The Chinese Ministry of Commerce announced that on October 23, the secretariat of the Asia-Pacific Trade Agreement (the “Agreement”) notified all member parties that Mongolia had deposited a letter of acceptance, and completed the Agreement accession procedures, and plans to be in January 2021. On the 1st, mutual tariff reduction arrangements were implemented with relevant members. According to the tariff reduction arrangement, Mongolia will reduce tariffs on 366 tax items, mainly related to aquatic products, vegetables and fruits, animal and vegetable oils, mineral products, chemicals, wood, cotton yarn, chemical fibers, machinery products, transportation equipment, etc., with an average tax reduction The amplitude is 24.2%. At the same time, Mongolia can enjoy the existing tariff reduction arrangements of China and other members. The announcement said:
The Agreement is the first regional preferential trade arrangement that [the] country has participated in. Its members cover Northeast Asia, Southeast Asia and South Asia. Mongolia’s accession to the Agreement will further promote the regional integration of developing economies in the Asia-Pacific region and promote the construction of the “Belt and Road”. At the same time, it will further deepen China-Mongolia bilateral economic and trade cooperation and enhance the level of trade liberalization and facilitation between the two countries.
The Agreement, formerly known as the “Bangkok Agreement” signed in 1975, is a preferential trade arrangement reached between developing countries under the auspices of the United Nations Economic and Social Commission for Asia and the Pacific to promote South-South cooperation. China formally joined the Agreement in 2001. Currently, the members of the Agreement include Bangladesh, China, India, Laos, South Korea, Mongolia and Sri Lanka. In January 2017, the members of the Agreement signed the Second Amendment to the Asia-Pacific Trade Agreement, the outcome document of the fourth round of tariff reduction negotiations, and it was formally implemented on July 1, 2018.