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 has signed and ratified bilateral investment treaties with 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.  Nicaragua also has treaties with investment provisions with Chile, Mexico, Panama, Taiwan, and South Korea.

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. Nicaragua announced it signed a free trade agreement with the People’s Republic of China in August 2023 but has not yet released the details of the agreement.   

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.