|“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ||Mongolian Business Database||London UK|
|SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA||The Center for American and International Law (CAILAW)||Plano Texas June 17-18 2019|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
A fully-fledged trade war between China and the US would have "a severe impact on the global economy", the World Trade Organisation head has told the BBC.
There was a risk global growth could fall "very quickly", WTO director-general Roberto Azevedo warned.
His comments follow the US and China announcing proposed tariffs against one another, as Washington and Beijing ramp up the rhetoric on trade.
The WTO now faced one of its toughest periods, Mr Azevedo said.
Last week US President Donald Trump announced proposed tariffs on $60bn worth of Chinese goods.
Beijing responded saying it was not afraid of a trade war, but that negotiations should remain open.
The US has since said it was "cautiously hopeful" that the two economic giants could come to an agreement on trade issues.
Mr Azevedo told the BBC's HardTalk program that while a global trade war had not yet been initiated, the world was "seeing the first movements towards it".
Earlier this month the US announced broader tariffs on steel and aluminium imports which affected many nations including China. Beijing responded with its own set of proposed tariffs.
The scale of damage done to the global economy, and its rate of expansion, would depend on what the trade war encompassed, Mr Azevedo said.
"If it's just limited to steel and aluminium, it's one thing. If you're talking about hundreds and thousands of products, it's a completely different thing. And the impact will be significantly different."
But he said there was little doubt that the trade clash was a "big problem".
"I don't think anybody believes that this is something minor, even in the US administration.
"These conversations are ongoing precisely because people are beginning to understand, I hope, how serious this is and the kind of impact this could have to the global economy."
Washington has also has launched a complaint against China for breaking basic patent rights rules at the WTO - a body that Mr Trump has said is a "catastrophe" and "a disaster" for the US.
Mr Azevedo said the clashes between the US and China were some of the most difficult moments the WTO had faced in its 23 year history.
"If not the toughest, one of the toughest, yes for sure," he said.
"Given the nature of the challenges before the [WTO] system, where it comes from and so on, it's really tough right now."
But he said that despite some rhetorical statements that pointed towards the US wanting to leave the WTO altogether, there was no indication this was going to happen and that there were "still conversations ongoing and still negotiations ongoing".
"Now that doesn't mean that we should downplay that - you don't want to be in the war," he said.
"We want to avoid the war so everything that we can do to avoid being in that situation, we must be doing at this point."
Mr Rashid Alimov, the Secretary-General of the Shanghai Cooperation Organisation (SCO), is currently visiting Mongolia at the invitation of D.Tsogtbaatar, Minister of Foreign Affairs.
In Ulaanbaatar, Mr. Rashid Alimov has already met President Kh.Battulga, Foreign Minister D.Tsogtbaatar and J.Bat-Erdene, Minister of Road and Transport Development. On Wedesday (28 March), the first of his two-day visit, Mr Alimov gave information about the SCO and discussed cooperation in road, transport energy and other sectors. He will give an interview to the Mongolian National Broadcaster on Thursday.
Mongolia obtained observer SCO status in 2004. Since then, SCO Secretary-Generals visited Mongolia in 2007 and 2014.
The historic launch of the long-awaited trading of Chinese crude futures this week has stirred up a heated debate among analysts as to whether the new commodity product will prosper or flop.
Some market analysts expressed doubts over the success of the petro-yuan, citing Beijing’s yearning for total control over trading as one of the key reasons for a potential bust. “The government has been eager to encourage liquidity and paper trading, but of course the issue with paper trading is speculative trading that the government wants to keep at bay,” Michal Meidan, an analyst at energy market consultancy Energy Aspects, told Bloomberg prior to the launch.
Meanwhile, the high costs of oil storage for delivery into the Shanghai Futures Exchange may scare potential investors away from the new contracts, according to industry analysts. “Storage plays a crucial role in linking cash and futures markets. Many speculators, such as proprietary traders and hedge funds, may be scared away,” said Jian Yang, a research director at the JP Morgan Center for Commodities in the University of Colorado Denver, as quoted by the agency.
