EUROPEAN PARLIAMENT 2014 - 2019

Delegation to the EU-, EU-, EU- and EU- Parliamentary Cooperation Committees and for relations with and

05/03/2015

MISSION REPORT

following the 10th EU-Mongolia Interparliamentary Meeting, 16-18 February 2015, Ulaanbaatar

Delegation to the EU-Kazakhstan, EU-Kyrgyzstan, EU-Uzbekistan and EU- Tajikistan Parliamentary Cooperation Committees and for relations with Turkmenistan and Mongolia

Members of the mission: Gabrielius Landsbergis, (PPE) (Leader of the mission) Joachim Zeller, (PPE) Emil Radev, (PPE) Ismail Ertug, (S&D) Andrejs Mamikins, (S&D) Ryszard Czarnecki, (ECR) Urmas Paet (ALDE)

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EN United in diversity EN The mission was organised with good cooperation and support from the Secretariat of the State Great Khural (Parliament), the EU Delegation in Beijing (accredited to Mongolia) and the Technical Office of the latter in Ulaanbaatar. Ms. Marina Vraila (political section, EU Delegation in Beijing) participated in all meetings. The mission was held just before the main Mongolian festivity of New Year, Tsagaan Sar.

1. Meetings at the UN House (16 February) The two meetings held at the UN House were interesting and appreciated by the delegation. The Chief Commissioner of the National Human Rights Commission, Mr. Jamsran Byambadorj, gave an overview of the human rights situation in the country. He valued the country’s achievements since 1990, but expressed his concern on several areas. The number of human rights complaints received by his office has been rising recently, and he makes sure that they are reflected in his annual report to the Parliament. His greater concern was for cases related to dignity of individuals, e.g. torture, human trafficking, etc. Mr Byambadorj was also concerned with cases related to mining – the biggest industry in the country: people (herders, indigenous peoples, etc) and the environment are negatively affected. Mining projects are also a serious cause of pollution with the big lorries transporting the ore through the Gobi desert. These and other factors are prompting a large human internal migration to Ulaanbaatar which is having some negative human and social consequences: the city’s outskirts are becoming crowded and poor; moreover the ‘gers’ (yurts) and small constructions planted on these areas are often not connected to urban utility services and, above all, they cause a serious air pollution problem in the city as burning cheap coal for heating. As regards the health sector, Mr. Byambadorj admitted that the number of doctors per capita is satisfactory, but the medical infrastructure is not; this encourages wealthy people to seek medical treatment abroad. Mr. Byambadorj recalled that, according to the constitution, the government is in charge of safeguarding human rights. Mr Byambadorj recognised that Mongolia has been active in signing international conventions on human rights, but said that human rights problems in the country are more related to the economic level sphere than to the political one. The questions and answers covered several topics, such as the comparison of the human rights situation in Mongolia and in its neighbours (Mongolia is to be compared with countries like Australia, NZ or South Korea), China and Russia; the evaluation of media freedom in Mongolia (the media freedom law proposed by the president last year was not passed by Parliament); the children situation, particularly in the new ‘ger’ areas of Ulaanbaatar (the apartments built by the government in these areas, although cheap, remain often empty because the people has no capacity to repay mortgages); and the enforcement of human rights conventions. The UN Resident Coordinator, Ms. Sezin Sinanoglou, gave a very interesting overview of the development challenges faced by Mongolia. For her Mongolia is a true democracy and a politically stable country. The government is accessible and the defence budget is small. It has huge untapped natural resources that one day will benefit its population. But there is much to do yet in the country, basically due to the following reasons: A) There has been an unsustainable economic growth which started at very low wealth levels in the 1990s. The national economy relies too much on mining, while there are big potentials in other sectors like tourism and agriculture. The Mongolian economy is fragile because it is nowadays too much dependent on China – particularly on trade. B) Mongolia is too vulnerable to global economic shocks and to climate change. The increase in temperature has already reached the ceiling of 2 degrees rise (UNFCC tipping point for the planet). Moreover the regular dzuds (hot summers followed by extreme winters) are an impediment for sustainable herding, and they encourage the nomads to keep a disproportionate number of animals, which is uneconomical and bad for the environment. Finally, Ulaanbaatar and several regions are prone to suffer earthquakes.

