1 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      2 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      3 MILLENNIUM CHALLENGE CORPORATION PRESENTS GMS LICENSES WWW.MONTSAME.MN PUBLISHED:2018/11/17      4 MONGOLIA CALLS FOR GLOBAL ATTENTION ON CLIMATE CHANGE WWW.NEWS.MN PUBLISHED:2018/11/17      5 ADB OPENS A NEW WASTEWATER TREATMENT PLANT IN ARVAIKHEER, MONGOLIA WWW.AGENPARL.EU PUBLISHED:2018/11/17      6 CHINA TO BOOST COOPERATION WITH INDIA, MONGOLIA: DEFENSE MINISTER WWW.GLOBALTIMES.CN PUBLISHED:2018/11/17      7 DEATH ON MONGOLIA’S ‘COAL ROAD’ WWW.NEWS.MN PUBLISHED:2018/11/17      8 MONGOLIA SHAKEN BY WIDENING LOAN SCANDAL WWW.ASIA.NIKKEI.COM PUBLISHED:2018/11/17      9 MONGOLIA’S UNEMPLOYMENT FALLS BY 2.2 PERCENT WWW.NEWS.MN PUBLISHED:2018/11/16      10 MEETING MEAT DEMAND: MONGOLIA TO TRADE 17.9 PERCENT OF LIVESTOCK WWW.NEWS.MN PUBLISHED:2018/11/16      БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17     СУДАЛГААГААР ЖДҮ ЭРХЛЭГЧИД ЗЭЭЛИЙН ХҮҮНИЙ ЗАРДАЛ ХАМГИЙН ИХ ХҮНДРЭЛ УЧРУУЛДАГ ГЭЖ ХАРИУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ERDENE RESOURCE DEVELOPMENT: ХАЙГУУЛЫН ЗАРДАЛ III УЛИРАЛД 42 ХУВИАР БУУРСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ГОРХИ, ТЭРЭЛЖИЙН БАЙГАЛИЙН БОХИРДОЛД АНХААРАЛ ХАНДУУЛЖ ЭХЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     ИРЭХ БААСАН ГАРАГТ ХОТЫН ДАРГЫГ ОГЦРУУЛАХ ЭСЭХИЙГ ХЭЛЭЛЦЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     “АМГАЛАН” ХОТХОНД БАЙРЛАХ ГЭРТЭЭ КАННАБИС ТАРЬЖ, УРГУУЛЖ БАЙСАН ТУРК ИРГЭНИЙГ БАРИВЧИЛЖЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/17     ӨНӨӨДӨР АВТОМАШИНЫ ДУГААРЫН ХЯЗГААРЛАЛТ ҮЙЛЧЛЭХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/17     ГАШУУНСУХАЙТЫН НҮҮРСТЭЙ МАШИНЫ ЦУВАА 120 КМ БОЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/16     ТАТВАРЫН ОРЛОГО 32.2 ХУВИАР ӨСӨЖ, ТӨСВИЙН ТЭНЦЭЛ 341.9 ТЭРБУМ ТӨГРӨГИЙН АШИГТАЙ ГАРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/16    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Trump's NAFTA agenda has 'poison pill proposals,' says U.S. Chamber of Commerce www.cnn.com

Round four of the renegotiation of NAFTA, the three-nation trade pact, begins Wednesday, and little, if any, progress on the thorny issues has been reported from any party. Some business groups are becoming extremely concerned about Trump's agenda.
"There are several poison pill proposals still on the table that could doom the entire deal," Ted Donahue, CEO of the U.S. Chamber of Commerce, said in a speech in Mexico City on Tuesday.

The Trump administration did not respond specifically to Donahue's remark, but had already criticized a similar comment from the Chamber last week regarding NAFTA talks.
"The President has been clear that NAFTA has been a disaster for many Americans, and achieving his objectives requires substantial change. These changes of course will be opposed by entrenched Washington lobbyists and trade associations," U.S. Trade Representative spokeswoman Emily Davis said.
Related: Trump's latest trade spat with Canada is over wine
Time to reach an agreement is running out: Mexican leaders have long warned that talks must end by early next year before their presidential election campaign gets underway in July. By the spring, they say, it'll be too difficult politically to ratify a new trade deal.
U.S. leaders acknowledge that talks should get done as soon as possible.
But some of the Trump administration's demands aren't going over smoothly.

