▲ Up
 akipress
03:32 23-09-2018
АКИpress CA-News Tazabek Turmush
ADVERTISE WITH US SUBSCRIBE
KazakhstanKyrgyzstanMongoliaTajikistanTurkmenistanUzbekistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
akipress
Mongolia, South Korea agree to pursue economic partnership agreement
Central Asia | analysis | 11:01, 18 July 2016 | 1673

AKIPRESS.COM - viewNewsPhoto.php South Korea has agreed with Mongolia to pursue a bilateral economic partnership agreement (EPA), a move to expand bilateral economic cooperation and exchanges with the world's 10th largest producer of natural resources, according to Business Korea.

The possible Korea-Mongolia EPA is Mongolia’s second FTA following the Japan-Mongolia EPA which came into effect last month. The East Asian country initially took a passive attitude toward EPA with South Korea due to negative public sentiment of Japan-Mongolia EPA but it has decided to seek the bilateral EPA in the summit meeting.

The trade volume of the two countries peaked at US$490 million in 2012 from US$2.71 million in 1990 when the two established the diplomatic ties. However, the figure decreased to US$290 million in 2015 due largely to Mongolia's recent economic downturn. At the time when the two countries need to seek ways to expand economic exchanges, the EPA is expected to play a role as a lever. An EPA is similar to a free trade agreement (FTA), seeking free trade of commodities and services. It focuses more on industrial and investment sectors. In fact, an EPA is an institutional framework to bolster mutual cooperation between countries, aiming at a FTA.

For South Korea, the possible EPA is significant in that Mongolia has a high growth potential in the future. As the world's 10th largest producer of natural resources, Mongolia recorded an annual economic growth rate of 13.8 percent between 2011 and 2013 with large-scale mining development projects and investments in infrastructure, but the growth drastically declined after 2014 due to the fall in raw materials prices. According to the International Monetary Fund (IMF), however, Mongolia’s economic growth rate will rise to 5.7 percent in 2018.

Since Mongolia is bordered by China to the south and Russia to the north, it is considered the important spot in Central Asia. Accordingly, Japan has been scrambled to enter the Mongolian market through the government’s support. The Korean government and companies also have been trying to invest in Mongol, but have had difficulties due to the weak institutional framework for economic cooperation.

Mongolia is pushing for a "third neighbor policy" to pursue cooperation diversification with South Korea, Japan and the U.S. in order to get out of its excessive economic dependence on China and Russia.

Once the negotiation begin, the EPA is expected to come into effect in four years. It can be shown with Mongol’s first EPA with Tokyo which went into force in June.

The problem is the issue in the negotiation with interests between the two countries. South Korea and Mongolia are also highly likely to have difficulties in reaching an agreement in tariffs for goods in the agricultural, dairy and industrial sectors to conclude the EPA. In a bid to support joint research between the two countries and commerce capability of Mongol, the Korean government plans to share its experiences in signing FTAs with Mongol.

LATEST NEWS
15:57 IMF mission began to operate in Kyrgyzstan15:44 Sulukta town celebrates 150th anniversary15:35 Bishkek International Half Marathon to be held on Sept 2315:20 Delegation of Republic of Komi arrived in Issyk-Kul region15:00 California prohibits full-service restaurants from automatically providing plastic straws14:37 National Security Committee opened criminal case against 20yo member of Hizbut-Tahrir terrorist organization14:30 Commission for combating financing of terrorism created in Uzbekistan14:15 Investment forum with participation of Kyrgyz companies and government agencies to be held in Seoul14:10 Congo confirms Ebola case at Ugandan border13:57 Several killed as gunmen attack military parade in southwest Iran13:40 Tanzania ferry tragedy: At least 136 dead after overcrowded boat sinks in Lake Victoria13:25 Financial police celebrated Day of Kyrgyz language and 90th anniversary of Chingiz Aitmatov13:10 Gulbara Kaliyeva elected as chairman of Supreme Court12:58 Rosselkhoznadzor denies import of 41 tons of grapes, nectarines, plums and pomegranate from Kyrgyzstan12:42 Baktybek Turusbekov appointed vice-president of Triathlon Federation of Kyrgyzstan12:21 Kindergarten for 17mln soms opens in Batken region11:50 Speaker Jumabekov lays wreaths to Heydar Aliyev’s grave in Azerbaijan11:38 Speaker Jumabekov participated in Milli Majlis session on occasion of 100th anniversary of Azerbaijani parliament11:14 New milk processing plant to be launched in Naryn region in 201911:01 Ambassadors of Kyrgyzstan and Benin to Russia discussed Kyrgyz-Benin cooperation
© AKIpress News Agency - 2001-2018. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)65-03-06