PE550.033v01-00 2/9 CR\1052078EN.doc EN C) Inequalities are growing and the quality of education is poor: there are medical schools where the students do never see a patient. The health landscape is unequal: although the level of HIV infection is low, the infection levels of sexual transmissible diseases are very high. Tuberculosis is fought successfully, measles have disappeared and maternal mortality has diminished dramatically; however hepatitis-C has turned to be an authentic epidemic. D) Governance has to be improved. Checks and balances are simply not there, and the links between members of parliament and government are too strong. Institutions, and particularly ministries, are not mature enough. There are too many organisational changes and personnel turnover to let any institutional memory survive. Moreover ministries require far better coordination spirit and procedures. Freedom of media is good but corruption is a serious issue, particularly in the judiciary power. There is also a need for policy strategies before they are implemented: the country’s development is managed by separate projects and not by strategies, and the decisions are not taken based on prior research. By contrast, development partners need to understand that the people’s culture and history is nomadic and therefore individualistic; the sense of community is very different in these societies, each ‘ger’ (yurt tent) is meant to be a self-sufficient cell. The questions and answers focused on: the government’s 2012-2016 action plan (difficult to apply with so many government changes); cultural obstacles for governance (the people want to severe themselves from the past centralised planning); president’s office role (visionary although with limited constitutional powers); financing administrative capacities (local governments receive public funds but have no institutional / technical capacity to manage them); corruption and ways to deal with it (popular perception that corruption came with foreign investments, particularly South Koreans). The UN programme in Mongolia focus on fighting inequality, seeking economic and environmental sustainability and empowering women. The UN is also paying great attention to the urbanisation problems, air pollution, land grabbing and how to improve transparency in the mining sector.

2. Meeting with the Minister of Foreign Affairs, Lundeg Purevsuren (17 February) The Minister elaborated on the 25 years of democratic change in Mongolia, stressing that elections have been always respected and that the transition was peaceful – in line with the Mongolian character. Mongolia broke the stereotypes of transitions from communist to democratic regimes. Nevertheless it was not an easy process, but it was a good experience rather than bad. Mongolia is sharing this valuable and positive experience with other Asian countries such as Kyrgyzstan and Myanmar. It is also ready to share experiences with North Korea thanks to the good relations that Mongolia has maintained with this country and its neighbours. The EU is an important third neighbour and the opening of an EU Delegation in Ulaanbaatar is badly needed – even the 5 EU embassies are asking for this opening. We need to encourage more EU MS to ratify the EU-Mongolia PCA. Cooperation with the EBRD and the EIB is important. It was regrettable that the previously foreseen slot for the Mongolian President, Tsakhiagiin Elbegdorj, to address the EP plenary sitting in March has been given to ‘another candidate’. The Minister hopes that the EP will make its April or May agenda open to the President to commemorate the 25-year anniversary of the Mongolian democracy. There are important international appointments for Mongolia in the next months: the 2015 meeting of the Freedom On-line Coalition will be held in Ulaanbaatar on 4-5 May. A strong EU participation and engagement in this event is important – former SE PM and MFA, Carl Bildt, has already confirmed his presence. Mongolia is becoming increasingly active in the OSCE, only a couple of years after its accession. Next year the 28-29 July ASEM summit in Ulaanbaatar is also of great relevance. The Chairman of the EP delegation, Mr. Gabrielius Landsbergis, recalled the importance given by the EP to relations with Mongolia and clarified that if there was no IPM meeting in 2014 this was due to reasons out of our control, such as the EP elections and the change of

CR\1052078EN.doc 3/9 PE550.033v01-00 EN government in Mongolia. We value Mongolia because is a beacon of democracy. The EU wants to be a close ‘third neighbour of Mongolia’. The EU is doubling its financial assistance cooperation to Mongolia in the period 2014-2020 and this is an evidence of the EU interest and dedication the country. The EP is much looking forward to the completion of the PCA ratification by the parliaments of the EU MS. The EP will, once again ask the EEAS to open a Delegation in Ulaanbaatar; the problem is only of financial nature, there is not lack of political will. People to people contacts and student exchanges have the potential to be increased.

