Mongolian and Japanese governments agreed to establish an Economic Partnership Agreement between Mongolia and Japan in 2010 under the "strategic partnership" framework.

Experts of relevant ministries and agencies of Mongolia have set up this agreement after 7 stage negotiations with Japanese side over a period of three years starting from 2012. The purpose of this agreement is to promote bilateral trade between the two countries, increasing industrial sector’s value-added export and foreign currency income, reducing Japanese tariff and non-tariff barriers, facilitating trade and simplifying customs clearance procedures.

This agreement has a total of 17 chapters and 10 appendixes and deals with 17 specific issues such as trade, procedures on origin of products, customs procedures, health and hygiene, plant hygiene, technical barriers to trade, service trade, investments, improving business environment, intellectual property, e-commerce, competition policy, dispute resolution, general and final items, cooperation, individual movements and government purchases.