculture, which accounts for 13.25 percent of 
gross domestic product, is a much larger source of 
jobs, employing around a quarter of the working 
population. The livestock sector accounts for more 
than 80 percent of agricultural production in Mon-
golia. 
(6) Since the 1940s, the annual mean air tem-
perature in Mongolia has risen at 3 times the aver-
age 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 animals of 
the country’s livestock population perished due to 
the post-drought extreme winter phenomenon known 
as ‘‘dzud’’. This phenomenon has increased in fre-
quency and severity in recent years, causing a rise 
in livestock mortality and diminishing livelihoods for 
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herders, which has led to widespread rural poverty 
and a contraction in the national economy. 
(7) Mongolia would greatly benefit from pref-
erential treatment for imports into the United States 
of certain Mongolian products. Such preferential 
treatment would help address some of the economic 
impacts of the dzuds. 
(8) The cashmere trade is particularly impor-
tant to the economy of Mongolia. While Mongolia 
produces approximately 40 percent of the world’s 
raw cashmere, it produces few finished cashmere 
products. Mongolian raw cashmere is exported to the 
People’s Republic of China, where it is diluted with 
other fibers and labeled as Mongolian. The United 
States buys nearly all of its cashmere products from 
the People’s Republic of China. Preferential treat-
ment for imports into the United States of certain 
Mongolian products, including cashmere products, 
would benefit the United States by facilitating in-
creased direct trade with Mongolia for cashmere 
products while also supporting the development of 
value-added cashmere processing in Mongolia. 
(9) The development of the garment industry in 
Mongolia would also promote women’s employment 
and empowerment. Women have historically partici-
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