One of the most controversial issues has to do with how cars are manufactured. In NAFTA, it's called "rules of origin." The rule determines the portion of a product that must be manufactured in North America in order to avoid import taxes.
For example, at least 62% of the parts in a car sold in North America must come from the region to avoid being hit with taxes at the border. It doesn't matter if the car parts are made in Mexico, Canada or the U.S., as long as they were produced in North America.
Companies are still free to decide where in North America different parts of a car are made. In fact, before a car reaches a dealership, its parts have frequently crossed the northern and southern borders multiple times.
But Trump's trade team wants to make a big change to that rule in an attempt to force manufacturing companies to create more jobs in the United States.
Instead of one rule for all of North America, the administration wants one rule for how much has to be produced in the United States, and another rule for how much needs to come from the entire region.
"You're pitting the countries against each other, not integrating them further," says Doreen Edelman, a trade lawyer at the firm Baker Donelson. "It is a deal breaker."

Mexico's top negotiator, Economy Secretary Ildefonso Guajardo, echoes a similar sentiment. In an interview with CNNMoney in April, he dismissed the idea of two separate standards for rules of origin.
"There is no one trade agreement in the world that has country-specific content. It doesn't exist," Guajardo said. "Content has to be measured regionally."
Meanwhile, significant issues, such as agriculture trade, government procurement contracts and protecting foreign investments in North America, need to be broached. A deeply divided trade spat over aviation has also emerged between the U.S. and Canada, with each side lobbying for their respective plane producers.
The U.S. is also advocating for a "sunset clause" that would make the agreement expire every five years unless each country decided to sign on for another five years. That's expected to meet resistance too.
"What kind of predictability is that for long-term investment?" adds Edelman, the trade lawyer. "There's no way for business to prepare."

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SouthGobi Resources Secures Investment for Logistics Park on Mongolia-China Border www.asiapacific.ca

SouthGobi Resources Ltd., a Vancouver-headquartered coal mining company, has entered into an investment agreement with Beijing De Rong Tai Investment Co., Ltd. (BDRT) in connection with the Company's development of the Ceke Port Eco-friendly Bonded Logistics Park project (Ceke Logistics Park). Pursuant to the Investment Agreement, BDRT has agreed to invest RMB 231 million in instalments by July 30, 2018, in return for a 30% interest in Inner Mongolia SouthGobi Energy Ltd. (IMSGE), while the Company will hold the remaining 70% interest in IMSGE. Proceeds from BDRT's equity investment will be used by IMGSE for the construction of the Ceke Logistics Park, which will be located in the Ceke Port on the Mongolia-China border, the only inland port where the coal products of the Company are imported from Mongolia to China.

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Iron ore dangerously close to $60 a tonne www.mining.com

Iron ore prices continued their downward trend Tuesday amid ongoing concerns that looming steel production cuts in China on environmental grounds will sap steel mill demand.

Ore with 62% content in the port of Qingdao dropped 2.6% to $61.01 a tonne, according to Metal Bulletin.

The most-traded iron ore on the Dalian Commodity Exchange dropped 2% to 440 yuan per tonne, adding to Monday’s 2.1% decline. Earlier in the session, the contract fell as far as 434.50 yuan, its weakest since July 6.

Benchmark Australian iron ore fines dropped 4.1% Tuesday to a three-month low of $59.1 a tonne, based on data provided by The Steel Index, taking losses since the start of September to more than 20%.

Iron ore dangerously close to $60 a tonne
It means that the January 2017 iron ore contract is now sitting at the lowest level since mid-July. Further falls are predicted to around $50 a tonne by 2019 as China also plans to revoke about a third of its iron ore mining licences, mostly belonging to small polluting operations.

At the same time, supply from Australia — the world’s No. 1 iron ore producer — has risen, further pressuring prices.

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Kobe Steel shares plunge as data fabrication concerns deepen www.reuters.com

TOKYO (Reuters) - Kobe Steel Ltd shares tumbled a further 16 percent on Wednesday after it admitted it may have fabricated data on iron powder products and media reported the possible sale of its real estate business.

The latest disclosure comes after Japan’s No.3 steelmaker said on the weekend it had falsified data to show that its aluminum and copper products had met customer specifications, and suggests the problems could be widespread.

Japanese manufacturers were thrown into turmoil by the revelation, with implications for materials used in cars, aircraft and possibly a space rocket and defense equipment.

Shares in Kobe Steel were down 15.73 percent at 900 yen as of 0114 GMT on Wednesday, underperforming the broader market which was steady. They fell 22 percent the previous day.

