  
  
WT/TPR/M/404  
11 March  2021 
(21-2031) Page: 1/38 
Trade Policy Review Body   
27 and 29 January  2021  
  
TRADE POLICY REVIEW  
NICARAGUA  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr. Harald Aspelund (Iceland)  
CONTENTS  
 
1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  ................................ ......................  2 
2  OPENING STATEMENT BY THE REPRESENTATIVE OF NICARAGUA  ...............................  4 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ...............  6 
4  STATEMENTS BY MEMBERS  ................................ ................................ .........................  9 
5  REPLIES  BY THE REPRESENTATIVE OF NICARAGUA AND ADDITIONAL COMMENTS  .. 32 
6  CONCLUDING REMARKS BY THE CHAIRPERSON  ................................ ........................  37 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Nicaragua  are reproduced in document WT/TPR/M/ 404/Add.1  and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/40 4 • Nicaragua  
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  
1.1.  The fourth  Trade Policy Review of Nicaragua was held on 27 and 29  January 2021 . The 
Chairperson, H.E.  Mr. Harald Aspelund (Iceland), welcomed the delegation of Nicaragua , headed by 
Mr. Orlando Solórzano Delgadillo , Minister for Development, Industry and Trade ; H.E. Ambassador 
Carlos Morales , Permanent Representative of Nicaragua to the WTO ; the rest of the delegation from 
Managua ; and the discussant  H.E. Ambassador Federico Villegas (Argentina) . 
1.2.  The Chairperson was pl eased that, in addition to physical presence, the meeting also benefited 
from the Interprefy online connection, allowing for a wider participation of the Membership, in 
particular of officials who could not make the journey from Nicaragua  given the current 
circumstances.  
1.3.  The Chairperson recalled the purpose of TPRs and the main elements of procedures for the 
meeting. The report by Nicaragua  is contained in document WT/TPR/G/40 4, and that of the WTO 
Secretariat in document WT/TPR/S/40 4. 
1.4.  Questions by the following delegations were submitted in writing before the deadline: Chile; 
Canada; Mexico; European Union; Guatemala; United States; and Colombia . The following 
delegations submitted written questions after the deadline: Malaysia; Dominican  Republic; Turkey; 
and Iceland . 
1.5.  At the time of its previous Review in 2012, Members had commended Nicaragua for its sound 
economic performance despite adverse external shocks, such as the international financial crisis, 
Hurricane Felix and the increase in food and petroleum prices. Members had also welcomed the fact 
that Nicaragua had refrained from using protectionist measures to overcome the negative impact of 
these shocks. However , excessive reliance on remittances from abroad to finance the current 
account deficit had also been noted, as was the still -high level of external debt.  
1.6.  The Chairperson focused  on developme nts since the previous Review. According to the 
Secretariat r eport, after five years of solid economic growth, 4.7% between 2013 and 2017, th e 
Nicaraguan economy was  severely dented by the socio-political crisis. This led to a contraction in 
GDP growth, employment, exports, private investment and consumption. In  addition, the economy 
continued  to face structural challenges, notably income and r egional disparities, as well as low levels 
of public and private investment.  
1.7.  As all Members kne w, this Review was taking place at a time of an unprecedented health crisis, 
with COVID -19 hitting economies across the world in rapid succession. To mitigate t he economic 
effects of the pandemic, the Nicaraguan Government implemented monetary and fiscal policy 
measures.  
1.8.  Trade policy remained broadly unchanged during the pe riod under review. Nicaragua had  
implemented several initiatives to facilitate trade, incl uding the electronic exchange of information 
contained in the Central American Single Declaration (DUCA). Also, Nicaragua became the first 
country in Latin America to ratify the Trade Facilitation Agreement and deposit its instrument of 
acceptance. Moreove r, Nicaragua makes little use of non -tariff barriers. However, some features of 
Nicaragua's trade policy, which raised concerns at the time of the last Review, seem ed to remain in 
place. Nicaragua continues to rely on trade policy instruments such as the t ariff, the import service 
fee, import and export restrictions, and licensing, to attain domestic policy goals.  
1.9.  At the time of the last Review, Members had urged Nicaragua to continue to improve 
infrastructure and promote the use of renewable energy, as we ll as to reduce its dependency on oil. 
The Secretariat report indicates that , in recent years , Nicaragua made significant infrastructure 
improvements, especially to transport, telecommunications and the electricity supply.  
1.10.   The Government  report highlights that , under its National H uman Development Programme 
2018-21, one of the main objectives of foreign trade policy is to regulate Nicaragua's trade relations 
with the rest of the world by way of fair, competitive trade. Under th at premise, Nicarag ua 
emphasizes  the need for the world market to incorporate the concept of "fair trade", encompassing 
a genuine recognition of imbalances between national economies, correction of the distortions in 
world markets and defence of  the multilateral trading syst em. WT/TPR/M/40 4 • Nicaragua  
 
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  1.11.   A survey of the advance questions  submitted for this Review showed  the wide range of topics 
of interest to Members regarding Nicaragua's trade and investment regimes, including its 
participation in regional trade agreements; foreign businesses ' licensi ng requirements; the use of 
standards and technical regulations, and SPS measures; free -zone and inward -processing regimes; 
competition policy; the government procurement regime; the protection of intellectual property 
rights; recent changes made to the in stitutional framework in the areas of agriculture, livestock and 
forestry ; women’s economic empowerment ; and future plans for the digital divide reduction and for 
broadband deployment and penetration.  
1.12.   In total, Nicaragua received 154 advance written quest ions from 11 delegations for this 
Review, covering a broad range of topics. Prior to this meeting, Nicaragua had already provided 
writte n replies to all questions, and the Chairperson  looked forward to hearing Nicaragua's updates 
on these issues during the Friday session.  
1.13.   This meeting was a good opportunity for Members to discuss in greater detail issues of interest 
to Members  and of systemic importance to the multilateral trading system. It was also an opportune 
moment for Nicaragua to update the Membersh ip on the impact of COVID -19 on  its economy and 
measures it had  taken in response. The Chairperson  looked forward to a fruitful exchange.  
1.14.   The Chairperson closed his introductory remarks by wishing Nicaragua a very successful fourth 
Trade Policy Review.  
  WT/TPR/M/40 4 • Nicaragua  
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF NICARAGUA  (MR. ORLANDO 
SOLÓRZANO DELGADILLO ) 
2.1.  I wish to thank H.E. Ambassador Harald Aspelund  (Iceland), Chairperson of the Trade Policy 
Review Body, and H.E. Ambassador of the Republic of Argentina, Federico Villegas, for their 
participation in this important meeting, and welcome all of the ambassadors representing the WTO 
Members.  
2.2.  Before initiat ing this important session, I would like to express my sincere wishes that you and 
your families are in good health. The COVID -19 pandemic has not only affected the health of millions 
of people around the world, but has also had a negative impact on trade and the main indices of the 
global economy.  
2.3.  Despite the challenges facing us, we hope that, this year, we will begin to see the end of the 
pandemic and initiate an early recovery, together with the best efforts of each of our countries.  
2.4.  I am honoured to le ad, for the second time, the Nicaraguan delegation to present our fourth 
Trade Policy Review. Our country has stated on other occasions that the periodic review of the trade 
policy of Member countries is a valuable exercise, as it provides information on t he impact of national 
policies on the global trading system, and helps each country identify its strengths and challenges 
in order to pursue greater growth and development, as well as to achieve a better integration of the 
country into the international ec onomy for the benefit of its people.  
2.5.  Nicaragua has been a contracting party to the GATT since 28 May 1950. We have participated 
actively for more than 70 years in the multilateral trading system, in which we trust and defend as 
the legal and institutional framework that makes it possible to achieve the best benefits arising from 
the expansion of production and trade, and the hope of development for our small and vulnerable 
countries which require strengthened special and differential treatment, with clear, fair and equitable 
legal rules, without recourse to the law of the strongest.  
2.6.  Nicaragua is currently one of the world's most open countries to international trade, which, 
together with its strategic geographical position and the diversity of its natural re sources, makes it 
an attractive country for investment, mainly with the shift in the food industry towards the sources 
of its raw materials and markets.  
2.7.  The Government of Reconciliation and National Unity of Nicaragua (GRUN) has guided its trade 
policy tow ards increasing its participation in international markets, and in addition to promoting 
economic integration in Central America and Latin America, and to strengthening existing 
agreements, has concluded and participated in new trade agreements, particular ly the Association 
Agreement between Central America and the European Union, the Free Trade Agreement between 
Central America and the Republic of Korea, and recently with the United Kingdom.  
2.8.  With regard to domestic matters, our Christian, socialist and uni ted Government uses, as a 
central mechanism, dialogue and consensus with production and trade sectors, as well as free trade, 
without discrimination, which has contributed to greater predictability, security, competitiveness, 
improved business opportunitie s, and the promotion of the country's economic and social 
development.  
2.9.  As a signatory to the General Treaty on Central American Economic Integration in 
December  1960, Nicaragua promotes the deepening of the agreement, reaffirming the 
implementation of the strategic roadmap established in its fundamental legal instruments concerning 
the free trade area, customs union and common market, in accordance with the concept of 
regionalism open to international trade.  
2.10.   Under the pro tempore presi dency of Nicaragua (second term 2020) this strategic roadmap 
was resumed, and COVID -19 biosafety guidelines, applicable to the Central American land transport 
sector, which made it possible to maintain the flow of trade and the supply of food and essential  
products in the region.  
2.11.   Our country is convinced that trade facilitation represents an important opportunity to improve 
the streamlining and efficiency of foreign trade operations. Nicaragua was therefore the first Latin WT/TPR/M/40 4 • Nicaragua  
 
