ULAANBAATAR (GoGo Mongolia) – Mongolia had shown keenness to accede to the Asia-Pacific Trade Agreement in 2009 to enjoy tariff concessions on its exports to other member countries.
Mongolia had expressed its interest in acceding to the Asia-Pacific Trade Agreement (APTA) in 2009 and has applied tariff concessions on 377 items.
The APTA, previously named the Bangkok Agreement and signed in 1975, is an initiative of the Economic and Social Commission for Asia and the Pacific (Escap), is a preferential tariff arrangement that aims at promoting intra-regional trade through the exchange of mutually agreed concessions by member countries.
APTA has five members: Bangladesh, China, India, Republic of Korea, Lao People's Democratic Republic and Sri Lanka. Escap functions as the secretariat for the agreement.
APTA member countries account for more than 60 per cent of Mongolia's foreign trade turnover, over 90 per cent of its exports and 30 per cent of its imports. By acceding to the APTA, Mongolian products to be exported will be able to enjoy tariff concessions, with an average of 40 per cent in the Chinese and South Korean markets.
The draft law on the accession to APTA was discussed and supported by the government of Mongolia on Apr 20, 2015. However, the accession was delayed as the government of Mongolia had issued a resolution on Mar 28, 2016, to increase custom duties of some imported goods, such as wooden doors and windows.
Mongolia mainly imports wooden doors and windows from China and South Korea. As of 2015, the total value of imported wooden doors and windows reached $5.6 million, and Mongolia was projected to earn $1.1 million from import and custom duties.
However, the custom revenue had declined by $330 thousand by offering a tariff concession of 30 per cent on these items. Nonetheless, the Mongolian government considered that the revenue loss could be fully recovered as tariff concessions on Mongolian products, such as coal, will save $9.6 million for the country.
Coal, the main export commodity of Mongolia, will enjoy a tariff concession of 30 per cent, while the exports of cooking coal are expected to be offered a tariff concession of 50 per cent.
In addition, investment in Mongolia from APTA member countries will be increased, while it will show a positive impact on the economy.
Moreover, Mongolia is exploring the possibility of establishing free trade agreements with China and South Korea. The implementation result of APTA will be significant in assessing the opportunities and risks of free trade agreements to be established with these countries.
The draft law on the accession to APTA will be finalised by the government of Mongolia.
ULAANBAATAR (GoGo Mongolia) – Mongolia had shown keenness to accede to the Asia-Pacific Trade Agreement in 2009 to enjoy tariff concessions on its exports to other member countries.
Mongolia had expressed its interest in acceding to the Asia-Pacific Trade Agreement (APTA) in 2009 and has applied tariff concessions on 377 items.
The APTA, previously named the Bangkok Agreement and signed in 1975, is an initiative of the Economic and Social Commission for Asia and the Pacific (Escap), is a preferential tariff arrangement that aims at promoting intra-regional trade through the exchange of mutually agreed concessions by member countries.
APTA has five members: Bangladesh, China, India, Republic of Korea, Lao People's Democratic Republic and Sri Lanka. Escap functions as the secretariat for the agreement.
APTA member countries account for more than 60 per cent of Mongolia's foreign trade turnover, over 90 per cent of its exports and 30 per cent of its imports. By acceding to the APTA, Mongolian products to be exported will be able to enjoy tariff concessions, with an average of 40 per cent in the Chinese and South Korean markets.
The draft law on the accession to APTA was discussed and supported by the government of Mongolia on Apr 20, 2015. However, the accession was delayed as the government of Mongolia had issued a resolution on Mar 28, 2016, to increase custom duties of some imported goods, such as wooden doors and windows.
Mongolia mainly imports wooden doors and windows from China and South Korea. As of 2015, the total value of imported wooden doors and windows reached $5.6 million, and Mongolia was projected to earn $1.1 million from import and custom duties.
However, the custom revenue had declined by $330 thousand by offering a tariff concession of 30 per cent on these items. Nonetheless, the Mongolian government considered that the revenue loss could be fully recovered as tariff concessions on Mongolian products, such as coal, will save $9.6 million for the country.
Coal, the main export commodity of Mongolia, will enjoy a tariff concession of 30 per cent, while the exports of cooking coal are expected to be offered a tariff concession of 50 per cent.
In addition, investment in Mongolia from APTA member countries will be increased, while it will show a positive impact on the economy.
Moreover, Mongolia is exploring the possibility of establishing free trade agreements with China and South Korea. The implementation result of APTA will be significant in assessing the opportunities and risks of free trade agreements to be established with these countries.
The draft law on the accession to APTA will be finalised by the government of Mongolia.