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    Mongolia Will Cut Tariffs On Cotton Yarn, Chemical Fiber And Other Tax Items

    2020/10/28 20:28:00 152

    Cotton YarnChemical FiberTariff

    On October 23, the Secretariat of the Asia Pacific Trade Agreement (hereinafter referred to as the "agreement") informed the member parties that Mongolia had deposited its instrument of acceptance with the economic and Social Commission for Asia and the Pacific to complete the accession procedure of the agreement and to implement tariff reduction arrangements with relevant members on January 1, 2021. According to the tariff reduction arrangement, Mongolia will cut tariffs on 366 tax items, mainly involving aquatic products, vegetables and fruits, animal and vegetable oils, mineral products, chemical products, wood, cotton yarn, chemical fiber, mechanical products, transportation equipment, etc., with an average reduction rate of 24.2%. At the same time, Mongolia can enjoy the existing tariff concession arrangements of China and other members.

    The agreement is the first regional preferential trade arrangement to which China has participated, covering Northeast Asia, Southeast Asia and South Asia. Mongolia's accession to the agreement will further promote the process of regional integration of developing economies in the Asia Pacific region and promote the construction of the belt and road initiative. At the same time, it will further deepen the bilateral economic and trade cooperation between China and Mongolia and enhance the level of trade liberalization and facilitation between the two countries.

    The agreement, formerly known as the Bangkok agreement signed in 1975, is a preferential trade arrangement among developing countries to promote South South cooperation under the aegis of the United Nations Economic and Social Commission for Asia and the Pacific. China formally joined the agreement in 2001. At present, members of the agreement include Bangladesh, China, India, Laos, South Korea, Mongolia and Sri Lanka. In January 2017, all members of the agreement signed the second amendment to the Asia Pacific Trade Agreement, the outcome document of the fourth round of tariff reduction negotiations, which was formally implemented on July 1, 2018.

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