President hopes for trade opportunities with US
Some members of the US Congress put forward the Mongolia Third Neighbor Trade Act to the US Congress on July 26, and President Kh. Battulga stated he hopes the US Congress will adopt the act.
After taking office, President Kh. Battulga asked for US assistance in creating a legal act to increase exports of Mongolian wool, cashmere and textile products to America.
The president highlighted that a trade turnover of 707 million USD twas recorded between Mongolia and the US in 2012, but in 2017, but Mongolia exported only 9.4 million USD worth of products while importing 82.2 million USD in goods from the US, which illustrate that there is room for growth for both American imports and Mongolian exports.
He said, “Cashmere, fine wool obtained from cashmere goats are essential to Mongolia’s economy. Over a third of the population of Mongolia works in the animal husbandry sector, and cashmere provides income and employment for the majority of these people. Agricultural products are Mongolia’s second largest export after the mining sector, and cashmere products constitute the biggest share in agricultural exports.”
“In 2017, only 1,100 tons out of a total of 9,400 tons of raw cashmere, which is almost 50 percent of the world’s cashmere demand, was processed within the country while the rest, 8,300 tons, were exported mainly to China without adding value. The US buys nearly all of its cashmere products from China. Duty free treatment of Mongolian cashmere and other textile garments exports to the US would facilitate increased trade with the US and reduce Mongolian export dependence on one country and mining. This would allow Mongolia to diversify its trade and ensure its sustainable economic growth,” Kh. Battulga said.
The development of Mongolia’s garment industry would also promote women’s employment and empowerment. Women have historically participated in Mongolia’s garment industry at high rates, and the garment industry has provided safe and stable employment for women in Mongolia.