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Mongolia - Relations with U.S. (Notes)

U.S.-MONGOLIAN RELATIONS The U.S. Government recognized Mongolia in January 1987 and established its first embassy in Ulaanbaatar in June 1988. It formally opened in September 1988. The first U.S. ambassador to Mongolia, Richard L. Williams, was not resident there. Joseph E. Lake, the first resident ambassador, arrived in July 1990. Secretary of State James A. Baker, III visited Mongolia in August 1990, and again in July 1991. Mongolia accredited its first ambassador to the United States in March 1989. Secretary of State Madeline Albright visited Mongolia in May 1998, and Prime Minister Enkhbayar visited Washington in November 2001. Deputy Secretary of State Richard L. Armitage visited Mongolia in January 2004, and President Bagabandi came to Washington for a meeting with President Bush in July 2004. President Bush, Mrs. Bush, and Secretary of State Condoleezza Rice visited Mongolia in November 2005. Defense Secretary Rumsfeld visited in October 2005 and Speaker of the House of Representatives Dennis Hastert visited Mongolia in August 2005. Agriculture Secretary Johanns led a presidential delegation in July 2006 in conjunction with Mongolia?s celebration of its 800th anniversary. The United States has sought to assist Mongolias movement toward democracy and market-oriented reform and to expand relations with Mongolia primarily in the cultural and economic fields. In 1989 and 1990, a cultural accord, Peace Corps accord, consular convention, and Overseas Private Investment Corporation (OPIC) agreement were signed. A trade agreement was signed in January 1991 and a bilateral investment treaty in 1994. Mongolia was granted permanent normal trade relations (NTR) status and generalized system of preferences (GSP) eligibility in June 1999. In July 2004, the U.S. signed a Trade and Investment Framework Agreement with Mongolia to promote economic reform and more foreign investment. The U.S. Agency for International Development (USAID) plays a lead role in providing bilateral American assistance to Mongolia. The program emphasizes two main themes: sustainable, private sector-led economic growth; and more effective and accountable governance. Total USAID assistance to Mongolia from 1991 through 2007 was about $170 million, all in grant form. About two-thirds of USAID Mongolias current (2007) budget of $5.6 million a year promotes economic growth, and focuses on macroeconomic policy reform, energy sector commercialization, financial sector reform, strengthening the cashmere and tourism industries, and providing business development services to small and medium enterprises in both rural and urban areas. The other third focuses on judicial sector reform, electoral reform, parliamentary reform, and anti-corruption work. In most years since 1993, the United States Department of Agriculture has provided food aid to Mongolia under the Food for Progress and 416(b) programs. The monetized proceeds of the food aid ($3.7 million in 2005) are currently used to support programs bolstering entrepreneurship, herder diversification, better veterinary services, and disaster relief. The United States has also supported defense reform and an increased capacity by Mongolias armed forces to participate in international peacekeeping operations. Mongolia has contributed small numbers of troops to coalition operations in Iraq and Afghanistan since 2003, gaining experience which enabled it to deploy armed peacekeepers to both UN and NATO peacekeeping missions in 2005. With U.S. Department of Defense assistance and cooperation, Mongolia and the U.S. jointly hosted ?Khan Quest 06,? the Asian region?s premier peace-keeping exercise in 2006. ?Khan Quest 07? will be hosted on 01-16 August 2007. The Peace Corps currently has over 100 Volunteers in Mongolia. They are engaged primarily in English teaching and teacher training activities. At the request of the Government of Mongolia, the Peace Corps has developed programs in the areas of public health, small business development, and youth development. In 2005 and 2006 Mongolian Government officials, including President Enkhbayar and Prime Minister Elbegdorj, requested significant increases in the number of Volunteers serving in country. The Peace Corps has responded with a commitment to make modest annual increases until 2010. The program celebrated its 15th anniversary in 2006 with participation by President Enkhbayar. Principal U.S. Embassy Official Ambassador--Mark C. Minton The U.S. Embassy is located in Micro District 11, Big Ring Road, Ulaanbaatar; tel. [976] (1) 329-095 or 329-606, fax 320-776. Consular and commercial information are available at the embassys web site: http://mongolia.usembassy.gov. The Mongolia Investment Climate Statement is available at www.state.gov/e/eb, and the Mongolia Country Commercial Guide can be found at http://www.export.gov/mrktresearch/index.asp.