Mongolia and the Eurasian Economic Union have held the third round of negotiations on the "Concluding the Interim Free Trade" Agreement and agreed on products to be supplied tariff-free or with reduced tariffs.
A total of 367 types of goods will be exported tariff-free from Mongolia to the countries of the Eurasian Economic Union (Russia, Kazakhstan, Belarus, Armenia, Kyrgyzstan). Specifically, 29 types of meat and meat products, 60 types of leather products, 204 types of wool and cashmere products, and 73 types of other agricultural products will be duty-free. This will allow exporting entities of Mongolia to be exempted from customs duties of USD 16.6 million per year. 
First Deputy Prime Minister and Minister of Economy and Development of Mongolia Gantumur Luvsannyam noted, "The Government can increase meat exports in cooperation with the Eurasian Economic Union and earn USD 500 million.
Our country exports meat to these countries to a certain extent, but we currently do not export sheep and goat meat. These issues can be resolved through negotiations, enabling the export of meat throughout all four seasons of the year. It is also possible to establish cashmere and knitted goods brands and export them to the Eurasian market to earn at least USD 500 million."
The Policy Research Laboratory of the National University of Mongolia studied the economic impact of Mongolia joining the Eurasian Economic Union free trade agreement. An analysis of Mongolia's foreign trade situation showed that 375 types of goods account for a very small share of total exports and may decrease from year to year. The imports from the EAEU countries can be greater than domestic production and exports, according to the study.
N. Otgonsaikhan, Professor of the Department of Marketing and Trade of the National University of Mongolia, noted, "Mongolia exported goods worth USD 110.1 million to the EAEU countries last year and imported goods worth USD 2.9 billion. With the negotiations, exports are predicted to increase by 3.8 percent and imports by 4.7 percent. This shows how much the trade balance deficit will be. Most of the increase in imports is in the industrial sector. This sector, which is aimed at restoring through the implementation of state policies and programs, will be negatively affected by the growth. Therefore, if the agreement is concluded, it is important to make the industrial sector competitive. There is an opportunity to export certain products in the textile and knitting sector. Revenue from it is possibly increased by USD 200-300 thousand. In the agreement with Japan, there was a case in which our carpets did not meet the rules of origin requirements. Based on previous experience and solving the issues, we can increase exports. Within the framework of the negotiations, customs duties on key goods were eliminated. However, if we do not meet the rules of origin and other requirements, preferential tariffs are useless. Therefore, I would like to say to manufacturers, be very well prepared."

Published Date:2025-04-07