Transcript Mongolia and the World Trade Organization

Mongolia and the World Trade
Organization
National Chamber of Commerce and Industry of Mongolia
Adyasuren D.
Mongolia and the World Trade
Organization
• Member since 1997, after 6-year negotiations. Short
negotiations.
• There were negotiations during transfer to a new
system “Doha”: first multilateral negotiations on
Mongolia
Main negotiations: agriculture, NAMA (NonAgricultural Market Access), simplification of trade
procedures, services
Protection of interests of the group of developing
countries (G33), small and vulnerable economies, which
have access to the sea.
First TPR: 2005
Liabilities and their fulfillment
Basic rates:
- Average: 18%
- Specific products: 25% -75%
Realization: 1997 - 15%, 2003 - 5%
Absence of quota
License for several products
Absence of additional fees and payments
Simplification of customs services
Reconsideration of laws
Export duty for several products
Absence of tariff quota without control of prices
General Agreement on Trade in
Services
The General Agreement on Trade in Services covers 12 sectors of
services and 160 sub-sectors.
Mongolia contracted liabilities in 6 out of 12 sectors and 20 out of
160 sub-sectors with the coverage rate of 23.9%.
These include business services, postal and courier services,
telecommunication services, insurance services, banking and
other financial services, tourism services.
The General Agreement on Trade in Services: applications and
proposals:
- Improvement of current liabilities;
Requests from Mongolia in other countries – members of the
World Trade Organization;
-Requests from members of the World Trade Organization in
Mongolia;
Laws, regulating trade in services
The law on special licenses for business;
The law of Mongolia on the central bank;
The law of Mongolia on the settlement currency;
The law on export of labor force and import of foreign labor
force and experts;
Other laws, related to banking and postal services,
intellectual property, unfair competition etc;
International contracts, where Mongolia participates;
Bilateral agreements with foreign states on the issues of
trade and economic cooperation;
GDP growth by years, in percent
External trade (million US dollars)
Foreign investments (million US
dollars)
Services sector
Share of the services sector in GDP constitutes 40.9% (preliminary data of 2011)
2008
2009
2010
GDP (USD)
5,180,384,524.2
5,208,095,949.3
6,649,364,262.8
Services sphere (GDP)
2,055,087,082.9
2,244,693,787.2
2,709,089,422.0
Share in GDP
39.7%
43.1%
40.7%
Largest sub-sectors (statistics of 2009):
 Retail and wholesale trade (12.2%), transportation, warehousing and
communication (11.2%), real estate, lease and other types of activity
(9.1%), financial intermediation (3.0%). Employment in the services
sector increased up to 54.1% in 2009 and 51.8% in 2008, whereas in
2003, this rate constituted 46.4%. Labor capacity in the services
sector was higher as compared to agriculture and production spheres.
Advantages of membership
Trade with members on the basis of the MFN mode;
Increase of trade volume (from 900 million US dollars in 1995 to 11
billion US dollars in 2011);
Increase of the number of trade partners (from 14 to 140);
Increase of investments (about 10 billion US dollars) and investment
sources (from 110 countries);
GDP growth;
Supply of goods (cheap import);
Selection of consumers;
Strong stimulus for domestic reforms;
Attraction of interests of other countries (in political aspect);
Participation in the world trade decisions making;
Information exchange;
Possibility to obtain technical assistance within the framework of
corresponding programs;
Influence on bilateral trade relations;
Drawn lessons
• Private
sector should be strong. Negotiations
should be based on factual data’
•It is necessary to consider political problems as
well as economic consequences;
• Joining should be well-prepared and timely;
There should be relevant structure and
infrastructure for development of the trade
policy;
Thank you for attention!!!
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