JOINT STAFF WORKING DOCUMENT The EU Special Incentive Arrangement for Sustainable Development and Good Governance ('GSP+') assessment of Mongolia covering the period 2016 - 2017 Accompanying the document Report from the Commission to the European Parliament and the Council Report on the Generalised Scheme of Preferences during the period 2016 - 2017
Date: 2018-01-19
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU market, Mongolia, common commercial policy, environmental protection, generalised preferences, governance, human rights, international convention, sustainable development, tariff preference

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  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 19.1.2018  SWD(2018) 28 final  JOINT STAFF WORKING DOCUMENT  The EU Special Incentive Arrangement for Sustainable Development and Good Governance ('GSP+') assessment of Mongolia covering the period 2016 - 2017 Accompanying the document Report from the Commission to the European Parliament and the Council Report on the Generalised Scheme of Preferences during the period 2016 - 2017 {COM(2018) 36 final} - {SWD(2018) 23 final} - {SWD(2018) 24 final} - {SWD(2018) 25 final} - {SWD(2018) 26 final} - {SWD(2018) 27 final} - {SWD(2018) 29 final} - {SWD(2018) 30 final} - {SWD(2018) 31 final} - {SWD(2018) 32 final}  
 
 
Mongolia GSP+ Assessment  

1. Country Overview 

Since  1990,  Mongolia  has  consolidated  its  democratic  system;  introduced  institutional 
changes that seem irreversible and the overall political situation is stable. However, the pace 
of progress is slowing down due to a worsening economic situation, corruption, challenges in 
governance  and  increasing  political  polarisation,  alongside  a  more  challenging  international 
environment – notably relations with China. 

In  the  parliamentary  elections  that  took  place  in  June  2016,  the  Mongolian  People's  Party 
(MPP)  won  a  landslide  victory,  gaining  45.12%  of  votes.  As  a  result  of  a  majoritarian 
electoral law, the votes translated into 65 of the 76 seats in the Parliament. The MPP thus took 
back power from the Democratic Party (DP). Presidential elections took place on 26 June and 
7  July  2017.  In  the  first-ever  Presidential  runoff,  voters  elected  the  candidate  from  the  DP. 
The final report of the OSCE Office for Democratic Institutions and Human Rights' Limited 
Election Observation Mission confirms that the election days proceeded in an orderly manner 
and  that  the  elections  were  competitive,  well  organised;  and  freedoms  of  assembly  and  of 
expression were generally respected. However, the vote took place among legal uncertainties 
as the electoral law has numerous flaws.  

On  24  May  2017,  the  IMF  board  approved  a  three-year  Extended  Fund  Facility  (EFF)  for 
Mongolia  of  USD  434.3  million  to  support  the  country's  economic  reform  programme. 
Although  the  programme's  implementation  period  is  three  years,  the  loan  would  be  repaid 
over  15  years.  The  Asian  Development  Bank,  the  World  Bank,  Japan  and  Korea  have  also 
committed to provide budgetary and project support. The People's Bank of China has agreed 
to  extend  its  swap  line  with  the  Bank  of  Mongolia.  In  sum,  the  total  financing  package 
amounts to about USD 5.5 billion. The programme has five pillars: 1) fiscal consolidation, 2) 
improve  the  central  bank's  independence,  governance  and  focus  on  core  responsibilities,  3) 
strengthen  the  financial  sector,  4)  foster  economic  diversification  and  inclusive  growth,  5) 
protect the most vulnerable in society.  

Mongolia  has,  together  with  the  EU  and  Argentina,  initiated  the  Alliance  for  Torture-Free 
Trade.  Launched  on  18  September  2017,  the  Alliance  aims  to  end  trade  in  goods  used  for 
capital  punishment  and  torture.  It  supports  and  encourages  States  to  adopt  legislation  to 
control trade in these products and to exchange legislative and administrative practices among 
like-minded countries.  

On 2 November 2017, the EU established a Delegation in Mongolia. It will be instrumental in 
implementing  the  EU-Mongolia  Partnership  and  Cooperation  Agreement  (PCA),  which 
entered into force on 1 November 2017. The PCA aims at strengthening political, economic 
and sectoral cooperation across a wide range of policy fields, including trade and investment, 
sustainable  development,  human  rights,  environment,  justice,  freedom  and  security.  It  will 
replace  the  current  legal  framework  of  the  1993  Agreement  on  Trade  and  Economic 
Cooperation between the European Economic Community and Mongolia. 

A GSP+ mission took place in Mongolia from 27 to 31 March 2017, in connection to the EU-
Mongolia Human Rights Dialogue and the EU-Mongolia Joint Committee meetings. 

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2. Compliance with GSP+ Obligations 

2.1.  UN Human Rights Conventions (Conventions 1-7) 

Status of ratification and reporting 

Over  the  reporting  period,  Mongolia  maintained  ratification  of  all  the  GSP+  relevant  UN 
human rights conventions. Mongolia demonstrates a very good level of compliance with  its 
reporting  obligations  under  the  treaty  monitoring  bodies  –  despite  continued  capacity  and 
expertise constraints.  

Status of implementation of the conventions 

Among  the  most  important  legislative  and  policy  developments  during  the  reporting  period 
were the entry into force on 1 February 2017 of the revised Law on Domestic Violence and of 
the new Criminal Code on 1 July 2017. 

The new Criminal  Code abolishes the death penalty  and includes  a prohibition of torture in 
line  with  the  Convention  against  Torture.  It  also  contains  provisions  on  increased  penalties 
against persons committing crimes against individuals because of their sexual orientation or 
gender identity. However, the Constitution still contains a reference to the death penalty. The 
recent official proposal by President Battulga to the Ministry of Justice to re-instate the death 
penalty for crimes against children is a worrying development. The EU raised its concerns at 
meetings with President Battulga and other Government officials in November 2017.  

In  April  2016,  the  Government  of  Mongolia  adopted  a  National  Action  Plan  on  the 
Implementation  of  the  Universal  Peridoic  Review  (UPR)  Recommendations  (UPR  Action 
Plan  2016-2019).  It  highlights  certain  provisions  to  renew  the  approval  of  the  National 
Programme  to  Support  the  Rights  of  Persons  with  Disabilities,  to  develop,  adopt  and 
implement  the  second  stage  of  the  Programme  on  Equal  Access  of  Disabled  Children  to 
Education,  to  support  employment  of  disabled  citizens,  to  improve  the  quality  of  public 
transportation technical standards, procedures and services and to  raise public awareness by 
disseminating  information  and  TV  programmes  based  on  the  needs  of  national  minorities, 
women, children, persons with disabilities and LGBT. While there has been little progress in 
terms of implementation of this National Action Plan, the Government has sought assistance 
from  the  United  Nations  Office  of  the  High  Commissioner  for  Human  Rights  for  technical 
cooperation. 

In its Concluding Observations of 22 August 2017 on the implementation of the International 
Covenant on Civil and Political Rights by Mongolia, the Human Rights Committee expressed 
its  concern  about  the  lack  of  sufficient  awarenness  of  the  Covenant  and  the  First  Optional 
Protocol  among  lawyers,  judges,  prosecutors  and  the  public  at  large.  This  is  a  problem  that 
applies equally to other international human rights conventions which Mongolia has ratified.  

Furthermore,  the  Human  Rights  Committee  asked  Mongolia  to  "ensure  independent, 
transparent and effective functioning of the National Human Rights Commission, both in law 
and  in  practice,  and  provide  it  with  adequate  financial  and  human  resources  to  enable 
fulfilment  of  all  its  functions"  and  took  note  of  the  draft  law  extending  the  mandate  of  the 
Commission. 

In the Human Rights Council (HRC) Mongolia has generally been supportive (or abstained) 
on key resolutions regarding serious human rights  violations or  on thematic resolutions (for 
example, death penalty, children's health). 

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Another  positive  development  was  the  first  meeting  of  the  EU-Mongolia  Human  Rights 
Dialogue held in March 2017.  

International  Convention  on  the  Elimination  of  All  Forms  of  Racial 
Discrimination (CERD) 

In the Concluding Observations on the combined 19th to 22nd periodic reports of Mongolia of 
5 January 2016, the Committee on the Elimination of Racial Discrimination noted a lack of 
disaggregated data to determine any structural or indirect racial discrimination and to measure 
developments  over  time.  It  reiterated  its  concern  over  the  lack  of  legislation  containing  a 
definition  of  racial  discrimination  in  accordance  with  Article  1  of  the  Convention  and  a 
prohibition of all forms of racial discrimination. The Committee asked Mongolia to promote 
remedies that are available to victims of racial discrimination and furthermore recommended 
to undertake "regular and comprehensive human rights-based assessments of the situation of 
ethnic minorities to develop appropriate policies and to ensure that such policies are effective 
in eliminating any obstacles to the enjoyment by minorities of their rights". The Committee 
expresed  concern  about  the  existence  of  ultra-nationalist  and  neo-Nazi  organisations  and 
asked  Mongolia  to  combat  its  underlying  causes  through  eductation  and  dissemnination  of 
information. 

