1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

Events

Name organizer Where
“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

NEWS

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Amended draft laws handed over to the Bank of Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ The amendments to Law on Central bank, Banking law and Bank Deposit Insurance approved at the 2017-0218 Parliament autumn session were handed over to the Central bank of Mongolia on March 22.

Parliament Speaker M.Enkhbold handed over the originals of the laws to the President of the Bank of Mongolia N.Bayartsaikhan.

President of the Bank of Mongolia N.Bayartsaikhan emphasized that the Bank of Mongolia initiated the mid-term Legal Reform Program on banking and financial sector to be implemented from 2016 to strengthen Mongolia's financial stability, address the economic difficulties and create a legal environment to support economic growth and announced 2018 as a year of banking and financial reform, implementing specific policy goals. He also expressed his gratitude to the people who participated in submitting the draft laws to the Parliament and supported Bank of Mongolia’s initiative to create a sound governance, optimal policy and regulations and favorable legal environment in the banking sector.

Under the mid-term legal reform program on financial sector, one new law and three amendments to relevant laws out of ten draft laws initiated by the Bank of Mongolia were approved.
B.Misheel

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PM sends a message to investment forum participants www.montsame.mn

Ulaanbaatar/MONTSAME/ On March 22, Prime Minister sent a message to participants of the investment forum ‘Mongolian Minerals and Mining 2018’, being held on March 22-23 in Ulaanbaatar. The message was read by L.Altangerel, advisor to the Prime Minister.

It says, “Mining sector is one of leading sectors, playing a vital role to Mongolia’s socio-economic development. It is so pleasant to note significant contributions of cities and settlements that were established relied on Erdenet, Sharyn Gol, Khutul, Bor Undur and Baganuur mines and mining industries to the regional development. Our rigorous efforts, active participation and right attitude are very important to tackle challenges, continue the sector’s development intensively, satisfy sustainable economic growth, produce value-added products, increase competitiveness and export income and attract investment.”

In the message, the PM also said, “The government will take persistent actions to implement policies and purposes on mining sector reflected in ‘Sustainable Development Vision-2030’, ‘State Policy on minerals sector’ and ‘Action Plan of Government 2016-2020’. I am confident that you will be realistic on tendency of mining sector development and challenges in the sector and work actively, understanding and feeling the national and global market needs and the tendency of economic development.”

M.Unurzul

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Trump signs tariffs memorandum against China despite strong warnings www.xinhuanet.com

WASHINGTON, March 22 (Xinhua) -- Despite strong warnings from business groups and trade experts, U.S. President Donald Trump on Thursday signed a memorandum that could impose tariffs on up to 60 billion U.S. dollars of imports from China, the latest unilateral move that poses a threat to global trade.

Trump has directed U.S. Trade Representative Robert Lighthizer to publish a list of proposed Chinese goods that could be subject to tariffs in 15 days, while the U.S. Treasury Department will have 60 days to propose restrictions on Chinese investment in the United States, according to the presidential memorandum.

The tariffs "could be about 60 billion" dollars, Trump said Thursday at the White House before signing the memorandum. But a senior White House official told reporters earlier in the day that the number would be close to 50 billion dollars.

The memorandum is based on a so-called Section 301 investigation into alleged Chinese intellectual property and technology transfer practices, launched by the Trump administration in August 2017.

China will "take all necessary measures" to defend its rights and interests, an official with the Ministry of Commerce said Thursday, responding to media reports that Washington will soon release results of the investigation.

"China has made clear its position several times that it stands firmly against such unilateral and trade protectionist practices from the U.S. side," the official said.

Section 301, once heavily used in the 1980s and the early 1990s, allows the U.S. president to unilaterally impose tariffs or other trade restrictions on foreign countries. But the United States has rarely used the outdated trade tool since the World Trade Organization (WTO) came into being in 1995.

"It became no longer necessary really for the United States that they have to use that law, because now we have an effective dispute settlement system under the WTO," said Chad Bown, a trade expert and senior fellow at the Washington D.C.-based Peterson Institute for International Economics (PIIE).

The memorandum follows Trump's recent tariff plan on steel and aluminum imports and January's tariffs levied on imported solar panels and washing machines. These unilateral moves have prompted strong opposition and warnings from business groups around the world.

In a letter to Trump on Sunday, 45 U.S. trade associations, representing retail, technology, agriculture and other consumer-product industries, urged the administration not to move forward its tariff plan on Chinese imports, as it would hurt U.S. consumers and companies.

