Asia Pacific Trade Agreement Mongolia

The agreement is the first regional preferential trade agreement in which the country has participated. Its members cover North-East Asia, Southeast Asia and South Asia. Mongolia`s accession to the agreement will further promote the regional integration of developing countries in the Asia-Pacific region and promote the construction of the Belt and Road. At the same time, it will deepen bilateral trade and trade cooperation between China and Mongolia and improve the level of liberalization and facilitation of trade between the two countries. The agreement, formerly known as the “Bangkok Agreement” and signed in 1975, is a preferential trade agreement 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 officially joined the agreement in 2001. The agreement currently includes 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 final document of the fourth round of tariff reduction negotiations, and it was formally implemented on 1 July 2018. Mongolia has successfully acceded to the “Asia-Pacific Trade Agreement” and will reduce tariffs with its members on 1 January 2021. These include trade tariffs between Mongolia and China. Businesses and consumers in both countries benefit. The Asia-Pacific Trade Agreement (APTA), formerly known as the Bangkok Agreement[1] and renamed on November 2, 2005,[2] was signed in 1975.

It is the oldest preferential trade agreement between countries in the Asia-Pacific region. Seven participating states – Bangladesh, China, India, Lao PDR, Mongolia, Republic of Korea and Sri Lanka – are parties to APTA. The APTA pact occupies the market for 2921.2 million people [2] and the size of this large market represents $14615.86 billion in gross domestic product (GDP) in the 2015-16 fiscal year. [3] APTA`s main objective is to accelerate economic development among the seven participating states that opt for trade and investment liberalization measures that, through the coverage of goods and services, synchronized investment and the free transfer of technology, will contribute to the coverage of intra-regional trade and economic strengthening. Its aim is to promote economic development and cooperation through trade liberalization measures. The AptA is open to all members of the United Nations Economic and Social Commission for Asia and the Pacific, which serves as the secretariat of APTA. APTA members are currently participating in the fourth round of tariff concessions, which is expected to end in October 2009. [4] APTA aims to promote the economic development of its members by adopting mutually beneficial trade liberalization measures that contribute to regional trade expansion and economic cooperation. The agreement is currently in its fifth round of negotiations on extending tariff preferences in trade in goods and expanding the areas of investment liberalization, services and trade facilitation. It is also constantly working to improve and modernize its rules of origin for the trade in goods. 1 In 2019, Member States` exports account for 89.4% of Member States` total exports, while imports account for 38.7% (Mongolian Statistical Information Service, 2020).

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