Identifier
Created
Classification
Origin
07ULAANBAATAR499
2007-08-31 08:35:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ulaanbaatar
Cable title:
Meeting with Mongolian Deputy Minister of Trade and
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UNCLAS SECTION 01 OF 02 ULAANBAATAR 000499
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EAP/CM AND EB/IFD/OIA
STATE PASS USTR, EXIM, OPIC, AND EPA
STATE PASS AID/ANE D. WINSTON
MILLENNIUM CHALLENGE CORP WASHDC FOR F. REID
TREASURY PASS USEDS TO IMF, WORLD BANK
MANILA AND LONDON FOR USEDS TO ADB, EBRD
E.O. 12958: N/A
TAGS: ELTN ETRD PREL PGOV MG
SUBJECT: Meeting with Mongolian Deputy Minister of Trade and
Industry Sodbaatar
Reftel: Ulaanbaatar 0478; Ulaanbaatar 0483
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION
UNCLAS SECTION 01 OF 02 ULAANBAATAR 000499
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EAP/CM AND EB/IFD/OIA
STATE PASS USTR, EXIM, OPIC, AND EPA
STATE PASS AID/ANE D. WINSTON
MILLENNIUM CHALLENGE CORP WASHDC FOR F. REID
TREASURY PASS USEDS TO IMF, WORLD BANK
MANILA AND LONDON FOR USEDS TO ADB, EBRD
E.O. 12958: N/A
TAGS: ELTN ETRD PREL PGOV MG
SUBJECT: Meeting with Mongolian Deputy Minister of Trade and
Industry Sodbaatar
Reftel: Ulaanbaatar 0478; Ulaanbaatar 0483
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION
1. (SBU) SUMMARY. Mongolia's Vice Minister for Industry and Trade,
Sodbaatar, met with DCM on August 24 to discuss a number of issues,
including cooperation on the U.S.-Mongolia trade relationship
through the Trade and Investment Framework Agreement (TIFA) process,
which the GOM hopes will lead quickly to a Free Trade Agreement.
Other issues discussed included Ministry of Industry and Trade (MIT)
participation in the proposed Fall 07 presidential summit in
Washington; Mongolian progress in using the General System of
Preferences (GSP); and the GOM's recent virtual "expropriatory"
revocation of 34 exploration licenses owned by owned by 18 firms.
END SUMMARY.
Advancing the TIFA Process
--------------
2. (SBU) DCM and Commoff met with Vice Minister (VM) Sodbaatar on
August 24 to review the current trade relationship and plan for fall
and early-winter events related to the TIFA process. Following on
promises made by both governments to regularly measure progress on
TIFA commitments, the DCM proposed early fall -- perhaps October,
pending USTR approval) -- for a mid-year review of commitments made
at the 2007 TIFA meeting. The USTR would lead USG agencies via
digital videoconference (DVC) or some other method to assess
progress on the 07 TIFA agenda with GOM counterparts. The TIFA DVC
would include a detailed discussion of the Transparency Agreement
proposed by the USTR, which fulfils a US commitment made during the
07 TIFA to deepen bilateral trade relations. In addition, the TIFA
DVC would address ongoing commercial disputes, especially those
related to mining in Mongolia.
3. (SBU) VM Sodbaatar responded positively to the mid-term review
concept. He said MIT would readily participate in either a DVC or,
if conditions permit, a meeting with USTR representatives in Beijing
in September, if appropriate. Sodbaatar volunteered that he
approves of USG proposals for DVCs, etc., because they regularize
the TIFA process for the GOM and might lead to the FTA that Mongolia
desires.
4. (SBU) The VM said Mongolia wants a Transparency Agreement with
the United States because the GOM sees such a pact as a fundamental
stepping stone to a FTA. He added that, regardless of its link to
an FTA, such an agreement would be key to expanding bilateral trade
cooperation. The VM concluded his TIFA comments by reiterating the
GOM's view that TIFA meetings should be the means to a FTA. He said
the GOM expects that the USG will make positive statements about
concluding a FTA with Mongolia during the Presidential summit.
MIT participation in Washington summit
--------------
5. (SBU) The DCM asked the VM whether the MIT plans to participate
in the proposed fall 2007 presidential summit in Washington. The VM
said the MIT would participate at a ministerial level, but that no
decision has yet been made on whether the minister or the VM would
go. At the summit, Sodbaatar added, the MIT would meet with USTR
and other trade-related USG officials, as well as American investors
interested in Mongolia. The MIT sees the summit as a good
opportunity to improve Mongolia's profile as a destination for
foreign direct investment from the US, which MIT believes is
lacking.
ULAANBAATA 00000499 002 OF 002
General System of Preferences
--------------
6. (SBU) CommOff detailed recent progress on GSP, paying particular
attention to Mongolia's GSP go-ahead for two categories of
molybdenum. However, CommOff tempered the positive message by
relaying a USTR statement that future Mongolian GSP petitions must
follow all required guidelines for submissions or risk being
rejected. Sodbaatar expressed pleasure that Mongolian molybdenum
was to be listed as a GSP-eligible product and committed to
following all requested procedures for GSP submissions.
