ASIA-PACIFIC FREE TRADE AGREEMENT, REGIONAL ECONOMIC INTEGRATION AND MONGOLIA

Abstract

Mongolia is believed to have great potential for simultaneous integration in many fields. Our natural resources and geographical location, such as having only two neighbours, being in the middle of two large markets, and having no direct border with a third neighbour and landlocked situation, can be considered an opportunity. Mongolia's economy needs an easily accessible market to process and sell its natural resources, which are considered crucial in the near future. Interest in purchasing Mongolia's raw material wealth is not limited to the US and the EU. The most interesting sales market is that in the coming years, economic development growth will be higher than that of the USA and the EU. For us, Japan, South Korea, and ASEAN countries, which are close by road and can be reached just around our "nose fence", and especially is a region that includes China. Another aspect is that Mongolia is geographically located in the centre of Northeast Asia, i.e. in the heart of it, which not only separates Russia's raw material and energy markets from China's production (China is now Russia's largest trade partner and (which is changing) is also geographically positioned as a bridge between China's industrialised northeastern provinces and the relatively less developed northwestern provinces. Of course, at the moment, Mongolia lacks the necessary funds to modernise and expand transportation and energy infrastructure. However, in the end, it leads to the conclusion that only regional integration will create significant real economic and political opportunities in the future of Mongolia.