Cashmere from Mongolia: One Way to Smooth Out Washington’s Partisan Divide? www.globalatlanta.com

Washington is increasingly seen as a toxic place, providing few opportunities for politicians on opposite sides of the aisle to talk and work with each other. Even foreign policy, an area once offering considerable scope for consensus and cooperation, has become fractured and controversial.

Against this backdrop, there is one unlikely area of international interest and concern which offers unexpected opportunities for Congressional bi-partisanship: Mongolia.

During the early 1990s, when Mongolia emerged from the shadow of the Soviet Union to transform itself into a democracy as well as a free-market economy, Democrats and Republicans joined hands to offer Mongolia encouragement and support.

At the time, it was thought that a democratic and economically successful Mongolia would offer hope to other countries in Asia and beyond. Remarkably, Mongolia actively participated in and later chaired the Community of Democracies. At the same time, it registered a tenfold increase in GDP between 2001 (when I first served as a foreign service officer in Mongolia) and 2013 (when I completed my final diplomatic assignment as U.S. ambassador to Mongolia), dramatic economic growth that was mostly fueled by its mineral wealth.

Congress actively supported Mongolia’s early success. However, as this interest abated, the Congressional Mongolian Caucus also began to languish — though there are signs that this is beginning to change, as evidenced by the Mongolia Third Neighbor Trade Act, recently introduced into the House by Rep. Ted Yoho, a Republican from Gainesville, Fla.

This new bill offers an especially positive way forward, explicitly acknowledging as it does that fact that the United States is one of the “pillars” of Mongolia’s “Third Neighbor” foreign policy.

Among other things, this policy recognizes that Mongolia as a land-locked country must maintain correct relations with its two powerful immediate neighbors — Russia and China — while also seeking to “balance” these challenging relationships by forging positive ties with third countries.
The fact that cashmere — a luxury product combed from the soft underbelly of cashmere goats after harsh winters such as those experienced in Mongolia where temperatures routinely plunge to 40 degrees below zero — serves as an economic lifeline to tens of thousands of rural Mongolian herders adds to its importance.

Indeed, given that livestock outnumbers Mongolia’s human population by 20 to one, cashmere and other animal fibers make an especially valuable contribution to Mongolia’s economic success in terms of both employment and income at a time when it desperately needs a boost.

While Mongolia trails only China as a global source of raw cashmere, it loses out economically because of its inability to turn that raw cashmere into finished products such as high quality sweaters and suits before exporting it.

As currently written, the Third Neighbor Trade Act provides a five year window for the duty-free entry of Mongolian wool products into the United States, setting the stage for a revival and expansion of the Mongolian wool industry — yak wool, camel wool and cashmere wool.

Successful passage of the Third Neighbor Trade Act would provide a huge incentive for Mongolia to diversify its economy and develop its domestic industry based on a variety of animal fibers, none of which compete directly with American products.

Pioneering new American firms such as the Naadam Co., founded by two young American entrepreneurs who vacationed in Mongolia and returned to the United States hugely impressed with what they saw, are well positioned to spearhead this effort.

Bypassing China, it could export finished products directly to the United States, strengthening the US partnership with a country that has also chosen the path of democracy. Moreover, it ensures that the United States can be supportive in ways that neither threaten U.S. jobs nor involve taxpayer dollars for foreign aid.

Other elements of Congress have endorsed the wisdom of this approach. Indeed, while the Mongolia Third Neighbor bill was formally introduced by a conservative Republican from Florida, it has also garnered support from an unlikely and eclectic range of other congressional groupings including the Black Caucus, Freedom Caucus and Progressive Caucus.

Not surprisingly, the bi-partisan Mongolian Caucus — co-chaired by Rep. Dina Titus (a Democrat from Nevada) and Rep. Don Young (a Republican from Alaska) — also strongly supports this bill.

Hopefully, the Congressional delegation from Georgia will also see merit in this pioneering initiative that benefits both Mongolia and the United States. In particular, Georgia’s two senators are well positioned to assist in this effort once it moves to the Senate — Sen. Johnny Isakson is a leader within the Foreign Relations Committee and Sen. David Perdue plays a key role in the Armed Services Committee.

Both committees and both houses of Congress should welcome and support this legislation which reflects bi-partisanship at its best while also advancing U.S. interests in a seemingly remote yet important part of the world, one which helps diversify Mongolia’s economy, strengthens Mongolian independence and advances U.S. diplomatic partnerships in a part of the world that strategically truly matters.

Jonathan Addleton served as US Ambassador to Mongolia during 2009-2012. A retired Foreign Service Officer, he teaches at Mercer University in Macon, Ga.; serves as Executive Director of the American Center for Mongolian Studies; and authored Mongolia and the United States: A Diplomatic History (Hong Kong University Press, 2013).

President met President of the Russian Federation Vladimir V.Putin www.montsame.mn

President of Mongolia Khaltmaa Battulga met President of the Russian Federation Vladimir V.Putin and discussed the cooperation between the two countries.

President meets his Chinese counterpart Xi Jinping www.montsame.mn

President of Mongolia Khaltmaa Battulga met President of the People’s Republic of China Xi Jinping on Wednesday on the sidelines of the 4th Eastern Economic Forum in Vladivostok, Russia.

