Bill Proposes Removing Tariffs on Mongolian Cashmere Garments

A bipartisan, bicameral bill would allow cashmere products made in Mongolia duty-free access to the U.S., as a way of strengthening Mongolia's democracy, its sponsors say.

“Mongolia is an island of democracy in a sea of despotism,” said Sen. Dan Sullivan, R-Alaska, one of its co-sponsors.

“Establishing duty-free trade from Mongolia to the United States will create a stronger Mongolian economy and benefit American consumers by specifically targeting the Mongolian cashmere industry which produces around 40% of the world’s supply," said Dina Titus, D-Nev., a House lead sponsor. Mongolian animals produce cashmere wool, but most of the yarn and knitting is done in China. The bill's co-sponsors hope that ending tariffs on garments made from cashmere that comes from Mongolia would develop Mongolia's textile industry. Pure cashmere garments face a 4% tariff; garments made with cashmere blends have duties in the upper teens.

Sen. Ben Cardin, D-Md., and House Ways and Means member Rep. Vern Buchanan, R-Fla., also are original co-sponsors of the bill, introduced Nov. 30.

“A stronger bilateral trade relationship between Mongolia and the United States will help bolster a democratic-ally in the Indo-Pacific region,” Buchanan said. “Bordered by China and Russia, Mongolia stands alone as a stable democracy surrounded by authoritarian regimes. Sharing similar democratic values and national security priorities, it is critical to further strengthen our economic and trade ties with countries like Mongolia."