Japan’s Emperor is making a historic visit to Mongolia, marking his third overseas trip since ascending the throne in 2019. His previous state visits were to Indonesia and the United Kingdom.

💁‍♂️ A Longstanding Partnership

This year marks the 53rd anniversary of diplomatic ties between Mongolia and Japan. Japan remains one of Mongolia’s key “third neighbors” and the only country with which it has signed a free trade agreement (FTA).

• 💖 One & Only: Despite the FTA, trade between the 2 nations remains highly unbalanced. In the 3  years prior to the agreement, 2014–2016, Mongolia exported $25 million worth of goods to Japan, while imports totaled $367.8 million. After the FTA, 2017–2019, exports rose to $48 million, but imports surged to $1.8 billion, widening Mongolia’s trade deficit with little growth in exports.
• ⚖ Investment Perspective: As of 2022, Japan’s total investment in Mongolia reached $75 million, primarily in non-mining sectors an important distinction in an economy dominated by natural resources.

🎎 A Crucial Partner

Japan has long been Mongolia’s most reliable development partner, providing ¥328 billion in Official Development Assistance (ODA). The Japan International Cooperation Agency (JICA) has trained over 5,200 Mongolian professionals, with its projects touching nearly every sector.

• 🤓 Recent support includes ¥270 million for wastewater repair equipment and ¥275 million for air pollution monitoring in Ulaanbaatar.
• 💸 Soft Loans Resume: Japan is also set to resume concessional yen loans to Mongolia, which had been suspended following Mongolia’s enrollment in the IMF program in 2017. One of the key projects to be financed under this renewed cooperation is the expansion of Chinggis Khaan International Airport.

In Conclusion… Emperor Naruhito’s visit marks the first-ever state visit by a Japanese Emperor to Mongolia. A historic moment in bilateral ties. With last year’s visit by the King of Bhutan, Mongolia may be quietly emerging as an unexpected destination for royalty.