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  American country to ratify the Protocol Amending the Marrakesh Agreement Establishing the 
Agreement on Trade Facilitation  (TFA).  
2.12.   The Government of Reconciliation and National Unity of Nicaragua remains firmly committed 
to reducing poverty for the most vulnerable and disadvantaged populatio ns of the country. On the 
social front, Nicaragua has made significant achievements in poverty reduction, in line with the 
results of the 2016 Living Standards Measurement Survey  (EMNV), the population living in general 
poverty fell from 42.5% in 2009 to 2 4.9% in 2016. Furthermore, the population living in extreme 
poverty fell from 14.6% in 2009 to 6.9% in 2016.  
2.13.   Nicaragua has responded to the COVID -19 pandemic with the adoption of measures based on 
the circumstances and conditions in the country, with a pre ventive approach and proactive actions. 
The Nicaraguan model seeks to prevent the pandemic from affecting the economy as much as 
possible, and to combat COVID -19 without suspending economic activities. Nicaragua's position is 
not to make a choice between p ublic health and the economy. It considers that both are necessary 
for the wellbeing of society.  
2.14.   Public policy decisions are based on the fact that 40% of the population lives in the countryside 
and 80% of urban workers belong to the informal sector and ea rn their livelihood on a day -to-day 
basis. As a result, the Nicaraguan economy reflects one of the smallest declines in GDP in Latin 
America and the Caribbean (between -1.5% and -2.5% in 2020) as well as a smaller contraction in 
its exports compared to Lat in America. Agricultural and agro -industrial exports increased by 6.4% 
during 2020 compared with the previous year.  
2.15.   With the support of the international organizations and with the cooperation of friendly 
countries, Nicaragua has managed to address the eff ects of the COVID -19 pandemic and the direct 
impact of hurricanes Eta and Iota, with evacuation programmes for the protection of life, aimed at 
supporting the most vulnerable population, through the construction and repair of housing, and the 
provision of food and medicines (approximately 50,000 families supported).  
2.16.   During the review period, Nicaragua showed a clear sustainability in foreign trade with an 
average annual growth of 2.1%. It will continue to work actively to diversify production and 
exportable  supply, and seek new markets for Nicaraguan goods and services, improve 
competitiveness and make greater use of existing trade agreements.  
2.17.   With regard to investment, new investment projects have been implemented and new jobs 
have been created in various s ectors of the economy. Nicaragua will continue to facilitate investment 
and modernize the legal framework as one of the main tools to promote the country's socio -economic 
development.  
2.18.   Finally, on behalf of Nicaragua, I would like to thank Canada, Chile, Me xico, the European 
Union, Guatemala, the United States, Colombia, Malaysia, the Dominican Republic, Turkey and 
Iceland for their questions. A total of 154 questions were received, which have undoubtedly 
contributed significantly to Nicaragua's fourth Trade  Policy Review. God bless us all. Thank you.  
  WT/TPR/M/40 4 • Nicaragua  
 
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  3  STATEMENT BY THE DISCUSSANT  
Introduction  
3.1.  A very good afternoon . Thank you, Mr Chairman, for your opening remarks.  
3.2.  First of all , I would like to extend my warmest greetings to the Nicaraguan delegation led by 
the Minister for Development, Industry and Trade , Mr Orlando Solórzano Delgadillo. Thank you for 
your very informative presentation on Nicaragua's trade policies. I would als o like to take this 
opportunity to acknowledge the work of your Permanent Representative in this city, Ambassador 
Carlos Morales Dávila. I also wish to thank the Secretariat for its professionalism in preparing a very 
detailed report.  
3.3.  It is a great honour for me to participate in the fourth Trade Policy Review of Nicaragua. This 
has been a valuable opportunity to deepen my knowledge of its trade policies, and to observe more 
closely Nicaragua's efforts to improve the quality of life of its population.  
3.4.  I will start my presentation by sharing with you some general economic considerations for 
Nicaragua. I will then focus on some specific trade policy issues highlighted by Members in their 
questions. And I will end my statement with a brief comment on Nicaragua' s National Human 
Development Programme 2018 -2021.  
General economic considerations  
3.5.  Nicaragua is a beautiful country situated in the heart of Central America. And who better to 
remind us of this than the grand Nicaraguan writer Rubén Darío, with the words he  wrote as a young 
high-school student: "…rich orchard is my soil; and I transcribe, in sweet adulation, in the blue of 
my lakes, the splendour of my sky" . Nicaragua, its people and landscapes are a faithful reflection of 
this beauty portrayed by Darío, and  together with its unique geographic location between the Atlantic 
and the Pacific, are a sign of its great economic potential.  
3.6.  As can be expected, the Nicaraguan economy has been hit hard by the COVID -19 pandemic, 
which had already experienced a slight sl owdown in recent years. This should not, however, detract 
from the significant economic growth recorded in the preceding years, with growth averaging 4.7% 
per year in the period 2013 -2017.  
3.7.  As can be seen from the Secretariat report, the country faces sever al policy and social 
challenges, including the need to reduce poverty and the existing disparities between the city and 
the countryside. The decline of some macro figures, such as GDP and employment, coupled with the 
pandemic, have made the picture more co mplex. However, it should be noted that Nicaragua's 
economy is relatively diversified, its GDP per capita increased during the review period and that 
there was a decline in poverty of almost five points between 2014 and 2016. Its balance of payments 
indica tes that the country has become a net exporter of services.  
3.8.  Nicaragua's efforts to move forward with its trade integration are also noteworthy, and are 
evidenced by the entry into force of various trade agreements during the period under review. It is 
worth mentioning, inter alia, the Free Trade Agreement between Central America and Mexico, the 
Association Agreement between Central America and the European Union, the most recent Free 
Trade Agreement between Central America and the Republic of Korea, as well  as the Partial Scope 
Agreements with Cuba and Ecuador.  
3.9.  Since the previous Trade Policy Review in 2012, relevant institutional changes have been made, 
particularly in relation to foreign direct investment. In this connection, I draw attention to the 
adopti on of the Law establishing the Investment and Export Promotion Agency (PRONicaragua) , the 
Law on Export Free Zones  and the Law on Public -Private Partnerships . However, and as indicated in 
the Secretariat report, foreign direct investment flows to the count ry have not yet achieved their full 
potential. It will therefore be necessary for these laws to promote foreign direct investment in 
Nicaragua to be accompanied by measures aimed at improving the business environment, removing 
existing barriers and address ing the concerns of foreign investors about stability in the country.  WT/TPR/M/40 4 • Nicaragua  
 
