Washington, D.C.

AmCham Doorknock 2019

AmCham Doorknock 2019 Report

The American Chamber of Commerce (AmCham) in Mongolia successfully organized its annual U.S. Doorknock to Washington, D.C., from June 23-26, 2019.

AmCham has been hosting its U.S. Trade Mission (Doorknock) annually since 2014 to strengthen the commercial relationship between Mongolia and the United States AmCham Mongolia's Annual Doorknock is aimed to allow business leaders from its members and the general business community in Mongolia to engage with a range of high-level policymakers in Washington, D.C., as well as American businesses, and to present Mongolia as a destination for American investments, to provide a more accurate perspective on the business environment in Mongolia, to engage in discussions of broader-scale cooperation.

AmCham Mongolia's delegation included 10 executive representatives from leading American, international, and Mongolian companies, including Woodmont International, DB GTs Advocates, General Electric, Gobi, Rio Tinto, Seruun Group, South Gobi Sands, Ta Chi Mart, and Trade and Development Bank.

In Washington, D.C., the delegation met with an array of high-level stakeholders who are responsible for Mongolia and the region. The key policy focus of this year's Doorknock was advocacy on the Mongolia Third Neighbor Trade Act and the Build Act and related opportunities for Mongolia. During the Doorknock, the AmCham Mongolia delegation conveyed the following policy-related messages to the U.S. stakeholders, stressing the value of:

Mongolia Third Neighbor Trade Act

Ÿ On April 12, 2019 Mongolia Third Neighbor Trade Act (MTNTA) was reintroduced to the United States Congress as H.R. 2219 and S. 1188. The MTNTA will grant Mongolian cashmere duty-free access to the United States – creating great potential for growth in Mongolia's cashmere and textile industry while allowing a new reliable source of cashmere to American retailers and textile manufacturers.

Ÿ AmCham appreciates the bipartisan leadership in Congress – lead by Senators Sullivan and Cardin in the Senate and Representatives Titus and Yoho in the House – and urges swift action by the U.S. Congress to approve the MTNTA and for the Trump Administration to support and approve the legislation as well.

Ÿ The MTNTA is supported by American retailers and manufacturers who are currently reliant on China to supply cashmere products – even when the cashmere is Mongolian in origin. The MTNTA further strengthens American strategic interests and advances American competitiveness in the global market and allows the United States to have a more level playing field in competing in the Mongolian cashmere sector. This will also allow American small businesses, retailers and consumers new opportunities to participate in this exciting growth sector.

Leverage the U.S. BUILD Act to secure American private sector leadership in Mongolia's economic modernization

Ÿ AmCham Mongolia is grateful to the Congress and Trump Administration for passing the BUILD Act, which creates the U.S. International Development Finance Corporation

Ÿ AmCham favors the early exploration of opportunities to leverage this new initiative to secure American participation in Mongolia's economic modernization and creating impactful success stories that underscore the strategic intent of the Act

Ÿ Rich in natural resources and landlocked between China and Russia, Mongolia presents American-led engineering firms, and others, a unique opportunity to develop power, infrastructure, and agriculture projects and to help improve the capacity and standards of Mongolia's cashmere industry

Strong support for Mongolia from Washington

Ÿ The U.S.-Mongolia relationship is critical and AmCham urges the U.S. Government to embrace all available resources to deepen and expand the commercial, government, cultural, and strategic ties between the two countries.

Policy Framework of the Doorknock

Policy Priorities

A number of critical engagements were made during the Mission:

Roundtable Meeting hosted by the U.S. Chamber of Commerce

AmCham's U.S. Doorknock kicked-off with the Roundtable meeting at the U.S. Chamber of Commerce with participation from Charles Freeman, Senior Vice President for Asian Affairs, U.S. Chamber of Commerce; H.E. Yo. Otgonbayar, Mongolian Ambassador to the U.S., Jackson Cox, Founder of AmCham; executives of leading American businesses; representatives from Mongolian Embassy in the United States; and AmCham delegates.

The U.S. Chamber of Commerce is the world's largest business organization, representing the interests of more than 3 million businesses of all sizes, sectors, and regions. The overarching mission of the Chamber is to strengthen the competitiveness of the U.S. economy

Charles Freeman expressed the full support for the Mongolia Third Neighbor Trade Act, and provided an update on the latest U.S. political developments and its impact on the businesses. It was also emphasized that the U.S. Chamber stands ready to work together to deepen engagement and stronger bilateral ties with Mongolia.

The regular dialogue and close partnership with the U.S. Chamber of Commerce will be continued to exchange information and to seek guidance on issues related to U.S. market access for Mongolian businesses.

Doorknock Engagements

U.S. Chamber of Commerce

AmCham delegates had a number of high level engagements with the Administration:

Meeting with the State Department

The U.S. Department of State is responsible for shaping and sustaining a peaceful, prosperous, just, and democratic world, and for fostering conditions for stability and progress for the benefit of the American people and people everywhere.

The delegation met with Mr. Rick Waters, Director for Chinese and Mongolian Affairs and other officials.

The State Department officials emphasized that a full implementation of the U.S.-Mongolia Transparency Agreement is critical in fostering bilateral commercial relations. A query was made about success of addressing high level political corruption in Mongolia as well as developments related to increase power of the National Security Council to deal with appointment and dismissal of judges.

Delegates highlighted an importance of the Mongolia Third Neighbor Trade Act in advancing the bilateral commercial relations.

Meeting with the United States Department of Commerce

The Department of Commerce promotes job creation and economic growth by ensuring fair and secure trade, providing the data necessary to support commerce, and fostering innovation by setting standards and conducting foundational research and development.

