On Thursday, Nicaragua and China signed a wide-ranging free trade agreement to boost trade between the two countries. The deal eliminates tariffs on hundreds of products, including agricultural, industrial and pharmaceutical goods, Financial services, investment and multilateral environmental agreements.
This agreement results from more than two years of negotiations between the two countries and is a vital sign of their deepening economic relationship. The deal is expected to significantly reduce the cost of imports from China for Nicaraguan businesses and consumers and to open up additional export opportunities for Nicaraguan producers.
Under the deal, China will eliminate tariffs on over 500 Nicaraguan products, including coffee, sugar, beef, pork, and dairy. Nicaragua, in turn, will eliminate tariffs on more than 400 Chinese products, including electronics, medical equipment, machinery and vehicles.
In addition to reducing trade barriers, the agreement also provides for establishing a joint investment fund, which will be used to finance projects in both countries. The fund is intended to help finance energy, education, health, infrastructure, and tourism projects.
The agreement also provides for establishing a joint commission to oversee the deal's implementation and resolve any disputes that may arise between the two countries.
The signing of this agreement marks a significant milestone in the deepening of economic ties between Nicaragua and China and will create new opportunities for trade between the two countries. The deal is hoped to help foster more significant economic growth and prosperity in Nicaragua and ensure that all share the benefits of increased trade.