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  Specific trade policy aspects  
3.10.   With regard to the multilateral trading system, Nicaragua is actively participating in this 
Organization. Two examples illustrate this point.  
3.11.   The first exam ple, albeit symbolic, is that Nicaragua was the first Latin American nation to 
ratify the Trade Facilitation Agreement (TFA) in August 2015. Nicaragua's commitment to trade 
facilitation, however, goes beyond the merely symbolic. It suffices to recall the l aunch of the digital 
exchange system through the Central American Single Declaration (DUCA) , or that the Single 
Window for Foreign Trade  (VUCEN) will be implemented in the coming months. Regarding the Single 
Window, Members have requested to know the speci fic timelines for its implementation and the 
impact that it would have on exporters.  
3.12.   A second example of Nicaragua's commitment to the multilateral trading system is its 
participation in Joint Initiatives. Nicaragua is a party to the Joint Initiatives on Electronic Commerce, 
Trade Facilitation for Development, and Micro, Small and Medium -Sized Enterprises (MSMEs). 
Nicaragua's participation in the joint initiative on MSMEs is only a reflection of the importance 
attached to it at the domestic level, in particular through the actions taken by the Ministry of Family, 
Community, Cooperative and Associative Economy  (MEFCCC). In this regard, Members requested 
further information from Nicaragua on the specific policies that exist in the country to address the 
needs of MSMEs, as well as on the manner in which Nicaragua envisages mitigating the impact s of 
new regulations or laws on MSMEs.  
3.13.   Nevertheless, there are a number of aspects of Nicaragua's trade policy that could be given 
greater attention. These include those that were highlighted by Members in their questions, which I 
will now summarize.  
3.14.   On ag riculture notifications, Members encouraged Nicaragua to clarify any outstanding 
notifications and, if possible, to bring them up to date as soon as possible.  
3.15.   With regard to its sanitary and phytosanitary measures (SPS), changes have been made to 
its legal  architecture since the previous Trade Policy Review. Members requested further information 
from Nicaragua on its notifications and its relation to the principle of regionalization recognized by 
the World Organisation for Animal Health (OIE) and trade agre ements signed by Nicaragua. 
Similarly, and with respect to technical barriers to trade (TBT), Members expressed interest in the 
degree of convergence of international standards with Nicaraguan Mandatory Technical Standards 
(NTON) and Nicaraguan Technical S tandards (NTN).  
3.16.   Members showed their interest in the country's institutional and legal framework regarding 
competition. They requested, in this regard, greater clarity on the range of the activities and scope 
of the actions of the National Institute for the Promotion of Competition in Nicaragua 
(PROCOMPETENCIA).  
3.17.   Another area of interest among Members was the investment regime of the country. While 
recognizing the efforts of the Investment and Export Promotion Agency (PRONicaragua) , Members 
wish to have more information on the economic sectors or activities that require special government 
permits, the existence of (tax and non -tax) incentives to invest in Nicaragua and the operation of 
Nicaragua's Foreign Investment Statistical Register.  
3.18.   Finally, Members commented on specific aspects of Nicaragua's trade policy on customs 
valuation, including the non -use of the transaction value for imports of agricultural origin, which 
would be interesting to address in the context of this Review. Members also  consulted with Nicaragua 
about the effective implementation of intellectual property rights in Nicaragua, which would also 
benefit from being examined in further detail during this exercise.  
Conclusions: National Human Development Programme 2018 -2021  
3.19.   In conclusion, I would like to make a brief comment on Nicaragua's National Human 
Development Programme 2018 -2021, which sets out the guidelines for Nicaragua's trade policy, and 
which has already been the subject of questions from Members. In particular, it w ould be interesting 
for this TPR exercise to shed some light on the specific trade policies that Nicaragua is undertaking WT/TPR/M/40 4 • Nicaragua  
 
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  to address the many challenges ahead, including the need to set the country back on the path of 
sustained economic growth, create more  and better jobs, attract more investment and, ultimately, 
improve the quality of life of its people.  
3.20.   To quote an example, and in line with one of several questions posed by Members to 
Nicaragua, it would be interesting to know what the specific achievemen ts of the National Human 
Development Programme 2018 -2021 have been regarding MSMEs, which is a recurrent theme in a 
number of questions and is of great interest to Members. Similarly, it would be interesting to have 
more information on the past and future specific trade practices and policies of the National Human 
Development Programme 2018 -2021 regarding foreign direct investment (FDI) and competition, 
two areas which were also the subject of a number of questions by Members.  
3.21.   All that remains is for me to wish Nicaragua every success during its fourth Trade Policy 
Review.  
3.22.   Thank you very much, Mr Chairman.  
  WT/TPR/M/40 4 • Nicaragua  
 
