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. (2) Mongolia shares land borders with only the Russian Federation and the People’s Republic of China, nations that the United States 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 3,000,000, Mongolia is the most sparsely populated country in the world, and the sovereignty of Mongolia is thought to be at risk from the overwhelming influence of its much larger and more populous neighbors. (3) Mongolia has shown its commitment to a third neighbor relationship with the United States by sending troops to support United States combat operations in Iraq and Afghanistan, and has a strong record of troop contributions to international peacekeeping missions. (4) The success of Mongolia as a democracy, the strategic location, sovereignty, and territorial integrity of Mongolia, and the ability of Mongolia to pursue an independent foreign policy are highly relevant to the national security of the United States. (5) Mongolia describes the United States as its most important third neighbor , but United States-Mongolia trade is substantially lower than many other bilateral trading relationships and trade has declined in recent years. Total trade in 2012 measured $707,000,000, but in 2017 the United States exported only $82,200,000 in goods to Mongolia and imported only $9,400,000 in goods from Mongolia. (6) The cashmere trade is particularly important to the economy of Mongolia, but although Mongolia produces more than a third of raw cashmere in the world, 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