Foreign trade is an important sector of the country's economy . The main partners for export and import are the USA, Germany, Italy, Great Britain, Canada, Japan, Russia, China, Republic of Korea, Switzerland, Singapore and others.

Copper and molybdenum, copper and spar concentrates, animals and animal products, wool and wool products, cashmere and cashmere prod­ucts represent the main export commodities. Some food items, diesel, petroleum products, and industrial equipment are imported. As of November 1998 the total turnover of foreign trade was USD 719 million, USD 285.3 million in commodities were exported and commodities for USD 433.7 million were imported.

Since the start of the transition to a market economy, Mongolia has been carrying out a policy to promote foreign trade and foreign investment. With the support of donor countries and international organizations Mongolia strives to find its place in the international arena, renewing its economic system. Compared to other countries in transition, Mongolia achieved tangible results in trade liberalization. Mongolia's accession to the World Trade Organization (WTO) in January 1997 highlights its relative success in pursuing economic reforms and developing a new trade regime in line with international trading principles.

Today, Mongolia develops foreign trade with over 80 countries of the world and more than 80 percent of the trade turnover goes to Russia, China, the United States, Japan and South Korea.

The main export items are: minerals - copper, molybdenum and fluorspar concentrates, raw materials and animal products such as meat, cashmere, wool, animal casing, hides and skins, garments, carpets blankets and others. The imports mainly consists of petroleum products, equipment and spare parts, vehicles, chemicals, foodstuff and consumer goods.

Foreign investment is one of the major factors for providing economic growth in Mongolia. Mongolia has the following competitive advantages and favorable environment for foreign investors:

• Stable political environment and open economy;
• Strategic and easy access to the giant markets of Russia and China;
• Extensive natural resources
• Favorable legal environment;
• Relatively young, educated population;
• Vast territory, clean and undisturbed nature.

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