A group of 25 major U.S. retail companies, including Walmart, Costco and Best Buy, also warned on Monday that any additional broad-based tariff would worsen U.S. inequity and "punish American working families" with higher prices on household basics like clothing, shoes and electronics.

If the Trump administration imposes a 25-percent tariff on information and communications technology imports from China, it would cost the U.S. economy 332 billion dollars over the next 10 years, according to a report recently released by the Information Technology and Innovation Foundation, a U.S. technology policy think tank.

"Simply put, tariffs are damaging taxes on American consumers," said Thomas J. Donohue, President and CEO of U.S. Chamber of Commerce, warning the Trump administration's tariff plan could lead to "a destructive trade war" with serious consequences for U.S. economic growth and job creation.

"Tariffs of $30 billion a year would wipe out over a third of the savings American families received from the doubling of the standard deduction in tax reform. If the tariffs reach $60 billion, which has been rumored, the impact would be even more devastating," Donohue said.

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Mongolia holds mineral exploration forum to boost mining industry www.xinhuanet.com

ULAN BATOR, March 22 (Xinhua) -- The 10th Mongolia Mineral Exploration Forum held here on Thursday to boost the development of geological explorations and mineral industry in Mongolia.

Mongolia has attached large importance to "the development of value-added products, job creation and economic expansion by encouraging domestic and foreign investors" and also has been keen to "strengthen the public-private partnership," Dolgorsuren Sumiyabazar, minister of Mining and Heavy Industry said at the opening ceremony.

The mining industry accounts for about a quarter of the country's gross domestic product (GDP) and more than 90 percent of exports in Mongolia, he added.

Officials and investors from over 10 countries attended the two-day annual event.

In addition, an investors' business meeting will be organized on the second day of the forum to provide a platform for businessmen to introduce their projects.

 
 
 
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Minister D.Sumiyabazar meets EBRD and Deutsche Bank representatives www.montsame.mn

Ulaanbaatar /MONTSAME/ On March 22, Minister of Mining and Heavy Industry D.Sumiyabazar met with Deutsche Bank delegates headed by Heinz-Guenter Bockenheimer, Deutsche Bank Relationship Manager for Asia and Pacific.

At the meeting, Minister D.Sumiyabazar said Deutsche Bank is possible to cooperate with the Erdenes Tavan Tolgoi JSC for issuing later's IPO. Moreover, the Minister informed of lead-up to an upcoming meeting of Mongolia-Germany Intergovernmental Commission.

The same day, Minister D.Sumiyabazar received Nandita Parshad, Managing Director of the European Bank for Reconstruction and Development (EBRD)’s Energy and Natural Resources.

The parties exchanged views on collaboration in resolving water issue Gobi region is confronted with and on technical assistance projects and measures and ways of cooperation within Gold-2 program. 
B.Batchimeg

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Mongolian sales managers’ index increases www.gogo.mn

According to World Economics, the Mongolian sales managers' index increased in March, reaching 51.8 points, after previously being in decline.

The index is calculated based on the speed and direction of economic activity, and analysts say an increase is a sign of a growing economy.

As of March, the market growth index increased and reached its highest point in the last six months. World Economics also highlighted that there was an increase in the business confidence index. In February the index was at 53.4 points, but it approached almost 60 points in March. In 2016, the business confidence index was at 30 points.

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Rio sells one of latest coal assets in Australia for $200 million www.mining.com

Mining giant Rio Tinto (ASX, LON:RIO) has agreed to sell its 75% stake in a Queensland project to Australia's Whitehaven Coal (ASX:WHC) in a deal worth $200 million.

The sale would be the second one this week, and in line with Rio’s strategic decision to exit coal to focus on iron ore, copper and aluminum.

The company noted it was in the process of offloading its remaining Australian coal asset — a stake in the Kestrel underground mine.

"We believe this agreement for the sale of Winchester South represents the best option for the future development of the project while delivering attractive value for Rio Tinto," chief executive Jean-Sebastien Jacques said in the statement.

The transaction, subject to Australian regulatory approvals, is expected to close in the second quarter of the year.

Winchester South is a large, undeveloped coal project located in the northern Bowen Basin, roughly 30km south-east of the Moranbah township. It holds 356 million tonnes of coking and thermal coal mineral resources.

According to Whitehaven, the project has the potential for an open cut mine life of 20-30 years with significant exploration potential, ROM coal production of 7.5 million to 15 million tonnes annually and product coal in the range of 3.5 million-7.5 million tonnes a year.

