Mongolia - Foreign Relations
In the wake of the international socialist economic system's collapse and the disintegration of the former Soviet Union, Mongolians began to pursue an independent and nonaligned foreign policy. Mongolia is landlocked between Russia and China and seeks cordial relations with both nations. Mongolia has tried to maintain its political and economic independence from both Soviet-era patron Moscow – which supplies virtually all of its energy needs – and rising regional power China, which buys more than 90 percent of Mongolia’s mining exports. At the same time, Mongolia has sought to advance its regional and global relations. Ties with Washington are the linchpin of the “third neighbor policy,” a long-running Mongolian effort to guarantee autonomy by cultivating relationships beyond Russia and China.
Mongolia’s foreign policy objectives reside in ensuring its independence and sovereignty by following the trends of human society’s advancement, maintaining friendly relations with all countries, strengthening its position in the international community and forming with influential countries in the region and in the world a network of relationships based on the interdependence of political, economic and other interests.
The government of Mongolia has responded to the challenge of being landlocked between central and northeast Asia by prioritizing a "Third Neighbor" policy through which the Mongolians have reached out to key partners beyond their borders, most notably the United States, Europe, Japan, Korea, Canada, and others. This strategy includes robust engagement in the international system and participation in regional and international fora. The dividend Mongolia receives from this approach is a margin of political breathing room to relieve the intense pressures on a nation wedged between Russia and China.
Mongolia is pursuing an open and non-aligned policy. While following a policy of creating realistic interest of the developed countries in Mongolia, it seeks to avoid becoming overly reliant or dependent on any particular country. In formulating Mongolia’s foreign policy and determining its priority directions and objectives, flexible approach is applied, paying close attention to the development of international relations and to the regional and world political situations.
Mongolian relations with China began to improve in the mid-1980s when consular agreements were reached and cross-border trade contacts expanded. In May 1990, a Mongolian head of state visited China for the first time in 28 years. The cornerstone of the Mongolian-Chinese relationship is a 1994 Treaty of Friendship and Cooperation, which codifies mutual respect for the independence and territorial integrity of both sides. China has objected strongly to visits since 1990 of the Dalai Lama; during the 2002 visit, China briefly disrupted railroad links for "technical" reasons, but the November 2011 visit resulted in no specific disruptions.
There are regular high-level visits and expanding trade ties. President Hu Jintao visited Mongolia in 2003 (his first international visit as China's President). President Bagabandi visited China in 2004, President Enkhbayar visited in 2008, and Prime Minister Bayar met Premier Wen Jiabao in Beijing in April 2009. Premier Wen visited Ulaanbaatar in June 2010 to open a new cultural center, announce new educational scholarships for Mongolians, and discuss cooperation on infrastructure projects. Mongolian Prime Minister Batbold paid an official visit to China at the invitation of Premier Wen in June 2011.
After the disintegration of the former Soviet Union, Mongolia developed relations with the new independent states. Links with Russia and other republics were essential to contribute to stabilization of the Mongolian economy. In 1991, Mongolia and Russia concluded both a Joint Declaration of Cooperation and a bilateral trade agreement. This was followed by a 1993 Treaty of Friendship and Cooperation establishing a new basis of equality in the relationship. Mongolian President Bagabandi visited Moscow in 1999, and Russian President Vladimir Putin visited Mongolia in 2000 in order to sign the 25-point Ulaanbaatar Declaration, reaffirming Mongol-Russian friendship and cooperation on numerous economic and political issues.
Russia's demand for repayment of $11.4 billion in loans provided to Mongolia since the early 1970s bedeviled relations until December 2003, when Russia accepted a $250 million cash payment in settlement -- a 98% discount. Mongolia believed it had settled the Soviet-era debt but in 2009 the Russian Government stated that hundreds of millions of dollars in debt remained unpaid, though the debt was declared settled in December 2010 when Prime Minister Batbold visited Russia and met with Prime Minister Putin and President Dmitriy Medvedev. During the visit, the leaders announced the establishment of a joint venture in Dornod Province to mine uranium. The Mongolian and Russian Governments continue to jointly own the railroad and the large Erdenet copper mine.
