On August 24, the Ministry of Economy and Development and the Mongolian National Chamber of Commerce and Industry (MNCCI) held their first public discussion of the draft Trade Law intended to overhaul a fragmented regulatory system that currently spans roughly 57 laws and more than 100 articles governing the country’s trade relations. The discussion drew representatives from the ministry, the Trade Policy Council and businesses across the mining, health, food, agriculture and road transport sectors.
Officials say the current patchwork has weakened policy continuity and institutional coordination, undermining the competitiveness of the national economy. According to the World Bank’s 2023 Logistics Performance Index, Mongolia ranks 97th out of 139 countries, with overall trade facilitation implementation at just 58 percent, figures cited by organizers as evidence of the urgent need for comprehensive reform.
Among the most pointed interventions came from President of the MNCCI B.Lkhagvajav, who called on the government to accelerate privatization of state-owned enterprises and pull back from direct market participation. He argued that state companies competing in the market create unfair competition with private businesses, and urged strict adherence to the principle of state non-interference in private contracts and transactions. Revisiting the free trade and privatization principles first established in 1995, he said, would help eliminate state property monopolies, protect business owners' interests, and foster a healthier market environment.
Head of the Trade Policy Council Ts.Navaan said policy reforms are needed to stabilize prices and reserves of key commodities, arguing that current trade, logistics and investment efforts are falling short. He called for the legal framework to more clearly define “strategic goods,” for improvements to transport and logistics diversification, and for tariff regulation to be governed by automatic, market-based mechanisms rather than subjective human intervention.
Under the proposed law, state agencies would move toward electronic information-sharing and a single-window system, eliminating the need for businesses to submit duplicate documents. The bill is designed to make trade policy more evidence-based, predictable and transparent, with every tariff, quota, license and sanction tied to a specific legal basis and duration. It also includes an early-warning and risk-assessment system for strategic goods such as fuel, flour, medicine and energy, intended to flag rising risks before shortages occur rather than respond after the fact. Under the draft, emergency temporary measures would be capped at 30 days, and export and foreign trade obstacles, including sanitary, quarantine, technical, transit and licensing issues, would be handled through centralized state policy management rather than resolved case-by-case at the level of individual companies.
The draft law would also legalize anti-dumping, anti-subsidy and anti-surge import duties and investigation procedures in line with World Trade Organization rules, aimed at shielding domestic producers from unfair imports and market volatility. Additional provisions call for the government to support foreign trade through non-discriminatory, transparent quota and tariff regulation, along with export credits, guarantees, insurance and market research assistance.
Advisor to the President of the MNCCI M.Sarandavaa highlighted a need to sharpen coordination between state institutions and to clarify Articles 18 and 21 of the draft law, particularly around export activity improvements. She noted that trade policy priorities, including which export and import sectors should be prioritized, and how the law would affect small and medium-sized businesses versus large enterprises, need further clarification. She also flagged concerns about the law’s proposed trade council, noting that its oversight mechanism remains unclear and that its structure appears dominated by state agencies. She further criticized a provision allowing quota and tariff decisions to be made by the vote of a single government member, calling instead for independent review of relevant organizations’ conclusions and more rigorous calculations. As proposed, the 11-member Trade Council would be headed by the Prime Minister and would issue recommendations and conclusions on tariffs and protective measures, drawing on input and data from the MNCCI and member businesses.
CEO of Jur Ur LLC and Head of the Special Economic Zone under the MNCCI B.Munkhzul stressed the importance of supporting domestic manufacturers through production-development policies and special economic zones. She called for clearer policies distinguishing production development from general trade, improved competitiveness through domestic workforce and manufacturer development, and a more favorable economic and legal environment. She also pointed to the need for stronger tariff protections for domestic production against foreign imports, and said Mongolia should leverage free trade agreements with the EU and other partners to boost exports and support domestic entrepreneurs.
Organizers said the drafters will incorporate feedback and criticism gathered from this initial discussion to further refine the bill before moving toward submission to Parliament for review and approval.
