During its regular meeting held on Monday, the Cabinet decided to submit the draft of an intergovernmental agreement between Mongolia, Russia, and China on conducting international transportation through an Asian road network for further discussion by parliamentary standing committees.
It is believed that the agreement will create possibilities for Mongolia to boost trade, transportation, and economic relations with its neighboring and “third neighbor” countries. Terms of the agreement are designed to simplify trade transportation by facilitating connections between different modes of transportation, supporting cooperation in the transportation sector, and implementing legal regulations and standards set by international transportation organizations.
The Cabinet believes that approval of the agreement will provide Mongolian companies with the opportunity to conduct freight transportation to Mongolia’s third neighbors under the Convention on International Transport of Goods and enter the global market.
The Cabinet also believes that approval of the agreement will expand foreign trade turnover and positively influence the nation’s economy. The agreement calls for the easing of trade, customs, tax, and insurance relations between Mongolia, China and Russia.