A team from the China and Mongolia Office led by Scott Tatlock, Executive Director for China and Mongolia, International Trade Administration met with the AmCham delegates.

The Department of Commerce highlighted some issues in moving forward with the Mongolia Third Neighbor Trade Act such as WTO compliance and an option to use the GSP modality for cashmere products rather than having a separate legislation.

A specific follow-up is to reinforce actions related to the Mongolia Certified Trade Mission of American businesses taking place on August 23-26, 2019.

Engagements with the Trump Administration

U.S. Department of State

U.S. Department of Commerce

Meeting with the United States Department of Agriculture

The U.S. Department of Agriculture provides leadership on food, agriculture, natural resources, rural development, nutrition, and related issues based on public policy, the best available science, and effective management.

The meeting was attended by Mark Dries, Deputy Administrator for the Office of Country and Regional Affairs, Foreign Agricultural Service and other officials.

The agriculture sector of Mongolia has great potential to further expand – both domestically and through stronger export markets. Several U.S. companies, investors, and suppliers (many of whom are members of AmCham) are either exploring business opportunities or doing business in Mongolia's agriculture sector.

During the meeting, delegates discussed about opportunities to increase Mongolia's agricultural export, to learn how to get Mongolian agricultural products organic certified in a way that is acceptable to the USDA, and to build a partnership between the concerned stakeholders as well as capacity development initiatives undertaken by the USDA for Mongolia.

AmCham will follow-up with the Mongolian Ministry of Food, Agriculture and Light Industry on a proposed visit in October. AmCham will also share a more information about the upcoming Certified Trade Mission of American businesses to Mongolia.

Meeting with the United Stat0es Trade Representative

The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries. The head of USTR is the U.S. Trade Representative, a Cabinet member who serves as the president's principal trade advisor, negotiator, and spokesperson on trade issues.

The delegation met with Terry McCartin, Acting Assistant U.S. Trade Representative and other officials.

The USTR officials highlighted some issues in moving forward with the Mongolia Third Neighbor Trade Act such as WTO compliance and an option to use the GSP modality for cashmere products rather than having a separate legislation.

The Trade and Investment Framework Agreement (TIFA) between the two countries serves an important forum for fostering the U.S.-Mongolia trade and investment relationship. These high-level talks support Mongolia's efforts to develop a prosperous market-based economy by encouraging dialogue about the mutual advancement of trade and investment opportunities.

Engagements with the Trump Administration

U.S. Department of Agriculture

U.S. Trade Representative

AmCham Mongolia organized Roundtable Discussion facilitated by Jonathan Addleton, former U.S. Ambassador in Mongolia, and Edward Luttwak, a thought leader.

Panelists of the roundtable included Congressman Ted Yoho, Katherine Monge, Speaker Pelosi's Office, and Michael Schiffer - Senate Foreign Relations (Minority) who provided insightful perspectives on broader issues of the bilateral relations and ways forward, specific issues related to the Mongolia Third Neighbor Trade Act, the Build Act, the legislative process in the Congress particularly in dealing with trade issues, issues related to global trade and WTO.

Meeting with the Overseas Private Investment Corporation (OPIC)

OPIC is the U.S. government's development finance institution. OPIC has provided over 60 million USD in financing to Mongolian businesses in the last couple of years. OPIC fulfills its mission by providing businesses with financing, political risk insurance, and advocacy by partnering with private equity investment fund managers.The meeting was attended by Ajay Rao, Director, Social Enterprise Finance Team and other officials.

During the meeting, OPIC representatives reinforced their willingness to help private sector investment in Mongolia. Currently, the OPIC investment portfolio is around 200 million USD supporting various projects.

OPIC is being consolidated with USAID into the Development Finance Corporation with an estimated budget of 50 billion USD to support the development projects focusing on low income and low middle-income countries. from this critical institution in advancing interests of Mongolia.

Roundtable Discussion: “A Discussion about U.S.-Mongolia Relations”

OPIC

The last day of the intensive Doorknock wrapped-up with a number of engagements at Capitol Hill with the Senate Finance Committee; Minority Leader's office in the House of Representative; Majority staff of the Ways and Means Committee; offices of Congresswoman Dina Titus and Congressman Don Young.

During these meetings AmCham Mongolia expressed appreciation for efforts in advancing the bilateral relations; specific issues related to advance the Mongolia Third Neighbor Trade Act, such as the WTO compliance, consideration of GSP modality as well as uncertain timeframe when the Act will be discussed by the Congress.

Meetings on Capitol Hill

OPIC

The AmCham 2019 Doorknock was very valuable in directly engaging with a range of critical stakeholders involved in relations with Mongolia. AmCham delegates expressed an explicit support for the Mongolia Third Neighbor Trade Act, heard perspectives of different stakeholders, were exposed in dynamics of political and legislative processes, gained insights about emerging global and regional issues related to trade.

Key takeaways from this highly successful trade mission are:

Ÿ AmCham Mongolia will continue active advocating for the Mongolia Third Neighbor Trade Act bearing in mind different dynamics and views expressed by the concerned U.S. stakeholders.

Ÿ AmCham Mongolia will vigorously promote the bilateral commercial relations positioning the U.S. as a strong third neighbor to Mongolia.

Ÿ A specific next action is to organize the Certified Trade Mission of the American businesses visiting Mongolia. Franchising, agriculture and energy are priority sectors

Ÿ AmCham Mongolia will undertake year-long follow-up engagements with the U.S. stakeholders to capitalize on the outcomes of the Doorknock through regular information exchange, policy updates, and organization of the business forum during the bilateral high-level visits.

Doorknock Key Takeaways

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