By 2008 Russia had focused renewed attention on the Russia-Mongolia relationship. Russia offered to equip Mongolia with around $120 million worth of military hardware, possibly including pushing Mongolia to take two MiG-29 fighter jets. Less conspicuous, but no less important, were other actions that signaled an increasing Russian effort to re-establish its presence in Mongolia. High-level visits were occurring with greater frequency and at higher levels, governmental agreements were being signed and efforts are being made to strengthen trade links. The No. 2 official of Mongolia's dominant political party visited Moscow at the invitation of Vladimir Putin's party.
Ties with Japan and South Korea are particularly strong. Japan has historically been the largest bilateral aid donor to Mongolia, although the ongoing $285 million U.S.-Mongolia Millennium Challenge Compact will put the United States in the top spot until it sunsets in 2013. Mongolia has also made efforts to steadily boost ties with European countries. China is the largest foreign investor in Mongolia.
Mongolia, which has diplomatic relations with both North and South Korea, has also sought to play a supporting role in the Six-Party talks. In late 2007, it hosted a closed meeting between two Six-Party members, North Korea and Japan. Mongolia has also offered to help organize and to host a northeast Asian regional security mechanism. The country is a founding member of the Asia-Pacific Democracy Partnership (APDP) and hosted the group's planning meeting in Ulaanbaatar on July 1, 2008. In January 2011, Mongolia hosted parliamentary delegates from 19 countries for the Asia Pacific Parliamentary Forum (APPF). Mongolia also hosted a regional workshop of the Comprehensive Nuclear Test Ban Treaty Organization in March 2010 and served as Chair of the Board of Governors of the International Atomic Energy Agency in September 2010.
Diplomatic relations between M?ngolia and Canada were established during November 1973, and since 1990 collaborative relations have been expanding. Mongolian-Canadian trade and economic relations commenced with the signing of an inter-governmental trade agreement, after which trade turnover amounted to US$20.9 million in 2004, US$139.4 million in 2005, US$181 million in 2006, and US$188.6 million in 2007, with Canada becoming Mongolia’s third biggest partner-country30, as well as its second biggest partner in investment after China. Since 1996, Canada has committed US$175.7 million to investments in Mongolia. Around 40 Canadian companies operate in Mongolia and Canada has provided over US$ 25 million in official grants to Mongolia from 1998 to 2004. The two countries’ cooperation has involved the educational, cultural, scientific, mining, and defense sectors.
Collaboration and cooperation with Near Eastern countries, particularly Egypt, the United Arab Emirates, Qatar and Kuwait has deepened and four agreements with the United Arab Emirates, seven with Kuwait, and seven with Qatar, have been concluded. There has been some progress in maintaining friendly relations with Cuba and other Latin American countries, and in forming legislative environments to set up and strengthen collaboration and relations with Brazil, Mexico, Chile and Argentina.
As part of its aim to establish a more balanced nonaligned foreign policy, Mongolia has sought to take a more active role in the United Nations and other international organizations, and has pursued a more active role in Asian and northeast Asian affairs. The country is a member of the ASEAN Regional Forum (ARF) and the Pacific Economic Cooperation Council. Mongolia is currently seeking to join the Asia-Pacific Economic Cooperation forum (APEC). It is an observer in the Shanghai Cooperation Organization (SCO), but has stated it does not intend to seek membership. Mongolia began its 2-year chairmanship of the Community of Democracies in July 2011. The country also serves on the UN Economic and Social Council (ECOSOC).
Mongolia has continued its collaboration with the UN, its agencies, and other international organizations and has implemented its multi-lateral purposes and duties. The UN fills an important role to safeguard Mongolia’s national interests through political and diplomatic channels, assisting with the expression of its attitude and voice on worldwide issues and its pursuit of developmental directions. Mongolia’s participation on multi-lateral collaboration and its input has increased, as can be seen from policy implementation and collaboration with the UN and its organizations over the past decade. For instance, its many achievements can be mentioned as follows: Mongolia has supported worldwide efforts and measures in regard to policies and attitudes on climate changes, peacekeeping activities and the fight against nuclear terrorism, while implementing its own steps on these matters amd working towards achieving a number of the Millennium Development Goals.
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