A Kobe Steel spokesman confirmed a report on Wednesday in the Yomiuri newspaper saying the firm may have fabricated data on iron powder products used in components such as automotive gears. He said the company was investigating the issue.

The Nikkei business daily meanwhile reported that Kobe Steel intended to put its real estate business on the block in an effort to shore up already shaky finances now threatened by the data falsification scandal.

The Kobe Steel spokesman said he could not comment on that report.

Kobe’s data fabrication problems are the latest in a series of industrial missteps undermining Japan’s reputation for high-quality production.

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Russian central bank wants to block bitcoin exchange websites www.rt.com

The Central Bank of Russia has suggested banning access to bitcoin and other cryptocurrency exchange websites in the country. The officials say digital money is a financial pyramid which is prohibited in Russia.

The BRICS countries (Brazil, Russia, India, China and South Africa) have agreed a cryptocurrency is a tool without a legal definition, which has an ambiguous economic nature and does not allow regulators to protect investors, according to First Deputy Governor of the Bank of Russia Sergey Shvetsov.

“We have seen how bitcoin has transformed from a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is a definition of a pyramid,” he said.

Even those who have significant investments in bitcoin admit that there is not much money in the system, it has low liquidity, and it is almost impossible to get out of the system.

Shvetsov said that in Russia there is a procedure for blocking access to sites which encourage investment in financial pyramids. He admitted there are a lot of them, and the process is not easy.

"There is a permanent job of blocking malicious sites that involve Russian citizens in financial pyramid schemes. Everything that contradicts or violates Russian law, or creates unfair competition, will be limited," he stressed.

Russian authorities said earlier this year they would like to regulate the use of cryptocurrencies by Russians by limiting access by the general public.

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Hogan Lovells exits Mongolia with Ulaanbaatar office closure www.thelawyer.com

Hogan Lovells is closing its Ulaanbaatar office seven years after it first entered the Mongolian market via a local association in 2010.

The firm’s decision to exit Mongolia comes following a strategic review of the market. Hogan Lovells’ office managing partner in Ulaanbaatar Chris Melville will establish a new independent firm in the Mongolian capital with the existing team of 15 lawyers and staff. Hogan Lovells will form a co-operation relationship with the new firm in a bid to continue servicing its clients in the country.

“Following a review of the market and our investment priorities, we have taken the decision to close our Ulaanbaatar office,” said Hogan Lovells global CEO Steve Immelt.

Hogan Lovells gained an Ulaanbaatar presence when it entered a formal association with Mongolian outfit GTs Advocates in August 2010. It was also the first global firm to set up a permanent presence in Mongolia, and has operated there since 2011 advising on inbound corporate investment work and foreign investment in the infrastructure and natural resources sectors.

“Global and local markets and the strategic priorities of the firm have changed since then. I strongly believe that we have a good practice, an excellent team, and that there are opportunities that we can take advantage of operating from a different platform, including working with Hogan Lovells in the future. We are excited about the next chapter,” said Melville.

Melville was relocated from London to the Ulaanbaatar office in 2012, working with the then office managing partner Michael Aldrich.

A very small number of other international firms continue to have a presence in the country, including DLA Piper, which entered the Mongolian market via a local tie-up with C&G Partners in 2011, and Dentons – thanks to its merger with Chinese firm Dacheng, which set up an office in the city in 2013.

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EBRD and EU support sustainable wool products in Mongolia www.ebrd.com

Mongolia’s grasslands are an ideal playground for several million cashmere goats, sheep and yaks. Their world-renown wool means big business: it provides an income for around 400,000 herders, so it should not come as a surprise that locals refer to it as “white gold”.

But, for a long time, Mongolians have not seen the benefits of possessing this precious resource. Foreign traders bought the raw material and processed it abroad, so the economic upside took a detour out of the country.

This is why the EBRD teamed up with the European Union and the United Nations’ Food and Agriculture Organization (FAO) to add value across the whole production cycle – from the local farmer to exporters in Ulaanbaatar.

Sustainable farming

The story of a beautiful cashmere scarf starts in the picturesque hillside of the north-western Khövsgöl Province. The sight could not be more different from the glitzy lights of Ulaanbaatar: it is a land of animals covered in fur, not man, whom they outnumber by a healthy 25:1.

Batulzii is a local farmer who lives with his wife and young children in a traditional yurt. Cashmere goats are shorn in May, followed by sheep, he explains. They naturally start to shed their wool in June and if he does not cut it, it simply falls to the ground.

