Trade bill discussed

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On July 29, a sub-working group meeting was held to provide technical assistance and information to the working group in charge of developing the bill on trade for Parliament debate.

PhD in international economics B.Sanjmyatav made a presentation on Mongolia’s trade issues and the need to develop the bill on trade, while former lawmaker and Deputy Chairman of the National Health Insurance Council D.Demberel reported on previously developed bills, and Chairman of the Mongolian National Chamber Of Commerce and Industry O.Amartuvshin introduced the legal environment for trade at the meeting.

During the meeting, experts said that the trade sector has been partially regulated by more than 100 articles of 57 laws, and noted that there is a lack of unified policy and standards in the trade sector.

The lack of legal incentives to support domestic production and services and improve consumption, as well as the lack of a unified government policy and agency, have a negative impact on foreign trade, they highlighted.

This year marks the 100th anniversary of the establishment and development of the trade sector in Mongolia. In the last 30 years, there has been no independent law or ministry in charge of the trade sector. Foreign trade declined, with total trade turnover reaching 12.9 billion USD in 2020, down 6.4 percent from the previous year. Last year, exports of goods and raw materials decreased by 0.6 percent to 7.6 billion USD compared to 2019, according to the experts.

The members of the sub-working group noted that the bill on trade must include comprehensive regulations covering all aspects of trade, including trade environment, transportation, logistics, production, customs, taxes, free zones, investment, and export promotion incentives.

They also said that although trade should be as free as possible, the government should implement a unified policy and create appropriate legal regulations, and stressed the importance of incorporating World Trade Organization’s principles and international agreements, as well as localizing them to the specifics of the country to implement the law in practice.

The members suggested that the purpose and content of the bill should be determined by taking into account current requirements and new trends in economic development.

The sub-working group believes that integrated policies are important as countries focus on ensuring national economic independence, regional trade and economic integration, and developing and implementing long-term policies and strategies.

According to the preliminary results of 2020, the trade sector accounts for 15.4 percent of GDP and 40 percent of operating enterprises. In 2020, 165,600 people were employed in the trade sector nationwide, which is 14.7 percent of the total working population.

Total sales in the trade sector reached 22 trillion MNT at the end of 2020, a decrease of 1.6 trillion MNT or 6.9 percent compared to 2019. Ulaanbaatar accounts for 83.6 percent of total sales in the trade sector, according to the sub-working group.

Misheel Lkhasuren