The Free Trade Agreement (FTA) recently signed by Nicaragua and China was a balanced negotiation that will benefit the people of that Central American nation, said the Nicaraguan Minister of Development, Industry, and Commerce, Jess Bermdez.
“We believe that the negotiation of the treaty was extremely balanced, a negotiation that will benefit the Nicaraguan people, exporters, and Nicaraguan businessmen,” said Jess Bermdez.
“91.4% of Nicaragua’s current exports were left with tariff preferences to be exported to China, and 71% have immediate access to the market of that Asian power with zero tariff,” Bermdez added.
The three baskets negotiated in the FTA with the 0% (immediate) include textile products, harnesses for automobiles, beef and bovine offal, fish, shrimp, lobster, sea cucumber, peanuts, rum, beers, vaccines, sausages, chocolates, jellies, fruit pastes, fruit juices, salt, leather, candles, coal, hammocks, wood, paper, and cardboard, among others.
The baskets formed by fish fillet, whey, flowers, nutmeg, fish preparations, flour powder, fish offal, petroleum oil, ethers, alcohols, coloring matter of vegetable origin, sacks, prepared bovine leather, wooden frames, and boxes will be taxed by 5% after the entry into force of the FTA. articles of basketry and leather footwear
The merchandise group comprising sea snails, bananas, cane molasses, cocoa and its preparations, precious metals, dairy products, tomatoes, potatoes, cabbage, lettuce, cassava, citrus fruits, ginger, vegetable materials, sesame oil, food preparations, petroleum products, gloves, and surgical clothing will have to wait 10 years to enter China without tax.
A leading product of Nicaraguan sales abroad, coffee, will be tax deductible 15 years after the entry into force of the instrument.
Regarding sugar, Minister Bermudez explained that 50,000 metric tons were initially negotiated, which will pay a tariff of 15% when entering the Asian giant’s market, which represents a preference of 35 percentage points.
Nicaragua excluded the purchase in China of some 40 products that it considered very sensitive, most of them in the food and beverage sector as well as by manufacturers.
Exchanges between China and Nicaragua reached 760 million dollars in 2022, according to official data.