At the questions and answers, MEP Landsbergis asked how the Russia/Ukraine crisis has affected the sense of security in Mongolia (we do not choose our neighbours; the closure of the border with China until 1990 was a mistake; we try to keep the balance, the Russian economy is declining; Ukraine’s territorial integrity should be respected). MEP Ryszard Czarnecki asked about cooperation with Kazakhstan, Kyrgyzstan and other Central Asian republics and on the implications of future leadership successions in some of them (Mongolia is a SCO observer and is not planning to apply for membership; common nomadic past; ready to provide support to civil service modernisation and electoral law; Kazakhstan is the closest country, but Kyrgyzstan is the one with the closest links with Mongolia). MEP Ismail Ertug asked about the Mongolian growing economic dependence on China and on the need to diversify the economy (Mongolia needs the Chinese ports and transport routes to reach third markets; EU standards and EU know-how, although more expensive, is more valuable for Mongolia to open exports to other countries like the US and Japan). MEP Andrejs Mamikins asked for the Mongolian success secret (Mongolian people have always been very tolerant, even during the Mongol Empire; the good relations with all the neighbours including both Koreas and Japan is also important; Mongolia can be a good mediator with North Korea but it does not want to interfere either in the 6-parties nuclear talks). MEP Landsbergis asked about the Eurasian Union and Mongolia (President Putin paid a state visit last year to Mongolia; trade negotiations with the Eurasian Union will start in March; Mongolia has no plans to join and it is too early to judge the Eurasian Union).

3. Meeting with the State Great Khural (Parliament) Speaker, Zandaakhuu Enkhbold (17 February) Speaker Enkhbold underlined that developing business and relations with the EU is a priority for Mongolia. The EU is a privileged ‘third neighbour’. We need to speed up the PCA ratification process, since only 13 EU MS have done it so far. The EU cooperation is much appreciated and the setting up of an EU Delegation in Ulaanbaatar will help politically and practically. The hosting by the State Great Khural of the OSCE Parliamentary Assembly in September 2015 is an important event. The GSP + is also appreciated but Mongolia deserves as well being granted the status of ‘market economy’. Chairman Landsbergis said that the EP delegation feels at home in the Mongolian democracy. The PCA ratification is of the interest of both Mongolia and the EU. The MEPs of the delegation will bring back to the respective capitals the request of speeding up the PCA ratification. An accurate reporting and replying to the European Commission’s correspondence is important to progress towards the granting of the ‘market status. MEP Landsbergis referred to the Mongolian geopolitical situation (‘we do not have access to the sea but we are an island’ in terms of democracy, market access, etc; Mongolia, with its just 3 million population between such big countries, feels isolated). MEP Czarnecki acknowledged the achievements made by Mongolia and asked about its development plans (the current difficult situation of the public finances will force the government to apply cuts in social / welfare programmes, but we hope that they will be small). MEP Ertug referred to the urbanization, environment and social challenges of Ulaanbaatar and to the situation of media

PE550.033v01-00 4/9 CR\1052078EN.doc EN (the capital almost holds half of the country’s population, the most pressing problem is the coal burning in the ‘gert’ districts of the capital, and the serious pollution that it causes; by next year 50% of this coal will be converted in SNG gas that will be much less pollutant; German know-how in this and other clean technologies is very important, there is only one small solar energy farm in the country). MEP Landsbergis referred to the need to provide confidence to international investors and the fight against corruption (corruption did not exist in Mongolia 15 years ago; Transparency International keeps giving better scores to Mongolia every year; openness is the best medicine against corruption). MEP Ertug asked about comparisons with China on the fight against corruption (one-party systems might be efficient but lack judiciary independence).

4. 10th EU-Mongolia Inter-Parliamentary Meeting (IPM) (17 February) Co-Chairs: MP Bayarbaatar Bolor (Chair on the State Great Khural’s Mongolia-EP parliamentary group and of the standing committee on budget) and MEP Gabrielius Landsbergis (Vice-Chair of the EP delegation for Central Asia and Mongolia and member of the committee on international trade and the sub-committee on security and defence). The agenda was approved.