Mining license revocations
--------------
8. (SBU) The DCM also expressed USG concern over the GOM's recent
virtual "expropriatory" revocation of 34 exploration licenses owned
by owned by 18 firms (reftels). The VM denied that licenses had
been revoked, claiming that firms misunderstood the written
communication from the GOM. He said the companies would need to
conform to the new mining law as soon as possible or risk losing
their licenses. He also blamed firms for being slow to follow
Mongolia's new mining law. Sodbaatar promised to formally inform
all affected firms of the GOM's decision, to give them sufficient
time to change their licenses. (Note: MIT has not yet honored
commitments made at the August 24 meeting. Apparently, a formal
letter has been written but not disseminated. Consulted daily, MIT
promises to issue a formal renouncement of the revocation during the
week of September 1. End note.)
Minton
4
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EAP/CM AND EB/IFD/OIA
STATE PASS USTR, EXIM, OPIC, AND EPA
STATE PASS AID/ANE D. WINSTON
MILLENNIUM CHALLENGE CORP WASHDC FOR F. REID
TREASURY PASS USEDS TO IMF, WORLD BANK
MANILA AND LONDON FOR USEDS TO ADB, EBRD
E.O. 12958: N/A
TAGS: ELTN ETRD PREL PGOV MG
SUBJECT: Meeting with Mongolian Deputy Minister of Trade and
Industry Sodbaatar
Reftel: Ulaanbaatar 0478; Ulaanbaatar 0483
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION
1. (SBU) SUMMARY. Mongolia's Vice Minister for Industry and Trade,
Sodbaatar, met with DCM on August 24 to discuss a number of issues,
including cooperation on the U.S.-Mongolia trade relationship
through the Trade and Investment Framework Agreement (TIFA) process,
which the GOM hopes will lead quickly to a Free Trade Agreement.
Other issues discussed included Ministry of Industry and Trade (MIT)
participation in the proposed Fall 07 presidential summit in
Washington; Mongolian progress in using the General System of
Preferences (GSP); and the GOM's recent virtual "expropriatory"
revocation of 34 exploration licenses owned by owned by 18 firms.
END SUMMARY.
Advancing the TIFA Process
--------------
2. (SBU) DCM and Commoff met with Vice Minister (VM) Sodbaatar on
August 24 to review the current trade relationship and plan for fall
and early-winter events related to the TIFA process. Following on
promises made by both governments to regularly measure progress on
TIFA commitments, the DCM proposed early fall -- perhaps October,
pending USTR approval) -- for a mid-year review of commitments made
at the 2007 TIFA meeting. The USTR would lead USG agencies via
digital videoconference (DVC) or some other method to assess
progress on the 07 TIFA agenda with GOM counterparts. The TIFA DVC
would include a detailed discussion of the Transparency Agreement
proposed by the USTR, which fulfils a US commitment made during the
07 TIFA to deepen bilateral trade relations. In addition, the TIFA
DVC would address ongoing commercial disputes, especially those
related to mining in Mongolia.
3. (SBU) VM Sodbaatar responded positively to the mid-term review
concept. He said MIT would readily participate in either a DVC or,
if conditions permit, a meeting with USTR representatives in Beijing
in September, if appropriate. Sodbaatar volunteered that he
approves of USG proposals for DVCs, etc., because they regularize
the TIFA process for the GOM and might lead to the FTA that Mongolia
desires.
4. (SBU) The VM said Mongolia wants a Transparency Agreement with
the United States because the GOM sees such a pact as a fundamental
stepping stone to a FTA. He added that, regardless of its link to
an FTA, such an agreement would be key to expanding bilateral trade
cooperation. The VM concluded his TIFA comments by reiterating the
GOM's view that TIFA meetings should be the means to a FTA. He said
the GOM expects that the USG will make positive statements about
concluding a FTA with Mongolia during the Presidential summit.
MIT participation in Washington summit
--------------
5. (SBU) The DCM asked the VM whether the MIT plans to participate
in the proposed fall 2007 presidential summit in Washington. The VM
said the MIT would participate at a ministerial level, but that no
decision has yet been made on whether the minister or the VM would
go. At the summit, Sodbaatar added, the MIT would meet with USTR
and other trade-related USG officials, as well as American investors
interested in Mongolia. The MIT sees the summit as a good
opportunity to improve Mongolia's profile as a destination for
foreign direct investment from the US, which MIT believes is
lacking.
ULAANBAATA 00000499 002 OF 002
General System of Preferences
--------------
6. (SBU) CommOff detailed recent progress on GSP, paying particular
attention to Mongolia's GSP go-ahead for two categories of
molybdenum. However, CommOff tempered the positive message by
relaying a USTR statement that future Mongolian GSP petitions must
follow all required guidelines for submissions or risk being
rejected. Sodbaatar expressed pleasure that Mongolian molybdenum
was to be listed as a GSP-eligible product and committed to
following all requested procedures for GSP submissions.
Mining license revocations
--------------
8. (SBU) The DCM also expressed USG concern over the GOM's recent
virtual "expropriatory" revocation of 34 exploration licenses owned
by owned by 18 firms (reftels). The VM denied that licenses had
been revoked, claiming that firms misunderstood the written
communication from the GOM. He said the companies would need to
conform to the new mining law as soon as possible or risk losing
their licenses. He also blamed firms for being slow to follow
Mongolia's new mining law. Sodbaatar promised to formally inform
all affected firms of the GOM's decision, to give them sufficient
time to change their licenses. (Note: MIT has not yet honored
commitments made at the August 24 meeting. Apparently, a formal
letter has been written but not disseminated. Consulted daily, MIT
promises to issue a formal renouncement of the revocation during the
week of September 1. End note.)
Minton
4