This document discusses Mongolia's legal environment and international trade. It covers Mongolia's Romano-Germanic legal tradition, its court system including levels of courts and training for judges. The development of business and international trade law is also examined, including key legislation and Mongolia's accession to the WTO. Main trade related laws are listed and foreign investment framework and trends are outlined. Finally, dispute resolution options are mentioned including the national arbitration court and international litigation under the New York Convention.

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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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