According to CNN and Just-Style media reports, Mongolia accounts for 48% of the world’s Kashmiri wool materials and is the world’s second largest supplier. However, 85% of the wool materials are exported to China at low prices. China and other countries process it into high-end finished products and then export them around the world.
U.S. Republican Representative Ted Yoho and nine other members of the House of Representatives proposed the “Mongolia Third Neighbor Trade Act” in April 2019. Although Mongolia is close to China However, the United States and Mongolia have a long-standing democratic partnership with Russia, and the United States can serve as Mongolia’s “third neighbor.” The aforementioned bill intends to open up the export of Kashmiri wool and textiles produced in Mongolia to the United States at zero tariff. It is supported by many American apparel brands and is expected to create 40,000 jobs in Mongolia and can also implement President Trump’s Indo-Pacific strategic goals.
U.S. President Trump met with Mongolian President Khaltmaagiin Battulga at the White House on July 31, 2019, announcing the conclusion of a strategic partnership between the two countries. Since more than 90% of Mongolia’s imports and exports Trade relies on China, and the United States also hopes to help Mongolia explore other markets for strategic reasons. The export of Kashmiri wool to the United States is one of the key discussions between the United States and Mongolia.
The United States is the second largest consumer of high-end Kashmiri wool products in the world. GobiCorporation, Mongolia’s largest Kashmiri manufacturer, announced during the Mongolian President’s visit to the United States that it plans to sell products in the United States by September 2019. Established a subsidiary in Los Angeles, California, and built an e-commerce platform to serve American customers. Mongolia also signed a US$350 million contract with the American company Millennuimi Challenge Corporation in 2018 to repair the water resources infrastructure of the Mongolian capital.
