Improved governance could draw foreign investment and unlock both public and private funding. Nicaragua enjoys significant economic resources: an ecologically diverse geography, making it a desirable tourist destination; a well-developed export industry that produces valuable commodities, including coffee, beef, sugar, and peanuts; reserves of gold and other valuable minerals; proximity to the United States and ready access to major shipping lanes in both the Atlantic and Pacific Oceans; and a young labor force that supports the manufacturing and services sectors. Sectors poised for considerable growth following a democratic transition include tourism, agro-industrial processing, and auto-parts manufacturing.
Under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), most products originating in the United States enter Nicaragua tariff-free, and vice versa, expanding and enhancing market opportunities for both U.S. and Nicaraguan exporters.