Mongolia exports to one out of three diplomatically related countries; however, the country imports from two out of three, resulting in a foreign exchange (FX) loss. Although the export amount is high, it still falls short compared to import deficit. By importing from 159 countries and exporting to 77, the export rate remains at only half of total imports.

According to the Mongolian Customs General Administration (MCGA), only three countries, namely the People’s Republic of China, the United Kingdom, and the Russian Federation, made up 96.5 percent of total exports in 2018. China, being the first on the list, accounts for 92.8 percent of Mongolia’s total exports. The remaining 3.5 percent is formed by 74 countries.

The MCGA report shows that Mongolia exported USD 303,000 worth goods to Africa as of the end of 2018, of which USD 235,000 were exported to Egypt. The export items mainly consisted of rugs, wool, and animal intestines. Compared to the same period of 2017, the export rate dropped by half in 2018. Next up on the list is a country where Mongolian peacekeepers are in. With a total of USD 64,000 worth goods exported, export to Sudan remains rather high in 2018 compared to previous years. Sudan buys used tires, tire tubes, car mirrors, and other car parts. Throughout last year, Zimbabwe bought micronutrients, the Republic of South Africa bought laboratory reagent. and a few wickerworks were noted in the customs report. As such, African countries mainly bought samples and used parts from Mongolia; however, the FX inflow from Africa was three times lower compared to 2016. The same could be said for export as it has been falling in recent years. Especially in the last two years, Mongolia’s biggest trade partners in Africa, namely Angola with a total trade turnover of USD 280,000 and Kenya with USD 604,000, have stopped trading with Mongolia.

Exports to Asia and the Middle East were mainly made to China, South Korea, Japan, and Singapore last year. Some interesting items were also noted. For example, North Korea purchased frozen beef cigar, and 1 million cigarettes from Mongolia within the financial year.

China, UK and Russia account for 96.5 percent of total exports
Located in the Persian Gulf, Bahrain bought a single type of product worth USD 125,000, which is livestock and its by-products. Mongolia also exports camel wool to Balboa and other products totaling USD 260,000. Bhutan bought 250kg cheese for USD 600. On the contrary, trades with Jordan, Lebanon, and Oman are rapidly increasing. These countries have been mainly interested in purchasing animal husbandry goods, such as raw meat and leather. Unlike Africa, exports to Asia is on the rise.

As for exports to Europe and America, Great Britain is at the forefront. The key trade partners include Russia, Italy, Germany, and France. These countries mostly buy animal hides.

Exports to Estonia stand at a mere USD 6,800, which consisted of amplifiers and its related products. These are the general exports made from Mongolia that are falling behind our biggest buyer China. Mongolia has been actively developing foreign trade for almost three decades. But the number of goods and trade partners are few compared to other countries. Mongolia does have trading systems through the continent, but the profit falls short, thus, there is an urgent need to diversify exports and trading partners.

Published Date:2019-02-26