This website is no longer updated.

For up-to-date news on European trade policy please visit borderlex.eu.

MEPs approve partnership pact with Mongolia

 

It took almost four years for the deal that replaces a 1993 cooperation agreement between the EU and Mongolia to be greenlighted by the European Parliament. On Wednesday (15 February 2017) MEPs approved a Partnership and Cooperation Agreement – PCA – with the Asian country squeezed in between Russia and China that was signed and approved by the Council in 2013.

The PCA is a framework agreement that covers a wide range of areas of cooperation, including trade, without, however including a preferential free trade agreement. Mongolia will continue to export to the EU under the ‘GSP Plus’ mechanism. Mongolia was given in 2014 this preferential status for developing countries complying with 27 international human rights, labour and environment conventions.

The MEP report accompanying the approval in Parliament on Wednesday welcomed the recent “establishment of a Joint Committee to accompany, pursuant to Article 56 of the agreement, the implementation of the PCA”.

Mongolia exports mainly cashmere, wool, textile products, and precious metals to the EU. The EU exports to Mongolia mainly consist of machinery and transport equipment, chemicals, medicine, cosmetics, food. Mongolia’s mining sector is also of particular interest to international investors.