The reduction of customs duties is anticipated
At a meeting of the Jogorku Kenesh, deputies adopted in the second reading the draft law on the ratification of the Temporary Trade Agreement signed between the Eurasian Economic Union and Mongolia.
This document was signed on June 27, 2025, in Minsk and aims to deepen trade and economic ties, as well as to facilitate the free movement of goods and capital among the participants of the agreement.
The agreement includes mutual reductions of customs duties on 367 commodity items. It is expected that about 85% of Kyrgyz exports to Mongolia will be covered by concessions from the Mongolian side. As a result, the average rate on exported goods from Kyrgyzstan will decrease from 5.5% to 2.8%, allowing local exporters to save up to $100,000 annually on duties.
According to information from the authors of the draft law, there has been significant growth in trade between Kyrgyzstan and Mongolia in recent years. From 2019 to 2023, trade turnover increased by 1.6 times, reaching $3.83 million in 2023, which is 40% more compared to the previous year.
In 2024, the trade volume rose to $10.2 million, which is a 2.7-fold increase compared to 2023. Exports from Kyrgyzstan this year amounted to $8.9 million (which is 5.2 times more), while imports totaled $1.27 million.
From the beginning of 2025 to May, the trade turnover between the two countries amounted to $3.13 million, increasing by 15.9% compared to the same period in 2024.
The main export goods from Kyrgyzstan to Mongolia include fruits, nuts, confectionery, pasta, wool, leather, and petroleum products, including aviation fuel.
In turn, Kyrgyzstan imports passenger cars and spare parts, dairy products, potatoes, tea, fruit juices, printed materials, and cosmetics from Mongolia.
According to the note accompanying the draft law, the agreement will also allow Kyrgyz agricultural exporters to supply honey, dried fruits, fresh apples, strawberries, chocolate, waffles, and cookies to Mongolia duty-free. Additionally, preferences will extend to mineral water, juice blends, pasta, and grain products.
As for industrial products, duty-free supplies will be available for cotton waste, clothing made from synthetic fibers, glass, LED lamps, and other goods.
The agreement will be valid for three years, with the possibility of automatic extension for another three years under the same conditions.
