Mongolia entered a market economy in the 1990s, and once overcame the transition period, its economy has been gradually growing, as well as, foreign trade and cooperation has been intensifying in many sectors. In order to involve in an international integration and markets, foreign trade agreements should be made accordingly international and domestic legal requirements so that many opportunities would be opened up through an international trade, such as supporting the economics and attracting foreign investment. That is why, international trade, particularly the preferential trade sector should be given more attention. Mongolia submitted its request for joining the General Agreement on Tariff and Trade /GATT/ in 1991 and joined the “Agreement on Rules of Origin” of the Multilateral Trade Agreements of the WTO in 1994, and then became the 130th Member of the WTO in 1997. Until 1997, Mongolia had have trade agreements that applied the most-favored-nation clauses with 14 countries only out of over 70 countries with trade relations. Establishing FTAs encourages free competition for countries joined the treaty and makes positive impact on creating a multi-pillar economy based on the advantages of its industrialization, reducing prices for goods and services, and improving living standards of the population.