Trading Partner Portal: Mongolia
Mongolia is a landlocked country south of Russia and north of China. With an area of approximately 604,200 square miles and a population of 3.17 million, it is the most sparsely populated country in the world. Although Mongolia is three times larger than California, it has less than 8% the total population of the state. Mongolia became a member of the WTO in January 1997.
Mongolia is the 134th largest export destination for the United States. The United States exported over $192.6 million to Mongolia in 2019, up from $120.8 million in 2018. Transportation equipment contributed over half of the total US exports to Mongolia. Mongolia exported $24.75 million to the US in 2019, 52% of which was reimports.
As California’s 87th largest export destination, Mongolia imported $43.2 million in goods in 2019. California is the U.S. top state exporter to Mongolia, making up 22.4% of all U.S. exports. Top export categories from California to Mongolia include transportation equipment, used or second-hand merchandise, non-electrical machinery, and food manufactures.
According to the most recent figures, U.S. direct investment to Mongolia totaled $252 million in 2018 (Bureau of Economic Analysis).
Trade Policy Review: Mongolia
WTO, September 24, 2014
U.S. – Mongolia Transparency Agreement
In September 2013 U.S. Trade Representative Michael Froman and Luvsanvandan Bold, Mongolia’s Foreign Affairs Minister signed a Transparency Agreement at a ceremony in New York.
“This agreement represents an important milestone in the U.S.-Mongolia trade relationship. I know that Minister Bold shares my belief that an agreement setting forth mutual commitments on transparency will help to improve and deepen that relationship, to the benefit of both of our economies and our businesses and workers,” Ambassador Froman commented. “Transparency is critical to the proper and efficient functioning of the international trading system. Producers, suppliers, exporters and investors need the predictability that comes with a clear understanding of the policies and practices that are going to be applied.”
United States, Mongolia Sign Transparency Agreement
Mongolia has been internationally recognized as one of the finest cashmere producers in the world due to the success of its semi-domesticated goats, which are adapted to its harsh climate. After China, Mongolia is the second largest cashmere producer in the world, producing approximately 30% of the world’s supply. Mongolia is looking to expand its market further and is seeking to connect with foreign consumers. Successful cashmere companies include Gobi Corporation, Goyo Cashmere, Buyan Cashmere, and Altai Cashmere.