As  part  of  its  efforts  to  combat  racial  discrimination,  Mongolia  added  a  new  section  on 
discrimination, which specifies penalties and punishments for crimes of racial discrimination, 
in the revised Criminal Code.  

International Covenant on Civil and Political Rights (CCPR) 

In its Concluding Observations on the sixth periodic report of Mongolia, issued on 22 August 
2017,  regarding  Mongolia's  implementation  of  the  CCPR,  the  Human  Rights  Committee 
asked Mongolia to strengthen its efforts to achieve effective application of the provisions of 
the Covenant before domestic courts. This should go hand-in-hand with training of lawyers, 
prosecutors and judges on international human rights treaties and public awareness-raising.  

The EU is implementing a project that will assist the Prosecutor General's Office in view of 
facilitating  the  application  of  the  new  Criminal  Code  along  international  human  right 
standards. The project foresees a series of human rights seminars linked to the launch of the 
Human Rights Dialogue with the EU in 2017. 

The Human Rights Committee also made a number of recommendations concerning pre-trial 
detention in view of its reported widespread and lenghty use. 

The Human Rights Committee expressed concern about broad legal restrictions on the media, 
including the internet, and limitations on access to information due to the broad interpretation 
of confidentiality provisions by Mongolian authorities. It invited Mongolia to ensure that any 
restriction on media activities is in strict compliance with the provisions of the CCPR. 

The Committee also expressed concerns about the remaining provisions on defamation in the 
Criminal Law, which may unduly restrict the exercise of freedom of expression. In May 2017, 
the Parliament tried to increase the penalty for defamation to MNT 10 million (EUR 3,730). 
However, after protests from journalists and an intervention by the President, the penalty was 
finally set at MNT 2.5 million (EUR 930). 

Mongolia should consider fully decriminalizing defamation and ensure that defamation is not 
subject to deprivation of liberty. Defamation laws, both criminal and civil, must not serve to 
stifle freedom of expression.  

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The Committee expressed concern about reports of attacks and harassment against journalists 
and media workers. There are some reports of politically motivated interference and cases of 
intimidation  of  journalists.  In  2016,  a  local  NGO  registered  63  violations  affecting  the 
professional  work  of  61  journalists  and  media  outlets.  Authorities,  high-ranking  public 
officials and Government organisations were responsible for 57.4% of freedom of expression 
violations or violations against journalists' rights. The Committee invited Mongolia to protect 
journalists  and  media  workers  against  any  form  of  harassment  and  threats,  promptly 
investigate all such attacks and bring those responsible to court. 

International Covenant on Economic, Social and Cultural Rights (CESCR) 

In its latest available Concluding Observations of July 2015 on Monoglia's implementation of 
the CESCR, the Committee on Economic, Social and Cultural Rights expressed its concerns, 
inter alia, about the adverse impacts of mining projects on the economic, social, and cultural 
rights of herders, the absence of a comprehensive anti-discrimination law covering all grounds 
of discrimination, including sexual orientation, gender identity and disability. Mongolia was 
recommended to bring its legislation in full conformity with the Convention. 

According to data from the World Bank, 21.6% of the population continue to live below the 
national poverty line (compared to 27.4% in 2012). While Mongolia has over time developed 
a comprehensive social protection system including social insurance, social welfare and active 
labour  market  policies,  "only  one  out  of  four  herders,  self-employed  people  and  informal 
economy  workers  contributes  to  the  voluntary  social  insurance  scheme,  leaving  a  large 
majority  vulnerable  to  events  such  as  injuries  at  work,  unemployment,  sickness,  maternity, 
disability and old age" (see ILO Working Paper 'Is a nationally defined social protection floor 
for Mongolia still affordable in the 2016 economic context?'). 

Considering a budget deficit of MNT 4.3 billion (18% of GDP) and economic growth of only 
0.6%  in  2016,  the  acute  fiscal  and  debt  crisis  might  have  an  impact  not  only  on  social 
protection  spending  but  on  the  overall  human  rights,  environment  and  social  and  economic 
situation,  especially  of  vulnerable  people.  According  to  information  received  from  the 
Mongolian  authorities,  in  the  context  of  the  IMF  three-year  Extended  Fund  Facility,  the 
programme includes safeguards to protect vulnerable groups, and gives priority to health and 
education. At the same time, the minimum retirement age will be increased to 65 by 2026 for 
men and to 65 by 2036 for women. Due to the tax revenue deficit there is no room to increase 
salaries  in  both  2017  and  2018,  and  the  Child  Money  Programme  will  be  targeted  towards 
poor households. 

Convention  on  the  Elimination  of  All  Forms  of  Discrimination  Against 
Women (CEDAW) 

There is a clear under-representation of women in the public and private sectors, especially in 
senior managerial positions. It would be important for Mongolia to adopt comprehensive anti-
discrimination legislation that addresses discrimination in both the public and private spheres, 
including  direct  and  indirect  discrimination,  and  that  provides  for  effective  remedies  in 
judicial and administrative proceedings. 

In  April  2017,  the  Government  approved  a  National  Programme  on  Gender  Equality  to  be 
implemented  in  2017-2021.  The  programme  aims  at  creating  gender-sensitive  policies  and 
planning and removing gender stereotypes.  

The  Parliament  adopted a  law  on  combating  domestic  violence  in  2004,  which  was  seen  as 
ineffective, for example, domestic abuse was considered a minor offense punishable by a fine. 
On 1 February 2017, Mongolia's newly amended Law to Combat Domestic Violence entered 

4 

 
into  force.  Now,  domestic  violence  can  incur  criminal  punishment.  Under  the  revised 
Criminal  Code,  administrative  measures  (fines  or  warnings)  will  be  applicable  for  first 
instances  of  domestic  violence. If  actions  considered  as  domestic  violence  are  continuously 
committed, it will be considered a criminal offence and appropriate measures (confinement) 
will be taken. 

As  regards  participation  in  political  life,  after  the  2016  parliamentary  elections,  17%  of  the 
newly  elected  Members  of  Parliament  are  women.  This  marks  a  positive  step  towards  the 
enjoyment  of  equal  rights.  In  the  previous  Parliament  (2012-2016),  14%  of  members  were 
women. The electoral law approved in May 2016 requires 20% of candidates to be women. 
All  political entities complied  with the 20% gender quota. The  DP and MPP nominated the 
lowest  percentage  of  women  (21%  female  candidates).  Smaller  parties  nominated 
significantly higher percentages. It is worth noting that the previous electoral law, adopted in 
December 2015, had set a 30% gender quota for nominated candidates.  

Convention  against  Torture  and  Other  Cruel,  Inhuman  or  Degrading 
Treatment or Punishment (CAT) 

In December 2015, the Mongolian Parliament voted to abolish the death penalty, as part of a 
range of revisions to Mongolia's Criminal Code. However, capital punishment still remains in 
the Constitution (Article 16.1). 

Efforts  to  bring  national  legislation  in  line  with  international  human  rights  obligations 
continued through  the revision  of  the  Code  of  Criminal  Procedure (May  2016)  which,  inter 
alia,  explicitly  prohibits  torture  and  statements  obtained  through  torture  as  evidence  in 
judicial proceedings. 

In its August 2016 Concluding Observations on the second periodic report of Mongolia, the 
Committee  against  Torture  welcomed  the  revision  of  the  Criminal  Code  which  entered  into 
force on 1 July 2017. The revised Criminal Code provides a definition of torture, abolishes the 
death  penalty,  criminalises  domestic  violence,  prohibits  discrimination  on  various  grounds 
and outlaws hate crimes and hate speech.  

However,  the  definition  of  torture  in  the  new  Criminal  Code  does  not  cover  acts  of  torture 
committed by private persons and therefore is not fully compliant with the provisions of the 
CCPR. In line with the Concluding Observations of the 6th periodic report, Mongolia should 
amend  its  legislation  to  include  a  definition  of  torture that  fully  complies  with  international 
standards  to  cover  acts  of  torture  committed  by  private  persons  and  to  foresee  penalties 
commensurate  with  the  gravity  of  the  crime.  Likewise,  Mongolia  has  to  ensure  that  all 
reported  allegations  and  complaints  about  acts  of  torture  and  ill-treatment  are  promptly  and 
thoroughly  investigated,  that  alleged  perpetrators  are  prosecuted  and,  if  convicted,  punished 
with appropriate sanctions. Victims need to have access to redress, including full reparation. It 
should  also  provide  law  enforcement  officials  with  adequate  training  on  detection  and 
investigation of torture. 

