Cooperation in the field of Trade and Economy

Trade and economic relations of Belarus and Mongolia are regulated by:

Agreement between the Government of the Republic of Belarus and the Government of Mongolia on trade and economic cooperation signed on January 24, 1992 (entered into force on January 24, 1992);

Agreement between the Government of the Republic of Belarus and the Government of Mongolia on the assistance in the implementation and protection of investments signed on May 28, 2001 (entered into force on January 27, 2002);

Agreement between the Government of the Republic of Belarus and the Government of Mongolia on the avoidance of double taxation and the prevention of tax evasion in respect of taxes on income and property, signed on May 28, 2001 (entered into force on March 12, 2007).

The mechanism for export lending by the Development Bank of the Republic of Belarus for the supply of Belarusian goods (works, services) to Mongolia became available in 2019 in bilateral trade and economic relations. The general agreement between the Government of the Republic of Belarus and the Government of Mongolia on extending Export Loan was signed on April 19, 2019 (entered into force on October 11, 2019).

Three projects have been fully implemented under the Export Credit Scheme:

1) for the needs of the State Agency for Emergency Situations of Mongolia in 2020-2021, fire equipment and buses on the MAZ chassis were supplied in the amount of 73 units in the amount of $18 million;

2) for the needs of the Ministry of Development of Roads and Transport of Mongolia in 2021, 42 units in the amount of $3.9 million of road cleaning and repair equipment on the MAZ chassis was supplied;

3) for the needs of Mongolian farmers, through the Agricultural Support Fund of the Ministry of Food, Agriculture and Light Industry of Mongolia, in 2021, agricultural machinery was delivered in the amount of $ 5.2 million (117 MTZ tractors, 417 units of equipment “Bobruisk Plant of Tractor Parts and Assemblies ”, “Bobruiskagromash”, “Lidselmash”, etc.).

The mutual trade between Belarus and Mongolia is traditionally dominated by deliveries of goods from Belarus, deliveries from Mongolia are insignificant.

Dynamics of bilateral trade of goods with Mongolia (2014 — 2021)
thousand USD

In 2020, the mutual trade turnover amounted to 49.6 million dollars (147.1 percent compared to 2019), Belarusian goods were delivered to Mongolia in the amount of 49.5 million dollars (146.6 percent), from Mongolia to Belarus — 153.6 thousand dollars.

In 2021, the trade turnover amounted to $43.6 million (87.8 percent by 2020), Belarusian exports — $43.5 million (88 percent), imports from Mongolia — $14.8 thousand.

The most significant commodity items supplied to Mongolia from Belarus in 2019-2021: mining dump trucks, special purpose vehicles, milk powder, butter, cheese, road and construction equipment, plastic containers, vehicles for transporting 10 or more people, tractors, cars and mechanisms for harvesting crops, agricultural machines for soil preparation and cultivation, parts and accessories for cars and tractors, medicines, flour confectionery, furniture, specific products, electric transformers, natural grape wines.

Fluorspar and cashmere products were supplied from Mongolia to Belarus.

The turnover of services between Belarus and Mongolia in 2020 amounted to $6.6 million (106.3 percent compared to 2019). At the same time, the Republic of Belarus provided services in the amount of 4.9 million dollars, Mongolia — 1.7 million dollars.

Turnover of services in 2021 — 13.4 million dollars (201.9 percent by 2020), Belarusian exports — 11.3 million dollars (231.4 percent), imports from Mongolia — 2.1 million dollars. The basis of exports is road transport services (63.4 percent of the total) and railway transport (28.9 percent). The basis of imports is railway transport services (75.6 percent).

Since 2013, the Joint Belarusian-Mongolian Commission for Trade and Economic Cooperation has been operating. Six meetings were held (the sixth meeting was held on February 25, 2022, in an online format). The co-chairman from the Belarusian side is the Minister of Industry P.A. Parkhomchik, from Mongolian — Minister of Development of Roads and Transport of Mongolia L. Khaltar.

Two meetings of the bilateral Working Group on cooperation in the field of agriculture were held (the second one was held in July 2018 in Minsk). In August 2018, the first meeting of the Belarusian-Mongolian commission on international road transport was held in Ulaanbaatar.