U.S.-Mongolia relations are at their strongest point in history, bolstered by our shared values of democracy, human rights, and sustainable and inclusive economic prosperity.
The United States established diplomatic relations with Mongolia in 1987, and development cooperation began shortly after the peaceful transition to democracy in 1991. Our cooperation has expanded significantly in recent years, highlighted by the 2019 declaration of our Strategic Partnership, in which we agreed to increase our cooperation to build economic resilience, promote democratic principles and institutions, and strengthen our security cooperation. As strategic Third Neighbors, we will sustain and build upon our close partnership and forge ties between our citizens to ensure their continued prosperity and security.
U.S. Assistance to Mongolia
The United States is among the largest bilateral donors to Mongolia. For the past 33 years, the United States Agency for International Development (USAID) has worked with the Mongolian government and local organizations to achieve shared development goals, investing more than $289 million to support activities to promote inclusive, market-driven growth; foster stronger democratic institutions and robust citizen engagement; promote energy security and a shift toward renewables; and better prepare for and respond to natural disasters such as the devastating dzuds - severe winter storms that kill millions of livestock - that have afflicted Mongolia multiple times over the past few decades. USAID recently added a health sector component, and will also work in tandem with the Government of Mongolia as it looks to increase its presence and enhance the impact of our assistance programs.
Mongolia has now been the recipient of two Millennium Challenge Corporation (MCC) compacts, totaling $635 million. The current $462 million compact ($350 million from MCC with a $112 million contribution from the Government of Mongolia) will improve Ulaanbaatar's water and wastewater system and increase the city's supply of water by 80 percent when completed in 2026.
The Development Finance Corporation (DFC) has also bolstered its presence in Mongolia, supporting a portfolio of approximately $85 million focused on economic diversification and small business development.
The United States maintains a robust Peace Corps program in Mongolia. Since the arrival of the first volunteers in 1991, almost 1,500 volunteers have served in every province of Mongolia. There are 63 volunteers currently in country focusing on Mongolia's priorities of English language education and community development.
The State Department's International Narcotics and Law Enforcement program has provided over $20 million since 2016 to help Mongolia strengthen law enforcement capacity, reform the justice system, assist in anti-corruption efforts, counter narcotics trafficking, enforce intellectual property rights obligations, and combat illegal mining.
Finally, we are proud of the work we have done to protect Mongolian children through the Child Protection Compact (CPC), and are announcing today an additional $1 million over the next year to further this important work. This year alone, the CPC has assisted in supporting the development of child-friendly spaces in police stations, training the police force on victim-based investigation practices, and training on the identification of child trafficking and forced labor.
Bilateral Economic Relations
Our countries are continuing to pursue cooperation in areas of mutual interest, including clean energy, critical minerals, food security, and the digital economy.
The United States and Mongolia have a relatively small but growing trade and investment relationship. Total bilateral trade in goods was $199 million in 2023 (U.S. exports to Mongolia were $168 million, while imports from Mongolia were $31 million), one of the highest levels in recent years. The stock of U. S. foreign direct investment (FDI) in Mongolia as of 2023 is $680 million. U.S. companies are active in critical infrastructure sectors in Mongolia, as evidenced by recent deals on aircraft, locomotives, mining equipment, and telecommunications products.
Furthering economic resiliency and security is a shared priority for both the United States and Mongolia. Our countries signed an Open Skies Agreement in 2023, with the hope that it will eventually lead to non-stop passenger flights in the near future. Increased connectivity will enhance our trade and economic cooperation, further deepen our substantive people-to-people bonds, and expand opportunities for closer business ties and increased tourism.
Security Cooperation
The United States and Mongolia are both committed to further engagement in strategic security cooperation, based on a shared desire for a stable and peaceful Indo-Pacific region. The United States has been working closely with Mongolia to develop and strengthen regional security partnerships and to enhance Mongolia's international interoperability, including through the annual, multinational Khaan Quest exercise hosted by the Mongolian Armed Forces (MAF) taking place this week, as well as the Gobi Wolf exercise with the National Emergency Management Agency (NEMA) to enhance humanitarian assistance and emergency response capabilities. The Department of Defense also supports large scale English language training programs and facilities to increase MAF, NEMA and General Authority for the Border Protection (GABP) interoperability and access to a wide range of U.S. DoD programs requiring English language capability. The United States also applauds Mongolia's long-standing commitment to international Peacekeeping Operations and safeguarding human rights and democracy around the world, as evidenced by its status as the largest per capita contributor to these operations.
People-to-People Ties
People-to-people ties are a critical element of our bilateral relationship. More than 30,000 Mongolians live in the United States, and every year hundreds of Mongolian students attend U.S. colleges and universities, making it the second most frequent destination for study abroad. A significant number of government officials, military leaders, private sector representatives, and influential members of civil society and academia are alumni of U.S. exchange and training programs or have studied in the United States. There are also a growing number of partnerships being established between Mongolian and U.S. universities to allow for more educational and cultural exchanges for both students and faculty.
In 2024, the U.S. Embassy in Ulaanbaatar announced it will launch an annual Public Diplomacy, English, and Education Dialogue with Mongolia's Ministry of Education. The dialogue will bring together officials and stakeholders from both countries to expand and elevate cultural, educational, and people-to-people ties.
To help support the Mongolian government's 2023 establishment of English as Mongolia's official foreign language, which requires that it be taught in public schools beginning in the third grade, U.S. Secretary of State Antony Blinken announced today the "U.S. Mongolia Excellence in English Initiative." This will expand both the number of students studying under the Access English Microscharship program, and the number of fellows and specialists enhancing English teaching capacity at Mongolian universities. The United States is also launching a new Center of Excellence for English Language Teaching at the National University of Mongolia to further raise the standards and quality of local English language teaching, in partnership with the United Kingdom, Australia, and Canada, as well as the private sector.
Membership in International Organizations
Mongolia and the United States belong to many of the same international organizations, including the United Nations, the ASEAN Regional Forum, the International Monetary Fund, the World Bank, Asian Development Bank, European Bank for Reconstruction and Development, and the World Trade Organization. Mongolia is a participating state in the Organization for Security and Cooperation in Europe and is a NATO Partner Nation.
Looking Ahead - Strengthening our Partnership
Over the past few decades, the U.S.-Mongolia relationship has reached new heights. And soon, we'll break ground on a new U.S. Embassy compound. This larger, modernized Embassy will be worthy of our ambitious vision for our partnership - and of the American and Mongolian people working to make that vision a reality.
