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Content. 1. General Information of Mongolian economy 2. Trade Facilitation Initiatives and projects 3. Actions to be taken by MNCCI. Economy. By the end of 2008: GDP reached to 3,620 bln. tugrug, (approximately 2.26 bln. USD) GDP growth in 2008 - 8.9% 2008-2009 forecast –

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  1. Content 1. General Information of Mongolian economy 2. Trade Facilitation Initiatives and projects 3. Actions to be taken by MNCCI

  2. Economy • By the end of 2008: • GDP reached to 3,620 bln. tugrug, (approximately 2.26 bln. USD) • GDP growth in 2008 - 8.9% • 2008-2009 forecast – • GDP per capita - 1480 USD (2007) • GDP per capita - 1440 USD (2008)

  3. Trade • Foreign trade turnover equaled to over 6155.1 million USD in 2008, of which • Exports comprised 2 539.3 million USD • Imports comprised 3 615.8 million USD The total external trade balance was a deficit of 1076.5 million USD • No import limitation • 5 percent tax for all imported goods • No export taxes except few items

  4. Mongolia’s Global and Regional Trade Priorities • Real economic growth in: 2004-10.4% 2005-6.2% 2006-8.4% 2007-9.9% • Landlocked Developing Country (LDC) • Main export commodity - mineral products • Import is mainly comprised of consumer goods, foodstuff • Need for a regional economic integration

  5. Others 10,7% Mining & exploration 48,4% Raw materialprocessing 3,0% Construction 3,2% Banking 4,9% Trade & catering 17,7% Light industry 4,9% Foreign Direct Investment /in 2008//by sectors/

  6. Othercountries 20,65% Russia 3,12% China 46,64% Japan 4,26% USA 4,9% Canada 13,74% SouthKorea 6,69% Foreign Direct Investment /in 2008//by major countries/

  7. Business confidence index and macro economic parameters

  8. Doing business report 2009 by World Bank

  9. Trade Facilitation Initiatives and projects in Mongolia • Transit transportation • Initiation and implementation of SEW and “Transit Mongolia” program

  10. TRANSIT TRANSPORTATION • NATIONAL COMMITTEE FOR TRADE AND TRANSPORT FACILITATION (NCTTF) • Vision: To accelerate the coordination of activities determining the purpose and action areas to facilitate international trade and transit transport of Mongolia, and to make Mongolia a land-linking transit country by supporting trade, transport and logistics sector.

  11. Legal acts • Recommendation by UNESCAP, NCTTF was established by the Government Resolution No. 245 of Oct 11, 2006 • Working group /member/ of NCTTF was adopted by the Minister of Road, Transport and Tourism order No 10 of Jan 10, 2007. • WG of NCTTF was renewed by the Minister of Road, Transport, Construction and Urban Development, order no 63 of March 11, 2009 • The website was created in 2007, however it still has only in Mongolian version.

  12. Activities of NCTTF • NCTTF still can not manage its action oriented, efficient mechanism: • In April, 2007, secretariat was established with the purpose of implementation of day-to-day work. • The secretary of NCTTF was changed in first quarter of 2008 and again in 2009. • According to the Committee’s internal regulation, WG members meeting should be organized in quarterly basis. But there’s no meeting was held since the last meeting on Apr 01, 2008 and no activity has been done till today.

  13. “Transit Mongolia” National Program Adoption by Government Resolution No. 183, on May 14, 2008 • The purpose:The primary purpose of the Program is to formulate the policy, strategy and action guidelines on the basis of demand–driven development of transit transport and logistics sector, and to identify the ways of implementation and financing. The implementation strategy will assure Mongolia to use its geopolitical advantages, and be led by an active participation of private sector and foreign investors

  14. Objectives: • to improve a legal environment for foreign trade, international transportation and logistics service • to promote and develop trade, transport and logistics services, to support international transit transport • to extend national road and transport and connect to international transport system • to simplify the process of customs, border and professional inspection and control • To apply ICT for trade, transport and logistics service facilitation • to improve institutional and human resource capacities

  15. Missing points based on the recent circumstances: • Lack of leadership and commitment on implementation of “Transit Mongolia” national program. The following problems occured: • Zamyn-Uud logistics facilities: Lack of coordination mechanism and relation among interested parties. • Responsibilities and roles of WG members were specified by the action plan, however there’s no follow up action was made until today. • Communication link between administration, secretariat and WG members is not clear or not systematically stabled.

