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International framework

2020/03/10

Mongolia constantly proves itself to be in a global market. Mongolia is persistently discussing to enter bilateral and multilateral agreements and actively participates in the process of regional integration. Until to this day, Mongolia has established Foreign Investment Protection and Promotion Agreement with 43 countries and Double Taxation treaties with 26 countries. Moreover, Mongolia is the member of the Seoul Convention establishing the Multilateral Investment Guarantee Agency and Washington convention on the Settlement of Investment Disputes. Consequently, in April, 2014, Mongolia has introduced its investment policy and the law to UN Conference on Trade and Development /UNCTAD/ releasing “Mongolian Foreign Investment Policy Review”. The overall feedback was positive, followed by recommendations and suggestions towards the Government of Mongolia. The main concern that UNCTAD was having resource curse, followed which the recommendations were made. Firstly, to avoid macroeconomic instability, the Government of Mongolia has to determine new objectives and tools of a comprehensive FDI strategy. Secondly, necessity for new regulatory and institutional reforms for foreign and local private sector development. And lastly, Mongolia should develop programs for achieving diversification through FDI and other activities of foreign companies. Following in September, 2014, the second review of the trade policies and practices of Mongolia took place, where the basis for the review was a report by WTO Secretariat and a report by the Government of Mongolia. The reviews were the similar to the UNCTAD`s, which again reinforced the importance of establishing a comprehensive FDI strategy. In the year of 2015, Mongolia has completed Mongolia-Japan Economic Partnership Agreement /EPA/ negotiations, which became the Foreign Trade Agreement of Mongolia. As any other EPA agreement, Mongolia-Japan EPA has created an open door to both markets, which eventually increase the competitive index of Mongolia and the FDI with the increase of import and export between two countries. Therefore, Mongolia has made another step to become a big player in the global market.

ANALYZING THE OVERALL PERFORMANCE OF MONGOLIA ON A GLOBAL LEVEL, INTERNATIONAL INDEXES OF DIFFERENT TYPE HAVE SHOWN FOLLOWING RESULTS:

  • According to “Ease of doing business report” by Forbes magazine, Mongolia ranked 86th out of 161 economies
  • According to the 2019 Doing business report by the Word bank, Mongolia ranked 74th out of 190 economies
  • According to “Index of Economic Freedom 2019” by Heritage foundation, Mongolia has gained overall score of 55.4 percent out of hundred, losing in the categories such as property rights and government integrity