Бидний тухай
Багш ажилтан
The concept of comparative advantage has always been at the heart of the national economic development policy, where it refers to the export goods which a country produces better than others. Mongolia is a small, landlocked country, situated at great distances from the world’s major transport channels and sea ports, which mainly exports agricultural and mining products to world markets and depends on imported goods for its domestic consumption. The landlocked countries are primarily affected not only by high transportation costs but also by low competitiveness in the global market. Persisting global food vulnerability and lack of food supply call for revision of existing policies and regulations on food production and distribution and agricultural products. Due to increased soil degradation, growing climate changes, population growth and rapid urbanization, some countries are now facing a severe scarcity of pastureland and planting areas, food supply shortages and significant rises in food prices. Historically, Mongolia has benefited from the export of its raw agricultural materials, such as cashmere, wool, meat, etc. However, rapid urbanization, growing population needs and high import prices in recent years, especially during the Covid-19 pandemic, urges the shift from its static comparative advantage of an economy to dynamic one. Mongolia must pursue a trade policy aimed at creating value added end products capable of meeting the demands of its domestic consumption and competing in the international arena on the basis of development potentials and comparative advantages of the country. The objective of this paper is to illustrate how tariff optimization could potentially be used to protect the domestic industry, with specific focus on the dairy production industry.