Russian gas megaproject to China close to completion www.rt.com

Gazprom will soon complete its part of the Power of Siberia gas pipeline to China, the Russian company announced on the sidelines of the Eastern Economic Forum in Vladivostok. The pipeline will be one of the world’s largest.

Russia & China cooking up joint projects worth more than $100bn www.rt.com

Russian and Chinese businesses have agreed to develop trade and economic cooperation as well as increased mutual investments at the Eastern Economic Forum in Vladivostok.
According to a statement from the Russian Direct Investment Fund (RDIF), the sides are considering 73 investment projects cumulatively worth more than $100 billion.

Mongolian President expected to visit Iran www.news.mn

Mongolian President Kh.Battulga is expected to visit Tehran later this year to attend the Asia Cooperation Dialogue Forum. The event will provide a good ground for the expansion of bilateral trade between Iran and Mongolia said, Mojtaba Khosrotaj, Head of Iran’s Trade Promotion Organization (TPO).

Visually impaired people plea for employment opportunity www.montsame.mn

Ulaanbaatar /MONTSAME/ World Blind Union-Asia Pacific Mid-Term Regional General Assembly kicked off on September 10 in Ulaanbaatar city. The General Assembly gathered more than 100 guests from 18 countries of Asia Pacific region and over 80 Mongolian representatives.

IFC Helps Mongolia Government Facilitate Trade by Enhancing Risk Management of Border Agencies www.webwire.com

IFC, a member of the World Bank Group, along with the Ministry of Foreign Affairs, the General Agency for Specialized Inspection, and the Customs General Administration of Mongolia, hosted an international conference in Ulaanbaatar today (Sep 11). The aim is to help Mongolia develop more efficient border inspection practices.

This will, subsequently, accelerate collaboration of border agencies to implement the country’s commitments under the World Trade Organization’s Trade Facilitation Agreement reducing cost for trade — especially for emerging agriproducts exports.

At the conference — ‘Trade Facilitation: Roles of Customs and Inspection Agencies’ — Mongolian and international experts shared their learning and experience with regards to implementation of the WTO TFA in countries such as Mongolia, China, the Philippines, Korea, and the United Kingdom. More than 180 officials from the central and border units of GASI and Customs discussed how agencies could enhance practices to help Mongolia become more competitive in trade.

“Mongolian Customs, a member of the World Customs Organization, has set objectives to secure international trade, improve trader compliance, and to facilitate legitimate trade in its near-term strategy,” said Bat-Erdene Yo, Deputy Director General of the Customs General Administration of Mongolia. “We are implementing customs control risk management by collaborating with customs stakeholders as well as international partners. The Authorized Economic Operator program, too, has been introduced. The international conference was timely and enhanced the knowledge and experience of our customs officials.”

“GASI’s collaboration with international partners such as IFC has resulted in notable achievements to reduce trade barriers and ensure trade security in recent years. These include reducing the number of days required for import and export certificate issuance by three to five days, using inspection check lists at border crossing points, and slashing inspection by 26 per cent,” said D. Enkhsaikhan, Deputy Chairman of GASI. “Going forward, GASI aims to play a significant role in the trade facilitation agenda by enhancing infrastructure of border posts, quarantine facilities, warehouses, and IT systems.”

The World Bank Group is taking a holistic approach to support Mongolia’s export diversification. The World Bank is assisting exporters by providing export insurance and capacity-building grants through its Export Development Program. In March, IFC launched the Mongolia Trade Facilitation and Agricultural Exports Competitiveness Project to help streamline trade and customs regulations, simplify border inspection practices, and enhance private sector capacity to meet export requirements in the next five years. The conference marks an important milestone of the project.

“Developing countries — especially those that are landlocked — face considerable challenges when it comes to tackling trade facilitation issues. Recognizing this, the World Bank Group invests heavily in trade facilitation programs,” said Dahlia Khalifa, Senior Manager, WBG Investment Climate Advisory Services. “We are committed to promoting Mongolia’s trade and exports by providing hands-on advice and technical assistance in areas of risk management, Authorized Operators scheme, access to information, and capacity building.”

This project is co-funded by the Trade Facilitation Support Program, a multidonor program hosted by the WBG that helps developing countries align border processes and procedures with the WTO TFA.

About IFC 
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

Representation of Mongolia will open in Primorye www.eastrussia.ru

The Government of Mongolia intends to open a trade mission in Primorsky Krai. This was announced during the meeting of the head of the region Andrei Tarasenko with the Minister of Foreign Affairs of Mongolia Damdin Tsogtbaatar on the margins of the fourth Eastern Economic Forum.

Japan, Mongolia agree to cooperate on N. Korean abduction issue www.mainichi.jp

VLADIVOSTOK, Russia (Kyodo) -- Japanese Prime Minister Shinzo Abe and Mongolian President Khaltmaa Battulga agreed Tuesday to closely cooperate in settling the issue of North Korea's past abductions of Japanese nationals, with Ulan Bator maintaining diplomatic ties with Pyongyang.