However, China's yuan-backed oil futures managed to make a strong debut on Monday with overnight trade volumes initially outstripping transactions of internationally recognized benchmark Brent. Some 62,500 contracts reportedly changed hands during the first session, as domestic and international oil investors joined the trading.
The impressive start gives deeper cause for optimism about the newcomer with some analysts qualifying oil futures denominated in China’s currency as a game-changer in the world of financial trading. “This is the single biggest change in capital markets, maybe of all time,” said Hayden Briscoe, APAC head of fixed income at UBS Asset Management, as quoted by Reuters.
According to the analyst, the move to trade oil in yuan will diminish the role of the greenback in global financial markets. If market participants, including US corporations, opt to trade yuan-backed contracts, this could easily strengthen the Chinese currency and, at the same time, weaken the dollar.
“This helps cement the exchange’s viability and challenges the petro-dollar system, in which oil deals are executed in dollars. This would decrease demand for the greenback and boost US inflation,” Briscoe said.
With crude oil becoming a great chunk of modern international commerce, the potential impact of the new product on oil market dynamics and on global monetary and financial systems could be correspondingly great.
Rio Tinto is not part of bribery investigation that has been launched by Swiss prosecutors into the giant Oyu Tolgoi copper and gold project in Mongolia.
In a letter seen by the Financial Times, the Swiss Office of the Attorney-General said its inquiry was not directed against the Anglo-Australian mining group.
“Currently, the investigation is directed neither against your client nor against any of client’s employees,” the OAG letter reads.
The OAG is conducting a criminal investigation into a frozen Swiss bank account that the Mongolian Anti-Corruption Authority (MACA) says could have been used to pay a bribe
Rio controls Oyu Tolgoi through a Canadian-listed subsidiary called Turquoise Hill.
Earlier this month, Turquoise Hill revealed earlier this month it had received a request for information from the MACA in connection with the “possible abuse of power by authorised officials” during the negotiation of the 2009 Oyu Tolgoi investment agreement.
At the time the deal was signed nine years ago Rio owned a 10 per cent stake in Turquoise Hill, which was then called Ivanhoe Mines. Rio later raised its interest to 51 per cent and now operates the mine.
The agreement, which has attracted plenty of controversy, paved the way for development of the mine and set out the terms of Mongolia’s part ownership and taxes to be paid.
A row over the agreement in 2013 led to a two-year delay in the underground expansion project.
More recently, the Mongolian government has hit Turquoise Hill with a $155m tax claim and ended a deal that allow Rio to source electricity for the mine from across the border in China.
An underground expansion of the mine, situated in Mongolia’s Gobi Desert, is one of Rio’s most important growth assets.
The company is ploughing $5bn into the project aimed at lifting output to 560,000 tonnes of a copper a year between 2025 and 2030.
News that Rio is not being investigated by Swiss prosecutors will be a relief for the London-listed miner, which is facing civil US fraud charges in connection with a bungled African coal deal.
Regulators in the UK and US are also examining a payment Rio made to a French consultant who helped the company secure the rights to large iron ore deposit in Guinea.
Three-Pillared Development Policy presented at the Public and Private Discussions, the first stage of Mongolia Economic Forum, aims to improve living standards by reforming socio-economic policy and public governance, as well as by creating 263 thousand workplaces before 2020. In order to achieve this, the policy is prioritizing the development of agriculture, mining and tourism sectors. The main policy in the mining sector will be to create environment for distributing dividends to the public by activating major deposits into economic circulation. The three-pillared development policy is also addressing the expansion of trade and tourism by developing infrastructure. Prime Minister Khurelsukh Ukhnaa highlighted the importance of supplying 100 percent of food and electricity demand domestically, which are interlinked with the Coal miners' export price varies significantly MINING The third financing of the Extended Fund Facility (EFF) program implemented by the Government of Mongolia and International Monetary Fund (IMF) is expected to be settled at the meeting of Executive Board of IMF today. Accordingly, the board will conduct the performance review of EFF program, which has been implemented for over a year, to decide on the third financing. After the previous review SDR 55.9 million fund or USD 79.1 million was enabled by the IMF. The successful implementation of the program will allow for an amount equivalent to SDR 314.5 million, or about USD 434.3 million.
