During the official visit by the President of Mongolia Ts.Elbegdorj to Tokyo this week, Mongolia and Japan reached a substantive free trade agreement featuring Ulaanbaatar's abolition of its import tariffs on most Japanese automobiles in 10 years.
The size of the bilateral trade is relatively small. In 2013, Japan's exports to Mongolia were valued at 29.3 billion yen (about $288 million) and Mongolia's exports to Japan at 1.9 billion yen. Japan's main export items to Mongolia include used passenger vehicles, which account for some 45 percent of total exports. Mongolia mainly exports coal and other natural resources.
Under the free trade agreement, Mongolia will immediately abolish its 5 percent import duty tariffs on some Japanese automobiles with engine displacement of 4,500 cc or below, while tariffs on other automobiles, including some used vehicles, will be scrapped in 10 years. According to export statistics by Japanese Customs and Tariff Bureau, Mongolia has imported around 33,000 used passenger vehicles from Japan last year, making it one of top 10 most popular destinations of Japanese used cars after Russia, UAE, New Zealand.
Tokyo will introduce the tariff-quota system on some processed beef products imported from Mongolia. It will also abolish tariffs on almost all industrial products imports, including cashmere goods, in up to 10 years, the officials said.
Tokyo is the first free trade partner for Ulaanbaatar. The two launched their talks in 2012 and held seven sessions of negotiations in the past.
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| Da Khuree used car market in Ulaanbaatar |
The size of the bilateral trade is relatively small. In 2013, Japan's exports to Mongolia were valued at 29.3 billion yen (about $288 million) and Mongolia's exports to Japan at 1.9 billion yen. Japan's main export items to Mongolia include used passenger vehicles, which account for some 45 percent of total exports. Mongolia mainly exports coal and other natural resources.
Under the free trade agreement, Mongolia will immediately abolish its 5 percent import duty tariffs on some Japanese automobiles with engine displacement of 4,500 cc or below, while tariffs on other automobiles, including some used vehicles, will be scrapped in 10 years. According to export statistics by Japanese Customs and Tariff Bureau, Mongolia has imported around 33,000 used passenger vehicles from Japan last year, making it one of top 10 most popular destinations of Japanese used cars after Russia, UAE, New Zealand.
Tokyo will introduce the tariff-quota system on some processed beef products imported from Mongolia. It will also abolish tariffs on almost all industrial products imports, including cashmere goods, in up to 10 years, the officials said.
Tokyo is the first free trade partner for Ulaanbaatar. The two launched their talks in 2012 and held seven sessions of negotiations in the past.
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