INTERNATIONAL TRADE AND TRADE FACILITATION IN MONGOLIA
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1 INTERNATIONAL TRADE AND TRADE FACILITATION IN MONGOLIA EURO-ASIAN REGIONAL MIDTERM REVIEW OF THE VIENNA PROGRAMME OF ACTION Bangkok, Thailand, February 11-12, 2018 BATTSETSEG TUVSHINTUGS Deputy Director General, Foreign Trade and Economic Cooperation Department, MFA
2 FOREIGN TRADE TURNOVER, GROWTH RATE ( *, USD billion, percentage) % % -2% % 22% Source: General Customs Authority
3 EXPORT VOLUME, GROWTH RATE ( , USD billion, percentage) % % % % % Source: General 3 Customs Authority
4 Export diversification, by product (as of 2018) 1.3% 1.1% 0.7% 1.4% Mineral products 2.7% 6.8% Textiles and textile articles Natural or cultured pearls, precious or semi-precious stones Base metals and articles thereof Live animals, animal products MACRO ECONOMIC STABILITY LEGAL STABILITY INVESTMENT OPPORTUNITY Prepared foodstuffs 85.9% Others 4
5 MONGOL EXPORT PROGRAM GOAL 1 GOAL 2 GOAL 3 GOAL 4 GOAL 5 Stabilizing a favorable legal and financial environment for non-mining exports Supporting valueaddition processing and strengthen competitiveness in foreign markets Facilitating trade and improving access to export markets Improving capacity of the private sector to assess foreign market prospects. Identifying market opportunities and overcoming barriers to get better integrated into global value chains.
6 TRADE RELATED ISSUES IN NATIONAL POLICY DOCUMENTS ACTION PROGRAM OF THE GOVERNMENT OF MONGOLIA MONGOL EXPORT PROGRAM 2016/02 Support foreign trade to ensure sustainable economic growth 2018/01 Supporting non-mining exports. MONGOLIA SUSTAINABLE DEVELOPMENT VISION 2030 Improving trade and services, develop transportation and logistics network of import and export goods 2016/09 Industrialization 21:100 program ( ) Support industrial capacities to produce export-oriented products. 2018/09 6
7 NATIONAL EXPORT STRATEGY OF MONGOLIA 1 TRADE AND INVESTMENT ROADMAP 2 FULL NATIONAL EXPORT STRATEGY DESIGN Build a long-term growth map by creating an enabling business and investment environment Strengthen trade and investment support institutions to effectively respond to the needs of Mongolian companies Enhance companies capacity to meet market requirements and sustain exports A comprehensive 5-year action plan to achieve the National Export Strategy Realistic National Export Strategy governance and management framework Implementation of National Export Strategy Stimulate innovation and entrepreneurship by unleashing entrepreneurial capacities and strengthening the start-up system 7
8 TRADE AND INVESTMENT ROADMAP OF MONGOLIA ( ) YAK AND CAMEL WOOL MEAT, PROCESSED MEAT AND DIARY LEATHER ICT CASHMERE TRADE AND INVESTMENT SUPPORT TRADE AND INVESTMENT POLICY TRADE FACILITATION TRADE AND INVESTMENT PROMOTION ACCESS TO FINANCE TOURISM RENEWABLE ENERGY PROCESSED MINERALS PRIORITY SECTORS QUALITY MANAGEMENT SKILLS DEVELOPMENT 8
9 MULTILATERAL AND REGIONAL TRADE ARRANGEMENTS market access 01 TRADE FACILITATION AGREEMENT (TFA) 02 ASIA PACIFIC TRADE AGREEMENT (APTA) Trade facilitation road map and strategic plan was formulated by the National Trade Facilitation Committee.. Government is considering the country s accession to APTA. 9
10 MULTILATERAL AND Category REGIONAL A PREFERENTIAL June, 2014 TRADING ARRANGEMENTS Category B and C August, 2017 NTFC meetings Oct, 2017; Feb 2018; Oct st meeting: Committee charter and Action plan for 2017 approved NATIONAL TRADE FACILITATION COMMITTEE Organized workshops and seminars aimed at increasing awareness of the TFA 2 nd meeting: Established 3 sub-committees Action plan for 2018 approved International seminar on TF in cooperation with WB IFC 10 3 rd meeting: Trade Facilitation Road Map for Strategic plan of NTFC
11 ASSISTANCE FROM DEVELOPMENT PARTNERS TRADE RELATED ASSISTANCE FOR MONGOLIA (EU- TRAM) Asian Development Bank Trade policy capacity building Trade facilitation Support private sector to develop export cluster Upgrading the Customs Automated Information system Preparatory work for the establishment of a single window system 11 Edit text The World Bank Export insurance Establishing Trade portal Strengthening capacity of NTFC
12 Underdeveloped infrastructure and logistics system: Missing railway links hinder actual usage of the preferential agreements reached with transit countries in accessing their sea ports Insufficient synergy and coordination among various export-oriented programs and projects Weak institutional capacity to formulate and implement trade policy Lack of financial resource: FDI is mainly poured into mining sector. Face various non-tariff measures in accessing export markets Poor business environment Insufficient attention given to trade facilitation issues CHALLENGES 12 12
13 13 THANK YOU FOR YOUR ATTENTION
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