Mongolia has successfully joined the “Asia-Pacific Trade Agreement” and will lower trade tariffs with its members on 1 January 2021. That also includes the trade tariffs between Mongolia and China. This will benefit companies and consumers in both countries.
Mongolia will cut down tariffs on 366 types of products primarily in the categories of aquatic products, vegetables and fruit, vegetable oil, minerals, chemicals, wood, cotton, synthetic fibers, machinery, and transport equipment. The tariffs will be reduced by an average of 24.2%. At the same time, Mongolia also enjoys lower tariffs for export products to China and other members of the Asia-Pacific Trade Agreement.
The “Asia-Pacific Trade Agreement” is a preferential trade arrangement that includes Bangladesh, China, India, Laos, Korea, Mongolia, and Sri Lanka. The agreement dates back to the “Bangkok Agreement”, signed in 1975 to promote economic development in the region. China joined in 2011.
The Asia-Pacific Trade Agreement has already had four rounds of tariff reduction. The latest round took place in July, 2018. The six members then implemented an average tariff reduction of 33% for more than 10,000 types of product.
Source: Xinhua News Network