Mongolia is a country with a harsh climate and rich genetic resources but no legal framework to regulate it. As a result, it is currently not possible to estimate what products are being marketed using genetic resources. Moreover, due to the lack of a legal framework, it is no longer possible to control the production of certain food and biotechnological products in the country. Therefore, the government submitted a bill on genetic resources on October 17, 2019, which is being discussed at this fall parliamentary session.

Biological resources of Mongolia contain valuable genetic resources that we can make use of. Unfortunately, these genetic resources have not been adequately studied on registered, and a legal framework for fair distribution of benefits from the use of genetic resources and traditional knowledge has not yet been established.

According to the working group in charge of preparing the bill, in terms of biological resources, a total of 7,315 species have been registered in the flora of Mongolia. Of these, 133 species are very rare plants, 365 species are rare and 120 species are endemic plants, which exist only in one geographical region.

The Mongolian Red List of Plants indicates that 11 percent of plant species in Mongolia are endangered, 37 percent are vulnerable or at high risk of extinction, and 15 percent are endangered due to habitat pressure and overuse.

About 100 species of 3,160 species of tubular plants registered in Mongolia are commonly used for medicinal purposes, about 200 species are used in pharmaceutical production, another 200 species in tea, about 50 species in food, and around 100 species in animal feed.

Within the framework of drafting the law, Mongolia’s animals have been assessed using international threat criteria. According to this, 2 percent of fish are critically endangered, 67 percent of amphibians are vulnerable, 11 percent of reptiles are vulnerable, and 10 percent of birds are endangered. The main causes of the threat to these plant and animal species were found to be illegal use and degradation of habitats due to human and natural factors.

In fact, Mongolians have traditional knowledge and culture of loving and protecting nature and using natural resources wisely. In particular, one of the richest traditional knowledge related to genetic resources is said to be Mongolian traditional medicine. It was developed by Mongolian traditional healers in combination with the Ayurveda system from Tibet and India and traditional Chinese medicine. The first book was written in Tibetan between the 13th and 19th centuries, according to historic records. A total of 69 books containing this valuable heritage have been translated into Mongolian but due to financial constraints, they have not been published or made available to the public.

Although the development of new biotechnology inventions is reflected in the country’s public policy, there is still a lack of coordination and control over the management and use of genetic resources and related traditional knowledge.

Experts empathized that the proper use of these resources can not only prevent the extinction of animals and plants but also be economically beneficial. For instance, from 2020 to 2021, more than 1,300 species of plants and more than 70 species of animals have been permitted to be exported for research and economic use. Head of the working group G.Temuulen said that the economic value of plants and microorganisms can be measured in hundreds of millions of dollars in the future.

HIGHLIGHTS OF GENETIC RESOURCES BILL

The new Law on Genetic Resources is to regulate relations related to the study, registration, preservation, use and yield of genetic resources in Mongolia and related traditional knowledge.

Bill initiators expect the adoption of the bill to improve the protection of genetic resources and related traditional knowledge, increase their value and create conditions for Mongolia and its owners to benefit from its use, as well as increase research, production, technology transfer and investment based on biotechnological achievements.

Article 4.1.7 of the bill specifies the concept of “bio-exploration”. It is defined as the process of searching for and studying the genetic resources of biological diversity for commercial purposes. Article 4.1.8 defines “use of genetic resources” as the study of genes and biochemical composition of genetic resources and the identification, collection, processing and production of genetic resources and related traditional knowledge for profit and non-profit purposes.

One of the key provisions of the bill is on the ownership and possession of genetic resources and related traditional knowledge. However, this regulation is “limited”, as some lawmakers put it. Particularly, Article 6.2 states that if the owner of the traditional knowledge related to genetic resources cannot be identified in accordance with the procedure set forth in Article 12 of the same law, the state shall be its owner, while Article 6.3 stipulates that a legal entity can be granted the right to detect, conduct and use genetic resources and related traditional knowledge in accordance with the conditions and procedures set forth in this law. In other words, the right to use genetic resources will be granted to legal entities only, and there is no regulation on the right of individuals to use genetic resources.

The bill also does not specify who can identify and certify possessors of genetic resources and related traditional knowledge. Moreover, Article 7.4 of the bill stipulates that the State Central Administrative Body shall operate a unit in charge of genetic resources and related traditional knowledge and have a non-staff professional council responsible for issuing professional opinions and recommendations, while Article 7.7 details the powers of the council.

Lawmaker G.Temuulen noted that some regulations have been reflected in the bill to create conditions for the council to work independently. Representatives of NGOs, scientific organizations and companies will work in the council, he said. However, the bill does not regulate why the professional council makes conclusions.

Article 13.3 sets out that issuing a permit shall be reviewed and resolved within 30 days for research and 90 days for commercial use after the State Central Administrative Body receives a request for a license based on the conclusion of the professional council.

It should be noted that there is no specific legal period for the validity of a genetic resource license. Moreover, there is a lack of clear legal deadlines for revoking licenses. 

Under Article 13.9 of the bill, if results of research works are used for commercial purposes, its user will have to re-apply for a license. However, Article 4.1.8 states that genetic resources can be used to study genes and biochemical composition of genetic resources, and detect, collect, process and produce genetic resources and related traditional knowledge for profit and non-profit. In other words, the bill allows genetic resources to be used for both profit and non-profit. Therefore, it is concluded that the regulation specified in Article 13.9 has become an additional burden on legal entities.

The bill on genetic resources is being drafted for the first time and aims to regulate new concepts. One of them is an agreement between parties specified in Article 14 of the bill. Article 4.1.12 reflects that an agreement of the parties is an agreement between the owner and the user of the genetic resource, which sets out conditions for the use of genetic resources and related traditional knowledge and yield from their use.

The above regulation contains the concept of possessor and user of genetic resources. But these are not defined in the bill. Therefore, this provision of the law is likely to be controversial and needs to be explained in more detail in the terminology section of the draft law.

In addition to registering genetic resources, the bill provides for the maintenance of a unified database of traditional knowledge. The State Central Administrative Body in charge of Nature and Environment shall have the right to maintain a unified database. In accordance with the bill, environmental departments of provinces and Ulaanbaatar will be authorized to register genetic resources and related traditional knowledge at local levels. It also stipulates their obligations to maintain the confidentiality of information.

The bill details the list of information to be included in the unified database, and states that the unified database will be integrated with the information exchange system of the Nagoya Protocol in line with modern international standards.

Article 9.1 of the draft law provides for the protection of genetic resources and related traditional knowledge by internationally accepted methods. It regulates the preservation of genetic resources and related traditional knowledge not only in a unified database but also through the establishment of a gene pool.

 The bill states that the State Central Administrative Body in charge of Nature and Environment shall approve the procedure for the establishment of a gene pool and enrichment, registration and storage of genetic resources. It also states that a unified standard for the national gene pool will be developed and approved by the authorities.

In conclusion, Mongolia needs to preserve the genetic resources and traditional knowledge of the people, which are valuable public resources, in addition to creating a legal environment that can address this issue as a whole. Lawmakers can make this possible by adopting this bill, which requires mending in a number of areas beforehand to comprehensively regulate issues concerning genetic resources.