It is the first part of the chain where we strive to add value to the wool production. FAO offers training to farmers, from grassland management and providing the right feed to the animals to the relevant sustainable industry standards.

“After cutting the wool, I sell it to the Leader Cashmere factory,” Batulzii explained. “This is how I earn a living.”

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World Bank chief sounds alarm over job automation www.bbc.com

The world is on a "crash course" as people's hopes collide with a future in which millions of jobs are automated, the World Bank chief has said.

Jim Yong Kim said policymakers should take action by investing in education and health.
The World Bank president was speaking in New York ahead of the group's annual meeting in Washington DC this week.
The remarks come amid wider concerns about political threats to economic growth.
The World Bank plans to publish a ranking of countries that measures investments in "human capital", such as education.
The focus is a shift for the organisation, which was established after World War Two to spur infrastructure reconstruction.
But Dr Kim said other kinds of investments are important to economic growth in the future, as robots displace millions of low-skill workers.
"The one thing you know for sure that you'll need in whatever the economy looks like in the future is people who can learn," he told the BBC.
"We want to create a sense of urgency to invest in people that we think is necessary given the way ... the global economy is changing."
Political risks
The push for education and health investments comes as outlooks for economic growth improve.
In July the IMF said it expected the global economy to expand by 3.5% this year and by 3.6% in 2018.
IMF managing director Christine Lagarde said updated forecasts, to be released this week, were likely to be even more optimistic.
However, bankers from the IMF, World Bank and other organisations have warned that the progress is threatened by political movements that favour trade barriers, isolation, military aggression and other measures.
"If your aspirations start to rise but then there's no opportunity it can lead to fragility, conflict, violence," Dr Kim said. "This is the crash course we're going down."
Political uncertainties are increasingly behind many of the risks identified by sovereign debt analysts, said Moritz Kraemer, managing director of S&P Global Ratings, which tracks economic and political movements in dozens of countries to devise credit ratings.
The subject was also the topic of a speech by European Central Bank president Mario Draghi earlier this year.
Ms Lagarde said this month that policymakers "should not let a good recovery go to waste".
"We know what can happen if we let the moment pass," she said. "Growth will be too weak, and jobs too few. Safety nets will be unable to handle aging populations. Our financial system will be unprepared for future shocks."

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Ulaanbaatar and Moscow to enhance their cooperation www.montsame.mn

Ulaanbaatar /MONTSAME/ Mayor of Ulaanbaatar S.Batbold held a meeting with his Russian counterpart Sergey Sobyanin on October 9 in Moscow.

Following the meeting, the Mayors signed a cooperation program for 2018-2020 in accordance with principles reflected in the Protocol on Ulaanbaatar-Moscow friendly cooperation, which was signed on February, 26, 1996.

In accordance with the cooperation program, the sides will strengthen their cooperation in the fields of urban planning, architecture, housing, public untilities, urban development, education, health and archive.

Present at the meeting were S.Delgermaa, Ambassador Extraordinary and Plenipotentiary of Mongolia to the Russian Federation, M.Otgonbayar, Head of Ulaanbaatar Governor’s Office, S.Odontuya, Governor of Bayangol district, S.E.Cheremin, Minister of the Moscow Government and Head of the Department for External Economic and International Relations of the Moscow Government.

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Mongolian Falcon joins Baker-Forsman team www.theinformant.co.nz

Last year’s Hawke’s Bay Guineas winner Mongolian Falcon has joined the Cambridge stable of Murray Baker and Andrew Forsman.

The formerly Ruakaka-trained son of Fastnet Rock is on the comeback trail after suffering an injury in the Gr. 1 New Zealand 2000 Guineas at Riccarton last November.

“He’s been here with us for about three weeks now,” Forsman told www.theinformant.co.nz. “We’re just getting him ticking over at the moment and giving him some time on the water walker.

“He’s coming off a long rehab and he’s had knee surgery. He’s still a colt and it’s a matter of keeping him in one piece and giving him all the time he needs.”

Baker and Forsman are familiar with Mongolian Falcon, having saddled their subsequent Australian Derby winner Jon Snow for a second placing when the colt scored a five-length win in last year’s Gr. 2 Hawke’s Bay Guineas.

Owned by the Inner Mongolia Rider Horse Industry, Mongolian Falcon was trained by Donna Logan and Chris Gibbs to record three wins and four placings from nine starts for prize-money of $128,250.

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