The American Chamber of Commerce in Mongolia (AmCham Mongolia) held its August Monthly Meeting on August 26, hosting the President Kh.Battulga and U.S. Ambassador to Mongolia Michael S.Klecheski to have informative and constructive discussions under the theme ‘Mongolia-U.S. Relations: Moving Forward with Strategic Partnership’.
The event attracted Amcham’s members, foreign and local investors, foreign embassies and officials. Businessmen and investors inquired much about how the declaration of the ‘Strategic Partnership’ between the two countries will influence on business environment, whether it can create favorable investment environment, and which sphere of the business sector would be a priority in the future as well as others.
With his speech, the President emphasized that the Strategic partnership has set the foundation to draw long-term and strategic investments from the United States to large projects and programs could affect Mongolia’s economic growth.
The President said, “During the discussion with President Trump, we exchanged views on pragmatic solutions and ways to improve our economic ties in actual numerical values. Mongolia is keen on having the United States as an important trading partner and a major investor. There are opportunities to develop the mutually beneficial relations and cooperation between Mongolia and the United States in the fields of economy, investment, banking, finance and trade. However, both sides agree that our current economic cooperation leaves much to be desired.”
“The ‘Roadmap for Expanded Economic Partnership between Mongolia and the United States’ was declared in 2018 and the two sides agreed to develop cooperation in the fields of agriculture, water, renewable energy, mining, financial services and infrastructure as well as to cooperate in new areas such healthcare infrastructure and micro power. Furthermore, the signing and implementation of the Second Compact Agreement of the Millennium Challenge Corporation has paved the way for Mongolian and American companies to come together on joint projects and continue their cooperation.
There are ample opportunities to strengthen cooperation in agriculture, energy, small and medium sized enterprises and to execute specific joint projects and programs. In particular, Mongolian and American businesses should make use of the opportunities that the Overseas Private Investment Corporation and the ‘Better Utilization of Investments Leading to Development (BUILD) Act’ provide and implement specific projects in Mongolia.
Furthermore, you are well aware that the approval of ‘Third Neighbor Trade Act’ by the US Congress was one of the topics that were discussed during my visit to the United States. The adoption of this Act will have numerous economic benefits, including the development of Mongolia’s wool, cashmere and textile processing sector, provide jobs, especially for women, increase household income, economic diversification as well as export structure and market expansion.
The United States’ decision to give preferential tax treatment on textile products exported from Mongolia in the early 1990s assisted Mongolia in overcoming the challenges and difficulties during its economic transition and had a positive impact on the production of wool and wool products. As a result, 40,000 jobs were created at that time, which accounted for approximately 20% of the domestic workforce.” (Amcham)