Implementation of the Interim Trade Agreement Between Mongolia and the Eurasian Economic Union and Its Member States
INTRODUCTION
The Interim Trade Agreement between Mongolia and the Eurasian Economic Union (the “EAEU”) and its Member States introduces an important new framework for Mongolia’s foreign trade policy. The Agreement establishes preferential trading arrangements for goods between the Parties, including the reduction or elimination of customs duties on certain categories of goods, the application of rules of origin, customs cooperation, customs administration, and trade facilitation.
The Agreement was signed on 27 June 2025 and was ratified by the Parliament of Mongolia on 12 December 2025, thereby completing Mongolia’s domestic ratification procedures. Following the completion by the Parties of their respective internal procedures and confirmation of the relevant notification for the entry into force of the Agreement, the Agreement is expected to enter into force on 22 July 2026. Accordingly, from that date, businesses may be able to benefit from tariff concessions in respect of goods listed in the Annexes to the Agreement, provided that such goods fully comply with the applicable product schedules, rules of origin, customs clearance requirements, and other relevant non-tariff requirements.
Tariff concessions do not apply automatically. Importers and exporters must watch for strict compliance traps: actual weight must not exceed the Certificate of Origin by more than 5%, and concessions apply only to customs duties - not VAT, excise duties, or strict sanitary/quarantine inspections.
The agreement also strengthens customs cooperation and trade facilitation. Certain institutional preparations are also expected to be undertaken by the relevant government authorities in the areas of customs administration and trade facilitation. In addition, the Agreement provides mechanisms for addressing trade facilitation matters, technical barriers to trade, and measures that may create restrictions on trade through consultations within the framework of the Joint Committee established between the Parties. The Parties are also expected to designate competent contact points for customs cooperation, which will be important for the timely clarification of practical issues arising during implementation, including customs classification, origin of goods, document verification, and exchange of information. Therefore, in addition to preferential tariff treatment, businesses may benefit from more predictable, efficient, and cost-effective customs procedures as implementation progresses.