On January 11, 2021, Japan and Mongolia signed a bilateral trade agreement that aims to enhance economic cooperation between the two nations. The agreement, which took two years of negotiations, covers trade in goods and services, as well as investment and intellectual property.

Under the agreement, Japan will eliminate tariffs on 96% of Mongolian products imported into the country over the next 10 years. This includes items such as cashmere and other textiles, agricultural products like livestock and meat, and mineral resources like coal and copper. In return, Mongolia will gradually reduce tariffs on Japanese automobiles, electronic devices, and other products.

The agreement also includes provisions to improve cooperation on intellectual property, including trademarks, patents, and copyrights. Both countries will work together to protect and enforce intellectual property rights, which will benefit businesses in both countries.

The trade agreement is expected to strengthen the already close economic ties between Japan and Mongolia. Japan is Mongolia`s largest source of foreign direct investment and a major market for its coal and mineral resources. Japan also provides development assistance to Mongolia, particularly in areas such as education, infrastructure, and disaster management.

The trade agreement could also have a broader impact on the region. Mongolia is strategically located between Russia and China, two major players in the global economy. By strengthening economic ties with Japan, Mongolia could become a more important player in regional trade and development.

The Japan-Mongolia trade agreement is a positive development for both countries. By reducing trade barriers and improving cooperation, it will help to promote economic growth and development. It also demonstrates the importance of strong international partnerships in an increasingly interconnected global economy.