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  4  STATEMENTS BY MEMBERS  
CHILE  
4.1.  We welcome the delegation of Nicaragua, led by the Minister for Development, Industry and 
Trade , Mr Orlando Solórzano, with whom I had the honour to share a seminar on business 
opportunities in Nicaragua which took place in Managua some years ago. I also extend my greetings 
to Ambassador Carlos Morales who I look forward to meeting in the near future.  
4.2.  We appreciate the work don e for this Review, both by the Secretariat and by the Nicaraguan 
Government, in terms of the analysis and background presented in the respective reports, and 
congratulate the Permanent Representative of Argentina, Ambassador Federico Villegas, for 
contribu ting and contributing as discussant for this process.  
4.3.  These reviews are a key component of this Organization and it is an important transparency 
exercise for Members to periodically undergo the scrutiny of their peers. We congratulate Nicaragua 
on how it h as approached this fourth trade policy Review process.  
4.4.  We would also like to thank Nicaragua for its replies to our questions, which we will forward to 
capital.  
4.5.  Chile and Nicaragua share the conviction that economic openness and freedom of trade are an 
engine of prosperity and sustainable development. Both countries agree on the great importance of 
the multilateral trading system, with the WTO at its centre, and we also accord great significance to 
regional integration.  
4.6.  Trade relations between Chile and Nicaragua have been strengthened by the Free Trade 
Agreement (FTA) signed between Chile and Central America and the Bilateral Protocol signed 
between Chile and Nicaragua, which entered into force in October 2012. Chile hopes to boost 
economic relations wit h its Central American peers, through the modernization of the existing 
agreement, which will allow for the inclusion of matters relevant to trade in the 21st century, such 
as: electronic commerce; the environment; labour; investment; SMEs; and trade and g ender.  
4.7.  The latest available figures show that, despite the pandemic, trade experienced an increase 
between January and October 2020, after a drop of almost 25% in 2019 compared to 2018. In the 
first ten months of last year, bilateral trade totalled USD 27 million, boosted by Chilean industrial 
exports (wood, metal products, machinery and equipment, wine and prepared foods).  
4.8.  Imports from Nicaragua amounted to USD 3.9 million, a significant share of which is 
represented by rum. Chile is the main destination f or Nicaraguan rum. The brand “Flor de Caña” is 
well known and appreciated in my country. Its name, in the jargon of young people in our country, 
means "excellent hangover". Other Nicaraguan products exported to Chile include colouring matters 
(USD 0.95 mil lion), refined cane sugar (USD 0.56 million) and polymerase in primary forms (USD 
0.34 million).  
4.9.  Bilateral trade has enormous potential. The modernization of the FTA with Central America and 
joint efforts between the agencies of both Governments, as well a s with the respective private 
sectors, should increase trade flows between the two countries.  
4.10.   With respect to the reports submitted, we note that, during the review period, Nicaragua 
showed significant improvements in infrastructure (particularly transport, telecommunications and 
electricity supply), a stable fiscal policy and controlled inflation, all of which are key to advancing 
economic development. These sound policies undoubtedly contributed to an average annual GDP 
growth of 4. 7% between 2013 and 2017.  
4.11.   Nicaragua also has an open trade and investment framework, which is reflected, for example, 
by low average tariffs (6.2% and 11.8% for agricultural products), lower tariff barriers, and an open 
government procurement market.  
4.12.   We al so highlight Nicaragua's measures to attract foreign investment, including investment 
facilitation policies, and the measures implemented in the area of trade facilitation.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.13.   We also note areas that have considerable room for improvement, for example, in ter ms of 
ease of doing business, for which Nicaragua ranked 142nd in the World Bank's Ease of Doing 
Business 2020 index.  
4.14.   Improvements in these areas would no doubt contribute to overcoming the economic crisis.  
4.15.   In conclusion, we would like to wish Nicaragua a very successful fourth Trade Policy Review.  
CANADA  
4.16.   Thank you Chair and good morning. 2021 will mark the 60th anniversary of the establishment 
of diplomatic relations and 40th year of Development Cooperation between Canada and Nicaragua. 
While not without i ts difficulties, it has been a period featuring commercial activity and investment 
by Canadian companies. During that period, Canada also provided over USD 200 million in 
development assistance, contributing in particular to the country’s rural electrifica tion, which is key 
to lifting people out of poverty, contributing to economic growth, and providing better opportunities 
for women and girls.  
4.17.   However, the political crisis that began in April 2018 in Nicaragua has led to long -term 
negative impacts in the c ountry. Canada is deeply concerned about the ongoing erosion of 
democracy and rule of law in Nicaragua, and lack of respect for human rights. This downward spiral 
has also had direct consequences on the country’s economy. International isolation, including  
sanctions, and the reduction of funding from international financial institutions, have compounded 
existing fiscal challenges, resulting in an unsustainable fiscal deficit and unserviceable deficits in the 
social security system. Strong action from Nicara gua to address ongoing human rights concerns 
would greatly reduce its isolation and the negative economic consequences that stem from it.  
4.18.   Nicaragua’s slow -but-steady economic recovery from 1994 until 2018 demonstrated the 
country’s potential for sustained growth when supported by macroeconomic stability and reforms 
that lend certainty to private sector investment. The adoption of the Law establishing the Investment 
and Export Promotion Agency (PRONicaragua); the Law on Export Free Zones; and the Law on 
Public-Private Partnerships were all positive steps which Nicaragua took since the country’s last trade 
policy review. However, the political and economic crisis that began in April 2018 has led to 
long-term negative impacts on the economy, including a continu ed drop in annual FDI inflows, after 
a historic high in 2013.  
4.19.   The Global Competitiveness Index places Nicaragua at 109 of 141 countries evaluated in 2019. 
Canadian companies have commented on the inconsistent and unpredictable business environment, 
includi ng a weak legal system, lack of transparency and accountable institutions, and poor 
infrastructure. These make Nicaragua a high -risk location to invest and do business. Companies 
have reported that the Nicaraguan Customs Authority regularly subjects shipme nts of commercial 
and even donated goods to bureaucratic delays and arbitrary valuation.  
4.20.   With regard to the issue of corruption, Nicaragua has ratified the United Nations Convention 
against Corruption (UNCAC) and the Inter -American Convention Against Corr uption, but is not a 
party to the OECD Convention on Combating Bribery of Foreign Public Officials in International 
Business Transactions. Signing on to the Convention would be a positive step towards increasing 
transparency and enforcement of local laws a gainst bribery and corruption.  
4.21.   I note that Nicaragua has implemented several initiatives in recent years to facilitate trade, 
including: the electronic exchange of information contained in the Central American Single 
Declaration (DUCA); the Border Integra tion Programme (PIF), which aims to modernize 
infrastructure, equipment and information technology systems at border crossings to improve the 
efficiency of border controls, reduce wait times and improve competitiveness; and Nicaragua’s single 
window for fo reign trade (VUCEN), with implementation announced for the first six months of 2021 
and which will facilitate foreign trade operations by simplifying formalities for pre -customs import 
and export permits.  
4.22.   Canada and Nicaragua have been engaged over a numbe r of years on expanding and 
improving trade and investment opportunities for our companies. The mechanisms Nicaragua has 
recently implemented to support its WTO participation are increasingly important as it seeks to WT/TPR/M/40 4 • Nicaragua  
 
