Mongolia has officially opened its market to Armenia through a temporary trade agreement between the Eurasian Economic Union (EAEU) and Mongolia. On December 5, Armenia’s government approved the agreement, which aims to significantly reduce customs duties and boost export volumes.
The agreement focuses on liberalizing and simplifying trade by reducing tariff and non-tariff barriers. It is designed to foster economic cooperation and expand trade relations between EAEU member states and Mongolia, promoting product diversification and stronger partnerships.
Armenia’s exporters stand to benefit greatly from the new terms. With the introduction of tariff concessions, customs duties on goods exported from Armenia to Mongolia will drop from an average of 7.5% to just 1.2%. This reduction is expected to save Armenian exporters up to $1 million annually.
Key products like Armenian brandy, tobacco, chocolate, mineral water, and canned fruits will gain a competitive edge in the Mongolian market. These items, with tariffs ranging between 5% and 30%, will now have significantly better terms for export, increasing their appeal to Mongolian consumers.
The agreement also includes a list of 375 product categories for each party, outlining goods eligible for tariff benefits. Armenia has prioritized products of primary export interest to ensure maximum advantage for its businesses.
The trade agreement will initially be in effect for three years, with the possibility of an extension for another three years. This provides a critical window for Armenian exporters to establish a strong presence in Mongolia and capitalize on the newly created opportunities.
The opening of Mongolia’s market marks a significant milestone for Armenia, paving the way for increased export volumes and economic growth. By fostering stronger ties with Mongolia, this collaboration demonstrates how international trade agreements can deliver tangible benefits to Armenia’s economy and its businesses.