Bilateral Trade Relationship between the Republic of China and Mongolia

I. Summary on Bilateral Trade

1. Mongolia's gross domestic production (GDP) in 2008 reached US$4.8 billion, with a growth rate of 23% compared to that in 2007. Per capita production was US$1,791, and the economic growth rate was 8.9%. Its main industries are husbandry, mining and manufacturing. The Mongolian mining industry produces mainly coal, copper, fluorine, and molybdenum. Its manufacturing sector mainly consists of light industries and food processing.

The total value of the ROC's exports to Mongolia in 2008 was US$3,186,533, and the total value of the ROC's imports from Mongolia during the same year was USD 3,675,941. Textile products, medical and sports apparatus, and computer and peripheral products were the primary export goods, while copper and related products were the major imports.

The cumulative amount of Taiwan’s investment in Mongolia surpassed US$18 million in 2008, thus ranking Taiwan as Mongolia’s 15th largest source of FDI.

2. To facilitate bilateral trade between the ROC and Mongolia, the BOFT has taken the following measures:

(1) Extending our trading relationship with Mongolia by setting up a local office, the Taiwan Trade Center Ulaanbaatar, under the Taiwan External Trading Development Council (TAITRA) on June 5, 2002. Its address: Room 203, 2nd Floor, Taiwan Center, Chingeltei District, P. O. Box 988, Ulaanbaatar, Mongolia; Tel: 976-11-329061; Fax: 976-11-329031; E-mail: , or .

(2) Collecting trade information from Mongolia. BOFT has requested overseas offices of the MOEA to gather relevant trade information and post it on the BOFT website. TAITRA also set up webpages about the Mongolian market on its official website, Taiwantrade, to provide updated trade and investment information on Mongolia.

(3) Assisting Mongolia to develop its exporting and marketing capacity. Mongolia will be qualified to apply for acceptance when TAITRA utilizes the national stabilization fund to offer training on exporting and marketing to the officials of our allies.

II. Summary on Investment

To assist Mongolia with its industrial and economical development, 26 nations, including the U.S., the European Union, countries in Eastern Europe, Japan, Australia and New Zealand, extend to it special GSP tariff treatment. In addition, Mongolia has joined international organizations such as the World Trade Organization (WTO), International Monetary Fund (IMF), World Bank Group (WBG), and Asia Development Bank (ADB).

In 1996, Mongolia joined the Washington Convention on the settlement of investment disputes between the state and nationals of other states and the Seoul Convention on Investment Insurance. In 1999, it became a member of the Multilateral Investment Guarantee Agency (MIGA) of the WBG through which foreign investors can reduce investment risk. Presently, Mongolia has signed trade agreements with 78 countries, investment protection and mutual protection agreements with 31 countries, and agreements on avoidance of double taxation with 19 countries.

According to the most recent statistics from the Foreign Investment and Foreign Trade Agency (FIFTA) of Mongolia, from 1990 to the end of 2001, approximately 2000 foreign investors from 70 countries with the total direct investment of USD 489 million were registered in the country. The major investing countries in order are China, Russia, South Korea, Japan, the U.S., and Germany. The major investment sectors in order are mining (20.3%), light industry (19.28%) and the processing of animal-originated raw materials (10.8%).

By the end of 2008, 50 Taiwanese companies were registered as direct investors, and 14 of these run substantial operations, representing a registered capital of USD 18 million. Seven of those companies are textile factories that manufacture mainly sweaters, polo shirts, children's wear, jackets and pants.

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