Fostering Stronger Ties: The Evolving Landscape of U.S.-Mongolia Relations

By IndraStra Global Editorial Team

Image Attribute: The file photo of Mongolian Prime Minister Oyun-Erdene Luvsannamsrai and US Vice President Kamala Harris giving a White House press briefing / Source: Government of Mongolia

Amidst vast expanses of low population density and nestled between two authoritarian giants, Mongolia strategically positions itself as a democratic and resource-rich ally of the United States in the broader Asian landscape. This strategic shift unfolds within the backdrop of an escalating rivalry between Washington and Beijing for access to critical minerals pivotal for advancing clean and sustainable energy solutions.
The recent visit of Mongolia's prime minister to the corridors of power in Washington, D.C. is extraordinary when viewed within the broader regional context. For Mongolia, these diplomatic overtures to the United States have become a customary affair, underscoring its status as a thriving democracy and a valued strategic partner of the United States. Nevertheless, this 'business as usual' deserves closer scrutiny and consideration.

Mongolia's Third Neighbor Policy and Its' Interpretation

In 1990, Mongolia underwent a remarkable transition from a Communist state closely aligned with the Soviet Union to become a democracy. Since this transformation, Mongolia has maintained strong ties with China and Russia. These relationships are crucial in satisfying the nation's import needs, encompassing essentials like electricity, fuel, and various goods. Notably, a significant portion of Mongolia's mining production, including substantial volumes of copper ore and coal, finds its primary market in China.
Mongolia as a country pursues an exceptional foreign policy approach known as the 'Third Neighbor Policy.' Given its only physical neighbors are China and Russia, this policy revolves around actively cultivating relations with countries beyond these immediate neighbors, with a strong emphasis on the United States. As the scope of the third neighbor policy expanded, it began to include more bilateral and multilateral political partnerships. Mongolia became a member of the World Trade Organization (WTO) in 1997, the ASEAN Regional Forum in 1998, and the Organization for Security and Co-operation in Europe (OSCE) in 2012.
American leaders such as George W. Bush frequently used the term 'Third Neighbor' to recognize Mongolia’s successful liberal democratic reforms and efforts to join the coalition against terrorism. However, this caused a misperception that Mongolia sought to promote the U.S. agenda, causing some mistrust with its close neighbors China and Russia. Despite using rhetoric like 'friendship' and 'eternal neighbors,' these nations have previously worked to undermine, suppress, and even disrupt Mongolia's foreign policy efforts.

The Role of the United States

The United States has been transparent about its strategic intent in engaging with Mongolia. Its investments and aid to Mongolia serve a dual purpose: countering the influence of Russia and China while bolstering Mongolian sovereignty and security.
Formal diplomatic relations between Mongolia and the United States were established in 1987, and over the past thirty years, Mongolia has been a steadfast diplomatic ally of the United States. Despite being relatively less known, Mongolia has been actively collaborating with the U.S. on strategic matters for an extended period. Mongolia is one of NATO's nine "global partners," alongside formal U.S. allies like Australia, Japan, and South Korea. Mongolia also actively participates in U.N. peacekeeping missions.
Since 2003, Mongolia has substantially contributed to U.S.-led wars, deploying nearly 1,200 troops to Iraq and 6,000 troops to Afghanistan. Additionally, almost 10,000 Mongolian peacekeepers have served in South Sudan and various other African regions. This commitment is especially remarkable for a nation with a population of just 3.5 million.
The present moment calls for elevated cooperation between the United States and Mongolia across all sectors. To fortify bilateral relations and withstand pressures from Russia and China, the U.S. should provide significant investment and technological support to bolster Mongolia's economy. The bilateral relationship could continue with a robust foundation in commerce and trade.
Prime Minister Oyun-Erdene Luvsannamsrai's was a sign of the growing strategic partnership between the two countries, and it focused on a number of key areas, including economic cooperation, security, and climate change. In a region where no leader from another Central Asian country has visited the United States in over five years, Mongolia is forging its unique path, potentially setting a precedent for engagement with the U.S. in the region.  
However, regarding enhancing bilateral relations through increased trade and investment in Mongolia, the U.S. needs to catch up. In the past decade, Mongolia's trade with China reached $85 billion, while trade with Russia amounted to $17 billion. In contrast, trade with the United States was a mere $2.6 billion, over 30 times less than trade with China. Even when the U.S. trades with Mongolia, the balance is heavily skewed. 2022 for instance, Mongolia imported $375 million worth of goods from the United States, while its exports to the U.S. were almost 30 times less, totaling only $12.7 million.

Way Forward

In the foreseeable future, Mongolia stands at a critical juncture where it will need to navigate significant challenges on its path to progress. The nation's vast mineral wealth is central to these challenges, which promises substantial economic prosperity. However, realizing this economic potential hinges on Mongolia's ability to manage its investments and economic expansion with a steadfast commitment to openness, transparency, and equity principles.
This is a pivotal moment for Mongolia, as the responsible management of its resources promises economic growth and shapes the nation's reputation on the global stage. The world is watching as Mongolia takes steps toward ensuring that the benefits of its mineral wealth are distributed fairly among its citizens and that the nation's economic transformation is characterized by accountability and integrity.
Furthermore, the strengthening of Mongolia-U.S. relations is deeply rooted in the realpolitik principle, reflecting both nations' pragmatic and strategic interests. For Mongolia, this entails prioritizing geopolitical considerations related to regional and global security. The government recognizes that its survival and stability are intrinsically linked to its ability to navigate the complex web of international relations and to secure its interests.
Likewise, for the United States, engagement with Mongolia serves the purpose of upholding its established political presence in Asia. In an ever-evolving geopolitical landscape, maintaining a foothold in the region is essential for U.S. interests, and Mongolia's commitment to democratic values and stability aligns with these strategic objectives.

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