1. Short title This Act may be cited as the Mongolia Third Neighbor Trade Act . 2. Findings Congress finds the following: (1) In 1992, Mongolia adopted a constitution establishing a parliamentary democracy, becoming the only nation in Asia to transition from communism to democracy. Mongolia shares land borders with only the Russian Federation and the People’s Republic of China, nations which the U.S. national security strategy states “want to shape a world antithetical to U.S. values and interests.” With a large land area and a population of only 3 million, Mongolia is the world’s most sparsely populated country, and Mongolia’s sovereignty is thought be at risk from the overwhelming influence of its much larger and more populous neighbors. (2) Mongolia has shown its commitment to a “third neighbor” relationship with the United States by sending troops to support U.S. combat operations in Iraq and Afghanistan, and has a strong record of troop contributions to international peacekeeping missions. Mongolia’s success as a democracy, strategic location, sovereignty, territorial integrity, and ability to pursue an independent foreign policy are highly relevant to the national security of the United States. (3) Mongolia describes the United States as its most important “third neighbor,” but U.S.-Mongolia trade is substantially lower than many other bilateral trading relationships, and trade has declined in recent years. Total trade in 2012 measured $707 million, but in 2017 the United States exported only $82.2 million in goods to Mongolia, and imported only $9.4 million in goods from Mongolia. (4) The cashmere trade is particularly important to Mongolia’s economy, but while Mongolia produces over a third of the world’s raw cashmere, it produces few finished cashmere products. Most Mongolian raw cashmere is exported to China, and the United States buys nearly all of its cashmere products from China. Preferential treatment for United States imports of certain Mongolian products, including cashmere products, would