The experts of the UN Subcommittee on Prevention of Torture (SPT) visited Mongolia from 
11-20 September 2017. They urged Mongolia to establish a National Torture Prevention body 
as  soon  as  possible,  to  protect  people  deprived  of  their  liberty  against  torture  and  cruel, 
inhuman  or  degrading  treatment. The  SPT  stressed  the  importance  of  establishing  a  fully 
independent national monitoring body, as required under international law, to regularly visit 
all places of detention and to help guard against the risk of ill-treatment.    

5 

 
Convention on the Rights of the Child (CRC) 

Child abuse is a significant problem and consists principally of domestic violence and sexual 
abuse.  Recent  particularly  cruel  rape  cases  prompted  President  Battulga  to  propose  the 
reinstatement  of the death penalty  for crimes  against  children. The rates of violence against 
children,  economic  exploitation  of  children,  and  incidents  causing  death  or  severe  injuries 
involving children are not declining. The Committee on the Rights of the Child expressed its 
serious  concern  that  children  continue  to  be  engaged  in  dangerous  and  hazardous  work, 
notably  in  agriculture,  mining  and  horseracing.  Following  the  incidence  of  serious  injuries 
and deaths of children as  a result of horse racing in  2016, the United Nations country team 
and  the  UN  Office  of  the  High  Commissioner  for  Human  Rights  (OHCHR)  have  actively 
urged the Government to effectively enforce the prohibition of participation by children under 
16  in  horseraces  between  1  November  and  1  May  each  year  as  a  step  in  the  process  to 
eradicate  the  employment  of  children  under  18  as  jockeys.  This  was  also  reiterated  by  the 
Committee on the Rights of the Child in its review of the 5th periodic report of Mongolia in 
May 2017. 

The Law on the Rights of Children of 2016 explicitly confirms children's right to be protected 
from  corporal  punishment.  In  February  2016,  the  Parliament  passed  the  first  ever  Law  on 
Child  Protection  and  the  Law  on  the  Rights  of  Children.  Both  laws  entered  into  force  on  1 
September 2016.  

The  laws  have  the  overall  aim  to  strengthen  comprehensive  child  protection  systems  to 
respond  to  risks  and  vulnerabilities  of  children  stemming  from  violence,  abuse,  neglect  and 
exploitation. The  legislation  defines  the  principles  of  protecting  children,  in  particular,  the 
best interests of the child that shall be given a primary consideration when taking any decision 
concerning children. It prohibits all forms of violence, exploitation, neglect and abuse in all 
settings including at home and online. Furthermore, the new legislation identifies the persons 
required by law to report harm or suspected harm to a child. 

By  implementing  the  2016  legislation,  a  continuum  of  child  protection  services  will  be 
provided to children who have been harmed or are at risk of harm. The legislation clarifies the 
roles  and  responsibilities  of  the  concerned  parties.  This  is  an  important  provision.  Families 
have  the  primary  responsibility  for  the  upbringing,  protection  and  development  of  their 
children. But if they are unable or unwilling to protect them, the child shall be taken care of 
by the State. 

Responsibilities  are  spread  across  Government  agencies,  with  services  delivered  by  local 
authorities,  non-government  organisations  and  communities,  making  coordination  between 
sectors  and  levels,  including  routine  referral  systems,  a  necessary  component  of  effective 
child protection systems. 

In  its  Concluding  Observations  of  22  August  2017  regarding  CCPR  implementation  by 
Mongolia,  the  Human  Rights  Committee  asked  Mongolia  to  establish  a  comprehensive 
juvenile system and to provide legal assistance to minors. 

Future actions and priorities 

Mongolia's  general  commitment  to  the  protection  and  promotion  of  universal  human  rights 
standards  was  confirmed  by  the  National  Action  Plan  on  Implementation  of  UPR 
Recommendations  (UPR  Action  Plan  2016-2019).  Now  the  Government  should  be 
encouraged to undertake concrete efforts on its implementation without further delay and not 
reverse commitments already taken, in particular the abolishment of the death penalty.    

6 

 
Laws  should  be  followed  by  executive  decisions  on  adequate  resources,  training  and 
capacities  to  ensure  actual  implementation.  The  main  focus  should  be  on  addressing    the 
recommendations  of  the  6th  periodic  report  of  the  Human  Rights  Committee  on  Mongolia,  
notably  those  related  to  the  implementation  of  the  Convention  against  Torture  and  Other 
Cruel,  Inhuman  or  Degrading  Treatment  or  Punishment  (a  definition  of  torture  fully  in  line 
with  the  international  standards  to  ensure  an  independent  mechanism  for  investigating 
allegations of torture).  

The  Parliament  should  be  encouraged  to  enact  the  law  on  human  rights  defenders  that  was 
drafted by the National Human Rights Commission, and which is currently being reviewed by 
the Sub-Committee on Human Rights of the Parliament. 

Mongolia's  authorities  should  also  address  shortcomings  identified  by  the  International 
Election Observation Missions both in 2016 and 2017, in particular those related to the right 
to stand for elections, the right to vote and the rights to have the freedom to campaign as well 
as a predictable and stable legislative framework covering issues such as the demarcation of 
electoral  boundaries,  campaigning  and  media  regulations,  campaign  financing,  post-election 
complaints framework.   

Conclusions 

The overall human rights situation in Mongolia remains positive. Notable developments over 

the reporting period comprise the entry into force of the revised Criminal Code and Criminal 

Procedure Code and the entry into force of the revised law on domestic violence. There has 

been incremental progress in other areas: rights of children, rights to a healthy environment, 

equality  and  non-discrimination  and  fight  against  human  trafficking  and  child  labour.  

However,  steps  leading  to  a  possible  restoration  of  capital  punishment  in  Mongolia  raise 

concerns.  If  further  pursued,  the  decision  to  restore  the  death  penalty  would  go  against 

Mongolia's commitments under the Second Optional Protocol to the International Covenant 

on Civil and Political Rights. 

While  Mongolia  has  ratified  most  of  the  core  human  rights  treaties,  the  limited  awareness 

among  lawyers,  judges,  prosecutors  and  the  public  at  large  of  international  human  rights 

treaties ratified by Mongolia hampers the actual implementation of these treaty obligations. 

In addition, new or amended legislative acts are not followed up with adequate resources and 

executive decisions further undermine compliance. 

In March 2017, the EU and Mongolia held their first-ever Human Rights Dialogue. Its aim is  

to enhance bilateral cooperation to support Mongolia in its ratification of and adherence to 

the  international  human  rights  conventions  and  instruments.  A  specific  EU-funded  project 

targeting the Prosecutor General's Office is under preparation. 

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Corruption,  having  a  pervasive  impact  on  the  human  rights  situation,  remains  a  serious 

concern.  In  general,  weak  governance  combined  with  the  presence  of  large  international 

companies and an abundance of natural resources contribute to an environment conducive to 

corruption.  These  risks  are  especially  acute  in  Mongolia  where  infrastructure  projects  risk 

negative effects on traditional/nomadic ways of life while a large part of the population lives 

in difficult and precarious conditions.  

The United Nations Special Rapporteur on human rights and the environment, John H. Knox, 

who  conducted  an  official  visit  to  Mongolia  in  September  2017  at  the  invitation  of  the 

Mongolian Government, voiced concerns regarding the impact of air and water pollution on 

the rights to life, health and safe drinking water, especially in relation to mining operations 

including  illegal  mining.  He  also  noted  that  these  environmental  pressures  are  negatively 

impacting  the  nomadic  herders'  right  to  enjoy  their  culture.  He  recommended  new  laws  on 

protecting  human  rights  defenders  and  on  public  access  to  information,  and  urged  a 

government  investigation  into  the  death  of  a  conservation  ranger  under  suspicious 

circumstances in 2015.  

2.2.  ILO Labour Rights Conventions (Conventions 8-15) 

Status of ratification and reporting 

Over  the  reporting  period,  Mongolia  has  maintained  the  ratification  of  all  eight  ILO 
fundamental Conventions and has complied with all its reporting obligations 

With the help of an EU-funded project implemented by the ILO, the Government made efforts 
and has significantly improved timely responding to ILO supervisory comments made in 2015 
and 2016, as well as of answering the GSP+ Scorecard by April 2016.  

Status of implementation of the conventions 

Since  2005,  the  ILO  has  supported  the  General  Administration  for  State  Inspection  (GASI) 
with preparing for the ratification of the Labour Inspection Convention, 1947 (No. 81) and the 
Labour Inspection (Agriculture) Convention, 1969 (No. 129).  

