MCA, Tax Reform, Mining & Diplomacy

at December NAMBC Meeting in UB

Vice Chairman Pete Morrow (right) presides at December 2006 monthly Business Council meeting in Ulaanbaatar. Speakers included US Ambassador Mark Minton (center) and Larry Jensen (left), Advisor to the USAID/EPRC Project.

Over 40 people attended our December 11 monthly meeting in UB, where US Ambassador Mark Minton reported good progress towards a US compact with Mongolia for a Millennium Challenge Account grant. Minton said the compact could be signed by June 2007. He mentioned that the US Congress will be considering a change in the MCA grant program to allow separate components of grant proposals to be finalized as agreement was reached, which would permit those segments to start in advance of completing the entire agreement. If passed, the change would make possible for a portion of the total grant to Mongolia to be made available during the first half of 2007.

The Ambassador also noted that 2007 will be the 20th Anniversary of US-Mongolia diplomatic relations between the U.S. and Mongolia.  Among the special events being planned are visits to Mongolia by Chris Hill, Assistant Secretary of State for East Asia and other US officials.  

A comprehensive update on implementation of tax reform was presented by Larry Jensen of EPRC, which advises the Mongolian government on economic issues under a USAID grant.  He presented to each attendee a CD containing all four tax laws passed this year (personal, corporate, VAT and excise) in English and Mongolian, showing changes from prior law.

Doug McGay, Executive Director of the Minerals and Mining Development Foundation (MMDF) reported on mining-related developments and reviewed ongoing efforts by the MMDF legislative affairs committee. The Business Council has endorsed the work of the MMDF and fully cooperates with their program.  

Alan Hamson of the Canadian Embassy in Beijing (which is also accredited to Mongolia) spoke about prospects for an enhanced Canadian diplomatic presence on the ground in UB but indicated that establishment of a full embassy was not likely in the near term. A one-person Trade Commissioner's office was among the options still on the table in Ottawa. Hamson said a new Honorary Consul would most likely be appointed and invited applications for the post.