The IMF staff team conducted discussions on the third review of the three-year Extended Fund Facility in February and concluded that Mongolia’s economy is doing better than expected led by commodity exports and a pick-up in domestic demand. They also warned the growth outlook is subject to risks including a fall in external demand for commodities and higher fuel prices. Thus, the team noted it is essential that the authorities continue to build buffers and implement the structural reforms necessary for high and sustainable growth. In addition, the IMF expects Mongolia’s economy to grow by 5 percent this year and 6.3 percent in 2019. The overall fiscal deficit in 2017 was 1.9 percent of GDP compared to the target of 10.6 percent and 17 percent in 2016. IMF highlighted that fiscal results have been better than expected, supported by stronger revenues and tight expenditure control. The fiscal over-performance has provided some room for adapting program policies including a rise in civil service salaries in 2019 after several years of restraint, informed the IMF staff team in their statement after the visit. national security. The first phase of Mongolia Sustainable Development Vision 2030 is expected to be completed in 2020. By implementing the Three-Pillared Development Policy, the Government plans to increase annual GDP growth to six percent until 2020, GDP per capita to USD 4020 and create 263 thousand workplaces. Economist Khaschuluun Chuluundorj, addressed “Projects in agriculture, industry and infrastructure spheres are implemented with complete economic estimation, over 263 thousand workplaces can be created in the next three years.
If the investments are transferred as scheduled, poverty can be reduced by certain percentage.” Within the frames of the development policy, several major projects, such as Smoke-Free Ulaanbaatar, New Countryside, water recycling, waste treatment plants, oil refinery, infrastructure and power projects are expected to be implemented up until 2020. Presently, a total of 79 investment projects are in plans for the next three years. These will require a total of MNT 20 trillion financing, or annual financing of MNT 6 trillion. On the methods of financing, the Deputy Minister of Finance Bulgantuya Khurelbaatar informed “2018- 2020 Fiscal Framework Statement states to allocate a total of MNT 2.2 trillion from State Budget, foreign loans and aids. The remaining will be raised from public and private sector cooperation.” In order to formulate the Three- Pillared Development Policy, the Government reviewed and merged over 160 development documents, ergo focusing on reducing poverty, which has reached 26.4 percent. After pointing out the significance of cooperation between public and private sectors, the Chief of Cabinet Secretariat Zandanshatar Gombojav announced that no law and regulations will be ratified without negotiating with the private sector.”...
ULAANBAATAR, March 28 (Reuters) - Mongolia’s central bank will relax monetary policy to support an economic expansion programme aimed at creating jobs, officials said, a move that could signal an end to the austerity imposed after last year’s International Monetary Fund bailout.
After a three-year mining-led boom, landlocked Mongolia’s economy was hit in 2016 by a collapse in foreign investment and declines in the prices of major export commodities like coal and copper, leaving it struggling to pay off debts.
The country reached a $5.5 billion bailout agreement with the International Monetary Fund (IMF) last year in order to relieve debt pressures and stabilise its tugrik currency.
As part of the deal, Mongolia agreed to impose more discipline on its banking system, raise taxes and bring government spending under control.
But government officials speaking at a forum in Ulaanbaatar on Wednesday said the country would now embark on a 900-day expansionary programme aimed at stimulating the private sector and creating as many as 263,000 jobs.
Bayartsaikhan Nadmid, president of the Bank of Mongolia, told the forum that the bank aimed to create a more favourable environment for businesses this year.
