Nicaragua

On August 5, 2004, the United States signed the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR or Agreement) with five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and the Dominican Republic (the Parties). Under the Agreement, the Parties are significantly liberalizing trade in goods and services.

The CAFTA-DR also includes important disciplines relating to: customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, electronic commerce, intellectual property rights, transparency and labor and environmental protection.

The Agreement entered into force for the United States, El Salvador, Guatemala, Honduras, and Nicaragua in 2006. The CAFTA-DR entered into force for the Dominican Republic on March 1, 2007, and for Costa Rica on January 1, 2009.

In 2008, the Parties implemented amendments to several textile-related provisions of the CAFTA-DR, including, in particular, changing the rules of origin to require the use of U.S. or regional pocket bag fabric in originating apparel. The Parties also implemented a reciprocal textile inputs sourcing rule with Mexico.

Under this rule, Mexico provides duty-free treatment on certain apparel goods produced in a Central American country or the Dominican Republic with U.S. inputs, and the United States provides reciprocal duty-free treatment under the CAFTA-DR on certain apparel goods produced in a Central American country or the Dominican Republic with Mexican inputs.

These changes will further strengthen and integrate regional textile and apparel manufacturing and create new economic opportunities in the United States and the region.

U.S.-Nicaragua Trade Facts

Nicaragua is currently our 68th largest goods trading partner with $3.7 billion in total (two way) goods trade during 2011. Goods exports totaled $1.1 billion; Goods imports totaled $2.6 billion. The U.S. goods trade deficit with Nicaragua was $1.6 billion in 2011.

Exports

Nicaragua was the United States' 82nd largest goods export market in 2011.

U.S. goods exports to Nicaragua in 2011 were $1.1 billion, up 7.3% ($72 million) from 2010, and up 178% from 2000. U.S. exports to Nicaragua are up 69% from 2005 (Pre-FTA).

The top export categories (2-digit HS) in 2011 were: Special Other (articles donated for relief) ($175 million), Machinery ($148 million), Cereals (wheat, corn, and rice,) ($127 million), Electrical Machinery ($56 million), and Fats and Oils (soybean oil) ($47 million).

U.S. exports of agricultural products to Nicaragua totaled $264 million in 2011. Leading categories include: wheat ($55 million), coarse grains ($43 million), soybean oil ($34 million), and rice ($29 million).

Imports

Nicaragua was the United States' 62nd largest supplier of goods imports in 2011.

U.S. goods imports from Nicaragua totaled $2.6 billion in 2011, a 29.7% increase ($597 million) from 2010, and up 341% from 2000. U.S. imports from Nicaragua are up 121% from 2005 (Pre-FTA).

The five largest import categories in 2011 were: Knit Apparel ($978 million), Woven Apparel ($379 million), Electrical Machinery ($350 million), Spices, Coffee, and Tea (coffee) ($224 million), and Meat (beef) ($165 million).

U.S. imports of agricultural products from Nicaragua totaled $506 million in 2011. Leading categories include: coffee (unroasted) ($222 million), and red meats, fresh/chilled/frozen ($165 million).

Trade Balance

The U.S. goods trade deficit with Nicaragua was $1.6 billion in 2011, a 51.2% increase ($525 million) over 2010.

Historical Trade Data  Note: FTA entered into force April 1, 2006

U.S. Goods Trade with Nicaragua (in millions of dollars)

Investment

U.S. foreign direct investment (FDI) in Nicaragua (stock) was $300 million in 2010 (latest data available), a 0.3 percent decrease from 2009.

There is no information on the distribution of U.S. FDI in Nicaragua.

Nicaragua FDI in the United States (stock) was not available in 2010.

NOTE: No services trade data with Nicaragua is available.