Updated July 9, 2020
Mongolia
Overview
Mongolians participate in programs of the Open World
Mongolia is a landlocked nation of 3 million people
Leadership Center, a U.S. congressional agency whose
between Russia and the People’s Republic of China (PRC).
mission is to introduce rising leaders of 17 Eurasian
It has been viewed as a democratic success story both
countries to U.S. governing and free market systems.
among former Soviet satellite states and in Asia. In 1989,
Mongolia’s legislature is one of 21 parliaments worldwide
democratic activists staged protests against communist rule
that have partnered with the U.S. House Democracy
and formed the Mongolian Democratic Union. The
Partnership, a bipartisan commission of the U.S. House of
Mongolian People’s Revolutionary Party (MPRP), which
Representatives that works to “strengthen democratic
had ruled the country since 1921, allowed multiparty
institutions by assisting legislatures in emerging
elections in 1990 and relinquished power in 1996, when a
democracies.”
Democratic Party (DP)-led coalition of opposition forces
won nationwide elections.
Figure 1. Mongolia at a Glance
Mongolia’s foreign relations are driven by a desire to
preserve its autonomy by balancing relations between major
partners, including the United States, China, and Russia,
and also Japan and South Korea. U.S. policy has aimed to
help Mongolia maintain an independent foreign policy. In
July 2019, Mongolian President Khaltmaagiin Battulga met
with President Trump in Washington, DC, and the two
governments agreed to establish a Strategic Partnership. In
August 2019, Secretary of Defense Mark Esper traveled to
the Mongolian capital of Ulaanbaatar and met with senior
defense and other government leaders.
Mongolia’s International Relations

