Mongolia-United States Relations

Mongolia and the United States of America established the diplomatic relations on January 27, 1987. Mongolia opened its Embassy in Washington DC in March 1989 and the United States of America opened its Embassy in Ulaanbaatar in June, 1988. Mongolia accredited its first Ambassador, Gendegiin NYAMDOO, to the United States in March 1989. The first U.S. Ambassador to Mongolia , Richard L. Williams, was not resident in Mongolia and Joseph E. Lake , the first resident Ambassador, arrived in Ulaanbaatar in July 1990.

The first President of Mongolia Punsalmaagiin Ochirbat visited the USA in 1991 , second President of Mongolia Natsagiin Bagabandi in 2004 and the Prime Minister Nambariin Enkhbayar visited Washington in November 2001. President Bush visited Mongolia in November 2005, Speaker of the House of Representatives Dennis Hastert visited Mongolia in August 2005 and US Secretaries of the State , Defense and Agriculture visited Mongolia during the course of 1990-2006.

Since the establishment of diplomatic relations between the two countries in 1987, the bilateral relationship has been dynamically developing and as the democratic reforms continue to deepen in Mongolia , the US support for the country has strengthened leading to expansion of bilateral relations and high-level political dialogue. The two countries enjoy active political relations at the high levels. By the Joint Statements between Mongolia and the United States of America , released during the official visits of Mongolian President N.Bagabandi to the US in July 2004 and the U.S. President G. Bush in November 2005 , the two nations committed to defining guiding principles and expanding the framework of the comprehensive partnership between their two democratic countries based on shared values and common strategic interests.

The U.S. actively supporting Mongolian democracy and reforms from the early dates, has been rendering development assistance to Mongolia . In 1989 and 1990, a cultural accord, Peace Corps accord, consular convention, and Overseas Private Investment Corporation (OPIC) agreement were signed. A trade agreement was signed in January 1991 and a bilateral investment treaty in 1994. Mongolia was granted permanent normal trade relations (NTR) status and generalized system of preferences (GSP) eligibility in June 1999. In July 2004, the Trade and Investment Framework Agreement has been signed between the two countries to promote economic reform and more foreign investment. The number of Mongolians and Americans visiting each other is increasing year by year.

The U.S. Agency for International Development is providing US Government assistance to Mongolia totaled about $150 million, all in grant form during 1991-2005. Between 1993 and 2005 , the United States Government has provided food aid to Mongolia under the Food for Progress programs. The United States has also supported defense reform and an increased capacity by Mongolia's armed forces to participate in international peacekeeping operations. Mongolia has contributed more than 1000 troops in 8 rotations to coalition operations in Iraq and Afghanistan since 2003. With U.S. Department of Defense assistance and cooperation, Mongolia and the U.S. jointly hosted “Khan Quest 06,” the Asian region’s premier peace-keeping exercise in 2006.

The U.S. also is directly supporting Mongolia 's democratization by working with U.S. nongovernmental organizations to provide training for parliamentary committee organization and constituent service and has launched a program to establish public affairs organizations and legislative relations offices in every ministry.

The Peace Corps currently has more than 100 volunteers in Mongolia . They are engaged primarily in English teaching and teacher training activities. At the request of the Government of Mongolia, the Peace Corps has developed programs in the areas of public health, small business development, and youth development in the areas of public health and the environment. The Peace Corps in Mongolia has celebrated its 15th anniversary in 2006.

US-Mongolia economic ties

In 2006, trade with the USA occupied 7.8 % of the total exports and 2.9% of imports. Trade with the US amounted to $162 million in 2006 which is $33 million lower than in the previous year.

There were 110 American and US-Mongolian joint companies registered in 2006 of which 25 were in trade and services, 17 in oil exploration and mining, 12 in tourism industry, 10 in light industry such as in wool and cashmere processing and sewing areas, 5 in banking sector and 5 in animal husbandry. These 110 companies invested total 88 million since 1990, which makes the USA the fourth biggest direct investor in Mongolia. Of these companies, 53 are 100% American-owned and remaining are joint ventures.

While in 1990, direct investment of US private companies into Mongolia's economy amounted $10.25 million, this amount reached $37 million in 2006.

Mongolia and USA does not have an agreement on avoidance of double taxation.