  16. MNCCI position and recommendation for the mission: MNCCI has been paid an attention to the followings: • To promote and support private sector involvement in the implementation of “Transit Mongolia” national program • To conduct trainings and workshops for capacity building of private sector in the field of transport and logistics • To intend to implement pilot projects with international organizations • To build up close working relation between secretariat and MRTCUD

  17. ROAD NETWORK Asian Highway Routes in Mongolia Khankh Borshoo Ereentsav Khatgal Baga-Ilbenh Altanbulag ULAANGOM UVS HUVSGUL Naranbulag MURUN ULGII SELENGE Ulgii DARKHAN BAYAN-ULGII Havirga ERDENET BULGAN ZAVKHAN AH-4 Jargalant BULGAN ARHANGAI ULIASTAI ULAANBAATAR CHOIBALSAN KHOVD Tsahir Battsengel AH-32 Tamsagbulag KHENTII DORNOD AH-3 ZUUN MOD Matad TUV UNDURKHAAN TSETSERLEG Khar-Khorin ALTAI Yarantai AH-32 BARUUN- URT AH-32 Uench SUKHBAATAR BAYANHONGOR AH-4 CHOIR ARVAIHEER Bichigt GOVY-ALTAI MANDALGOVY UVURHANGAI BAYANHONGOR DUNDGOVY SAINSHAND Burgastai DORNOGOVY Tsogt Ovoo AH-3 Tsagaan suvarga Tavantolgoi DALANZADGAD UMNUGOVY Oyutolgoi Khanbogd Zamyn-Uud Shivee huren Gashuun Suhait Asian highway corridors 1041.0 km AH-3 743.0 km AH-4 2325.1 km AH-32

  18. Actions to be taken from the MNCCI on TCD • In 2008, Organized National workshop on the “Use of the UNESCAP Time/Cost/Distance methodology” with ESCAP in Ulaanbaatar, Mongolia • In 2009, Implementing the project of “CAREC Transport and Trade Corridors performance measurement and Monitoring” with ADB.

  19. Purpose of the project… • To study and gather data to eliminate the border trade bottleneck and identify barriers to trade and transit impediment along the route. • Collecting the information by using the methodology of Time/cost/distance alone the corridor of CAREC 4b/Altanbulag-Darkhan-UB-Choir-Sainshand-Zamiin uud-Erlian-Tianjin

  20. Initiation and implementation procedure of SEW in Mongolia • Translation of UN/CEFACT recommendation No:33 submitted to the Government of Mongolia from the MNCCI, 2006 • WG for SEW establishment by government resolution No:251, 18, Oct 2006 • National Program on SEW approved by the Government resolution No:131, 2007

  21. Reason of the negative performance Since the establishment of WG already passed 2 years but there no activity has been done till today on the following reasons: • Committee secretary did not show the potential effort. • Lack of coordination mechanism and relation among the interested parties. • Communication link between administration, secretariat and WG members is not clear or not systematically stabled

  22. Cont… • Establishment of WG of MNCCI and (Mongolian Customs General Administration)MCGA to improve the activities and power the implementation program, March 2009 • Leading MCGA & MNCCI and to improve the participation of other governmental parties or public institutions and business entity etc • To establish WG or committee under the direct control of Prime Minister on basis of PPP principle

  23. WG on SEW 1.Simplification all international trade related documents including transportation, insurance, banking, inspection, permits and border control (export & import procedures) 2.Harmonization/alignment and re-design the document with regard to UNEdocs/UNLK principles and to facilitate the mechanic activities 3. To conduct trainings and workshops for capacity building and adaptation of national standards with regards UN Layout keys for trade documents.

  24. Action Plan of SEW Objectives: • Raising public awareness and legal framework review • Improve IT infrastructure • Technical and feasibility study of SEW implementation • Define organization structure of the PPP based legal entity, investors, strategic partners • Official launch of the PPP based company • To intend to implement pilot projects with international organizations

  25. Workshop on SEW • The national workshop on Establishing “SEW” in Mongolia was jointly organized by the MNCCI in collaboration with UNESCAP and UNECE on 29, Sep 2009. • The objective of this workshop was to enhance institutional and human capacities of landlocked and transit developing country, to develop and implement SW facility for electronic trade data exchange.

  26. Cont… • At the end of this workshop, the experts and participants approved recommendation • Sent to the Prime Minister and other related government agencies.

  27. Future demand • To take support the implementation of projects from the ADB and other international donor institutions on the following; • Implementation on SEW • Cooperation on renovation of equipment • Raising of public awareness • Improve the capacity of participating parties etc….

  28. Training of trainers workshop • According to the request of MNCCI, 5-day training on Multimodal transport and logistics for trainers and enterprises in collaboration the UNESCAP • Now some trainers will participate the regional Training of Trainers workshop on 16-19, Nov 2009.

  29. Cont… • The objectives of these workshops: • Strengthen the understanding of trainers on training fundamentals • Enhance the knowledge of trainers on the principles and practice of multimodal transport, logistics and supply chain management etc.

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