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  pursue more open and inclusive trade. C anada welcomes Nicaragua’s acceptance of the Trade 
Facilitation Agreement, being among the first to ratify in 2015 and meeting all notification 
commitments, and its engagement in the WTO’s Micro, Small and Medium -sized Enterprises (MSMEs) 
Informal Working Group, and the Joint Statement Initiatives on Electronic Commerce, and on 
Investment Facilitation. Moving forward, Canada also encourages Nicaragua’s participation in the 
Buenos Aires Declaration and the WTO’s Informal Working Group on Trade and Gender. We  also 
encourage Nicaragua to address its outstanding notifications, including new and full subsidy 
notifications that were due in 2015, 2017 and 2019, and which are critical to providing transparency 
of support programs to all Members.  
4.23.   We submitted a numb er of questions touching on many of the themes just mentioned and 
thank Nicaragua for the responses just received. We will review these carefully. In closing, I look 
forward to having a constructive exchange of views on all aspects of Nicaragua’s trade pol icy this 
week.  
EUROPEAN  UNION  
4.24.   On behalf of the European Union, I would like to welcome the Nicaraguan delegation led by 
Minister Solórzano Delgadillo, and to thank him and the WTO Secretariat for their reports, which 
form the basis for our discussion today. I also want to extend our appreciation to Ambassador 
Villegas for giving us his views on the main eco nomic and trade trends in Nicaragua, and on the 
opportunities and challenges ahead.  
4.25.   The EU welcomes this opportunity to discuss developments in Nicaragua’s trade and economic 
policies and business environment since the previous Trade Policy Review in 2012 . 
4.26.   During the period under review, Nicaragua has generally implemented a favourable trade 
policy and respected its WTO commitments, and those vis -à-vis its Central American neighbours and 
FTA partners, notably the EU. The Secretariat report shows that favou rable policies have been rolled 
out in a clear and transparent manner with a structured set of legislation and institutions promoting 
and regulating trade and investment.  
4.27.   The export free zones have been successful in terms of attracting companies and crea ting 
jobs. The introduction of standard clearance procedures and the efforts to participate in regional 
integration trade facilitation programmes have reduced the clearance time for goods. This policy has 
led to a certain level of economic diversification with a strong performance of the textiles and 
services sectors. Agriculture remains a key sector and has been affected negatively by the low 
international price of coffee.  
4.28.   Nicaragua’s trade has increased with its main partners (the U nited States, Mexico, China, 
Central America and the EU) during the review period. The EU is and will remain a key partner for 
Nicaragua, even during this challenging time for the world economy and global trade. We took 7% 
of Nicaragua’s exports in 2019 and are thus your second  export destination. Let me add that there 
are a substantial number of EU companies doing business in Nicaragua across different sectors. They 
bring new talents, business ideas and economic perspectives to the country and help to solidify and 
diversify the  economy further.  
4.29.   Trade and Investment relations between the EU and Nicaragua are governed by the 
EU-Central America Association Agreement that has been provisionally applied since 2013. Its 
coverage goes beyond trade in goods and services to include inves tment, intellectual property rights, 
sanitary and phytosanitary measures, public procurement, technical barriers to trade and regional 
cooperation. I am , however , obliged to draw attention to the fact that the political instability of the 
country since 201 8 has led to a severe drop in foreign direct investment. This is jeopardising the 
good efforts achieved since the last Review. Furthermore, although the institutions and trade policies 
are in place, the lack of institutional capacity and the limited develo pment of the infrastructure to 
facilitate trade and investment, does not allow the country to reap the full benefits of openness.  
4.30.   As regards to trade and climate change policies, while good progress has been made with the 
development of the equitable and sustainable “café de sombra”, certain agricultural export value 
chains such as palm oil or cattle continue to exert pressure on deforestation and might affect the 
land rights of indigenous communities.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.31.   In conclusion, I wish to acknowledge Nicaragua’s effor ts and progress since the last Review. 
The EU warmly encourages Nicaragua to continue the on -going efforts to facilitate trade, increase 
investments, and grow its economy in a sustainable way.  
4.32.   The EU and Nicaragua also share a strong commitment to the WTO , and we look forward to 
further working together to strengthen the rule -based multilateral trading system. We also welcome 
Nicaragua’s engagement in the WTO on -going discussions on e -commerce and investment 
facilitation.  
4.33.   Regarding climate change policies, the EU invites Nicaragua to review the organisation of 
some of its export value chains, notably cattle and palm oil, in order to reduce their impact on 
deforestation.  
4.34.   However, the EU is also obliged to note that the dete rioration of democracy and respect for 
human rights in Nicaragua is holding back the capacity of the country to project a fair and shared 
path to economic development and welfare. EU companies will hold back from investing in a country 
where fundamental va lues are not respected fully.  
4.35.   I thank you and the delegation of Nicaragua for your kind attention. On behalf of the EU, I 
would like to wish Nicaragua a successful fourth Review.  
MEXICO 
4.36.   Mexico extends a warm welcome to the delegation of Nicaragua, led by Mr Orlando Solórzano 
Delgadillo, Minister of Development, Industry and Trade. My delegation also thanks Ambassador 
Federico Villegas (Argentina) for his timely analysis and the WTO Secretariat for preparing its report. 
I would also like to take this opport unity to acknowledge the work of the Mission of Nicaragua, led 
by Ambassador Carlos Morales Dávila.  
4.37.   Mexico continues to value its close political, cultural and commercial ties with Nicaragua. 
Although Nicaragua's exports to Mexico decreased in 2012 -2019, M exico remains one of Nicaragua's 
main trading partners. We hope that our bilateral trade relationship will continue to strengthen in 
the coming years.  
4.38.   Nicaragua faces a number of social and economic challenges stemming from the deep political 
and social cr isis that began in April 2018 and which deepened with the 2020 pandemic. These 
challenges include:  
a) Poverty reduction and urban and rural disparities;  
b) The application of countermeasures to contain the social impact of the COVID -19 crisis;  
c) Total public debt,  which had fallen in recent years, but which rose again to 56.5% of GDP in 
2019;  
d) Vulnerability to external shocks caused by dependency on family remittances, which reached 
13.4% of GDP in 2019.  
4.39.   Despite the challenges faced by Nicaragua, we must applaud the  progress that it has made in 
economic and trade matters since its last review in 2012.  
a) Up to the third quarter of 2020, inflation in Nicaragua demonstrated a downward trend. This 
result shows that the policies implemented in the areas of production and fi scal and 
monetary policy were the most appropriate.  
b) Nicaragua has managed to reduce its dependence on petroleum products to generate 
electricity.  
c) It achieved significant improvements in infrastructure, particularly transport, 
telecommunications and electri city supply, which led to the potential growth of Nicaragua's 
economy by half a percentage point.  
d) The share of services and construction in GDP increased steadily during the review period, 
which has helped Nicaragua to have a relatively diversified economy . 
4.40.   Regarding WTO matters, we should also acknowledge that:  WT/TPR/M/40 4 • Nicaragua  
 
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  a) Nicaragua has implemented a number of initiatives to facilitate trade, such as the electronic 
exchange of information contained in the Single Central American Declaration (DUCA). The 
Single Window f or Foreign Trade (VUCEN), which is expected to be implemented by the first 
half of 2021, will facilitate foreign trade operations by reducing times and costs for 
participating enterprises.  
b) In intellectual property, Nicaragua established the obligation for owners of a geographical 
indication or appellation of origin to prove its registration in its country of origin. In 2019, it 
ratified the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are 
Blind, Visually Impaired o r Otherwise Print Disabled.  
c) However, in agriculture, we encourage Nicaragua to submit its outstanding notifications.  
4.41.   Lastly, Mexico would like to reiterate its commitment to strengthening its trade relations with 
Nicaragua. We are confident that our cooperation will improve our socio -economic environment and 
that of our regions. We appreciate the replies to the questions posed by my delegation and wish you 
every success in this Review.  
UNITED  STATES  
4.42.   The United States is pleased to welcome Minister Sol órzano  Delgadillo , Ambassador Morales, 
and the rest of the Nicaraguan delegation to the fourth Trade Policy Review of Nicaragua. We would 
like to recognize the excellent work of the WTO Secretariat and the Government of Nicaragua in 
compiling the comprehen sive report before us. There have been many developments since 
Nicaragua’s last review in 2012.The Government has continued to place a high priority on trade and 
investment agreements as the core of its national development strategy. However, the Nicaragua n 
economy and trade have been severely affected by the political and social crisis, beginning in April 
2018, and resulting in declining employment, consumer and business confidence. We look forward 
to learning more about Nicaragua’s trade policies and plan s, and its engagement through this TPR. 
We would also like to thank the discussant, Ambassador Federico Villegas, for his meaningful 
contributions to this Review.  
4.43.   The United States and Nicaragua continue to have a significant trade and economic 
relationshi p. The United States is Nicaragua’s leading partner in both exports and imports. Our 
bilateral trade in goods was USD 5.5 billion in total (two -way) goods trade in 2019. Trade and 
economic integration between the United States and Nicaragua is a central el ement of our bilateral 
relations. The United States supplied almost 30% of Nicaraguan merchandise imports; And 
Nicaragua’s merchandise exports go mainly to the United States (62% of all exports in 2019), as 
noted in the Secretariat’s report.  
4.44.   The United Sa tes and Nicaragua are partners under a regional free trade agreement the 
Dominican Republic –Central America –United States Free Trade Agreement (CAFTA -DR), among the 
Dominican Republic, the United States, and five Central American countries (Costa Rica, El Salvador, 
Guatemala, Honduras, and Nicaragua). Over the last fourteen years, since implementation of the 
CAFTA -DR, our trade relationship with Nicaragua has transitioned to one requiring transparent and 
reciprocal free trade.  
4.45.   The United States recognizes N icaragua’s focus on development is dependent on participation 
in international trade, broadening exports and building strategic trade alliances to foster innovation 
and supply chains, and promote foreign investment in Nicaragua. Both Nicaragua’s and the 
Secretariat’s reports detail Nicaragua’s path towards trade integration, including the adoption of 
unilateral measures, bilateral, regional and multilateral initiatives.   
4.46.   Unilaterally, Nicaragua took reform measures to pursue foreign investment through the free-
zone and public -private partnerships. The United States encourages Nicaragua to develop and 
consult clear and transparent regulations in this area. We also highlight U.S. concerns with the issues 
negatively impacting, and resulting in investment decli nes in recent years – political and social 
instability, and other obstacles such as permitting, taxes, registering and protecting property.  
4.47.   We note that during the review period, Nicaragua and the other Central American countries, 
have brought into force t rade agreements with several countries and regions and worked within 
Central American partners to strengthen regional trade. New Trade Agreements included those 
between Central America and Korea and Central America and the European Union, a new Central WT/TPR/M/40 4 • Nicaragua  
 
