Canada”s Prime Minister
Stephen Harper and visiting Mongolian Prime Minister S. Batbold on Tuesday agreed
to deepen their nations” economic ties, eventually opening free trade talks. “Our
countries are committed to developing our relationship,” Harper said in a
statement. “We look forward to further strengthening our ties, including
cooperating on institutional reform and peace and security.”

The two leaders signed
memorandums of understanding to improve trade and market access, as well as
strengthen both agricultural cooperation and Mongolia?s democratic governance
and institutions. As well, they agreed to fast-track negotiations on a deal to
protect and promote foreign investment, holding a next round of talks by year
end.

Ratification of the Foreign
Investment Promotion and Protection Agreement “would be followed by
bilateral exploratory discussions regarding a possible agreement on free
trade,” Harper”s office said. Canada is the second-largest overall foreign
investor in Mongolia after China, with more than 600 million dollars invested
in the country. In 2009, two-way merchandise trade was valued at 164 million
dollars.