IMF Executive Board Completes Third Review under the Extended Arrangement for Mongolia and Approves US$ 30.55 Million Disbursement www.imf.org
On March 28, 2018, the Executive Board of the International Monetary Fund (IMF) completed the third review of Mongolia’s performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF). Completion of the review enables Mongolia to draw the equivalent of SDR 20.9598 million (about US$ 30.55 million), bringing total disbursements under the arrangement to SDR 104.8278 million (about US$ 152.79 million).
Mongolia’s performance under the program thus far has been strong. The economy is recovering better than expected, with real GDP growth of 5.1 percent in 2017 and a significant improvement in the fiscal balance of 15 percentage points of GDP. The combination of strong policy implementation and a supportive external environment has helped the authorities over-perform on all end-December 2017 quantitative targets. However, the performance on structural reforms has been mixed with some delays on structural benchmarks under the program and reversals of three fiscal measures considered during previous reviews.
Mongolia’s three-year extended arrangement was approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$434.3 million at the time of approval of the arrangement (see Press Release No. 17/193 ). The government’s Economic Recovery Program, supported by the IMF, aims to stabilize the economy, reduce the fiscal deficit and debt, rebuild foreign exchange reserves, introduce measures to mitigate the boom-bust cycle and promote sustainable and inclusive growth.
Following the Executive Board’s discussion of the review, Mr. Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director, said:
“Mongolia’s performance under the Fund-supported program has been favorable. The economy is recovering better than anticipated due to good program implementation, buoyant external demand, and a return of confidence. The fiscal deficit fell sharply due to a substantial pick up in revenues and strict expenditure control, yielding a notable improvement in the public debt outlook. External financing costs continue to fall, with external bonds maturing in 2018 rolled over at lower interest rates, and foreign exchange reserves have recovered further.
“All end-December 2017 quantitative targets under the program have been met. Fiscal and banking sector reforms are proceeding, albeit with some deviations and delays. Fiscal results have been significantly better than expected, with a major reduction in the deficit, supported by expenditure restraint and a strong recovery in mining-related revenues. Official reserves have more than doubled over 2017, reflecting a jump in coal exports, capital inflows, and disbursements under the external financing package from donors and the IMF.
“The authorities are moving ahead with ambitious structural reforms designed to sustain growth over the medium term, promote competitiveness and diversification, and mitigate the boom-bust cycle. In the financial sector, the rehabilitation and strengthening of the banking system is underway, building on the recently completed comprehensive Asset Quality Review and several new laws passed by Parliament. Sustaining the reform momentum in this area will be critical. On the fiscal side, the authorities remain committed to the strengthened path of adjustment, with continuing restraint on spending paired with efforts to sustain the recent strong revenue performance. To this end, building on technical assistance from the IMF, they are particularly focused on improving the quality of tax administration.
“With debt still high and the economy exposed to global commodity developments, it is critical that the authorities maintain their strong commitment to the program. Firm program implementation is needed to sustain the virtuous cycle of recovering growth, improving confidence, rising reserves, falling debt, and strong support from the donor community.”
IMF Communications Department
PRESS OFFICER: TING YAN
PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG...
ULAN BATOR, March 28 (Xinhua) -- The inauguration ceremony of a project with a funding of 4.8 million euros (5.95 million U.S. dollars) from the European Union (EU) to promote Mongolia's trade was held here Wednesday.
The project aims to support the country's economic growth by increasing the exports of non-mining sectors, according to the Mongolian Ministry of Foreign Affairs.
"Under this project, the Mongolian government will support entrepreneurs by building a sound business environment and facilitating trade and exports," D. Davaasuren, state secretary of the Mongolian Ministry of Foreign Affairs said at the ceremony.
Mongolia's main trade partners are China, accounting for 70 percent of its total trade volume, Russia, representing over 10 percent, and the EU, taking up 11 percent, said Davaasuren.
"Our country is capable of exporting 7,200 types of goods on favorable terms to the EU members, but till now its potential has not been fully tapped. We hope the project will help solve this issue," he said.