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  America–Mexico agreement, and partial scope agreements with Cuba and Ecuador. The United 
States would appreciate an explanation about any plans for ongoing work to further trade integration 
within the Central America.  
4.48.   On the multilateral front, we recognize Nicaragua’s active engagement in the WTO, 
particularly in the implementation of the Trade Facilitation Agreement (TFA). The United States 
commends Nicaragua for being the first country in Latin America to ratify the WTO Trade Facilitation 
Agreement (TFA) a nd deposit its instrument of acceptance.  We also recognize Nicaragua’s progress 
in notifying the WTO of its category A, B, and C commitments under the TFA. The United States also 
notes Nicaragua’s active engagement and submission of various notifications under different WTO 
Agreements and we encourage Nicaragua to submit the various notifications it has pending, mainly 
in the field of agriculture, including related to Sanitary and Phytosanitary (SPS) measures.  
4.49.   The United States recognizes Nicaragua for sev eral initiatives in recent years to facilitate 
trade, including the electronic exchange of information contained in the Central American Single 
Declaration (DUCA), and efforts to modernize infrastructure, equipment and information technology 
systems at bor der crossings. We encourage Nicaragua and its Central American neighbours  continue 
to focus on reform initiatives to promote free movement of goods and trade facilitation; regulatory 
modernization and convergence; and institutional development.   
4.50.   Strengthe ning intra -regional trade and eliminating redundancies and streamlining customs 
procedures is key to furthering the economic development of Nicaragua and other countries in the 
Central American region. We would like to learn more about Nicaragua’s plans to  implement the 
country's single window for foreign trade (VUCEN), which we understand Nicaraguan officials plan 
to implement by the first half of 2021. We look forward to experiencing these improvements to 
facilitate foreign trade operations by simplifying  formalities for pre -customs import and export 
permits, reducing the time required of, and costs incurred by, companies engaged in foreign trade. 
The United States wishes to highlight the need to increase  the transparency and rules -based -
approach to Nicara guan Custom’s review of imports and border practices, including issues related 
to application of tariffs and other taxes assessed on import, valuation of imports, and review or 
origin claims.  
4.51.   In closing, we would like to reiterate our recognition of Nicara gua’s participation in the work 
of the WTO and its commitment to prioritizing and meeting its commitments under the TFA. We 
would also like to encourage work to strengthen and build on the WTO’s rules -based and cooperative 
foundation.   
4.52.   We thank the delega tion of Nicaragua for its willingness to consider these points and welcome 
the opportunity to engage with Nicaragua and other delegations in a discussion of Nicaragua’s trade 
policy regime.   
GUATEMALA  
4.53.   On behalf of Guatemala, I would like to extend a warm welcome to the delegation of Nicaragua 
headed by Mr. Orlando Solórzano Delgadillo, Minister of Development, Industry and Trade, as well 
as the Permanent Mission Team here in Geneva with whom we have worked very closely within this 
Organization and other in ternational forums.  
4.54.   I thank the Chairperson, for his introductory remarks, as well as the WTO Secretariat for the 
report prepared, and Mr Federico Villegas, Ambassador Permanent Representative of Argentina to 
the WTO, for the very comprehensive presentatio n and analysis that he shared with us as discussant.  
4.55.   Guatemala highly values the close relationship it maintains with Nicaragua in all areas. 
Nicaragua is a brother country in the Central American sub -region, with which we share important 
development and r egional integration objectives. As a result, we have been able to build and 
progressively strengthen the Central American Common Market (CACM) and move forward in a 
harmonized manner with the development of our peoples and the strengthening of our economie s. 
4.56.   Looking beyond the region, Nicaragua and Guatemala's trade policies have been linked to the 
negotiation and implementation of important trade agreements, which, as a Central American bloc, 
were signed with the United States and the European Union.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.57.   In bilateral trade, Guatemala's main exports to Nicaragua are: textiles; plastic materials and 
articles thereof; perfumery, toilet and cosmetic products; detergents and soaps; cereal -based 
preparations; articles of paper and paperboard; edible fats and oil s; and insecticides, fungicides and 
disinfectants.  
4.58.   The main products imported from Nicaragua to Guatemala include: meat; milk and other dairy 
products; beverages, spirits and wines; fish and molluscs; soluble and ground coffee; bulbs, roots 
and ornamental plants.  
4.59.   With regard to today's Review, we highlight the efforts made by the Nicaraguan authorities to 
try to keep inflation within the margins established by its Central Bank, as well as the tax reform 
implemented to reduce tax expenditure and increase tax  collection. Furthermore, the maintaining of 
an open regime is a strength that allows foreign trade to play a very important role in Nicaragua's 
GDP. 
4.60.   During the review period, Nicaragua implemented important structural reforms in order to 
strengthen the in stitutional framework and the efficiency of public administration. As part of its 
investment promotion policies, the Government established PRONicaragua, the aim of which is to 
generate economic growth and create jobs through the promotion of quality inves tment.  
4.61.   Regarding short - and medium -term challenges, we note the importance for Nicaragua of 
continuing to work on the implementation of trade facilitation measures. In 2021, the Centre for 
Export Formalities  will be the Single Window for Foreign Trade (VUCEN), wh ich will simplify the 
pre-customs import and export formalities and reduce times and cost for companies engaged in 
international trade.  
4.62.   In the area of intellectual property, it should be noted that, during the period under review, 
Nicaragua succeeded in re gistering its first designation of origin, "Café Dipilto", as well as the 
ratifying the 1994 Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are 
Blind, Visually Impaired or Otherwise Print Disabled . 
4.63.   We applaud Nicaragua's efforts a nd achievements during the period covered by its Trade 
Policy Review and consider that the initiatives undertaken contribute to strengthening the country 
and favour the consolidation of our region's position in the world.  
4.64.   This is a challenge we share with all Central American countries with Nicaragua, and we are 
confident that our growing relationship and integration, through the Central American Common 
Market and the Customs Union, will help to generate more opportunities and strengthen our region's 
positi on in global trade.  
4.65.   We also appreciate the replies that have kindly been provided to us, in relation to the 
questions raised by Guatemala in the context of this Review,  
4.66.   We wish Nicaragua and the delegation today a successful conclusion to this Trade Policy  
Review.  
COLOMBIA  
4.67.   We would like to extend our greetings to the distinguished delegation of Nicaragua which is 
"connected" today, and which is led by the Minister of Development, Industry and Tourism, 
Mr Orlando Solórzano Delgadillo, and its Ambassador, Per manent Representative to the United 
Nations and other International Organizations, Mr Carlos Morales. We would also like to thank the 
Secretariat for the report and Ambassador Federico Villegas (Argentina) for the relevant 
contributions made.  
4.68.   The period un der review in this report (2012 -2020) has been a turbulent period for 
Nicaragua's economy. The Secretariat report highlights, in different sections, that there was 
significant progress in the country's infrastructure, and the improvements in transport, 
telecommunications, and the provision of electricity leveraged a significant economic growth during 
the first five years of the analysis.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.69.   Real GDP growth averaged 4.7% between 2013 and 2017, reaching a peak of 4.9% in the 
