TOKYO: Mongolian President Tsakhia Elbegdorj (L) shakes hands with Japanese Prime Minister Shinzo Abe at the start of their talks at Abe\'s official residence in Tokyo on Tuesday. — AFP Photo TOKYO, July 22 (AFP) : Japan and Mongolia signed a free-trade deal Tuesday, as Tokyo looks to tap the fast-growing economy and its vast supply of natural resources.
Japanese Prime Minister Shinzo Abe and Mongolian President Tsakhiagiin Elbegdorj announced the deal in a joint statement, with the pair set to hold a press briefing in Tokyo from 7:00 pm local time (1000 GMT).
Under the deal that covers a range of products including beef and cars, all Mongolian exports to Japan and 96 per cent of Japanese products sent to Mongolia will be exempt from tariffs within the next decade, officials said. The agreement could help foster stability in the region, a foreign ministry official added, as Japan works to resolve the case of Japanese citizens abducted during the Cold War by North Korean agents.
Mongolia is one of the few countries that has formal diplomatic relations with Pyongyang, which is regularly criticised for stoking regional tensions.
"(We're) hoping to deepen ties with Mongolia to work together on keeping stability in northeast Asia," the official said.
The trade deal includes a so-called investor-state dispute settlement (ISDS) clause, which allows firms to pursue compensation claims if they think government policy has damaged their investment -- which has been criticised for giving firms too much power over public policy.
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