Nicaragua Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in nicaragua, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Trade Agreements
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Nicaragua, along with Costa Rica, El Salvador, Guatemala, Honduras, and the Dominican Republic, signed CAFTA-DR in 2004. The agreement entered into force for Nicaragua and the United States in 2006. 

In August 2021, the U.S. Senate passed the Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform (RENACER) Act. This legislation proposes new initiatives to address corruption and human rights abuses in Nicaragua, increases sanctions on key actors in the Ortega regime, and expands sanctions coordination with Canada and the European Union. The bill also calls for a formal review to determine whether Nicaragua should be allowed continued its participation in CAFTA-DR. 

Nicaragua signed a free trade agreement with the European Union governed by the comprehensive Association Agreement between the EU and Central America (AACUE), which came into effect for Nicaragua on August 1, 2013, aiming to liberalize trade and foster broader cooperation. 

In addition to this multilateral trade pact, Nicaragua has actively pursued a network of investment agreements, having signed and ratified bilateral investment treaties with numerous countries including Argentina, Belgium, Chile, Cuba, the Czech Republic, Denmark, Finland, France, Germany, Italy, Iran, Luxembourg, the Netherlands, the Russian Federation, Spain, Switzerland, and the United Kingdom, alongside other treaties containing investment provisions with Mexico, Panama, and South Korea, all designed to promote and protect foreign investment. Nicaragua has a separate free trade agreement with ALBA (Bolivarian Alliance for the Peoples of Our America) member countries:  Cuba, Venezuela, Dominica, Antigua & Barbuda, Saint Vincent & the Grenadines, Granada, and Saint Kitts & Nevis. Nicaragua is part of the Central American free trade agreements with the European Union and South Korea.  

A Free Trade Agreement (FTA) between Nicaragua and China came into effect on January 1, 2024. This agreement enables Nicaragua to export nearly 70 percent of its products to China without tariffs, while over 95 percent of all traded goods will see tariffs gradually eliminated. 

The Secretariat for Central American Economic Integration (SIECA) provides technical and administrative support to Nicaragua, Costa Rica, El Salvador, Guatemala, and Honduras in its efforts to establish a Central American Common Market. 

The Ministry of Development, Industry, and Trade’s International Trade Office is responsible for the negotiation and implementation of trade agreements.

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