Photo: Wikimedia Commons.
In the first two months since the implementation of the Free Trade Agreement (FTA) between China and Nicaragua, which was signed in August 2023, exports from the Central American country have totaled US$23.6 million. This figure represents approximately half of all exports made by Nicaragua last year.
Sectors such as sugar and textiles, which previously had a limited presence in the Chinese market, are experiencing remarkable growth in exports. For example, more than 50% of the sugar quota established in the FTA has already been exported.
The Nicaraguan government has also deployed an FTA outreach plan and is providing support to entrepreneurs and producers to help them understand sector-specific requirements and tariffs. In addition, producers are being encouraged to register on a virtual platform to facilitate the process of exporting to China.
In a broader context, relations between China and Nicaragua have been increasingly close in recent years. China has increased its economic influence in Latin America and the Caribbean through investments in infrastructure and development projects in the region. Nicaragua has been receptive to these investments and has sought to strengthen its ties with China.
The signing of the FTA is a further step in this economic collaboration, reflecting Nicaragua’s intention to diversify its trade relations and boost its economy.
The early results of the China-Nicaragua FTA are encouraging, showing a significant increase in Nicaraguan exports to China. This agreement represents an opportunity for Nicaragua’s economy, fostering the diversification of its exports and strengthening its trade ties with China in a context of growing economic collaboration between the two countries.
Main source:
Nicaragua exporta más de 23 millones de dólares en los dos primeros meses del Tratado de Libre Comercio con China (2024, 3 de abril).
https://www.bnamericas.com/es/noticias/china-acuerda-donar-us276mn-para-infraestructura-educativa-en-honduras
Other related sources:
Forbes, (5 de enero, 2024)
https://forbescentroamerica.com/2024/01/05/nicaragua-preve-exportar-200-millones-de-dolares-a-china-con-entrada-en-vigor-del-tlc