Involving critical minerals: Mongolia and South Korea discuss accelerating the negotiation process of the Comprehensive Economic Partnership Agreement (CEPA)
Last Tuesday, South Korea's Ministry of Trade announced it had begun negotiations with Mongolia to expedite the finalization of the bilateral Comprehensive Economic Partnership Agreement (CEPA). The signing of this agreement is expected to deepen cooperation between the two countries in strategically significant mineral sectors.
According to "Central Asia News," Kim Hee-jin, Director General of the Trade Negotiations Division at South Korea’s Ministry of Commerce, visited Mongolia and held talks with representatives from trade and resource-related institutions, including Batsukh Idesh, Chairperson of Mongolia’s CEPA negotiation team.
According to the Ministry of Commerce, South Korea and Mongolia will conduct four rounds of negotiations on the CEPA before November 2024. Although Mongolia’s annual export value stands at only $660 million—relatively small compared to major powers—it is seen as a highly promising market for consumer goods due to the growing popularity of Korean culture in Mongolia. Thus, CEPA negotiations were launched in December 2023 and are scheduled to continue until November 2024; however, the talks were temporarily paused due to concerns over market access and disagreements on goods and rules of origin.
During Tuesday’s meeting, Kim Hee-jin urged all parties to actively work toward resolving these differences and proposed incorporating cooperation on critical mineral supply chains into the CEPA negotiation framework. Ms. Kim specifically encouraged Deputy Minister Batsukh Idesh of Mongolia to strive for a comprehensive agreement, focusing on key issues related to goods and rules of origin, while also expanding the scope of the CEPA to include collaboration on critical mineral supply chains.
On the same day, Ms. Kim met with Deputy Minister Dashchirin Buriad of Mongolia’s Ministry of Industry and Mineral Resources, and both sides agreed to establish a dedicated cooperation chapter within the CEPA framework.
She also held discussions with Korean entrepreneurs operating in Mongolia, learning about their challenges and gathering insights that could be beneficial for the CEPA negotiations.
According to South Korea’s Ministry of Trade, Industry and Energy, Mongolia possesses abundant critical mineral resources such as copper, molybdenum, and rare earth elements, making it a highly promising partner for Seoul in supply chain development.
In a press release, Ms. Kim stated: “Mongolia is an emerging market where Korean businesses are actively expanding operations and also an important partner in the resource sector.” She further confirmed that South Korea is ready to accelerate negotiations on the Comprehensive Economic Partnership Agreement with Mongolia.
The Comprehensive Economic Partnership Agreement (CEPA) is a bilateral trade agreement that goes beyond traditional Free Trade Agreements (FTAs). Under the CEPA, both sides have reached agreements on preferential conditions for goods trade and cooperation across multiple economic fields—typically including liberalization of services trade, investment protection and promotion, as well as issues related to intellectual property, competition policy, and public procurement. The CEPA tightly integrates the economies of the two nations, with commitments extending far beyond mere goods trade.
Compared to the broader scope of the CEPA, traditional Free Trade Agreements tend to have narrower coverage. FTAs typically aim to reduce or eliminate tariffs on goods and may include limited provisions on services trade. In contrast, the CEPA covers not only goods and services trade but also investment, intellectual property rights, competition policy, and public procurement. Moreover, the CEPA addresses customs procedures, mutual recognition of standards, and harmonization of technical regulations—issues often only superficially addressed or entirely overlooked in traditional FTAs.
CEPAs commonly include provisions on digital trade, such as rules for electronic transactions and commitments not to impose tariffs on electronic transmissions—provisions often missing in FTAs. Additionally, CEPAs promote temporary mobility of entrepreneurs and professionals through visa agreements or mutual recognition of qualifications, thereby fostering service trade and professional exchanges. The CEPA combines market access commitments with broader economic and regulatory cooperation across multiple domains.
Source: open website of Kyrgyzstan
Original article: toutiao.com/article/1861063134002240/
Disclaimer: This article represents the personal views of its author