Washington, DC – Today Congresswoman Dina Titus (NV-01), a senior member of the House Foreign Affairs Committee and Ranking Member of the House Democracy Partnership, released the following statement after the re-introduction of The Mongolia Third Neighbor Trade Act. 

“Throughout Mongolia’s historic democratic transition, the United States has proudly stood by our ally,” said Rep. Titus, Co-Chair of the Congressional Mongolia Caucus. “Establishing duty free trade from Mongolia to the United States will create a stronger Mongolian economy and benefit American consumers by specifically targeting the Mongolian cashmere industry which produces around 40% of the world’s supply. This bill is yet another way to compete economically with China and boost the strategic Third Neighbor partnership between Mongolia and the United States.”


Background

The Mongolia Third Neighbor Trade Act was introduced in the 118th Congress by Rep. Dina Titus (D-NV) and Rep. Vern Buchanan (R-FL) in the House, and by Senator Dan Sullivan (R-AK) and Senator Ben Cardin (D-MD) in the Senate. This legislation recognizes Mongolia’s success as a democracy and acknowledges their strategic location, sovereignty, territorial integrity, and ability to pursue an independent foreign policy from its neighbors are of high importance to America’s national security. 

Currently Mongolian raw cashmere is exported to China where it is diluted with other fibers and labeled as Mongolian. As a result, the U.S. buys nearly all its cashmere from China, cutting Mongolia out of its well-deserved profits. This bill would boost one of Mongolia’s largest industries, allow American consumers to access cheaper cashmere, and cut China out of the cashmere supply chain while boosting a fellow democracy. Support for the cashmere industry in Mongolia will also specifically benefit the women who are the primary labor force behind its production.

The Mongolia Third Neighbor Trade Act also addresses the impacts of dzuds (zoods), extreme winter events that lead to the mass death of goats if local herders do not bring them down from the mountains soon enough. One of Rep. Titus’s main fiscal priorities in the House Foreign Affairs Committee has been support for a Mongolia Dzud Early Warning System (DEWS) that will protect livestock and herders. Currently, there are no climate forecasting tools in Mongolia to warn people of impending weather events, threatening the entire Mongolian cashmere industry and the livelihood of hundreds of herders.

On August 2, 2023, Mongolian Prime Minister Oyun-Erdene Luvsannamsrai visited Washington, D.C., to celebrate the strategic Third Neighbor partnership between the United States and Mongolia. He met with Vice President Harris and Secretary Austin and became the first Mongolian Prime Minister to visit the Pentagon. The trip underscored the close bilateral relationship the U.S. and Mongolia enjoy in a time of rising geopolitical tension in the Indo-Pacific.

Rep. Titus has been a long-time supporter of the partnership between the United States and Mongolia. In 2020, the House unanimously passed her resolution, reaffirming the strategic partnership between the two nations.