Sources: Central Intel igence Agency, The World Factbook, 2020. Map
The United States established diplomatic relations with
created by CRS, 2020.
Mongolia in 1987, and Mongolian leaders describe the
United States as Mongolia’s most important “third
The United States and Mongolia both are members of the
neighbor”—
Association of Southeast Asian Nations Regional Forum
a country that does not border Mongolia but
(ARF). Mongolia is one of nine NATO “partner” nations,
has close relations with it. Mongolia’s relations with
Russia, including military ties, remain close, and many
along with Japan and South Korea in East Asia. Mongolia
also is a member of the Governing Council of the
Mongolians regard Russia with some affection. At the same
Community of Democracies, established in 2000 to support
time, they remain wary of China, their largest economic
democratic transitions worldwide.
partner. Mongolia’s official relations with China largely
have been amicable, with the exception of periods of
Politics
tension and pressure from Beijing following visits to
Mongolia’s political system is “semi
Mongolia, a traditionally Tibetan Buddhist country, by the
-presidential,” with a
parliament and Prime Minister as well as a popularly
Dalai Lama, the exiled Tibetan spiritual leader whom the
elected President. The Mongolian Prime Minister is the
PRC government asserts aims to split Tibet from China. In
addition to the United States, Mongolia has strategic
head of government with primary responsibility for
executive ministries, while the President plays a primary
partnerships with Russia (established in 2006), Japan
(2010), China (2014), and India (2015).
role in foreign policy, chairs the National Security Council,
and serves as the Commander in Chief of the armed forces.
Mongolia participates in United Nations global
In November 2019, President Battulga approved
peacekeeping operations and has over 1,000 peacekeepers
deployed in Africa. Mongolia sent troops to Iraq from 2003
constitutional amendments that had been passed by the
legislature. The amendments strengthen the power of the
to 2008 and currently has over 200 troops in Afghanistan
Prime Minister with the aim of making the government
supporting Coalition operations. U.S. Indo-Pacific
Command and the Mongolian Armed Forces (MAF) hold
more effective, and change the term of the presidency from
up to two four-year terms to one six-year term.
an annual multinational peacekeeping exercise in Mongolia
known as Khaan Quest. Khaan Quest 2019, the 17th such
event, focused on peacekeeping and stability operations and
Since 1990, Mongolia has alternated between coalitions led
by the MPRP (now Mongolian People’s Party or MPP) and
involved 900 MAF personnel, 220 U.S. military personnel,
and participants from 29 other countries including China.
Democratic Union (now dominated by the Democratic
Party). In 2016, the MPP won a large majority of seats in
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Mongolia
the 76-member unicameral legislature, the State Great
zones on both borders. Mongolia and China envision
Khural in part because many voters blamed the DP for an
integrating Mongolia’s road and development plans with
economic slump that began in 2013. In the June 2020
China’s Belt and Road Initiative.
parliamentary elections, the MPP retained its majority, the
first time a single party has retained an absolute majority in
U.S. Assistance
consecutive elections. The MPP holds 62 seats, the DP has
In recent years, U.S. foreign assistance to Mongolia has
11, and independents and coalitions have 3. Many voters
consisted largely of security assistance, and Mongolia is
reportedly approved of the MPP’s general performance and
one of five “priority recipients” of International Military
measures to combat Coronavirus Disease 2019 (COVID-
Education and Training (IMET) assistance in the East Asia-
19).
Pacific region. Development assistance includes programs
that aim to reduce corruption, increase transparency,
Ukhnaagiin Khurelsukh of the MPP was elected Prime
promote citizen participation in government, and support
Minister by the Great Khural in October 2017 and he was
citizen monitoring and oversight of government through
reelected in July 2020. Mongolian voters elected President
bolstering civil society. The Department of State’s
Battulga, who is affiliated with the Democratic Party, in
Congressional Budget Justification for Foreign Operations,
July 2017 by a 55%-45% margin. In June 2020, a
FY2020, Appendix 2, states, “Strengthening and nurturing
Mongolian court sentenced former Prime Minister
Mongolia’s democracy is crucial to the successful
Jargaltulgyn Erdenebat of the MPP, who served in 2016-
implementation of a free and open Indo-Pacific strategy.”
2017, to six years in prison for abuse of power.
In FY2019, Mongolia received nearly $10.0 million in total
U.S. bilateral assistance. Japan is the largest provider of
Economics
bilateral assistance to Mongolia, according to the
Mongolia’s economy is supported by extensive mineral
Organisation for Economic Cooperation and Development.
resources, but growth remains uneven, driven by
fluctuations in mineral and petroleum prices. The economy
The Peace Corps in Mongolia, suspended in 2020 due to
has been recovering from a slump that began in 2013 due to
COVID-19, was involved in English language and health
falling commodities prices, government mismanagement
education. A USAID-supported Leaders Advancing
and unsustainable expansionary policies, and a drop in
Democracy (LEAD) Mongolia program brings young
foreign investment. In 2017, the International Monetary
Mongolians to the United States to learn about how to
Fund (IMF) sponsored a three-year program of fiscal
engage in civic action.
reforms and a $5.5 billion bail-out package for Mongolia
that included support from the IMF, the Asian Development
The U.S.-funded Millennium Challenge Corporation
Bank, Japan, Korea, China, and other aid donors.
(MCC) carried out an initial five-year (2008-2013), $285
million compact or aid package in Mongolia, focused on
The COVID-19 pandemic is expected to negatively impact
property rights, vocational education, health, road
demand and prices for Mongolia’s commodities exports,
infrastructure, and energy and the environment. In July
and public debt is expected to rise. The Economist
2018, the MCC launched a second, $350 million compact in
Intelligence Unit forecasts economic growth of 2.7% in
Mongolia, which focuses on providing a sustainable water
2020 compared to 4.9% in 2019. Mongolia has reported
supply to Ulaanbaatar.
220 cases of COVID-19 and zero deaths as of July 2, 2020.
U.S.-Mongolia Trade
Exports, which are primarily commodities, account for 40%
U.S. total trade with Mongolia was valued at $217.4 million
of Mongolia’s GDP. China buys over 85% of Mongolian
in 2019, including $24.6 million in Mongolian exports to
exports, while Russia supplies Mongolia with 90% of its
the United States. Mongolia is a beneficiary of the U.S.
energy (refined oil). Mongolia’s trade with China, with
Generalized System of Preferences (GSP) program. Eligible
which it has a large trade surplus, totaled $8.1 billion in
products include tungsten, one of Mongolia’s top export
2019. Leading Mongolian exports to China include coal,
items to the United States; certain handmade or handicraft
copper and other ores, crude oil, and unprocessed cashmere.
textile products; and some non-apparel items that use
Mongolia produces over a third of the world’s raw
cashmere or furs.
cashmere, most of which is exported to China and turned
into garments by Chinese manufacturers.
In April 2019, the Mongolia Third Neighbor Trade Act was
introduced in the House (H.R. 2219) and Senate (S. 1188).
As Mongolia has developed economically, Ulaanbaatar has
The act would authorize certain textile and apparel items
become one of the world’s cities with the highest levels of
made of cashmere in Mongolia to be imported duty-free.
air pollution, fueled by coal-heated dwellings (gers or
Supporters of the bill argue that it would help reduce
yurts), coal-fired power plants, and automotive exhaust.
Mongolia’s economic dependence upon China and help
The growing number of cashmere goats, coupled with
Mongolia to develop its own garment industry.
persistent drought, has contributed to overgrazing and the
degradation or reduction of Mongolia’s grasslands.
Thomas Lum, Specialist in Asian Affairs
Ben Dolven, Specialist in Asian Affairs
The Mongolian government has entered into agreements
with China and Russia to jointly develop roads, railways,
IF10926
and power grids that link the three countries. Plans include
a Mongolia-China-Russia economic corridor and free trade
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Mongolia


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https://crsreports.congress.gov | IF10926 · VERSION 8 · UPDATED

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