The  EU  is  supporting  Mongolia  through  a  project  to  effectively  implement  international 
labour  standards  and  comply  with  the  GSP+  reporting  obligations.  The  project  aims  to 
improve  legal  and  regulatory  frameworks  concerning  the  organisation  and  representation  of 
informal  workers  and  employers  and  their  involvement  in  social  dialogue  and  collective 
bargaining on working conditions, wages, and occupational safety and health. It also aims at 
supporting the National Human Rights Commission of Mongolia in its continued monitoring 
of respect of workers' rights to organise and other fundamental rights at work. This project is 
closely  linked  with  the  before-mentioned  EU-funded  project,  implemented  by  the  ILO, 
focusing  on  International  Labour  Standards  reporting  capacity  and  prioritising  technical 
assistance  to  the  Government,  workers'  and  employers'  organizations  in  the  Labour  Law 
revision process. 

8 

 
Freedom of Association and Collective Bargaining (Conventions 87 and 98) 

National legislation in Mongolia continues to guarantee the right of workers to establish trade 
unions to protect their legal rights and interests. However, some concerns remain on: 1) the 
restrictions  to  the  rights  of  public  servants  to  participate  in  political,  non-governmental  and 
religious organisations, as well as their participation in strikes that would disrupt the activities 
of public services and 2) the scope of the application of the right to strike. Similar rights still 
do not exist for employers. Discussions have started (but are currently delayed) on a draft law 
on the legal status of employers that would for the first time establish a legal framework for 
employers  to  form  associations  to  engage  with  other  parties,  without  prior  permission  from 
the authorities, and to guarantee the independence of employers' organisations.  

The  laws  protecting  the  freedom  of  association  and  collective  bargaining  are  generally 
enforced as the Labour Dispute Settlement Committee resolves most disputes. The remainder 
is  referred  to  courts.  However,  the  system  could  be  improved  by  removing  the  temporary 
immediate  settlement  committees  or  by  legally  regulating  them.  There  were  some 
amendments to the Labour Law as endorsed by the tripartite working groups, which included 
race and political opinion as protected attributes against discrimination. Further improvements 
pertaining  to  the  labour  law  are  1)  the  inclusion  of  the  principle  of  equal  remuneration  for 
work  of  equal  value,  2)  a  definition  of  collective  bargaining  as  a  process  that  takes  place 
between  an  employer  and  employee  representatives,  and  which  must  be  free  from  political 
interference,  including  by  Government  representatives,  3)  a  prohibition  of  conclusion  of 
contracts according to provisions other than those set out in the Labour Law, thus establishing 
it as the main reference for national labour standards. 

Collective  bargaining  is  bipartite  and  tripartite,  suggesting  that  the  Government's  role  in 
determining wages and other conditions of work is not yet fully  reduced to the provision of 
professional  services  for  the  settlement  of  labour  disputes.  A  new  2017-2018  tripartite 
agreement for labour and social consensus is in place. It notably envisages the ratification of 
the ILO Conventions 81 and 129 on labour inspection. Mongolia is working with the ILO on 
further  building  up  the  bargaining  capacity  of  social  partners  in  view  of  the  sectoral  wage 
negotiations  in  the  mining  and  construction  sectors.  However,  according  to  the  authorities, 
due to the economic downturn, the collective agreements were suspended. 

In  the  context  of  the  International  Monetary  Fund  financing  package  agreed  in  2017,  the 
Government  plans  to  institute  a  public-sector  wage  freeze  through  2018,  suspend  civil 
servants'  grade  advancement  through  2019,  and  restrict  hiring  through  2019  in  all  sectors 
except the priority areas of health, education, emergency services, and police, where one new 
employee will be hired for every two who leave. 

Abolition of Forced Labour (Conventions 29 and 105) 

Mongolia is primarily a source of forced labour (and sex trafficking) of its nationals to other 
countries.  Mongolia  does  not  fully  meet  the  minimum  standards  for  the  elimination  of 
trafficking,  but  is  making  significant  efforts  to  do  so  according  to  the  2016  US  State 
Department Trafficking Report. 

As  regards  enforcement  of  the  domestic  legislation  on  forced  labour,  the  Committee  of 
Experts  on  the  Application  of  Conventions  and  Recommendations  (CEACR)  in  its  2017 
report noted positive steps made by Mongolia since the enactment of the Law on Combating 
Human  Trafficking.  The  legal  framework  was  enhanced  by  the  entry  into  force  of  the  new 
labour  (stipulating  financial  penalties  or 
criminal  code,  which  criminalises  forced 
imprisonment for up to eight years). 

9 

 
Training  efforts  on  the  anti-trafficking  law  and  its  enforcement  continued,  notably  for  law 
enforcement  and  prosecution  officials,  as  did  the  information  campaigns.  Protection  of 
victims remains weak also due to lower funding from the Government to the existing services. 
There  are  only  two  trafficking-specific  shelters  in  the  country.  Information  on  both 
rehabilitation  measures  and  on  the  level  of  the  implementation  of  related  action  plans  and 
programmes  is  lacking.  Work  continued  with  international  organisations  to  establish  an 
integrated statistical database. 

In May 2017, Mongolia adopted a National Programme against human trafficking 2017-2021, 
which aims to intensify the implementation of the human trafficking law, prevent this type of 
crime from happening and protect the victims. Between 2011 and 2017, 54 human trafficking 
cases  and  122  prostitution  cases  were  investigated  by  the  police.  Fifteen  individuals  were 
convicted  for  human  trafficking  and  54  individuals  in  36  cases  of  prostitution  and  related 
crimes.  

Since  2016,  the  EU  is  funding  a  two-year  project,  implemented  by  the  International 
Organisation  for  Migration  (IOM),  supporting  the  capacity  of  Mongolian  civil  society  and 
authorities to facilitate access to support services for migrants and victims of trafficking and 
to empower them against the risks of trafficking and human rights violations. 

The  CEACR  has  expressed  concerns  that  work  of  military  and  conscripts  in  mining, 
construction  and  infrastructure  development  would  be  in  contradiction  with  the  ILO 
Conventions on Forced Labour. Although such work appears to be paid and subject to basic 
occupational health and safety protection, Mongolia seems to recognise that the non-military 
work  performed  by  conscripts  would  fall  under  the  ILO  definition  of  compulsory  labour. 
Mongolia  acknowledges  that  some  programmes  and  measures  would  entail  the  use  or 
mobilisation  of  compulsory  labour  for  economic  development  in  contradiction  with  ILO 
Conventions 29 and 105.  

Prison labour remains compulsory. Although working conditions defined by the law are close 
to that of the normal labour market, they are not always applied as such in practice. Wages are 
not always paid or are not paid in full and the health and safety conditions need to be better 
enforced  (see  15th  Status  Report  on  Human  Rights  and  Freedoms  by  the  National  Human 
Rights Commission Report in 2016). 

In its 2017 report, the CEACR noted that workers going on illegal strikes are sanctioned by 
fines, not compulsory labour.  A community work sentence can be imposed as an alternative 
to imprisonment. Clarification is needed on the conditions and the way this is governed. 

Concerns  have  been  raised  over  the  situation  of  workers  from  the  Democratic  People's 
Republic  of  Korea  (DPRK)  in  Mongolia.  However,  no  formal  investifcation  has  been 
launched so far by the ILO. Mongolia needs to assess the situation of DPRK workers against 
the backdrop of the UN Security Council resolutions imposing sanctions on the DPRK. 

Minimum Age for Work and Worst Forms of Child Labour (Conventions 138 
and 182) 

Poverty, as an important cause of child labour, remains high despite its significant reduction 
(21.6% in 2014, down from 27.4% in 2012). 

Mongolia features on the 2016 US Department of Labour's List of Goods Produced by Child 
Labour for gold. Solid evidence is missing on the scope of child labour. Employers are still 
not required to register workers under the age of 18. As of 2011, an estimated 10% of children 
aged  5-17  (over  56,000  children)  performed  child  labour,  mostly  in  agriculture,  herding, 
construction,  mining  as  well  as  in  horse  racing  (child  jockeys)  and  in  rural  areas.  The 

10 

 
proportion  of  5-17  year  old  rural  children  in  child  labour  is almost  four  times  that  of  urban 
children. Horse racing has attracted a lot of attention as a particularly hazardous activity for 
children.  Races  are  often  politically  or  commercially  sponsored,  involve  children  at  a  very 
young  age  and  regularly  cause  fatal  accidents  or  permanent  disability.  Horse  racing  is 
therefore  now  included  in  the  newly  updated  list  of  jobs  prohibited  for  minors.  However, 
hazardous  work  also  concerns  a  substantial  share  of  children  engaged  in  construction  and 
mining.  