He said the products exported from Mongolia to the European countries are at present limited to only a few types of wool, cashmere and handicrafts and that therefore Mongolia is aiming to diversify its exports. Enditem
Ulaanbaatar/MONTSAME/ During the regular Cabinet Meeting on March 27, a decision was made to transfer unfinished apartment buildings for a total of 1562 households, which were registered at the State Housing Corporation of Mongolia, into the authorization of Development Bank of Mongolia (DBM).
The Board of Directors of DBM was assigned to resolve the required financing to complete constructions of the apartments this year.
After completing constructions of the apartments, an issue on transferring the apartments into Rental Housing Fund will be reconsidered.
BANGKOK/GENEVA, 27 March, 2018 - Governments from the world’s most disaster-prone region will meet in Mongolia in July to discuss acceleration of efforts vital for the sustainable future of the region including how to prevent disasters and tackle climate change while reviewing progress in reducing disaster losses.
The Government of Mongolia and the UN Office for Disaster Risk Reduction (UNISDR) will host the 2018 Asian Ministerial Conference on Disaster Risk Reduction July 3-6 in Ulaanbaatar City under the theme “Preventing Disaster Risk: Protecting Sustainable Development.”
It is estimated that the region lost US$ 1.3 trillion in assets between 1970 and 2016 as a result of disasters. In 2017, 6,543 people lost their lives in over 200 major disasters affecting 66.7 million people.
Disaster risk across the region is exacerbated by high levels of poverty, climate change, rapid urbanisation and exposure to the entire spectrum of natural hazards including drought, floods, cyclones, earthquakes and heatwaves.
The Prime Minister of Mongolia, Mr. Khurelsukh Ukhnaa, said: “It is three years since UN Member States adopted the Sendai Framework for Disaster Risk Reduction, the global plan to reduce disaster losses. In Asia we have a regional plan for implementation and this Conference will be an opportunity for governments and partners to review progress in areas such as reducing the numbers of people affected by disasters and reining in economic losses.”
Mr. Khurelsukh who was designated a UNISDR Champion at the Global Platform for Disaster Risk Reduction in 2017, added: “The Conference will also be a major boost to regional and cross-border cooperation on reducing disaster risk and taking action on climate change. Progress in Asia is vital to success in achieving the Sustainable Development Goals and the overall 2030 Agenda for Sustainable Development.”
The UN Special Representative for Disaster Risk Reduction, Ms. Mami Mizutori, said: “The Asian Ministerial Conference will develop an action plan for the next two years. This will include a renewed focus on Target (e) of the Sendai Framework that aims for a substantial increase in the number of countries with national and local disaster risk reduction strategies by 2020. Asia’s lead in this important area is vital as we step up efforts to monitor progress on achieving the targets on reducing disaster losses in the Sendai Framework.”
Ms Loretta Hieber Girardet, Chief of UNISDR’s Regional Office for Asia and the Pacific, said: “The worst disasters that could happen have not happened yet. Reducing the risk of their occurrence is more important in Asia given the high levels of exposure to disaster risk. The Asian Ministerial Conference comes at an opportune time with the launch in March of the Sendai Framework Monitor. This is the online tool hosted by UNISDR which allows countries to report their progress on reducing disaster losses against the Sendai Framework targets.”
Over 3,000 delegates are expected to participate in the event, where the governments will adopt the ‘Ulaanbaatar Declaration’ and the stakeholder groups will issue voluntary commitments.
A key feature of the conference will be an Asia Video Contest on Disaster Risk Reduction that will showcase success stories in building resilience at national, local and community levels. Launching the Contest in Ulaanbaatar City on 24 January 2018, Mr. Enkhtuvshin Ulziisaikhan, Deputy Prime Minister of Mongolia and chairperson of the 2018 Asian Ministerial Conference on Disaster Risk Reduction, called on the international community to share learning and innovation through good practices and lessons learned in disaster risk management to mutually support the implementation of the Sendai Framework.
The conference will be supported by several partner organisations and will feature a ministerial segment, technical and thematic sessions, featured events and public forum.
For more information, see: http://www.unisdr.org/amcdrr2018...