	Overview

Mongolia is a vast, sparsely populated, mineral-rich nation sandwiched between Russia and China. Formerly a Soviet satellite state, the country peacefully ended one-party Communist rule and launched democratic and free market reforms in 1990. Congress has shown strong support for Mongolia since that date through funding of assistance programs, approval for the transfer of excess defense articles, ratification of a bilateral investment treaty, extension of permanent normal trade relations, and House, Senate, and concurrent resolutions commending Mongolia on its development of democracy and expressing support for expanded U.S.-Mongolia relations. Mongolia is the only formerly Communist Asian nation to have transitioned to democracy, and regards itself as a potential role model for the nations of Central Asia, and even China and North Korea, as well as for nations in other regions of the world attempting democratic transitions. As a nation with diplomatic relations with both North and South Korea, Mongolia has sought to support peace and stability on the Korean Peninsula. With a majority Tibetan Buddhist population and close ties to Tibet's exiled spiritual leader, the Dalai Lama, Mongolia also has a strong interest in Tibet's future. Since then, Mongolia has held six direct presidential elections and six direct parliamentary elections. Congress has passed resolutions congratulating Mongolia on a series of largely free and fair elections, and the State Department said that in 2013, Mongolia "generally respected" freedoms of speech, press, assembly, and association. China is currently both Mongolia's largest foreign investor and its biggest trading partner. U.S.-Mongolia Transparency Agreement (TA)

After years of negotiations, the United States and Mongolian governments in September 2013 signed what is formally known as the "Agreement on Transparency in Matters Related to International Trade and Investment between the United States of America and Mongolia." To the consternation of the U.S. government, however, a year later the Mongolian parliament has yet to ratify it. Mongolian troops continue to serve in Afghanistan, where they have been deployed since 2003 in support of Operation Enduring Freedom and the International Security Assistance Force in Afghanistan. Contributions to United Nations Peacekeeping Operations

Mongolia has been an active contributor of military personnel to United Nations Peacekeeping Missions. The Mongolian and U.S. militaries jointly host Khaan Quest peacekeeping exercises in Mongolia each summer. Russia is Mongolia's largest source of energy products. Participation in International Organizations

Mongolia is an active participant in a wide range of international organizations, where it has frequently been supportive of U.S. positions. Examples include the following:
From 2011 to 2013, Mongolia held the rotating chairmanship of the Community of Democracies , an inter-governmental coalition of democratic countries dedicated to "promoting democratic rules and strengthening democratic norms and institutions around the world." In the summer of 2014, Mongolia took over the rotating chairmanship of the Freedom Online Coalition , which describes itself as "an inter-governmental coalition committed to advancing Internet freedom—free expression, association, assembly, and privacy online—worldwide." Relations with the United States

Mongolia says it considers the United States to be the most important of Mongolia's "third neighbors," countries that do not share borders with Mongolia, but that Mongolia looks to for support of its independence and sovereignty and for balance against the influence of China and Russia. The P-5 have also supported seven UN General Assembly resolutions since 1992 inviting member states to support Mongolia's nuclear-weapon-free status.
Mongolia is a sparsely populated young democracy in a remote part of Asia, sandwiched between two powerful large neighbors, China and Russia. It made its transition to democracy and free market reforms peacefully in 1990, after nearly 70 years as a Soviet satellite state. A quarter of a century later, the predominantly Tibetan Buddhist nation remains the only formerly Communist Asian nation to have embraced democracy. Congress has shown a strong interest in Mongolia since 1990, funding assistance programs, approving the transfer of excess defense articles, ratifying a bilateral investment treaty, passing legislation to extend permanent normal trade relations, and passing seven resolutions commending Mongolia's progress and supporting strong U.S.-Mongolia relations.
Congressional interest is Mongolia has focused on the country's story of democratic development. Since passing a democratic constitution in 1992, Mongolia has held six direct presidential elections and six direct parliamentary elections. The State Department considers Mongolia's most recent elections to have been generally "free and fair" and said that in 2013, Mongolia "generally respected" freedoms of speech, press, assembly, and association. It raised concerns, however, about corruption and lack of transparency in government affairs.
On the economic front, Mongolia's mineral wealth, including significant reserves of coal, copper, gold, and uranium, offers investment opportunities for American companies. Foreign investors and the U.S. government have criticized Mongolia's unpredictable investment climate, however. In the fall of 2013, Mongolia passed a new investment law and, after years of negotiations, signed a transparency agreement with the United States. Both developments served to reassure investors, although the Mongolian parliament has yet to ratify the transparency agreement.
Mongolia was among the first nations to join the coalition for the Iraq War and its troops have been deployed in Afghanistan since 2003. It is also an active contributor of troops to United Nations Peacekeeping Operations and, with the United States, hosts an annual multinational peacekeeping exercise in Mongolia known as Khaan Quest.
Mongolia is an active participant in many international organizations, in which it often supports U.S. positions. It has also been an active member of international groupings dedicated to promoting democracy, including the Community of Democracies, for which it held the rotating chairmanship from 2011 to 2013. In the summer of 2014, Mongolia took over the rotating chairmanship of the Freedom Online Coalition, which describes itself as "an inter-governmental coalition committed to advancing Internet freedom—free expression, association, assembly, and privacy online—worldwide." Mongolia is also in the process of joining the Open Government Partnership, a White House-backed multilateral initiative.
Mongolia seeks to maintain "balanced relations" with its two immediate neighbors, China and Russia. China has emerged as Mongolia's largest trading partner and foreign investor. Russia is Mongolia's largest source of energy products. Mongolia has diplomatic relations with both North and South Korea and has sought to play a role in reducing tensions on the Korean Peninsula. To ensure its continued independence and sovereignty, Mongolia has also prioritized the development of relations with so-called "third neighbors," countries that do not border Mongolia, but have close ties to Mongolia. That list includes the United States. In 1992, Mongolia declared itself a single-state nuclear-weapons-free zone; in 2012, the five permanent members of the UN Security Council each pledged to respect the designation.