Changes to national legislation have improved the definition and the conditions of children's 
employment and strengthened sanctions for the worst forms of child labour thus bringing the 
domestic legal framework closer in alignment with ILO Conventions. A number of other legal 
shortcomings were addressed by the amendments to the Labour Law since September 2016, 
such as the prohibition of work for children under 15, work and contracts for apprenticeships 
and  vocational  training  subject  to  permission  for  those  aged  15,  working  hours  limited 
according  to  the  child's  age,  prohibition  of  overtime,  work  during  weekends  and  public 
holidays.  An  updated  list  of  jobs  prohibited  for  minors  in  both  the  formal  and  informal 
economy entered into force in February 2016. The list includes horse racing or training during 
the  most  dangerous  time  of  the  year  due  to  adverse  weather  conditions.  Under  the  new 
Criminal Code, forcing children to engage in the worst forms of child labour is punishable by 
a  financial  penalty,  up  to  one  year  of  restricted  movement  (house  arrest  or  prohibition  of 
international  travels)  or  by  one-year  imprisonment.  Forcing  children  into  begging,  child 
prostitution,  promoting  child  pornography  and  using  children  in  the  preparation,  sale, 
distribution  or  storage  of  pornography  are  also  criminal  offences.  The  low  number  of 
convictions  linked  to  child  trafficking,  as  well  as  the  increasing  number  of  street  children 
living in harsh conditions, remain alarming. 

The draft revised Labour Law is expected to bring significant improvements by providing a 
definition  of the 'employment relationship' that  covers all  employees and employers in  both 
the formal and informal economy and a new statutory minimum age for employment linked to 
the age of completion of compulsory schooling. At the same time, the enforcement of national 
legislation remains patchy as the State Inspection Law does not allow for inspections without 
prior announcement. The inspections are further limited by a lack of capacities and the lack of 
inspectors.  

The municipal authorities have developed actions targeting children working in the informal 
economy.  Projects  to  tackle  child  labour  were  implemented  with  ILO  support  in  the  past. 
National  programmes  are  in  place  that  include  awareness-raising,  information  and  media 
campaigns (for example, the 2011-2016 national programme for the elimination of the worst 
forms of child labour). Their implementation suffers however from insufficient funding. The 
overall  rate  of  implementation  of  the  2011-2016  programme  stood  at  just  around  60%  in 
2015. 

Elimination of Discrimination (Conventions 100 and 111) 

The legal framework for the equal rights of women and men continues to be provided by the 
Law on Promotion of Gender Equality (LPGE) of 2011. The latter establishes equal pay for 
equal work and also prohibits discrimination in employment and labour relations on the basis 
of gender as well as sexual harassment in the workplace. However, the LPGE remains to be 
effectively implemented. Employees' understanding and awareness of their rights remain low, 
and  employers'  responsibilities  would  need  to  be  defined  in  the  Labour  Law.  The  vast 
majority  of  employers  have  no  internal  regulation  or  mechanisms  to  properly  handle  sexual 
harassment  complaints.  The  LPGE  also  does  not  provide  penalties  for  acts  of  sexual 
harassment. 

11 

 
The draft revised Labour Law incorporates the ILO recommendations and is expected to give 
full expression to the principle of equal pay for work of equal value.  

The draft revised Labour Law should enhance protection against discrimination (prohibition 
of both direct and indirect discrimination, expanded discrimination grounds etc.) and include 
extensive provisions on sexual harassment in the workplace.  

The new Criminal Code criminalises discrimination on a wide range of grounds, which is seen 
by  the  ILO  as  potentially  discouraging  prevention  and  management  of  discrimination  in 
employment. 

Several  bodies  are  in  place  to  promote  gender  equality  and  related  policies.  The  National 
Commission for Gender Equality (NCGE) is the main body in charge of coordinating gender 
equality policies with territorial branches. A National Gender Experts' Group works under the 
NCGE's  supervision  and  the  Gender  Consortium  promotes  gender  education  and  studies.  In 
cooperation  with  the  UN  Population  Fund  (UNFPA)  and  the  ILO,  the  NCGE  is  applying 
gender  mainstreaming  in  the  national  administration.  With  ILO  assistance,  Mongolia  has 
started conducting Participatory Gender Audits (PGA) in line Ministries that will be the basis 
for  gender  strategies.  Despite  budgetary  and  technical  constraints,  it  seems  that  over  2015-
2016,  PGAs  were  carried-out  in  most  line  Ministries.  Efforts  are  also  being  made  by  the 
Consultative Council of Media, Press and Civil Society to fight gender stereotypes. 

Mongolia has closed some of the gender gaps (for example, the increased number of women 
MPs) but the labour force participation rate of women lags well behind that of men, remains 
relatively  low  compared  to  other  small  transition  economies  and  is  particularly  low  among 
women over 50 years of age as a result of an unequal retirement age. Still, working women 
remain  concentrated  in  low  paying  sectors  and  where  prospects  of  career  advancement  are 
limited. 

Training  on  equal  pay  for  men  and  women  for  work  of  equal  value  needs  to  continue.  The 
collection  of  gender-disaggregated  data  is  underway.  Progress  is  urgent  to  underpin  the 
monitoring  of  the  LPGE  implementation  and  to  determine  whether  or  not  gender 
discrimination  exists,  notably  in  setting  minimum  wage  levels.  This  would  help  better 
addressing the persisting gender pay gap. Policies and measures to promote women's access to 
a broader set of occupations and industries need to be strengthened. 

Since 2016, the EU is funding a four-year project assisting Mongolia in establishing a well-
functioning,  more  inclusive  labour  market,  particularly  for  vulnerable  groups  of  society, 
whereby the quality of employment and of the workforce is improved.  

Future actions and priorities 

The  adoption  of  a  comprehensively  revised  Labour  Law  remains  a  key  step  to  respond  to 
many remaining  shortcomings.  The  process of its adoption  has  been  delayed by the general 
elections in June 2016 and the consequent merge of the Ministry of Labour with the Ministry 
of  Population  Development  and  Social  Protection  into  the  Ministry  for  Labour  and  Social 
Protection (MLSP). A draft revised Labour Law was submitted to the Parliament in August 
2017  and  it  is  likely  that  a  reshuffled  Government  will  remain  committed  to  the  proposed 
revision. The process of the adoption of this law should be kept on track. The enforcement of 
the existing legislation and the application of labour standards have to improve, in particular 
regarding the elimination of child labour, equal pay for work of equal value and gender-based 
discrimination in employment and occupation. In that respect, better evidence of child labour 
and  gender-based  discrimination  should  be  a  priority  together  with  actions  supporting 

12 

 
women's  broader  access  to  occupations  and  sectors.  Awareness-raising,  information 
campaigns and capacity enhancement of relevant agencies need to continue. 

Conclusions 

Mongolia continued to take steps to ensure the alignment of domestic legislation with the ILO 

fundamental  conventions,  notwithstanding  delays  due  to  the  general  election  in  2016  and 

institutional changes that followed. The most significant legislative steps in that respect were 

the  entry  into  force  of  the  new  Criminal  Code  and  amendments  of  the  Labour  Code. 

Amendments to the existing Labour Code, which were already adopted in April 2017, do not 

directly  touch  on  the  application  of  the  ILO  fundamental  conventions.  They  are,  however, 

substantive  as  they  increase  the  level  of  fines  for  Labour  Law  violations  by  employers  in 

order to ensure the protection of employees' basic rights. 

Several legislative acts came into force in 2016 and 2017 that bring national legislation into 

closer  alignment  with  the  ILO  fundamental  conventions  concerning  the  minimum  age  for 

employment and forced and child labour offences.  However, the enforcement capacities need 

further  strengthening  –  both  from  a  legislative  perspective  and  by  increasing  both 

administrative capacities and financial allocations. 

An  important  achievement  is  Mongolia's  significantly  improved  reporting  under  its 

international labour standards reporting obligations. 

2.3.  UN Conventions on Environmental Protection and Climate 

Change (Conventions 16-23) 

Status of ratification and reporting 

Over  the  reporting  period,  Mongolia  has  maintained  ratification  of  all  relevant  GSP+ 
conventions on environmental protection and climate change but did not fully comply with its 
reporting  obligations  under  CITES,  Basel  and  Stockholm  Conventions,  UNFCCC  and  the 
Cartagena Protocol. 

Status of implementation of the conventions 

Mongolia reported that the National Primary Focal Points and Focal Points, in charge of the 
inter-sectoral coordination, implementation and reporting of each convention and its protocols 
at the national level, have changed by decree of October 2016. Further changes occurred in 
April  2017.  This  has  impeded  the  capacity  of  some  working  groups  in  the  Ministry  of 
Environment, Green Development and Tourism to implement relevant action plans. 

Convention on International Trade in Endangered Species of Wild Flora and 
Fauna (CITES) 

In 2016, new National Committee members of CITES were appointed. Mongolia improved its 
compliance  with  its  reporting  obligations  under  CITES  compared  to  the  last  GSP+  Report: 

13 

 
Mongolia  has  submitted  its  national  reports,  including  the  2015-2016  biennual  report. 
Mongolia reports that a working group, instructed by the department of natural resource and 
environmental management, to coordinate and to implement the CITES Convention has been 
established. It includes experts and civil society organisations.  

