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 $14 billion. The population was recorded as approximately 6.85 million people in 202`. 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. 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 2022, the United States imported $5.7 billion worth of goods from Nicaragua. $2.85 billion those goods were apparel manufacturing products. Other imports from Nicaragua included primary metal, transportation equipment, and processed foods. The United States also exported $2.57 billion worth of goods to Nicaragua in 2022. The key exports to Nicaragua included petroleum and coal products, agricultural products, apparel and accessories, computer and electronic products, and processed foods. US Department of Commerce
U.S. foreign direct investment into Nicaragua totaled $3 million in 2021.
Nicaragua-California Trade
In the United States, California is one of the top exporters to Nicaragua. California exported $388 million worth of goods to Nicaragua in 2022. Apparel manufacturing products and textiles and fabrics were the top two exported goods forming over $300 million of all exported goods to Nicaragua from California. The other top exports from California to Nicaragua were processed foods, petroleum and coal products, and used or secondhand merchandise. In 2022, California imported $638 million worth of goods from Nicaragua. $349 million of those imports were apparel manufacturing products. Other key imported products from Nicaragua to California were processed foods, agricultural products, and fish and other marine products. US Department of Commerce
Preliminary Overview of the Economies of Latin America and the Caribbean
ECLAC, December 2019
Trade Agreements
Trade Agreements
Yes, Really: It’s Time to Revive Hemispheric Trade Talks
Latin Trade, August 6, 2020
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.
(March 8, 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.
Central American Ambassadors Promote Benefi ts of Trade Agreement with U.S.