first year. However, domestic problem s affected this growth path and the country ended the period 
under review with negative figures in GDP projections. Domestic problems were coupled with the 
social and economic damage caused by the pandemic at the global level and, consequently, the 
country  currently faces major challenges which we hope will be overcome promptly.  
4.70.   The Government of Nicaragua, mindful of its situation, introduced the National Human 
Development Programme 2018 -2021. The objective of this Programme is to strengthen external 
trade  policy based on the concept of fair and equitable trade. The Programme also seeks to diversify 
the exportable supply of goods and services, strengthen the export of non -traditional products, and 
encourage the inflow of foreign investment. One important as pect of the Government's report is that 
the Programme also prioritizes the defence of the multilateral trading system.  
4.71.   Despite the difficulties encountered during the review period, the Government of Nicaragua 
has managed to keep inflation under control, t hanks to the responsible management of fiscal and 
monetary policies, as well as the credibility of the pre -determined devaluation system, which ensures 
free convertibility of the Nicaraguan córdoba with the dollar, and that it also fulfils the function of 
nominal anchor prices.  
4.72.   According to the Secretariat report, during the period under review, many areas of the 
economy did not have substantive changes, such as: the legislation on safeguards, anti -dumping 
and countervailing measures, the institutional and legal framework on standards and technical 
requirements; the institutional and legal framework on competition; and the regulatory framework 
on government procurement.  
4.73.   I would like to highlight the important progress made by Nicaragua in the area of sanitar y and 
phytosanitary requirements. The country modernized and strengthened its system through the 
creation of the Institute for Agricultural and Livestock Protection and Health (IPSA) in 2014, the 
National Commission for the Registration and Control of Toxi c Substances (CNRCST) in 2016, and 
the harmonization of sanitary certificates for the export of goods of animal origin with many of its 
main trading partners, among others. This has led Nicaragua to notify 67 measures and draft SPS 
measures to the WTO, as well as a significant amount of notifications. We urge Nicaragua  to continue  
in this vein . 
4.74.   One aspect of particular interest to Colombia is the foreign investment component, which is 
one of the main thrusts of the aforementioned National Human Development Programme 
2018-2021. The Government report states that " (…) facilitating investment and modernizing the 
legal framework are established as one of the main tools to promote the country's socioeconomic 
development  (…). In the questions that we submitted, we highlighted our interest in knowing more 
about the changes to the investment regime, as well as institutional changes, and the incentives 
created to attract investment. We are grateful for the replies that will address this and the other 
concerns that we have raised.  
4.75.   Trade relations between Colombia and Nicaragua have been positive, albeit below potential. 
Trade between the two countries over the past five years has been marked by a positive balance in 
favour of Colombia, with high variability in the amount of Colombian exports to Nicaragua and 
relative stability in imports from Nicaragua. Over the past five years, Colombia's exports increased 
from USD 12 million in 2015 and to USD 27 million in 2019, but reached a peak in 2018 when 
exports amounted to USD 86 million. As far as imports were concerned, the peak was reached in 
2015, when Colombia received imports from Nicaragua amounting to USD 10 million. This figure has 
remained more or less stable over the past fi ve years, with imports amounting to USD 9 million in 
2019.  
4.76.   The projected figures for 2020 estimate that the trend will continue, and the surplus on the 
continuing trade balance will remain in favour of Colombia. However, I would like to emphasize that 
a more detailed analysis of trade between the two countries shows that the surplus only corresponds 
to trade in industrial goods, as trade in agricultural products is in favour of Nicaragua and accounts 
for around USD 2 million.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.77.   I would like to end by wishing Nicaragua every success in its trade policy review and encourage 
its representatives to continue their constructive engagement within the WTO for a better and more 
inclusive functioning of the multilateral trading system.  
DOMINICAN  REPUBLIC  
4.78.   We would like t o welcome the delegation of Nicaragua, headed by Mr Orlando Solórzano 
Delgadillo, Minister of Industry and Trade, as well as H.E. Ambassador Carlos Morales, Permanent 
Representative to the WTO. We appreciate the insightful comments made by the discussant, 
H.E. Mr Federico Villegas, and thank the Secretariat for preparing its report.  
4.79.   The Dominican Republic shares close ties of friendship with Nicaragua as part of the Central 
American Integration System (SICA), the Group of Latin American and Caribbean Count ries 
(GRULAC) and the Group of Small, Vulnerable Economies. These ties are also shared as partners in 
the Free Trade Agreement between Central America and the Dominican Republic and the Free Trade 
Agreement between the Dominican Republic, Central America a nd the United States of America 
(DR-CAFTA).  
4.80.   For the Dominican Republic, Nicaragua is an important trading partner. In 2019, Nicaragua's 
exports to the Dominican Republic amounted to approximately USD 17.415 million, with the main 
products being, inter alia , tobacco, spirits and medicines. Exports from the Dominican Republic to 
Nicaragua in the same year amounted to USD 33.414 million and the main products were tobacco, 
textile accessories and printed paper or paperboard, among others.  
4.81.   Bearing in mind that this Review covers a large period of time, we wish firstly to congratulate 
Nicaragua on its significant infrastructure improvements, particularly to transport, 
telecommunications and the electricity supply. These improvements have contributed to the 
potent ial growth of the economy and to the average annual real GDP growth of up to 4.7% between 
2013 and 2017.  
4.82.   According to the Secretariat's report, Nicaragua's economy is relatively diversified. We note 
that the portion of GDP corresponding to services and co nstruction has increased during the review 
period, while inflation has been kept under control by appropriately managing fiscal and monetary 
policy.  
4.83.   We welcome the measures adopted to attract foreign direct investment, which seek to 
regulate investment pro jects through the Investment and Export Promotion Agency (PRONicaragua) 
and the adoption of the Law on Export Free Zones and the Law on Public -Private Partnerships.  
4.84.   We congratulate Nicaragua on being the first Latin American country to ratify the WTO Trad e 
Facilitation Agreement (TFA). Subsequently, the country has implemented several initiatives such 
as the electronic exchange of information contained in the Central American Single Declaration 
(DUCA).  
4.85.   We note with concern the impact of the political and s ocial instability that began in 2018. This, 
combined with the COVID -19 crisis, has resulted in job losses and a fall in consumer and business 
confidence, leading to a fall in real GDP of up to 4.0% in 2019 and growth projections for 2021 of -
0.5% according  to IMF data.  
4.86.   We also note that obstacles to foreign investment include difficulties in dealing with 
construction permits, protecting minority investors, paying taxes and registering property. Nicaragua 
depends on foreign trade for its development.  
4.87.   We commend the major changes with respect to sanitary and phytosanitary measures. In 
addition, in the area of intellectual property, we welcome the ratification of the Marrakesh Treaty to 
Facilitate Access to Published Works for Persons who are Blind, Visu ally Impaired or Otherwise Print 
Disabled.  
4.88.   Moreover, we hail the fact that, to date, Nicaragua has never appeared before the Dispute 
Settlement Body, nor has it ever initiated any action relating to contingency measures. It makes WT/TPR/M/40 4 • Nicaragua  
 