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7 percent mortgage program in discussion www.ubinfo.mn

The Cabinet is considering to facilitate 8 percent mortgage program. Earlier this year, the Ministry of Finance and Bank of Mongolia (BoM) co-established a working group to prepare a draft subsidiary mortgage program with 7 percent interest rate and 25 percent downpayment, which is 5 percent lower than the current subsidized mortgage requirement. Officials perceive that the current 8 percent mortgage program has reached its target market; thus, the Cabinet has prepared a draft program for the first-time accomodation purchasers in the outskirts of Ulaanbaatar with more favorable terms. Sources claim that the program will be financed from the USD 500 million borrowing from the Republic of Korea that settled was during the Prime Minister’s visit to South Korea in January. The soft loan has a maturity date of 30 years and grace period of 10 years with an annual interest rate of 0.2 percent. Presently, around 30 thousand accommodations are ready for sale; however, the housing sales are only about 30 percent. This year, the Government and BoM set a plan to finance around MNT 300 billion to the mortgage program, which will provide around five thousand accommodations. According to Marketinfo, the mortgage program will be effective in decreasing pollution and other associated social problems. This, along with several air pollution protests last winter, will likely galvanize the Cabinet to approve the application of the program in the second quarter of 2018.

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China ready for trade war with ‘repeat abuser’ of international norms US www.rt.com

China is readying itself for a trade war with the US as Washington reportedly plans to announce new measures against Beijing within days. Officials have been seeking support from other nations and world trade bodies.
US media reports have claimed the White House was preparing punitive measures, including tariffs on Chinese technology and telecoms commodity imports valued at $60 billion dollars, to be a announced on Friday.

That was despite the much-vaunted rapport between US President Donald Trump and China’s Xi Jinping, following the former’s state visit to Beijing last year. A fortnight ago, Trump announced tariffs on steel and aluminum imports, hitting the EU, Japan and South Korea, as well as China.

“The Chinese side never wants to fight a trade war with anybody, but if we are forced to, we will not hide from it,” Foreign Ministry spokeswoman Hua Chunying warned on Wednesday. Beijing will “definitely take firm and necessary countermeasures to defend its legal rights,” she said, as quoted by China’s Global Times.

Meanwhile, the Commerce Ministry said in a statement that Vice-Minister Wang Shouwen had slammed Trump’s new wave of protectionism at an informal meeting of ministers from 50 World Trade Organization (WTO) member-states in India earlier this week.

“Trade restriction measures will not only hurt the global trade order but also cause serious damage to the multilateral trade system,” Wang said, urging all countries to “support the global multilateral trade system and defend the authority and effectiveness of WTO rules.”

The Commerce ministry welcomed Wednesday’s WTO ruling against Obama-era anti-subsidy tariffs on Chinese goods. The decision “proves that the US side has violated WTO rules, repeatedly abused trade remedy measures, which has seriously damaged the fair and just nature of the international trade environment and weakened the stability of the multilateral trading system,” the statement said.

In the Argentine capital Buenos Aires this week, outgoing People's Bank of China governor Zhou Xiaochuan stressed China’s “continued support for multilateralism” at a summit of G20 finance ministers and central bank governors.

Chinese Premier Li Keqiang told a Tuesday press conference that the two economic powers should talk through their differences rather than impose trade restrictions. “In trade, disputes are always resolved through consultation, negotiation and dialogue. I hope both sides will act rationally rather than emotionally to avoid a trade war,” he said.

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Organic products to be recorded in State registration www.montsame.mn

Ulaanbaatar /MONTSAME/ Discussion on draft regulation on state registration and mass consumption of organic products took place on March 21. Food producers, NGOs, scolars and researchers are taking part in the discussion being co-organized by the Ministry of Food, Agriculture and Light Industry, Food and Agriculture Department of the capital city and World Bank Export Development Project.

Suggestions and proposals of the participants on respective provisions regarding state registration and mass consumption of organic products will be reflected in the draft regulation. By approving this regulation it will be possible to register domestic and import alimentary products with the ‘organic’ and ‘natural’ labels and recall the products with counterfeit labels and non-compliant products from the market.

Moreover, it will be easier for consumers to figure out the origin of the organic products through the registration number and QR code on the label including information on where, when and which company produced it and what requirements the product meet.

“Currently all required organic food production regulations have been approved. Therefore, by approving the regulation on state registration and mass consumption of organic products in 2018, the legal environment for producing organic food will be complete” said Organic food specialist of the Ministry of Food, Agriculture and Light Industry D.Tungalag.

At the second part of the discussion an expert of the World Bank's Export Promotion Project introduced the opportunities for companies willing to shift into organic production and preparing for export market to participate in the Export Development Project. The project supports non-mining sectors and provides grants up to USD 100 thousand for organic food producers.

B.Misheel

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