Annotations - local processing

In 2017, Mongolia exported In 2017, Mongolia exported 9,400 tons 9,400 tons of wool and cashmere, but only a fraction of that—1,100 of wool and cashmere, but only a fraction of that—1,100 tons—was processed within its borders. The bulk of the country’s wool and cashmere was sold in its tons—was processed within its borders. The bulk of the country’s wool and cashmere was sold in its raw form to China, meaning Mongolia lost out on the additional jobs and revenue that could have raw form to China, meaning Mongolia lost out on the additional jobs and revenue that could have been gained from turning the raw animal hair into fiber domestically. Thus, for Mongolia, the Third been gained from turning the raw animal hair into fiber domestically. Thus, for Mongolia, the Third Neighbor Trade Act offers a chance to diversify its export partners and expand the global market for Neighbor Trade Act offers a chance to diversify its export partners and expand the global market for Mongolian cashmere.

Mongolia’s economy is largely dependent on its coal and copper exports to China; when China’s Mongolia’s economy is largely dependent on its coal and copper exports to China; when China’s demand slows or commodity prices drop, the ramifications are felt exponentially in Mongolia. demand slows or commodity prices drop, the ramifications are felt exponentially in Mongolia. Cashmere production offers the country a chance to expand its non-mined exports—but here, too, Cashmere production offers the country a chance to expand its non-mined exports—but here, too, China plays a key role.

Thanks to ‘Cashmere’ program approved by the Government of Mongolia, 1570 new work places have been created, increasing the production capacity by 30 percent and sales volume by 27 percent.