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Nicaragua prepares to sign free trade agreement with China
World News
2023-07-25 | 06:52
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Nicaragua prepares to sign free trade agreement with China
Nicaragua announced the conclusion of negotiations for the main part of the Free Trade Agreement with China, which is set to be signed in August and will come into effect in January 2024.
The Presidential Advisor for Investments, Trade, and International Cooperation, Laureano Ortega Murillo, expressed his happiness to journalists on Monday, stating, "We are pleased with the good news we received about the conclusion of negotiations for the main part of the Free Trade Agreement."
The advisor, who is the son of Nicaraguan President Daniel Ortega and Vice President Rosario Murillo, praised Chinese President Xi Jinping for finalizing the talks and "the great attention given to this fraternal relationship."
Nicaragua and China restored their diplomatic relations in 2021 after Managua severed ties with Taiwan. Since then, they have signed several agreements to boost investment in Nicaragua, a Central American country.
Meanwhile, the Nicaraguan Finance Minister, Ivan Acosta, considered the conclusion of negotiations for the Free Trade Agreement as an "exceptional moment for the Nicaraguan people and their economic institutions."
Acosta mentioned that with this treaty, the country's Gross Domestic Product (GDP) growth, estimated to range between 3.4% and 3.5% for the period 2023 to 2026, could gain at least two additional percentage points.
Details about the scope of the Free Trade Agreement were not disclosed, but the negotiations were based on World Trade Organization standards, as revealed by the Minister of Development, Industry, and Trade, Jesus Bermudez.
The negotiations lasted for a year, with 80% of the meetings conducted remotely.
China has been actively engaging in diplomatic efforts in Central America, where Taiwan lost one of its allies in March when Honduras decided to establish official relations with Beijing. China considers Taiwan as part of its territory and has not succeeded in its attempts to annex it since the end of the Chinese Civil War in 1949.
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