Korea-Mongolia CEPA reached a principled agreement, tariffs on critical minerals to be eliminated
Korea and Mongolia 7 month 9 day declared the principled conclusion of negotiations for the Korea-Mongolia Comprehensive Economic Partnership Agreement (CEPA). The agreement includes the elimination of tariffs on critical minerals and cooperation on supply chains, distribution, and infrastructure, while the parties agreed to resolve some technical issues through working-level consultations.
Korea and Mongolia 7 month 9 day declared the principled conclusion of negotiations for the Korea-Mongolia Comprehensive Economic Partnership Agreement (CEPA). The Ministry of Trade, Industry and Energy announced that the leaders of the two countries had declared the principled conclusion in Ulaanbaatar.
The scope of the negotiations includes the elimination of tariffs on critical minerals and strengthened cooperation in renewable energy, supply chains, distribution and logistics, infrastructure, finance, and healthcare. The Ministry of Trade, Industry and Energy explained that the agreement represents an accord on major provisions, including goods market access and rules of origin.
The negotiations began in 2023 year 12 month, and official negotiations were held 4 rounds, along with numerous working-level meetings. They were suspended for approximately 1 year 7 months due to differences over the level of market opening and the spread of negative perceptions of free trade agreements in Mongolia.
The Ministry of Trade, Industry and Energy said that, on the day before the summit, Trade Minister Yeo Han-koo and Mongolian Minister of Economic Development Enkhbayar Jadambaa held three rounds of negotiations on tariff concessions for goods and reached a final agreement. The ministry explained that the level of liberalization was 90or more.
The ministry also said that this agreement would be Mongolia’s second bilateral FTA since the Japan–Mongolia EPA took effect. However, it was agreed that some technical issues and detailed product and rules-of-origin provisions would be finalized through working-level consultations.2016The ministry also said that this agreement would be Mongolia’s second bilateral FTA since the Japan–Mongolia EPA took effect. However, it was agreed that some technical issues and detailed product and rules-of-origin provisions would be finalized through working-level consultations.
The timing of the implementation of tariff elimination and the specific products covered are expected to be disclosed after the working-level agreement. The relevant ministries plan to proceed with the final signing of the agreement and the ratification process.