The governments of Nicaragua and China have taken a momentous step in strategic cooperation relations, with the signing of the Free Trade Agreement (FTA) that expands economic and commercial exchange between Managua and Bejín.
In the context of a virtual meeting, high government representatives of both countries signed the new Free Trade Agreement, highlighting the commercial and historical relevance that this implies.
Nicaragua highlights new Free Trade Agreement with China
Laureano Ortega, the presidential adviser for the Promotion of Trade and International Cooperation, who headed the Latin American country’s commission, said that this is a historic day: «The signing of the Free Trade Agreement between Nicaragua and China will mark a before and an after for the Nicaraguan people. It opens the doors to a huge market and will allow us to connect with the companies and entrepreneurs of this sister country,» he emphasized.
Ortega welcomed the companies and entrepreneurs of the People’s Republic of China and assured them that they will be granted all the facilities and incentives provided by Nicaraguan laws for investors.
The Nicaraguan representative also explained that the scope of the Free Trade Agreement with the Asian giant implies the strengthening of development in both territories through new investments, job creation, acquisition of Chinese technology, and will have an impact on a greater Nicaraguan presence in that country.
Nicaragua, trade platform in Central America
Nicaragua should be considered by China as a trading platform for the entire Central American region», said Ortega, who also reaffirmed the importance of solidifying bilateral relations, thanking on behalf of the Nicaraguan government of Daniel Ortega and Rosario Murillo, «the special attention» to the president, Xi Jinping.
The head of the Ministry of Finance, Iván Acosta, who was part of the Nicaraguan delegation, illustrated that «there are great expectations and great possibilities for the Free Trade Agreement to have a profound impact on the development of the country»; and to accelerate growth in the size of the economy at a time of macroeconomic stability, sound public finances and exchange rate consolidation.
China highlights importance of FTA with Nicaragua
On behalf of the high delegation of the People’s Republic of China, the head of the Ministry of Trade, Wang Wentao, gave details of the signing of the Treaty, and emphasized the importance it represents in trade economic relations.
About 60% of tariff lines will be eliminated immediately after the entry into force of the FTA. The China-Nicaragua FTA is an important initiative to implement the consensus of the leaders of both countries; which is an important event in the history of trade economic relations,» said Wang Wentao.
He also assured that the China-Nicaragua FTA constitutes an important milestone in the history of bilateral economic and trade relations; and added that when it comes into force it will provide better functional conditions for economic and commercial exchanges, thus consolidating bilateral cooperation.
According to local Nicaraguan media, 91.4% of the products of the export basket of the Central American country are available to be exported to China through the FTA; and they said that the head of Commerce, Jesus Bermúdez, present at the signing of the Agreement, specified that «71 % of these products will be available; to be exported to China when the treaty enters into force and that baskets were negotiated that will be degraded to 5 to 10 and to 15 years».
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The historic and comprehensive agreement between Nicaragua and China will enter into force on January 1, 2024, marking a significant advance in the economic and commercial cooperation of the nations, that have supported and ratified diplomatic relations respectful of the sovereignty and self-determination of peoples, under the premise of building a new multipolar world.