Exports from Nicaragua to China have surged by 80 percent since the Free Trade Agreement (FTA) between the two countries took effect on Jan 1, 2024.
"Nicaragua has tripled its exports to China in the past year, reaching nearly 80 million U.S. dollars, compared to 23 million in 2023, and this trend is expected to continue," said Adolfo Pastran, a political analyst and the director general at Informe Pastran, a local journalism service provider.
"From the beginning, President Xi Jinping and President Daniel Ortega have worked to ensure that Nicaragua and China complement and integrate with each other so that our products, goods, and services can be placed competitively in such an important market as the Chinese market," said Walmaro Gutierrez, president of the Commission on Production, Economy and Budget of the Nicaraguan National Assembly.
The flourishing trade relationship, stemming from the strategic partnership with China, is impacting key sectors of the Nicaraguan economy.
"Nicaragua is already exporting shrimp, beef, rum, tobacco, coffee, and sugar. We agreed to send 50,000 tons of sugar to China and we surpassed that number with over 70,000 tons, which means it's a very well-received product," said Pastran.
While Nicaraguan exports have seen a remarkable boost, the FTA has also led to increased imports of Chinese products, which are proving popular among Nicaraguan consumers.
"People come here to ask about [Chinese] appliances, food, tea. And they come here to look for cultural products, like the famous lucky cat product [that seems to say], 'money come, money come, money come'," said Haxel Diaz, a shop assistant in a Chinese product store.
The benefits of the trade agreement are also being felt by Nicaraguan entrepreneurs.
"The commercial strategy that the country has with China helps us as a country to improve our economy thanks to the Sandinista government (Nicaragua's ruling Sandinista National Liberation Front)," said Jefrey Robleto, a Nicaraguan entrepreneur.
"It's easier for us, and above all, our brothers from China to maintain competitive prices. It's quite positive that Nicaragua and China have this type of exchange," said Lesther Arcia, another Nicaraguan entrepreneur.
"It has been a comprehensive accompaniment within the framework of the [Nicaragua's] Government of Reconciliation and National Unity's fight against poverty, where they are working hand-in-hand with China," said Gutierrez.
Nicaraguan exports soar in first year of free trade agreement with China
Nicaraguan exports soar in first year of free trade agreement with China