However,  Mongolia's  national  legislation  continous  to  be  ranked  as  category  2  under  the 
Convention,  which  means  that  it  does  not  yet  fully  meet  all  the  requirements  for  the 
implementation  of  the  Convention.  Despite  several  recommendations  by  the  Standing 
Committee  at  its  66th  (January  2016)  and  67th  (September  2016)  meetings  and  the 
transmission of a warning letter in November 2016 on this issue by the CITES Secretariat, no 
progress was reported to CITES by Mongolia on the steps that they intend to take to upgrade 
their  legislation  to  CITES  category  1.  The  69th  meeting  of  the  Standing  Committee  of  the 
CITES Convention in November 2017 decided that Mongolia should report on progress to the 
70th Standing Committee meeting in October 2018 and that if no progress is achieved by then, 
the Standing Committee would recommend that all commercial trade in species and products 
derived from CITES-listed species is suspended for Mongolia. 

Basel Convention 

Mongolia  continuous  to  be  non-compliant  with  is  reporting  obligations  under  the  Basel 
Convention  on  the  Control  of  Trans-boundary  Movements  of  Hazardous  Wastes  and  Their 
Disposal.  National  Reports  for  the  years  2006-2015  remain  due.  Mongolia  reports  that  this 
was  due  to  a  lack  of  financial  and  human  resources  as  well  as  a  need  to  increase  technical 
capacities and training. 

The 'list of hazardous waste' was approved in 2015. To give a 'special land permit for national 
hazardous waste management', an amendment was made to the Law on Waste in 2016. Open 
burning of waste is prohibited by this law. 

Convention on Biological Diversity (CBD) 

On the basis of available information,  during the period  2016-2017 no salient shortcomings 
were  identified in  Mongolia as regards the implementation  of the Convention on Biological 
Diversity.  Mongolia  submitted  the  5th  national  report.  Mongolia's  National  Biodiversity 
Programme for the time up to 2025 is under implementation. Mongolia reports that as a step 
to  stop  biodiversity  loss, it intends  to add the great bustard,  steppe eagle, wild  reindeer and 
gobi bear to the appendixes of the Convention on the Conservation of Migratory Species of 
Wild Animals (CMS) by the end of 2017. 

Stockholm Convention on Persistent Organic Pollutants 

Mongolia improved its reporting compliance and has submitted its 3rd round national report as 
required in October 2016. The 1st round national report (2006) is still missing.  

Mongolia  aims  at  becoming  a  polychlorinated-biphenyl-free  country  by  2020.  UN  agencies 
have helped Mongolia build the necessary capacity for the implementation of the Stockholm 
Convention, e.g. by providing trainings to the Ministry of Environment, Green Development 
and Tourism and  related Government agencies. Technical and human resource capacity still 
need further boosting. 

Mongolia  reported  that  the  GEF-UNIDO  project  'Demonstration  of  BAT  and  BEP  in  Open 
Burning Activities in Response to the Stockholm Convention on Persistent Organic Pollutants 
(POPs)'  started  in  2016.  The  objective  of  the  project  is  to  create  resource  efficient  waste 
management systems to reduce unintentional POP emissions through the introduction of Best 

14 

 
Available  Techniques  (BAT)  and  Best  Environmental  Practices  (BEP)  in  open  burning 
sources.  

Cartagena Protocol on Biosafety 

Mongolia  has  submitted  the  required  national  reports  under  the  Convention  on  Biosafety, 
except  for  the  first  national  report.  The  Ministry  of  Nature,  Environment  and  Tourism 
(MNET)  is  the  appointed  National  Focal  Point  for  the  Protocol.  The  UNEP  GEF  project 
'Support  for  Implementation  of  the  National  Biosafety  Framework  for  Mongolia',  which 
ended in 2014, helped Mongolia improve its rather weak capacity to implement the national 
Biosafety  Law.  The  project  supported  the  elaboration  of  five  regulations  on  inspection, 
customs, registration and risk assessment as well as transportation and contributed to public 
awareness-raising on biosafety issues. Furthermore, trainings on biosafety issues and a GMO 
detection  laboratory  have  been  established.  For  the  future,  the  operationalisation  of 
Mongolia's  biosafety  systems  will  require  fully  functional  inspection  and  detection  systems 
for which the allocation of sufficient human and financial resources is indispensable. 

Conventions on Climate Change 

The National Authority of Ozone under the Ministry of Environment and Tourism is still in 
charge of the implementation of the Montreal Protocol. It is working closely with the UNEP 
Ozone Secretariat. Under the Montreal Protocol's hydrochlorofluorocarbon (HCFC) phase-out 
management  plan,  by  1  January  2020,  Mongolia  has  to  achieve  a  35%  reduction  in  HCFC 
consumption.  In  addition,  the  Government  is  expected  to  initiate  preparatory  activities  to 
facilitate the ratification of the Kigali Amendment of the Montreal Protocol. 

Mongolia  submitted  to  the  United  Nations  Framework  Convention  on  Climate  Change 
(UNFCCC)  Secretariat its 2nd National Communication in 2010. Mongolia submitted the 1st 
Biennial Update Report on 6 August 2017. It plans to submit the 3rd National Communication 
by December 2017. 

Climate change is also addressed by Mongolia's 2010 National Action Programme on Climate 
Change  as  well  as  the  2014  Green  Development  Policy  and  Action  Plan  (2016).  These 
initiatives,  together  with  other  policies  such  as  the  National  Renewable  Energy  Programme 
(2005-2020) and the National Agriculture Development Policy (2010-2021), include concrete 
measures  and  goals  in  response  to  climate  change  covering  all  principal  sectors  of  the 
economy.  Two  national  mitigation  action  (NAMA)  projects,  the  National  Energy  Efficient 
Lighting  Programme  in  Mongolia  and  Transforming  Construction  in  Mongolia  Using 
Supplementary  Cementitious  Materials,  running  up  to  2020  and  2019  respectively,  were 
submitted to the UNFCCC NAMA registry to seek support for implementation. Due to lack of 
funding, implementation of such policies and projects is often inefficient, which in turn puts 
at risk the country's shift towards low carbon, climate resilient development.  

Conclusions 

Mongolia  has  considerably  improved  its  reporting  compliance  under  the  CITES,  Basel  and 

Stockholm Conventions. However, its legislation still does not fully meet the requirements for 

the  implementation  of  CITES.  This  is  a  source  of  concern,  which  should  be  addressed 

urgently.  Moreover,  concrete  measures  to  implement  the  Biodiversity  Convention  should  be 

strengthened. 

15 

 
Mongolia continues to highlight persistent capacity constraints. EU and Global Environment 

Facility/UNIDO-funded  projects  help  Mongolia  with  the  effective  implementation  of  the 

Cartagena and Stockholm Conventions.   

Mongolia's ratification of the Paris Agreement in September 2016 and the submission of its 

Intended  Nationally  Determined  Contribution  (INDC)  to  the  Paris  Agreement,  which 

envisages  a  14%  reduction  of  GHG  emissions  by  2030  compared  to  business-as-usual 

scenario,  excluding  land  use,  land  use  change  and  forestry,  demonstrate  Mongolia's 

commitment to contribute to the objectives of the UNFCCC. Overall, Mongolia has developed 

national policy measures in line with its commitments under the UN conventions on climate 

change.  It  is,  however,  unclear  how  effectively  some  of  these  measures  are  implemented. 

Mongolia should be encouraged to continue developing a strong range of policy measures to 

address climate change, and ensure their full and effective implementation. 

The  UN  Special  Rapporteur  on  human  rights  and  the  environment  visited  Mongolia  in 

September 2017 for the first time. He recommended Mongolia to step up its action to protect 

the  environment,  including  tackling  the  severe  impacts  of  mining  and  coal-burning.  He 

praised Mongolians for working to protect the environment with exceptional commitment, and 

for  upholding  pertinent  laws  that  set  out  strong  environmental  standards  and  safeguards. 

However, he called for urgent action to tackle air pollution, improve resources, and properly 

assess  a  major  new  gold  mining  project,  which  has  the  potential  to  cause  major 

environmental  damage.  Existing  laws  should  be  fully  deployed  and  an  Environmental 

Ombudsman should be appointed to serve as a focal point for environmental information and 

complaints. The Special Rapporteur will present a comprehensive report on the findings of his 

mission to the UN Human Rights Council in March 2018. 

Since  2016,  the  EU  has  been  funding  a  two-year  project  that  aims  at  strengthening  public 

participation in the management and control of mining investments, notably through effective 

usage  of  the  right  for  civil  society  to  participate  in  environmental  impact  assessments  and 

decision-making on mining-related legislation.  

16 

 
 
 
2.4.  UN Conventions on Good Governance (Conventions 24-27) 

Status of ratification and reporting 

During  the  reporting  period,  Mongolia  has  maintained  the  ratification  of  all  GSP+  relevant 
conventions  in  the  field  of  good  governance.  All  relevant  monitoring  reports  have  been 
submitted. 