- 18 - 
 
  little use of non -tariff b arriers, did not submit any export subsidy notifications, and no changes were 
made to the regulatory framework for government procurement.  
4.89.   In conclusion, it only remains for us to congratulate Nicaragua once again and wish it every 
success in this Trade Po licy Review and in the future.  
4.90.   I wish our Nicaraguan friends a productive and successful TPR here at the WTO.  
TURKEY  
4.91.   I would like to join others in extending a warm welcome to Mr. Orlando Solórzano Delgadillo, 
Minister of Development, Industry and Commerce of Nicaragua and his delegation.  We thank the 
Secretariat and the Government of Nicaragua for their reports, as well as Ambassador Federico 
Villegas of Argentina for his substantial contribution to the Review.  
4.92.   Nicaragua, as it is indicated in the reports, has suffered economic and social instabilities as 
well as sanctions during the review period that negatively affected both the country’s economy and 
the prosperity of its people.  
4.93.   In this regard, I would like to underline that Turkey attaches great  importance to the stability, 
security and welfare of Nicaragua.  
4.94.   I also would like to take this opportunity to express our deepest condolences for the loss of 
lives caused by the devastating Eta and Iota hurricanes last November.  
4.95.   During the review period,  we see that various reforms in order to bolster trade and 
investments were introduced by Nicaragua. These reforms are also accompanied by active 
contribution and participation of Nicaragua in discussions at the WTO, which clearly indicates the 
country’s c ommitment to the multilateral trading system. We especially commend their contribution 
to advance negotiations in agriculture, fisheries and remaining DDA issues and are also pleased with 
strong cooperation on agriculture within G -33. 
4.96.   We welcome the ratifi cation of the WTO Trade Facilitation Agreement, as well as adoption of 
the Law establishing Investment and Export Promotion Agency, the Law on Export Free Zones, and 
the Law on Public -Private Partnerships. Announcement of the country's single window for fo reign 
trade is also another important move to facilitate trade operations.  
4.97.   We believe that these steps will benefit the Nicaraguan economy and assist in building more 
resilient economy, boosting institutional capacity and attracting foreign investment.  
4.98.   Turkey sees Nicaragua as a valuable partner in Central America. We wish to deepen and 
diversify our relations in all areas, particularly in the economic and commercial fields.  
4.99.   The Trade and Economic Cooperation Agreement between our countries provides a solid  
foundation to further develop relations in these areas.  
4.100.   We consider that it would be mutually beneficial to convene the first meeting of the 
Turkey -Nicaragua Joint Economic Commission for a more effective dialogue.  
4.101.   Turkey is also ready to enhance cooperat ion with Nicaragua in regional and international 
platforms such as Central American Integration System (SICA).  
4.102.   We wish Nicaragua a very successful Review.  
ICELAND  
4.103.   Iceland joins others in welcoming Mr. Delgadillo and the distinguished delegation of 
Nicaragu a to their fourth Trade Policy Review.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.104.   We also express appreciation for the reports prepared, as well as to the discussant, 
Ambassador Federico Villegas from Argentina,  for his excellent framing of the issues for our 
discussion today.  
4.105.   Prior to the COVID -19 pandemic, Nicaragua had been experiencing an average annual rate 
of economic growth of 2.8% for the period from 2012 -19.  
4.106.   Iceland welcomes the various initiatives undertaken by Nicaragua seeking to boost exports 
and reap the benefits of international tra de as a catalyst for increasing and diversifying domestic 
production.  
4.107.   As the impact of the COVID -19 pandemic are still unfolding, new challenges arise related to 
trade and trade -related activities. It is now widely recognised that women are likely to be ha rder hit 
than men by trade disruptions caused by the pandemic.  
4.108.   In September 2020, a group of WTO Members agreed to establish an Informal Working 
Group on Trade and Gender, marking the next phase of the Buenos Aires initiative kickstarted in 
2017 to increa se the participation of women in trade.  
4.109.   The trade policy review provides an excellent opportunity to share best practices of 
respective experiences relating to policies and programs to encourage women's participation in 
national and international trade an d thus promoting sustainable socioeconomic development.  
4.110.   Iceland submitted advance written questions on the participation of women in the economy 
of Nicaragua. The answers will be useful as we gather best practices.  
4.111.   Iceland appreciates Nicaragua’s active engagement in WTO and their continued support for 
the multilateral trading system. We wish the delegation of Nicaragua every success for their fourth 
trade policy review.  
SINGAPORE  
4.112.   Let me start by extending a very warm welcome to H.E. Mr  Orlando Sol órzano  Delgadillo , 
Minister of Development, Industry and Commerce and the Nicaraguan delegation, who are 
participating virtually from Managua. We thank Nicaragua for its Government report and statement. 
We also thank you, TPRB Chair Ambassador Aspelund, the Secretariat, and the discussant, 
Ambassador Federico Villegas of Argentina, for your insightful perspectives.  
4.113.   At the outset, Singapore applauds Nicaragua for conducting its TPR via “hybrid” format and 
we wish the Government and people of Nica ragua all the best in their efforts to combat the COVID -19 
pandemic. The monitoring function is a critical pillar of the WTO, and the conduct of this “hybrid” 
TPR signals the WTO’s continued resilience. Allow me to make three points.  
4.114.   First, as founding Me mbers of the WTO, Singapore and Nicaragua share a similar 
commitment to strengthen the rules -based multilateral trading system, as embodied by the WTO. 
Although Nicaragua is physically much bigger than Singapore (in fact, it is about 180 times the size 
of Singapore), our populations are roughly the same. Hence, we face similar challenges such as a 
small domestic market and a small talent pool, which compel Singapore and Nicaragua to embrace 
trade liberalisation and digital transformation, and plug ourselves  into the global economic and 
trading systems. This is well captured by the Secretariat’s report, which states that “The main 
objectives of Nicaragua’s trade policy include increasing the country’s participation in international 
trade, broadening its expor table supply and forging strategic alliances with trading partners to foster 
innovation and production chains”. In this context, we are pleased that Nicaragua is a co -sponsor 
and active participant in the Joint Statement Initiative on E -Commerce.  
4.115.   Second, we are heartened to note that despite significant headwinds, Nicaragua’s trade 
policies have helped to improve its citizens’ livelihoods. We commend Nicaragua’s efforts to reduce 
or eliminate trade restrictions to diversify its economy, enhance its competi tiveness and strengthen 
Nicaragua’s attractiveness as a destination for foreign investment. Rather than taking protectionist 
measures to limit imports, Nicaragua has sought to boost exports and reap the benefits of 
international trade as a catalyst for exp anding and diversifying domestic production. Though it WT/TPR/M/40 4 • Nicaragua  
 
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  continues to grapple with the challenges brought about by the political and social dislocations caused 
by social security system reform and the COVID -19 pandemic, