Nicaragua and China are close to concluding an FTA to boost bilateral trade
Photo: Posesión de Daniel Ortega como presidente de Nicaragua By: Cancillería Ecuador Source: Flickr
Nicaragua has announced its continued progress in the negotiations of a Free Trade Agreement (FTA) with China, with expectations of finalizing it by August and implementing it in January 2024. The FTA, considered “state of the art” by Nicaraguan Minister of Development, Industry, and Commerce Jesús Bermúdez, covers a wide range of issues. While the negotiations have been complex and require additional time, both countries aim to conclude the FTA in August for subsequent ratification by the Nicaraguan and Chinese congresses. Currently, 90% progress has been achieved in drafting the agreement, consisting of 22 chapters.
The FTA between Nicaragua and China marks a significant milestone in the reestablishment of diplomatic relations between the two nations, following Nicaragua’s termination of ties with Taiwan in December 2021. Since May 1 of this year, Nicaragua has been able to export products such as beef, seafood, and textiles to China without incurring tariffs under the “Early Harvest Agreement,” a preliminary arrangement that has paved the way for the FTA. Sixty-six Nicaraguan products and 78 Chinese products are expected to be eligible for duty-free access to their respective markets. Bilateral trade between Nicaragua and China has witnessed substantial growth, with total trade amounting to US$759 million in 2022, and Nicaraguan exports to China experiencing a notable increase of 43.7% in the past year.
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La Estrella de Panamá. (2023, Mayo 25). Nicaragua Afirma que Avanza un TLC con China Y podría estar listo en Agosto Próximo.