4.1 The State of Bilateral Mongolia-EU relations Co-chair Enkhbold expressed Mongolia’s wishes to see the new EU-Mongolia Agreement, the PCA, soon in force: It was signed in 2013 and the ratification process should be speeded up. He also asked for support to see soon an EU Delegation open in Ulaanbaatar. Co-chair Landsbergis greeted the democratic achievements of Mongolia and its positive record on human rights. He also expressed satisfaction for the increase of EU financial assistance to Mongolia for the period 2014-2020 and highlighted that they open new possibilities. MEP Urmas Paet valued the active role of Mongolia in the Freedom On-line Coalition and the fact that it will host its 2015 meeting. This is a way to promote true democracy in the world. Security issues are evolving in the world, notably in Mongolia’s big neighbours, Russia and China. MP Luvsanvandan Bold (former foreign minister until November) said that Mongolia was proud to be a reference for democracy and that deepening in democratic values is a high priority for the country. Mongolia is at the same time proud of its Asian roots and values and seeks the development of all its potentialities. Human rights protection in Mongolia is good and should be improved: the human rights commission law should be updated and he admitted that the judiciary is still ‘trapped in the past’. MEP Joachim Zeller said he was impressed with the democracy and modernisation achieved by Mongolia. These achievements put Mongolia ahead of many Asian countries. He recalled that human rights protection is primarily a responsibility of the legislators. The protection of Mongolian culture is very important; keeping traditions is not in contradiction with modernisation. EU-Mongolia trade should increase. MP Sambuu Demberel said that the Parliament is dealing with the concerns regarding the judiciary power; this will take some time but it will be dealt with. MP Migeddorj Batchimeg underscored that finally in the last 25 years history is being re- written and drafted by the Mongolian citizens themselves.

4.2 Economic relations Ms N.Oyundari, The Deputy Minister of Foreign Affairs, reported on this point: The adoption of EU standards is beneficial for Mongolia; for these and other reasons the EU is seen as a privilege third neighbour of Mongolia. The EU is also an important trade partner and Mongolia enjoys the GSP+ treatment. The visit of former European Commission President,

CR\1052078EN.doc 5/9 PE550.033v01-00 EN Manuel Barroso, gave a significant impulse to our relations with his 2013 official visit. The EU cooperation support is of great value, notably to support the Mongolian SMEs. The PCA ratification and entry into force will bring a new phase for EU-Mongolia relations. A report of the last (16th) EU-Mongolia Joint Committee meeting held at the end of 2014 was presented. Economic cooperation Mongolia-Japan is also progressing: a strategic partnership agreement with this country is about to be ratified. Co-chair Landsbergis stated that corruption must be fought and that the EU can provide help. A stable legal environment is needed to attract foreign investments in Mongolia. MEP Paet argued that an accurate reporting and timing replies to the European Commission by the Mongolian government are necessary for the continuing GSP+ treatment and to progress in the process for granting the market economy status to Mongolia. MP Bold recalled that the doing business rating of Mongolia is good but admitted that it can still be improved. Diversifying the Mongolian economy and its exports is a priority. Last year Mongolia adopted a green development plan policy, reflecting EU good practice. Mongolia needs help from the EU to implement it. The majority of EU investments in Mongolia focus on the mining sector, this could also be diversified. EU-Mongolia relations are essential. We need to promote Mongolia and its exports in the EU. The PCA should enter into force urgently and EU standards are welcome in Mongolia. Mongolia needs access to third countries’ markets and for this China and Russia are essential partners. MEP Zeller said that the forthcoming visit of President Elbegdorj to the Internationale Tourismus-Börse Berlin (ITB Berlin) is good news; tourism can reinvigorate the country’s development. He also insisted on the need to have a stable and safe investment environment to attract foreign investors. MP Demberel made references to the 2013 investment law, which modified the 2012 one, and should now provide trust and reassurances to foreign investors.

4.3 The state of bilateral inter-parliamentary relations MP Batchimeg valued the Mongolian OSCE membership since 2012 and, particularly the fact that the State Great Khural will be hosting this year the autumn session of its Parliamentary Assembly (OSCE PA).Ulaanbaatar can become a hub of multilateral relations and a ‘Helsinki of Asia’ and beyond. OSCE observers are welcome in Mongolia. The expansion of the OSCE to Asian lands is of interest to the world. The OSCE record of activities in Central Asia has been very positive. The security sector is of great importance for Mongolia. In the past the Mongolian cooperation in security was limited to Russia, China and the US, now with the OSCE new avenues are being open. The OSCE and the EU could help reinforcing the capacities of the Mongolian police and other law-enforcement and security services on how to better respect human rights while still effectively accomplish their duties. The countries which joined the EU last are probably the best suited to provide good practices, as they had gone through similar experiences to Mongolia. Batchimeg also recalled the great Mongolian effort in world-wide peace-keeping operations (the highest percentage of any national army). Co-chair Landsbergis evoked this year’s celebration in Europe of 40 years since the Helsinki accords, but unfortunately a war is going on in the East of Ukraine. People to people contacts are important and should be a way to cement peace and good relations in the world. There is an untapped potential for Mongolia to benefit more from the Erasmus Mundus programme and other EU exchange programmes for students and researchers. MEP Zeller agreed and added that it was unexpected and sad to see a war in Europe after the tragedies of the two great wars. MP Luvsan Erdenechimeg underlined the strong Mongolian commitment with ASEM. The country is proud that at the last ASEM summit in Milan in 2014, it was agreed that the next one will be held in Ulaanbaatar in 2016. The ASEP parliamentary assembly will also be held in Mongolia. The government has set up a committee to prepare the event. Mongolia has to learn from previous ASEM summits and ASEP hosts.

PE550.033v01-00 6/9 CR\1052078EN.doc EN 4.4 Common promotion of democratic values MP Bold stressed the Mongolian attachment to the democratic values. Mongolian transition was made in peace. Nobody forced or influenced Mongolia to choose democracy as its political system. Mongolia’s brave revolution was fast. Freedom of speech was considered by the citizens to be of the highest importance. Mongolia has incorporated universal values of democracy and human rights into its legal system. For Mongolians, democracy and sovereignty are synonymous terms. Democracy was an achievement of the youth, but it was accepted by the rest of the Mongolian population. The population was willing to use in full its achieved freedom of association: civil society is very fertile in Mongolia. Democracy in Mongolia is supportive of individual rights. Education on democracy was established quickly and successfully, other countries have learnt from the Mongolian experience. Co-chair Landsbergis strongly agreed with the concept of making equivalent democracy and sovereignty. Despite all the undisputable democratic achievements of Mongolia there are still a few areas of concern: high fines to journalists, maybe causing some self-censorship out of fear to be sued for defamation; there are some reports of attacks to immigrants and LGTB people; the fight against corruption should be reinforced, as this is essential for democracy to endure. MEP Zeller said that the EU admires the Mongolian democracy. However an independent media is very important and self-censorship is a danger. Similarly, a well-functioning democracy requires an independent justice, not influenced from politicians or businessmen. The foreign policy of Mongolia is very interesting, including the observer status at the Shanghai Cooperation Organisation (SCO). MEP Ismail Ertug spoke about the importance of media freedom in a democracy and on the conflicts of interests created by close links between large business circles and media. MEP Andrejs Mamikins insisted on the risks for democracies created by journalists’ self-censorship across the world, including in Mongolia and in the EU. MEP Ryszard Czarnecki said that other countries must be jealous of the Mongolian democracy and wonder how the positive Mongolian experience and good practices can be better transmitted to the Central Asian countries. MP Batchimeg informed that a new media law is on the making. The crime of defamation will disappear and the secrecy of the source of information will be respected. Transparency over the media owners will be compulsory. The arrests of journalists are something of the past in Mongolia. In 2014 the most prestigious international NGOs in these fields have acknowledged Mongolia’s significant progress.

A Joint Statement was approved at the end of the IPM (see attached)

5. Visit to the EU-financed project ‘Support to SME development in Mongolia’ (18 February)

The visit was done in two phases, first at the EBRD local office (the implementing agency) for debriefings from the EBRD staff and by government officials, and then a visit to the premises of Nans Cashmere, a project beneficiary small/medium enterprise. The specific project objective is the sustainable development of a competitive SME sector in Mongolia through the enhancement of a business-enabling environment and the strengthening of SME related Mongolian institutions and organisations. Other objectives are to help diversifying the Mongolian economy from its hard dependency from the mining sector, and to contribute to an export replacement process in order to make the country less dependent from the world’s economic cycles and crises. The overall project objective is to contribute to poverty reduction in Mongolia. The areas targeted are particularly tourism and SME development. 2/3 of the beneficiaries are not related to the mining industry.

