China is Mongolia’s largest export market and accounts for 64 per
cent of total Mongolian exports. China is the main importer of Mongolian
copper and molybdenum concentrate. The majority of Mongolian washed
and raw cashmere and hides also goes to China.
The USA is the second largest export market and accounts for 22 percent
of total Mongolian exports. Mongolian exports to the US are mainly garments,
textiles and cashmere products. Mongolia enjoys an annual tax-exempt
textile quota with the US and the EU under a bi-lateral textiles trade
agreement.
The Russian Federation is the third largest export market and accounts
for 11% of total Mongolian exports. Russia is the main importer of fluorspar
concentrate and Mongolian meat products.
Italy is Mongolia’s fourth largest export market and accounts for
3 percent of total exports. Italy’s main Mongolian imports are cashmere
products.
Russia and China provide the largest share of imports into the Mongolian
economy, together accounting for 72 percent of Mongolian imports.
Russia has long been a natural trade partner of Mongolia, and is
the main supplier to Mongolia. Russian products account for 45 percent
of total Mongolian imports. Russia supplies almost all of Mongolia’s
petroleum product needs, as well as electricity and processed food products.
After Russia, China is becoming the most important trade partner
for Mongolia. Today, Chinese imports into Mongolia account for 27% of
total Mongolian imports, and this number is expected to increase. Manufactured
goods and consumer products are China’s main exports to Mongolia.
Mongolia’s importation of Japanese and Korean goods accounts for
16 and 12 percent respectively. These imports are primarily manufactured
goods and consumer products.
Main Commodities Traded
Mongolia’s primary exports are copper, gold, and cashmere textiles
and garments.
In 2003, the exportation of mineral products accounted for almost
60% of total Mongolian exports. Gold, copper and tungsten are the main
minerals exported.
Mongolian mineral exports are dominated by copper and gold. Copper
accounts for over 50% of the value of all Mongolian exports, 25% of
GDP and 15% of tax revenue. However, the dominance of copper is declining
as gold production begins to increase.
Following the recent abolishment of a 10 percent export tax on gold,
gold exports are expected to increase and production of newly discovered
mines is expected to commence.
Textiles and garments represent 27% of Mongolian exports. Mongolia’s
bi-lateral textiles trade agreement with the US and the EU entitles
it to an annual tax exempt textile quota.
Major Mongolian imports are agricultural products (45%); equipment
(33%); and mineral articles (25%).
Trade and Investment Agreements
Mongolia was admitted to the WTO in 1996 and enjoys MFN status with other
member countries. The import tax rate is 7% on imported itemsother than
computer technology devices, medical devices and livestock.
