Mongolia as a missed opportunity and potential critical raw materials trade partner for the EU

Subject: Mongolia as a missed opportunity and potential critical raw materials trade partner for the EU

Mongolia is a beneficiary country of the EU Generalised Scheme of Preferences (GSP+), which supports vulnerable developing countries that have ratified 27 international conventions on human rights, labour rights, environmental protection and climate change, and good governance1. Thanks to GSP+, Mongolia is being monitored, including through exchanges of information, dialogue and visits, making it a reliable partner.

Even though the country is geographically remote, it is a resource-rich state with which it is possible to forge a critical raw materials partnership that will benefit the EU and reduce dependency on China2. Moreover, critical raw materials are indispensable for the EU economy and for a wide range of technologies that are necessary for strategic sectors, such as renewable energy, digital, aerospace and defence3.

1. Why is the Commission blocking the opportunity to start an EU-Mongolia partnership focused on trade in critical raw materials?

2. How does the Commission view the schedule for the conclusion of a potential partnership?

3. Mongolia has a fairly open trade regime that is heavily concentrated on China and Russia4. What will the Commission do to encourage an increase in EU-Mongolia trade, especially in the critical raw materials market?

Submitted: 20.11.2024

1 https://policy.trade.ec.europa.eu/development-and-sustainability/generalised-scheme-preferences_en.

2 https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/762379/EPRS_BRI(2024)762379_EN.pdf.

3 https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-

materials/critical-raw-materials-act_en.

4 https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/762379/EPRS_BRI(2024)762379_EN.pdf.

Answer given by Mr Šefčovič on behalf of the European Commission

(14 February 2025)

The Commission has always welcomed cooperation with Mongolia in the area of critical raw materials.

A testimony to that are the multiple invitations the Commission has extended to Mongolia to join multilateral cooperation initiatives led by the EU such as the Minerals Security Partnership (MSP) Forum in 2024.

Mongolia has so far opted not to be a formal member of the MSP Forum.

Nevertheless, the Commission remains open to partnering with Mongolia in critical raw materials, as well as in any other trade- related area. In this context, cooperation on critical raw materials is a subject often discussed at the meetings of the EU- Mongolia Subcommittee on Trade and Investment.

1 1https://policy.trade.ec.europa.eu/development-and-sustainability/generalised-scheme-preferences_en.

2 2https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/762379/EPRS_BRI(2024)762379_EN.pdf.

3 3https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-materials/critical-raw-materials-act_en.

4 4https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/762379/EPRS_BRI(2024)762379_EN.pdf.