News

ON THE IMPLEMENTATION OF THE ASIA-PACIFIC TRADE AGREEMENT

Summary

Mongolia became the seventh member of the Asia-Pacific Trade Agreement (APEC), the first regional economic partnership agreement, which was ratified by the State Great Hural (Parliament) on December 12, 2019.

Updated on : 27-10-2020

 

ON THE IMPLEMENTATION OF THE ASIA-PACIFIC TRADE AGREEMENT

 

Mongolia became the seventh member of the Asia-Pacific Trade Agreement (APEC), the first regional economic partnership agreement, which was ratified by the State Great Hural (Parliament) on December 12, 2019.

Developing countries in the Asia-Pacific region, such as India, South Korea, Sri Lanka, Laos and Bangladesh, signed the Bangkok Agreement in 1975 to provide trade concessions to each other. China acceded to the agreement in 2001 and the parties expanded the scope of the agreement in 2005, ratifying the Bangkok Agreement as the Asia-Pacific Trade Agreement (APEC).

The agreement aims to expand trade between developing member countries, stimulate their economies, liberalize trade and promote mutually beneficial cooperation, and remove tariffs, non-tariff and other trade-related barriers to trade between member countries.

The APEC stakeholders negotiated a total of four tariff tariffs and agreed to reduce customs tariffs on a total of 10,677 products, and to reduce customs tariffs on a total of 366 goods imported by Mongolia from member countries. In addition to customs tariffs, members agreed on non-tariff arrangements, trade in services, investment, and trade facilitation.

The APEC member countries account for about 70 percent of our total foreign trade turnover, about 90 percent of exports, and more than 30 percent of imports. The agreement would allow the six fastest-growing APEC member states, with more than 2.9 billion consumers, to enjoy 5-100 percent tax breaks on a total of 10,667 items.

As Mongolia will implement the “Asia-Pacific Trade Agreement” on January 1, 2021, the Mongolian Customs is preparing to implement the Agreement on Trade in Goods and the Charter of Origin.