Mongolia and Eurasian Economic Union Sign Interim Free Trade Agreement www.montsame.mn
An Interim Free Trade Agreement between Mongolia and the Eurasian Economic Union (EAEU) was signed during the meeting of the Supreme Eurasian Economic Council and the 4th Eurasian Economic Forum held on June 26–27, 2025, in Minsk, the Republic of Belarus.
Deputy Prime Minister and Minister of Economy and Development Uchral Nyam-Osor, officials from the Ministry of Foreign Affairs, Ministry of Economy and Development, and the Mongolian National Chamber of Commerce and Industry participated in the Forum.
Under the Interim Free Trade Agreement, Mongolian producers and businesses will be able to export 367 types of products tariff-free to the EAEU’s member countries, namely the Russian Federation, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, and the Republic of Armenia, that have a combined population of some 200 million.
Among the arrangements, a 5 percent customs duty on diesel, kerosene, fuel oil, and lubricants will be exempted, reducing fuel prices by MNT 147 per liter. Regarding cigarettes, the Agreement specifies no increase in physical quantity while compensating customs duty through excise tax.
The quota for both sugared and unsweetened milk powder was agreed to be set at 1,500 tons, and for eggs at up to 90 million pieces with a reduced duty of 7.5 percent instead of 15 percent. Vodka will be subject to a 30 percent duty, and beer to 18.75 percent. Cheese, processed cheese, and butter imported into Mongolia will be subject to a 7.5 percent duty.
The EAEU’s member states offer a USD 15 billion market for meat, leather, wool, and cashmere products. The Agreement is expected to add value to livestock raw materials and improve incomes for herders and producers. According to a study based on a general trade balance model, Mongolia’s exports of meat and meat products could rise by up to 140 percent, leather goods by 152 percent, and wool and cashmere knitwear by 134 percent.
The Agreement will be submitted to the State Great Khural for ratification.
Published Date:2025-07-01