Japan and Mongolia are on track to finalize a treaty allowing for the export of defense equipment between the two nations, signaling a deepening of security cooperation. Prime Minister Fumio Kishida and Mongolian President Ukhnaa Khurelsukh are set to discuss the agreement during a meeting in Ulaanbaatar this August, with hopes for an autumn signing.
The treaty aims to ensure proper management of defense equipment and technology transfers while bolstering security ties between Japan and Mongolia, particularly in light of their shared borders with China and Russia. Japan is even considering providing Mongolian with defense equipment at no cost in 2024.
During the summit, leaders will also discuss ways to attract more investments to Mongolia, focusing on areas like business law and administrative transparency. While there are risks for Japanese companies due to legal system differences, Mongolia is keen to enhance governance for fair trade, reflecting a growing partnership since their economic agreement in 2016.