Status of implementation of the conventions 

UN Conventions Fighting Illegal Drugs 

In  its  statement  delivered  at  the  Special  Session  of  the  General  Assembly  (UNGASS)  on 
drugs in April 2016, Mongolia reported that the rate of drug related crimes had increased by 
69%  and  that  the  number  of  women  involved  in  drug  related  crimes  had  doubled  in  2014-
2015. 

In  order  to  implement  the  Law  on  Control  of  Trafficking  Narcotic  Drugs  and  Psychotropic 
Substances of 2002, including related resolutions, the Minister of Heatlh endorsed in 2015 an 
order regulating the activities related to manufacturing, distribution and use of narcotic drugs 
and  psychotropic  substances,  licensing  of  imported  narcotic  drugs  and  psychotropic 
substances,  approved  application  forms  for  importation  and  lists  of  narcotic  drugs  and 
psychotropic substances to be used for diagnosis and medical treatment. Mongolia reports that 
the  Ministry  of  Health  updated  the  list  on  narcotics  and  psychotropic  substances  used  for 
human  medical  treatment  and  issued  special  permissions  to  manufacture  narcotic  and 
psychotropic  substances  for  two  pharmaceutical  companies  as  well  as  importing  and 
wholesaling permissions for seven importing companies. 

On 11 May 2017, the Mongolian Parliament made the necessary changes and amendments to 
the Criminal Code and the Law on Infringement with a view to bring legislation in line with 
international  obligations.  Under  Article  20.14  of  the  Criminal  Code,  anyone  who  illegally 
produces, imports, trades or distributes medicine, medicinal raw material, bio-preparation and 
medical instruments will be charged with criminal offenses. Under Article 6.6 of the Law on 
Infringement,  anyone  who  manufactures  medicine  and  medicinal  raw  material,  and  medical 
instruments  in  violation  of  the  Law  on  Medical  Instruments,  and  anyone  who  violates  the 
requirement and circumstances for consumption of new medical drug will be deemed to have 
breached the law and would be fined accordingly. 

A  National  Committee,  headed  by  the  Minister  of  Justice  and  Home  Affairs,  provides 
professional  methodological  guidance  and  manages  the  implementation  of  the  National 
Programme  on  Combating  Narcotic  Drugs  and  Psychotropic  Substances  and  ensures  cross-
cutting coordination. 

The National Committee met in 2017 and passed two important decisions. It adopted the first 
the  National  Programme  and  passed 
plan  (2017-2019)  for 
recommendations to the relevant agencies. It also held a forum on 9 June 2017 on the roles of 
the relevant agencies in the implementation of the National Programme.  

implementation  of 

the 

The Government plans to give priority to the following activities in this respect: 

– Supplying the forensic institutions with modern sophisticated equipment, and building the 
capacity of the forensic experts and professionals; 

–  Review  and  make  changes  and  amendments  to  the  law  on  medicinal  drugs  and  medical 
equipment,  and  the  law  on  monitoring  illicit  traffic  in  narcotic  drugs  and  psychotropic 
substances; 

17 

 
–  Further  streamline  the  policy,  management  and  organisational  set  up  of  Government 
agencies combating such crimes, eliminate duplication of responsibilities at relevant agencies 
and improving their coordination; 

–  Educate  the  people  about  the  risks  related  to  narcotic  drugs  and  psychotropic  substances, 
organise a comprehensive preventative and medical services. 

Mongolia  emphasises  the  lack  of  human  resources  and  new  techniques  needed  to  detect 
narcotic  drugs  and  psychotropic  substances  at  the  border,  lack  of  awareness  and  prevention 
measures as well as the need for specialised medical personnel to treat illegal drug users and 
addicts. 

UN Convention against Corruption (UNCAC) 

Corruption  remains  an  important  challenge  to  overcome  for  Mongolia.  Transparency 
International's  2016  Corruption  Perception  Index  ranked  Mongolia  number  87  out  of  176 
countries, with a rather constant perceived level of public sector corruption score of 38 out of 
100 (whereby zero means 'highly corrupt'). The June 2016 Asia Foundation survey found that 
pessimism  about  corruption  is  increasing  among  Mongolian  citizens.  For  example,  negative 
assessments  of  the  existing  legal  environment  as  'not  effective  at  all'  in  dealing  with 
corruption in business have increased from 19.1% of respondents in 2012 to 39.8% in 2016.  

The  2017  updated  version  of  the  Criminal  Code  now  criminalises  bribery  of  foreign  public 
officials  and  officials  of  public  international  organisations,  in  both  the  active  and  passive 
forms.  Mongolia  does  not  have  legislation  on  the  bribery  in  the  private  sector  so  far. 
However, the revised Criminal Code criminalises the abuse of power by an official of a legal 
entity. According to this provision, officials of legal entities which belong to the private sector 
can be prosecuted for the abuse of power as well as for receiving a bribe in relation to abuse 
of power.   

On  3  November  2016,  the  Parliament  approved  the  National  Anti-Corruption  and 
Strengthening  Integrity  Programme.  In  that  context,  on  12  April  2017,  the  Government 
adopted a detailed plan of activities to implement the said programme. A working group was 
established  at  the  Independent  Authority  of  Anti-Corruption.  The  working  group  will  be  in 
charge of the programme's overall organisation of the implementation activities, as well as of 
monitoring  and  evaluating 
it  will  be  developing 
recommendations  and  a  methodology,  coordinating  the  different  stakeholders'  activities, 
developing  cooperation  among  regional  and  international  organisations  and  informing  the 
public about the implementation of the programme. 

implementation.  Moreover, 

its 

The  EU  is  supporting  Mongolia  in  its  efforts  to  tackle  corruption,  notably  through  an  EU-
funded  three-year  project  that  provides  technical  assistance  to  the  Mongolian  Ministry  of 
Finance  (MoF)  and  Ministry  of  Social  Welfare  and  Labour  (MoSWL)  to  strengthen 
Mongolia's  economic  governance  of  revenues  from  mineral  wealth  and  direct  them  towards 
sustainable development. The project started in 2015. 

Conclusions 

Mongolian authorities are frank about their lack of positive results in fighting illegal drugs – 

despite efforts to cooperate with Governmental agencies and NGOs. Nevertheless, in view of 

an  increasing  trend  in  drug  trafficking,  Mongolia  attaches  importance  to  strengthening 

national legislative and regulatory responses to tackle illegal drug trafficking.  

18 

 
It  is  a  very  positive  development  that  the  revised  Criminal  Code  aligns  with  a  number  of 

recommendations  made  by  the  UNCAC  Implementation  Review  Group  on  corruption. 

However,  more  needs  to  be  done  to  enact,  for  example,  comprehensive  legislation  on  the 

protection of whistleblowers, experts, witnesses and victims. 

3. Trade and Economy 

3.1.  Trade Picture 

In 2016, real GDP growth slowed to 1%, down from an average growth rate of 9.8% over the 
period  2010-2015. The key  drivers of the slowdown are weaker economic activity in  China 
and  a  decline  in  foreign  direct  investment  (FDI),  along  with  lacklustre  performance  in  non-
mining sectors. The sharp decline in FDI has exacerbated the country's deteriorating balance-
of-payments  position.  Additional  pressure  is  expected  over  the  next  few  years  as  large 
external  debt  repayments  are  scheduled  for  2017/2018.  With  prices  of  raw  materials 
increasing, the IMF projects Mongolia's real GDP to grow by 1.8% in 2018. 

A key risk factor for Mongolia's economy is its lack of diversification, dependence on a few 
export and import markets (China and Russia) and the dominance of minerals in exports. The 
mining sector accounts for one fifth of GDP and close to 90% of total exports, as well as 20% 
of government revenue. The economy is therefore highly vulnerable to the boom-bust cycles 
of  the  minerals  market.  Diversification  has  been  a  longstanding  goal.  The  country  has 
substantial potential in agriculture and tourism.  

The large majority of Mongolia's exports  go to China (84%). The EU is  Mongolia's second 
biggest  export  partner  with  a  share  of  8%.  As  regards  total  trade,  China  (63%)  and  Russia 
(11.5%) rank before the EU (9%). 

In  2016,  Mongolian  exports  to  the  EU  amounted  to  around  EUR  64  million.  This  marks  a 
world-markets-related  decrease  by  20%  compared  to  2015.  EU  imports  from  Mongolia  are 
concentrated on textiles, with a share of 70%. 

EU exports to Mongolia amounted to around EUR 313 million in 2016 – mainly consisting of 
chemical products and machinery. 

3.2.  GSP+ Statistics 

Figures 1-3 below describe Mongolia' utilisation of GSP+ in the context of the EU's overall 
imports from Mongolia. 