CR\1052078EN.doc 7/9 PE550.033v01-00 EN The briefings at the EBRD office were given by the head of office, Mathieu Le Blan, the senior adviser, Eric Guetschoff, the director for SME policy at the Mongolian ministry of industry, Bilguun Ganbat and the EBRD national programme manager, Baigalmaa Sanjjav. The EBRD is operational in Mongolia since 2000 and its local office opened in 2006. There was no consultancy service hired to set up the project, as the ministry did the relevant surveys, reducing significantly the project’s costs. The field visit to one of the beneficiaries, Nans Cashmere was a suitable idea, as it also provided, later on, the opportunity for some of the delegation members to pay a visit to the ‘gert’ areas of Ulaanbaatar and witness the difficult situation in which many of its inhabitants live. Nans Cashmere was a family business that has had a good success, partly thanks to the project: increased turnover by 20%, increased number of employees from 22 to 26, increased exports volume by 13%. 95% of its exports go to Europe where its design is increasingly appreciated. Still today 85 % of Mongolian cashmere exports are processed in China. The project aims to change this pattern and export value added products; in cashmere, the quality counts more than the quantity. The majority of workers in the Mongolian cashmere sector are women.

6. Meeting with NGOs at the hotel (18 February) Representatives of three NGOs attended the meeting: Open Society Forum, Rivers without borders and the Centre for Human Rights and Development. The recent UN human rights review on Mongolia has been appreciated by the NGOs, as it is not a national report. There is a large concern about the loss of clean environment in Mongolia. For the NGOs the currently discussed in parliament amendment to the law on rivers and forests will leave nature beauties unprotected. Mining companies build their infrastructure affecting the rivers and the little water available in southern Mongolia. Hydropower projects are meant to absorb the little streams and reserves available. There are still human rights concerns in Mongolia, mostly due to the heritage of the past, e.g. the ministry of defence is surprised when approached by NGOs, as if human rights would be something alien to the armed forces. There are reports of torture exercised by law- enforcement agencies. The anti-corruption agency has no mandate to enter into cases of possible human rights violations. Preventive detention is routinely applied by the police before important events. Land issues, including land grabbing and soil and water degradation caused by the mining companies and illegal miners is of big concern. The ecologist activist and 2007 Goldman Environmental Prize winner Tsetsegee Munkhbayar, was sentenced last year to seven years in prision for ‘terrorist activities’ – the sentence that he received was initially of almost 22 years, but it was reduced in an appeal. Poverty and the right to food is of great importance. Poverty is still widespread. The NGOs do not agree with the new method of poverty calculation used by the governmental agencies, by which poverty has gone down from 35% in 1996 to 20% in 2011. There are poor people with jobs paid with very low salaries. The labour law is not implemented (1/2 of the workers do not have a contract) and there are no trade unions outside the public sector. Probation periods favour unpaid labour and exploitation. In rural areas the employers often retain the employees’ ID card. Mongolia has no independent phytosanitary laboratories and the university ones are not certified. There are serious water problems near the mining sites, affecting directly the nomadic traditional live of Mongolians. The NGOs claim that no environmental impact assessments are carried out before opening the sites. Other: freedom of expression is real but the self-censorship is also real due to fear for defamation claims or for indirect punishment. Last year a website was closed for obscure reasons after having criticised the PM’s private business. There is no anti-discrimination law in force yet, and this affects, women, older people, people with disabilities, the youth, LGTB people, etc.).

PE550.033v01-00 8/9 CR\1052078EN.doc EN A questions and answers session followed: Since November last year the new ‘unity government faces almost no opposition in parliament, how do you feel in this new situation? (The 1997 civil society law is outdated; NGOs depend very much on international financing; it is hard to find independent NGOs outside Ulaanbaatar; NGOs have no right to make claims of public interest in courts – only individual cases). Comparisons on human rights with China and Central Asia. Protection of UNESCO sites in Mongolia (concern for those recognised by UNESCO as Worship Mountains). Minorities (only Kazakhs are recognised as minorities but all nomads should be specially protected). It was agreed to hold a meeting with NGOs by video-conference or to receive data through the Brussels office of CEE Bankwatch one or two weeks before the next EU-Mongolia IPM (or first PCC) which will be held in Brussels or Strasbourg in 2016.

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