Trading Partner Portal: Nicaragua
Overview
Trade Overview
Nicaragua is a country with a geographical size slightly smaller than the state of New York in Central America and the Caribbean. The World Bank classifies Nicaragua as a lower middle income country with a gross domestic product (GDP) of $12.69 billion. The population was recorded as approximately 6.08 million people in 2015. Nicaragua is the poorest country in Central America and the second poorest in the Western Hemisphere. World Bank, CIA
Nicaragua’s economy has improved since 2006, due to the increase in exporting capabilities with the implementation of the Dominican Republic Central America Free Trade Agreement with the United States. The United States not only has an established trade relationship with Nicaragua, but there are also flows of investment across their borders. In 2015, the United States had a total of $183 million in foreign direct investment (FDI) to Nicaragua. Additionally in 2014, Nicaragua had $21 million in FDI flowing into the United States. The United States is currently Nicaragua’s largest trading partner, as their largest export destination and their largest importer of goods. Nicaragua has a history of exporting agricultural goods, such as coffee, beef and sugar. They also have exported valuable metals like gold and silver. However, Nicaragua also has a large export market of manufactured textiles. US Department of Commerce, BEA
In 2016, the United States imported $3.3 billion worth of goods from Nicaragua. 44.6% of those goods were apparel manufacturing products, which totaled almost $1.5 billion. Other imports from Nicaragua included transportation equipment, primary metals, and agricultural products. The United States also exported $1.47 billion worth of goods to Nicaragua in 2016. The key exports to Nicaragua included computers and electronics, textiles and fabrics, special classification goods, and food manufactures. US Department of Commerce
Nicaragua-California Trade
In the United States, California is one of the top two largest exporters to Nicaragua, only second to Florida. California exported $192 million worth of goods to Nicaragua in 2016. Apparel manufacturing products and textiles and fabrics were the top two exported goods forming over 60% of all exported goods to Nicaragua from California. Those two exported commodities totaled roughly over $124 million. The other top exports from California to Nicaragua were special classification provisions and food manufactures. Not only is California one of the top exporters to Nicaragua, it is the largest importer of Nicaraguan goods in the United States. In 2016, California imported $508 million worth of goods from Nicaragua. 66.6% of those imports were apparel manufacturing products with a value of $338 million. Other key imported products from Nicaragua to California were food manufactures, agricultural products, and fish and marine goods. US Department of Commerce
Trade Agreements
Trade Agreements
CAFTA-DR (Dominican Republic- Central America Free Trade Agreement)
The United States trade deal with some of the small developing countries in Central America was signed by President George W. Bush in 2005 as an expansion of North American Free Trade Agreement for the US. Members of this free trade agreement include the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. This trade agreement has led for this group to become the US’s 16th largest trading partner in commodities. Exports from the United States to this group of countries totaled $29 billion in 2015, while imports totaled approximately $24 billion. This trade agreement ensures that 100% of goods from the United States are not subject to tariffs in these countries, it also has a goal of phasing out all tariffs on agricultural products by 2020.
Events
Events
Central American Ambassadors Promote Benefits of Trade Agreement with U.S. (03/08/2005)
The California Chamber of Commerce hosted five ambassadors representing the nations included in the proposed U.S.- Central American Free Trade Agreement (CAFTA) at an International Luncheon Forum on March 8, 2005.