Mongolia has a comparative advantage inagribusiness, especially downstream industries usinglivestock products. Yet its share in worldwide exports ofagribusiness commodities is insignificant. Enhancing theefficiency of the central economic corridor (CEC) is vitalto Mongolia’s effort to improve trade competitiveness anddiversify exports. The role of Mongolia’s economic corridorsis best understood when seen as an integral part of thecountry’s supply chain. The report analyzes the performancegap of the CEC through an examination of three sectors: (a)cashmere and wool sector, (b) meat, and (c) leather. Thesesectors highlight the major challenges that Mongolianproducers face in a world where agribusiness depends on ademanding retail sector characterized by tight deliveryschedules and high-quality standards, which are moreimportant than tariffs. The report diagnoses the challengesthat these industries face, identifies opportunities for thegrowth of these sectors, leveraging the potential of theCEC, and shares policy recommendations on how to seize theseopportunities. The analysis shows that Mongolia’scomparative advantage has been significantly diluted byweaknesses associated with its economic corridors.
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