International Courant
Mongolian Prime Minister Luvsannamsrain Oyun-Erdene visited Washington DC on the invitation of US Vice President Kamala Harris in August 2023. The high-level bilateral assembly goals to deepen US-Mongolia financial ties in varied sectors similar to essential minerals, aviation and commerce.
As world powers proceed to race for partnerships and assets, Mongolia’s pure assets are beneficial and significant to the nationwide economic system.
The incumbent authorities’s technique to draw funding revolves round capitalizing on essential minerals from rapid neighbors Russia and China, in addition to “third neighbors” similar to america, South Korea, France and different developed nations.
The USA and Mongolia have one strategic partnership in 2019 throughout the administrations of former presidents Donald Trump and Battulga Khaltmaa. President Joe Biden’s administration has additional dedicated to strengthening america’ long-term place within the Indo-Pacific, which incorporates Mongolia.
The U.S. Indo-Pacific Technique and the international coverage of Mongolia’s third neighbor present a sturdy basis for the 2 nations to strengthen Mongolia’s democratic establishments, financial range and civil society. The Biden administration’s courting of Ulaanbaatar indicators a rising US curiosity in strengthening financial ties amid tensions with Moscow and Beijing.
The high-level conferences between Mongolian and American leaders are the working mechanism of Mongolia’s international coverage as a 3rd neighboring nation. The altering geopolitical atmosphere in Northeast Asia stays a problem to Ulaanbaatar’s financial efforts.
Collegial relations with international companions – together with rapid neighbors Russia and China, and america – are the cornerstone of Ulaanbaatar’s international coverage. Mongolia should due to this fact be vigilant, secure and versatile within the actions of its third neighbor.
Given Mongolia’s geographical limitation as it’s landlocked between two main US adversaries – Russia and China – strengthening the strategic partnership with Washington requires flexibility and a scientific diplomatic strategy to speed up financial cooperation.
Building of the Oyu Tolgoi copper and gold mining venture in Mongolia. The US has its sights on the nation’s mineral assets. Photograph: Brücke-Osteuropa / Artistic Commons
In 2018, earlier than the Strategic Partnership was established, the US Congress proposed the next Mongolia Third Neighboring Nation Commerce Act. The invoice was reintroduced to Congress in 2019 and 2021, inflicting delays. If authorized, Mongolia’s high-quality cashmere and textiles may very well be exported to america duty-free.
One other try to enhance the authorized buying and selling atmosphere in Mongolia is the signing of the US-Mongolia Transparency Settlement in 2017. This 2017 commerce settlement was the primary standalone settlement on worldwide commerce and funding transparency signed by america.
Prior to now, america has solely negotiated transparency obligations as a part of broader agreements. Negotiating a standalone settlement with Mongolia will concretely construct on the cooperation between america and Mongolia and permit financial exercise to speed up.
The bilateral commerce relationship continues to thrive, with Mongolia’s exports to america rising by 1.84% yearly between 1995 and 2021. But Washington nonetheless wants extra motion from the Mongolian authorities.
In January 2023, the US grew to become ambassador to Mongolia Richard Buangan expressed his issues to the American Chamber of Commerce in Mongolia in regards to the nation’s opaque legislative processes and funding local weather, which “stays unattractive for buyers and difficult for importers and exporters.”
To deepen financial ties between the US and Mongolia, US Undersecretary of Financial Development, Power and Atmosphere Jose W Fernandez met with senior authorities officers and different stakeholders in Ulaanbaatar in June 2023.
Throughout a later go to to Washington, Prime Minister Oyun-Erdene additionally signed the settlement US-Mongolia Open Skies Settlement within the implementation. The U.S. Division of Transportation famous that “the settlement will facilitate larger air connectivity between america and Mongolia and supply the authorized framework for nonstop passenger flights.”
Mongolia is now the 132nd US Open Skies accomplice. As well as, Mongolia acquired its first Boeing 787 Dreamliner in August 2023 and can launch a direct flight from San Francisco to Ulaanbaatar.
However Mongolia will nonetheless have to strengthen and speed up financial ties with Moscow and Beijing by means of bilateral and trilateral channels, such because the Russia-Mongolia-China Financial Hall. Different trilateral conferences additionally function an necessary financial gateway, such because the US-Mongolia-South Korea Partnerships or the US-Mongolia-Japan Partnerships.
From a geopolitical perspective, because the Struggle between Russia and Ukraine As commerce tensions between the US and China proceed to destabilize the area and the world, small states like Mongolia typically discover themselves in a conundrum. Sustaining a balanced strategy is important for persevering with Mongolia’s historic connectivity by means of complete strategic partnerships with Moscow and Beijing.
A Mongolian man holds a protest banner within the form of the Chinese language flag studying “Respect your Structure” throughout a protest towards China’s plan to introduce Mandarin-only lessons in faculties in China’s Internal Mongolia province, Sukhbaatar Sq. in Ulaanbaatar. capital of Mongolia on September 15, 2020. Photograph: Asia Occasions Information / AFP / Byambasureb Byamba-ochir
Within the brief to medium time period, Beijing will stay a robust financial accomplice for Mongolia as a direct neighbor and an necessary supply of funding for Mongolian copper ore. coal briquettes and iron ore.
However Mongolia is now a candidate for the Mineral Security Partnershipan initiative involving 14 nations – primarily Western – that goals to stimulate sustainable investments within the mining, processing and recycling of important minerals.
Mongolia should guarantee this his international coverage stays versatile and diversified to assist its financial and social growth.
Bolor Lkhaajav is a researcher specialised in Mongolia, China, Russia, Japan, East Asia and America.
This article was initially printed by East Asia Discussion board and has been republished underneath a Artistic Commons license.
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