Timeline: 2014 – 2015
Donors: Germany (GIZ), Trade Policy and Promotion Fund
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) implemented a project within the Trade Policy and Trade Promotion Fund to support Mongolia in its trade integration efforts. In July 2014, the GIZ commissioned IDEAS Centre to draft a background policy paper on Mongolia’s options and opportunities in regional and preferential trading schemes.
While Mongolia remains reliant on a non-discriminatory multilateral trading system (like many other landlocked developing countries), it also seeks to obtain enhanced market access conditions abroad. On 10 February 2015, Mongolia signed its very first preferential trade agreement of its history with Japan. It has also been accepted as the seventh member of the Asia-Pacific Trade Agreement (formal accession pending). Over the last couple of years, a number of other trading partners have approached the Mongolian Government to potentially engage into free trade talks. Indeed, mineral resources are bountiful and the country’s great economic potential has attracted considerable interests from many international actors.
A lot of opportunities are now open in the horizon for Mongolia. The public and the private sector have to work hand in hand to face a number of barriers and difficulties to move away from dependency on mineral deposits and to comply with the government’s strategy to base its economic development on export-oriented production and services of higher value addition than unprocessed products.
“The GIZ commissioned IDEAS Centre to draft a background policy paper on Mongolia’s options and opportunities in regional and preferential trading schemes.”
In agreement between the Mongolian government, GIZ and IDEAS Centre, a multi-stakeholders workshop was organized focusing on export and preferential trade opportunities.
The objective of the workshop was primarily to underline the market access options Mongolia holds in terms of regional and preferential trade agreements. It sought to identify how Mongolia can strengthen its export potential and through which channels it could increase its trade flows.
IDEAS Centre sought to ensure that results of the workshop are put to use by the relevant actors by establishing a work plan for the next steps to be undertaken.