N.Enkhtaivan: Foreign trade important for development
Director of Foreign Trade and Economic Cooperation Board of the Ministry of Foreign Affairs and Trade N.Enkhtaivan answered our correspondent’s questions.
Q: The trade sector was established 90 years ago. What impact does trade have on social development?
A: Trade is one of the most vital sectors of the economy, and after transferring to a market economy, foreign economic cooperation and foreign trade growth occupy a significant position in the country’s social and economic development.
Mongolia has had commerce of USD 7.5 billion at the end of September and this amount has overcome GDP. The customs taxation gathers 20 percent of budget income, and foreign and domestic trade organizations number 20,000.
150,000 people work in the trade sector, which is about 14 percent of total working force.
Q: What’s Mongolia’s position in world trade and economics?
A: Mongolia is part of world economic integration through trade. The economy will reach growth of 20 percent in 2011. Mongolia has trade with 140 countries and foreign trade turnover increased by 88 percent at the end of August.
Q: What difficulties face foreign trade and economic cooperation at present? What measures are there to overcome the difficulties?
A: Exports have been increasing in recent years due to mining sector exploitation and investment, but economics and foreign trade face risks from being too dependent on raw materials. Border points, customs, and infrastructure should be developed as a priority. Current trade development demands improving customs’ activity and goods transport capacity. Also bureaucracy and out-dated technology disturb business.
We should do much work to overcome the mentioned challenges including working to meet contemporary international requirements of trade and provide safety of health for consumers. Also Mongolia has goals to join bilateral and regional free trade agreements.
Q: What policy should the Government take?
A: The Coalition Government is working to change export structures, increase export goods, reduce tariffs and hold trade talks. The Ministry of Foreign Affairs and Trade has submitted a draft law on trade regulation and a proposed state policy on foreign trade to the Government with the aim of legislative reform. Also a national program to support exports has been prepared.
Multilateral collaboration has a big role in foreign trade development and the Government takes part in the activity of the World Trade Organization and UN Economic Organizations. The Government is working to hold talks to unite Asia and the Pacific Trade Agreement.
Q: Mining sector plays a crucial role in the economy. What’s the role of the trade sector in mining development?
A: All sectors have dependence on trade and mining and trade are crucial to the market. But actually mining and trade have not had relations of coincides because people who have not known trade do mining business and we have lost opportunity of beneficial trade.
Q: Foreign investment issue has been related to the ministry. Does Mongolia have favorable foreign investment conditions?
A: Foreign investment occupies an important position in economic development. Investment disseminates progressive technology, new management, and increases competition. Foreigners say that Mongolian politics and business have been changed too many times. That is why we should improve the investment environment.
Q: Coal industry has significant position in economic growth. But we sell coal at a cheap price to China. What do you say about that?
A: Mongolia has not had a united policy on coal trade. Coal is exported at a cheap price due to no united policy and regulation. That is why we have to study markets, determine policy, and take proper measures to increase profit from the coal industry and keep stability.
Q: What measures will be organized for the 90th anniversary of the establishment of the trade sector?
A: The fourth conference of trade employees will be held on November 17 and 18 in the Government House. A photo gallery and documentary, “Trade of Mongolia in 90 Years” will be shown. Also, “Trade History in 90 years” and “Foreign Trade in 90 Years” books will be published.
Q: The trade sector was established 90 years ago. What impact does trade have on social development?
A: Trade is one of the most vital sectors of the economy, and after transferring to a market economy, foreign economic cooperation and foreign trade growth occupy a significant position in the country’s social and economic development.
Mongolia has had commerce of USD 7.5 billion at the end of September and this amount has overcome GDP. The customs taxation gathers 20 percent of budget income, and foreign and domestic trade organizations number 20,000.
150,000 people work in the trade sector, which is about 14 percent of total working force.
Q: What’s Mongolia’s position in world trade and economics?
A: Mongolia is part of world economic integration through trade. The economy will reach growth of 20 percent in 2011. Mongolia has trade with 140 countries and foreign trade turnover increased by 88 percent at the end of August.
Q: What difficulties face foreign trade and economic cooperation at present? What measures are there to overcome the difficulties?
A: Exports have been increasing in recent years due to mining sector exploitation and investment, but economics and foreign trade face risks from being too dependent on raw materials. Border points, customs, and infrastructure should be developed as a priority. Current trade development demands improving customs’ activity and goods transport capacity. Also bureaucracy and out-dated technology disturb business.
We should do much work to overcome the mentioned challenges including working to meet contemporary international requirements of trade and provide safety of health for consumers. Also Mongolia has goals to join bilateral and regional free trade agreements.
Q: What policy should the Government take?
A: The Coalition Government is working to change export structures, increase export goods, reduce tariffs and hold trade talks. The Ministry of Foreign Affairs and Trade has submitted a draft law on trade regulation and a proposed state policy on foreign trade to the Government with the aim of legislative reform. Also a national program to support exports has been prepared.
Multilateral collaboration has a big role in foreign trade development and the Government takes part in the activity of the World Trade Organization and UN Economic Organizations. The Government is working to hold talks to unite Asia and the Pacific Trade Agreement.
Q: Mining sector plays a crucial role in the economy. What’s the role of the trade sector in mining development?
A: All sectors have dependence on trade and mining and trade are crucial to the market. But actually mining and trade have not had relations of coincides because people who have not known trade do mining business and we have lost opportunity of beneficial trade.
Q: Foreign investment issue has been related to the ministry. Does Mongolia have favorable foreign investment conditions?
A: Foreign investment occupies an important position in economic development. Investment disseminates progressive technology, new management, and increases competition. Foreigners say that Mongolian politics and business have been changed too many times. That is why we should improve the investment environment.
Q: Coal industry has significant position in economic growth. But we sell coal at a cheap price to China. What do you say about that?
A: Mongolia has not had a united policy on coal trade. Coal is exported at a cheap price due to no united policy and regulation. That is why we have to study markets, determine policy, and take proper measures to increase profit from the coal industry and keep stability.
Q: What measures will be organized for the 90th anniversary of the establishment of the trade sector?
A: The fourth conference of trade employees will be held on November 17 and 18 in the Government House. A photo gallery and documentary, “Trade of Mongolia in 90 Years” will be shown. Also, “Trade History in 90 years” and “Foreign Trade in 90 Years” books will be published.
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