Japanese Ambassador talks about trade cooperation and relations with Mongolia


In 2015, Prime Minister Ch.Saikhanbileg and his Japanese counterpart Shinzo Abe signed an economic partnership agreement (EPA).
Through the EPA, Mongolia and Japan agreed to directly or gradually lift 90 percent of import taxes within 10 years. In particular, Mongolia will decrease import tariffs on 5,700 goods in 97 categories, while Japan will decrease tariffs on 9,300 goods in 97 categories. Ninety percent of Mongolian export to Japan is cashmere, cashmere products, spar, and coking coal, while 70 percent of Mongolia’s imported goods from Japan are cars and equipment.

Gogo.mn spoke with Japanese Ambassador to Mongolia Takenori Shimizu regarding the EPA’s implementation. 

When will the implementation of the EPA signed last year begin? 

In addition to developing economic cooperation between the two countries, the most important thing is collaboration between our private sectors. We agreed that we need to develop trade relations, and the governments of Japan and Mongolia approved the economic partnership agreement. We hope that the EPA will become effective soon. We are placing a high priority on it and hope that the trade relations between the two countries will greatly develop in the near future.
Because it is a trade agreement, the first thing will probably be customs tax exemption. This will provide opportunities for Mongolian products to compete in the Japanese market. The majority of cashmere imported to Japan is from China.  As cashmere customs tax will be lowered to zero percent, well designed, high quality Mongolian cashmere will become able to succeed in the big Japanese market.
There are many advantages to the trade agreement. The EPA also consists of a part for mutual cooperation. It says that Japan will cooperate in developing Mongolia’s agricultural and industrial sectors. We will strive to develop the nation’s industrial sector in the future.

Since 1990, Japan has been providing support for developing Mongolia. The support continues today. What kind of support do you plan to provide in 2016? 

We are now becoming limited with providing non-refundable assistance to Mongolia, as GDP per capita has reached over 6,000 USD. That’s why we plan to contribute to the nation’s development by utilizing concessional loans. Non-refundable assistance will mainly be provided to the education sector. The Japanese government implemented many projects for building schools in the past. A total of 55 schools were built in Mongolia. Also, 380 school maintenance projects were conducted under the Grassroots project. We are planning to build more schools. A research team from Japan will come to Mongolia this year, and we will focus on this issue.
In addition, a groundbreaking ceremony for a hospital under the Mongolian National University of Medical Sciences will be held in April. This means that construction of the hospital will commence this spring.
By the end of this year, a new airport being built in Khushigiin Khundii through a concessional loan from Japan will be commissioned. The Grassroots project’s implementation will continue this year, and over 20 other projects will be implemented in 2016.

Short URL: http://ubpost.mongolnews.mn/?p=18519

Posted by on Feb 23 2016. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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