Nicaragua confirms entry into force of trade deal with China

The government of Nicaragua this Friday announced the entry into force of the Early Harvest Agreement signed with China to allow imports and exports to be tax-free and a preamble to a future free trade agreement.

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“The entry into force opens up a gigantic opportunity for the people of Nicaragua, the producers, the economic agents, to have a market with more than 1,400 million consumers. A market with high consumption, especially food; a market that is the one that has grown fastest in the last 40 years and that we can reach with our products,” reports Finance Minister Iván Acosta.

“We export about 650 million dollars. We could be moving faster and approaching 800, 900, 1,000 million in a very short time, which are already relevant numbers,” the official added.

Signed on July 12, 2022, the agreement allows for duty-free export and import of products to expand and improve trade relations between the two countries.

After the weekly meeting of the production, consumption and trade system, the minister explained that the ACT favors Nicaraguan products such as beef and cattle offal, shellfish, shrimp, lobster and sea cucumber.

Acosta added that the Chinese market could provide access to other Nicaraguan items such as vegetables, red beans, raw peanuts, rum, clothing and car utensils.

The agreement opens the Nicaraguan market to a wide range of Chinese products including plants, flowers, garlic, sweetcorn, sardines, tuna, confectionery, pasta, bakery, fish feed, agricultural inputs, insecticides, fungicides, herbicides, plastics, tires, raw materials, textiles and toys.