Mongolian-Japanese ties shifting from aid to economic exchange
Mongolian-Japanese ties are shifting from aid to economic exchange.
Mongolian-Japanese ties are shifting from aid to economic exchange. Hopes are high that economic partnership agreement signed between Mongolia and Japan in February 2015, went into effect June 7, will spur economic exchange. Automobiles and auto parts make up nearly 70% of Mongolia's imports from Japan. The economic partnership agreement, or EPA, removed Mongolia's 5% import duty on new cars, auto parts and construction machinery, with the duty on vehicles up to 10 years old to be abolished within 10 years. The accord is to eliminate tariffs covering 96% of trade between the two countries over the next decade. Japan removed its tariff on cashmere coats coming in from Mongolia, potentially helping grow that country's exports. The pact also grants Japanese companies preferential terms when investing in the country -- particularly useful for trading houses and others aiming to tap Mongolia's rich copper, coal and other mineral resources. Trade between Mongolia and Japan totals around $349 million annually. A little over 200 Japanese companies have a Mongolian presence, many of them small or midsize businesses. Japan was a consistent supplier of grants and other financial aid to Mongolia after the country broke away from the Soviet Union and democratized in 1990. That support exceeded 200 billion yen in all -- the most from any nation and it is hoped to be changed into economic exchange.
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