Stephen Tricks, Partner, Clyde & Co; Khandsuren Khuu, Mongolian-Qualified Lawyer, Clyde & Co

1. 07/10/2011
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Stephen Tricks
Khandsuren Khuu
TRADE AND COMMODITIES FINANCE CONFERENCE
Khandsuren Khuu
13 October 2011
Ulaanbaatar, Mongolia
stephen.tricks@clydeco.com
Khandsuren.Khuu@clydeco.com
www.clydeco.com
ContentContent
 Mongolian Legal Environment –
OverviewOverview
 Development of Business and
International Trade Law
 Dispute Resolution Clauses: what
works and what does not

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Mongolian
Legal
Environment
Mongolian
Legal
Environment
 Romano-Germanic legal traditiong
 The Constitution 1992
 Civil Code 2002
 International treaties
Mongolian
Legal
Environment
Mongolian
Legal
Environment
 Judicial System
 Levels of courts: soum, intersoum, district
i it d taimag, city and supreme court
 Administrative court
 Constitutional court
 Judges
 Appointed by the President
 Training in commercial, contract and company
law
 Exposure to market economy concepts

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Development of
business and
international
trade law
Development of
business and
international
trade law  Business related legislation
 Privatisation and Reform in Business related
laws
 Legal assistance projects
 Law on Business Entities, 1991
 Law on Partnerships and Companies, 1995
 Further Development
International
Trade
International
Trade
 Trade Policy
 Accession to WTO, 1997
 No Regional Trade Agreements, but bilateral
trade-related arrangements
 Foreign trade - 6,404.0 million USD
 Trading capacity increased by 2,932.6 million
USD
 Main exports are mineral products
(Source: National Statistical Office of Mongolia as of August 2011)

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Main trade-
related
legislation
Main trade-
related
legislation  Civil Code
 Company Lawp y
 Banking Law
 Law on Central Bank
 Law on Deposits, Loans and Banking Transactions
 Law on Non-Bank Financial Activities
 Customs Law
 Customs Tariff law
E i T L Excise Tax Law
 Value-Added Tax Law
 Law on Free Trade Zones
 Law on Foreign Investment ……..(cont’d)
 Law on Foreign Trade – not yet adopted by
Parliament
Foreign
Investment
Foreign
Investment  Open to Foreign Investment
 Legal Framework on Foreign Investment
 The Foreign Investment Law
 Exceptions: land ownership, petroleum
extraction, certain rail projects and strategic
mineral deposits
• Regulatory and legislative trends in 2009/2010
N l E L Nuclear Energy Law
 Law on Prohibition of Minerals and
Exploration in Water Basins and Forested
Areas
 Presidential Ban on Mining Licenses

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Dispute
Resolution
Dispute
Resolution
 Dispute settlement in Mongolia
- Independent court system?
- Mongolian National Arbitration Court
I t ti l Liti ti / A bit ti- International Litigation / Arbitration
- New York Convention on Enforcement of
Arbitration Awards
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