Civil Aviation Agreement Announced – Facilitation for Commodity Trade?
Mongolia is rich in mineral resources, which are increasingly putting the landlocked country at the center of international interest. Not only its southern neighbor China, but also those countries that want to become less dependent on this very raw materials superpower for their supply of rare earths are therefore intensifying their dialogue with Mongolia. At the end of June, the U.S. had already signed a memorandum of understanding on cooperation in the field of critical minerals, and with an agreement on civil aviation, the relationship between the two countries could receive a further boost. As reported by Reuters, U.S. Vice President Kamala Harris and Mongolian Prime Minister Luvsannamsrain Oyun-Erdene have announced the signing of such an agreement, which could also mean simplifications for cargo flights. This would be quite interesting for the commodities sector, as freight shipments inevitably pass through either Russia or China, which Mongolia’s Deputy Prime Minister (PDF) Amarsaikhan Sainbuyan believes slows the country’s economic development and incurs high costs. According to Reuters, there are other initiatives planned to establish the United States as an alternative to China, both economically and culturally. For example, a law was recently passed that makes English the first foreign language in the country’s secondary schools.
Prime Minister Oyun-Erdene will meet with numerous government officials in Washington this week, including Foreign Minister Antony Blinken.