RESTRICTED WT/TPR/S/297 15 April 2014
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RESTRICTED WT/TPR/S/297 15 April 2014 (14-2330) Page: 1/81 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT MONGOLIA This report, prepared for the second Trade Policy Review of Mongolia, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Mongolia on its trade policies and practices. Any technical questions arising from this report may be addressed to Messrs Masahiro Hayafuji (tel: 022/739 5873), and John Finn (tel: 022/739 5081). Document WT/TPR/G/297 contains the policy statement submitted by Mongolia. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Mongolia. This report was drafted in English. WT/TPR/S/297 • Mongolia - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT .......................................................................................... 9 1.1 Recent Economic Developments .................................................................................... 9 1.2 Trade Performance .....................................................................................................11 1.2.1 Composition of trade ................................................................................................11 1.2.2 Direction of trade .....................................................................................................11 1.3 Foreign Direct Investment ...........................................................................................13 2 TRADE AND INVESTMENT REGIME ............................................................................ 15 2.1 General Framework ....................................................................................................15 2.2 Legal system .............................................................................................................16 2.3 Trade Policy Objectives ...............................................................................................16 2.3.1 Trade related law .....................................................................................................17 2.4 Trade Agreements and Arrangements ...........................................................................19 2.4.1 WTO ......................................................................................................................19 2.4.2 Other regional and bilateral agreements .....................................................................20 2.5 Investment Regime ....................................................................................................21 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 23 3.1 Measures Directly Affecting Imports ..............................................................................23 3.1.1 Customs procedures and requirements .......................................................................23 3.1.2 Customs valuation ...................................................................................................24 3.1.3 Rules of origin .........................................................................................................25 3.1.4 Tariffs ....................................................................................................................25 3.1.4.1 Overview .............................................................................................................25 3.1.4.2 Tariff structure .....................................................................................................25 3.1.4.3 Bound rates .........................................................................................................25 3.1.4.4 Applied MFN rates .................................................................................................26 3.1.4.5 Tariff escalation, tariff ranges, and tariff peaks .........................................................26 3.1.4.6 Tariff-rate quotas ..................................................................................................26 3.1.5 Import prohibitions, restrictions, and licensing ............................................................26 3.1.6 Anti-Dumping, countervailing, and safeguard measures ................................................29 3.1.7 Standards and other technical requirements ...............................................................29 3.1.8 Sanitary and phytosanitary requirements ....................................................................30 3.1.9 Other measures .......................................................................................................30 3.2 Measures Directly Affecting Exports ..............................................................................30 3.2.1 Export procedures and requirements ..........................................................................30 3.2.2 Export taxes, charges, and levies ...............................................................................31 3.2.3 Export prohibitions, restrictions, and licensing .............................................................31 3.2.4 Export support and promotion ...................................................................................31 3.2.4.1 Tax concessions and subsidies for exporters .............................................................31 WT/TPR/S/297 • Mongolia - 3 - 3.2.4.2 Free zones ...........................................................................................................32 3.2.4.3 Export financing, promotion, and marketing assistance ..............................................32 3.3 Measures Affecting Production and Trade .......................................................................32 3.3.1 Taxes and incentives ................................................................................................32 3.3.1.1 Corporate income tax ............................................................................................33 3.3.1.2 Value-added tax (VAT) ..........................................................................................33 3.3.1.3 Excise tax ............................................................................................................33 3.3.2 Competition policy and price controls .........................................................................35 3.3.3 State trading, state-owned enterprises, and privatization .............................................36 3.3.4 Government procurement .........................................................................................37 3.3.5 Intellectual property rights ........................................................................................37 3.3.5.1 Copyright and related rights ...................................................................................38 3.3.5.2 Patents ................................................................................................................38 3.3.5.3 Trade-marks and geographical indications ................................................................39 3.3.5.4 Plant varieties ......................................................................................................39 3.3.5.5 Layout designs of integrated circuits ........................................................................39 3.3.5.6 Trade secrets .......................................................................................................39 3.3.5.7 Parallel imports .....................................................................................................40 3.3.5.8 Enforcement .........................................................................................................40 4 TRADE POLICIES BY SECTOR ..................................................................................... 41 4.1 Agriculture .................................................................................................................41 4.1.1 Features .................................................................................................................41 4.1.2 Trade .....................................................................................................................43 4.1.3 Domestic policy .......................................................................................................44 4.1.3.1 National Programme for Food Security .....................................................................45 4.1.3.2 Third Crop Campaign .............................................................................................46 4.1.3.3 Livestock Programme ............................................................................................46 4.1.3.4 Index-based Livestock Insurance Programme ...........................................................46 4.1.4 Policy Impact ..........................................................................................................47 4.2 Mining and Energy ......................................................................................................47 4.2.1 Minerals .................................................................................................................47