In  2016,  28%  (EUR  18  million)  of  total  EU  imports  from  Mongolia  qualified  for  trade 
preferences  under  GSP+.  Out  of  total  EU  imports  from  Mongolia,  24%  (EUR  15  million) 
effectively  used  GSP+.  Compared  to  2014,  the  value  of  EU  imports  from  Mongolia  using 
GSP+  in  2016  remained  constant  at  around  EUR  15  million.  EU  imports  from  Mongolia 
under  GSP+  are  concentrated  on  articles  of  apparel  and  textiles  (93%  of  total  EU  imports 
from  Mongolia  using  GSP+).  Mongolia's  utilisation  rate  of  trade  preferences  under  GSP+ 
stands at around 84%, leaving some room for improvement. 

Since April 2017, the EU is assisting Mongolia under the Trade Related Assistance (TRAM) 
project  to  enhance  Mongolia's  international  trade  and  economic  diversification  and  to 
contribute to sustainable economic growth. The project aims at strengthening capacities and at 

19 

 
supporting  Mongolian  public  institutions  and  the  private  sector  for  effective  trade  policy 
initiatives with a special focus on specific products/sectors with high potential.  

Source for all statistics: Eurostat data as of September 2017.  

Figure 1 

Mongolia - Imports to the EU, 2014-2017 

Figures in thousand EUR 

2014 

2015 

2016 

2017 (Q1-2) 

Total imports to EU 
GSP+ eligible imports 
GSP+ preferential imports 
GSP+ utilisation rate 

71,146 
17,952 
15,101 
84.1% 

80,086 
18,732 
16,277 
86.9% 

64,237 
18,210 
15,286 
83.9% 

33,229 
8,031 
5,936 
73.9% 

Trend 2014-
2016 

-9.7% 
1.4% 
1.2% 
-0.2% 

Figure 2 

90.000

80.000

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

)
R
U
E
d
n
a
s
u
o
h
t
(

U
E
e
h
t
o
t

s
t
r
o
p
m

I

Mongolia - Imports to the EU, 2014-2016 

80.086 

20.32% 

3.07% 

71.146 

21.23% 

4.01% 

74.77% 

76.61% 

64.237 

23.80% 

4.55% 

71.65% 

GSP+ preferential imports

GSP+ eligible imports
which do not use GSP+
preferences

Other preferential and
non-preferential imports

2014

2015

2016

20 

 
  
  
  
 
 
 
 
 
 
 
 
Figure 3 

Mongolia -  
Product Diversification of GSP+ Preferential Imports, 2016  

3%  1%  3% 

5% 

7% 

Articles of apparel and clothing
accessories, knitted or crocheted

Articles of apparel and clothing
accessories, not knitted or
crocheted

Other made-up textile articles

81% 

Furniture

Carpets

All other chapters

21 

 
 
 
 
ANNEX 

Mongolia – Treaty Ratification and Reporting  

Convention 

Status of ratification / 
reservations1 

Compliance with reporting obligations to 
monitoring bodies 

1. Convention on the 
Prevention and Punishment 
of the Crime of Genocide 

2. International Convention 
on the Elimination of All 
Forms of Racial 
Discrimination 

3. International Covenant on 
Civil and Political Rights 

4. International Covenant on 
Economic, Social and 
Cultural Rights 

5. Convention on the 
Elimination of All Forms of 
Discrimination against 
Women 

6. Convention against 
Torture and Other Cruel, 
Inhuman or Degrading 
Treatment or Punishment 

7. Convention on the Rights 
of the Child 

8. Convention concerning 
Forced or Compulsory 
Labour, No. 29 

9. Convention concerning 
Freedom of Association and 
Protection of the Right to 
Organise, No. 87 

10. Convention concerning 
the Application of the 
Principles of the Right to 
Organise and to Bargain 
Collectively, No. 98 

11. Convention concerning 
Equal Remuneration of Men 
and Women Workers for 
Work of Equal Value, No. 

Accession: 05.01.1967 

No reporting obligations 

No reservations 

Ratification: 06.08.1969 

Compliant with reporting obligations 

No reservations 

Last report submitted on 22.05.2014. 

Next report due on 06.09.2018. 

Ratification: 18.11.1974  

Compliant with reporting obligations 

No reservations 

Last report submitted on 30.03.2016. 

Next report due on 28.07.2022. 

Ratification: 18.11.1974 

Compliant with reporting obligations 

No reservations 

Last report submitted on 23.02.2012. 

Ratification: 20.07.1981 

Compliant with reporting obligations 

No reservations 

Last report submitted on 11.12.2014. 

Next report due on 01.03.2020. 

Accession: 24.01.2002 

Compliant with reporting obligations 

No reservations 

Last report submitted 23.05.2015. 

Next report due on 12.08.2020. 

Ratification: 05.07.1990 

Compliant with reporting obligations 

No reservations 

Last report submitted on 03.06.2015. 

Ratification: 2005 

Compliant with reporting obligations 

Ratification: 1969 

Compliant with reporting obligations 

Latest CEACR comments: Direct Request 2016. 

Latest CEACR comments: Direct Request 2015. 

Ratification: 1969 

Compliant with reporting obligations 

Latest CEACR comments: Direct Request 2015. 

Ratification: 1969 

Compliant with reporting obligations 

1 Reservations do not apply in the ILO system, so there is no relevance to providing information on reservations under each 
of these conventions. 

22 

 
 
 
 
 
 
                                                 
100 

12. Convention concerning 
the Abolition of Forced 
Labour, No. 105 

13. Convention concerning 
Discrimination in Respect of 
Employment and 
Occupation, No. 111 

14. Convention concerning 
Minimum Age for 
Admission to Employment, 
No. 138 

15. Convention concerning 
Minimum Age for 
Admission to Employment, 
No. 182 

Ratification: 2005 

Compliant with reporting obligations 

Latest CEACR comments: Direct Request 2016. 

Ratification: 1969 

Compliant with reporting obligations 

Ratification: 2002  

Compliant with reporting obligations 

Minimum age specified: 15 
years  

Latest CEACR comments: Observation 2015. 

Ratification: 2001 

Compliant with reporting obligations 

Latest CEACR comments: Observation 2015; Direct 
Request 2015. 

16. CITES 

Accession: 05.01.1996 

Lack of compliance with reporting obligations 

No reservations 

All Annual Reports submitted. 

Latest (2016) Annual Report submitted on 21.11.2016. 

Biennial Reports for 2005-2006, 2007-2008, 2009-
2010, 2011-2012, 2013-2014 due. 

17. Montreal Protocol 

Accession: 07.03.1996 

Compliant with reporting obligations 

No reservations 

Most recent annual data for 2016 was submitted. 

18. Basel Convention 

Ratification: 15.04.1997  

Lack of compliance with reporting obligations 

No reservations 

National Reports are due for 2006, 2007, 2008, 2009, 
2010, 2011, 2012, 2013, 2014, 2015. 

19. Convention on 
Biological Diversity 

Ratification: 30.09.1993  

Compliant with reporting obligations 

No reservations 

Latest (Fifth) National Report submitted on 
28.03.2014. 

Revised National Biodiversity Strategy and Action 
Plan submitted on 21.12.2015. 

20. UN Framework 
Convention on Climate 
Change 

Ratification: 30.09.1993 

Lack of Compliance  with reporting obligations 

No reservations 

First National Communication submitted 01.11.2001. 

Second National Communication submitted 
10.12.2010. 

Third National Communication outstanding. 

First Biennial Report submitted on 06.08.2017. 

21. Cartagena Protocol on 
Biosafety 

Ratification: 22.07.2003 

Lack of compliance with reporting obligations 

No reservations 

First National Report not submitted. 

Second National Report submitted on 23.09.2011. 

Third National Report submitted on 30.11.2015. 

22. Stockholm Convention 

Ratification: 30.04.2004 

Lack of compliance with reporting obligations 

No reservations 

First Round National Report due. 

Second Round National Report submitted on 
03.11.2010. 

23 

 
 
23. Kyoto Protocol 

Accession: 15.12.1999 

No reporting obligations 

Third Round National Report submitted on 
03.09.2014. 

24. UN Single Convention 
on Narcotic Drugs 

25. UN Convention on 
Psychotropic Substances 

26. UN Convention against 
Illicit Traffic in Narcotic 
Drugs and Psychotropic 
Substances 

27. UN Convention against 
Corruption 

Reviewing is fulfilled by the International Narcotics 
Control Board (INCB). 

No reservations 

Accession: 06.05.1991 

No reservations 

Accession: 15.12.1999 

No reservations 

Accession: 25.06.2003 

No reservations 

Ratification: 11.01.2006 

No reservations 

Reviewing is fulfilled by the UN Office on Drugs 
and Crime (UNODC). Latest UNODC review 
executive summary published on 25.08.2011. 

24