Nicaragua and China strengthen commercial ties with FTA signing in virtual event

Photo: Puerto de San Antonio By: Felipe Burgos Alvarez Source: Flickr

Nicaragua and China signed a Free Trade Agreement (FTA) in a virtual event, strengthening their trade ties following the establishment of bilateral diplomatic relations in 2021. This agreement, which marked a significant milestone in the economic and trade relations between the two countries, is expected to enhance their trade and economic exchange. However, no specific details regarding the FTA’s content, including the covered products, were disclosed.

Chinese Minister of Commerce Wang Wentao and Nicaraguan Presidential Adviser for Investments, Trade, and International Cooperation Laureano Ortega Murillo led the signing ceremony, along with other officials from both countries. This FTA is seen as an opportunity for Nicaragua to connect with Chinese companies, attract investments, create jobs, and facilitate technology transfer. It is also expected to boost China’s presence in Nicaragua. Nicaragua and China initiated trade negotiations after achieving an Early Harvest Agreement in 2022, and the FTA is projected to come into effect in January 2024, potentially contributing to Nicaragua’s GDP growth by at least an additional 2 percentage points.

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Semana. (2023, julio 8). Gobiernos de China y Honduras avanzan positivamente en la negociación del Tratado de Libre Comercio.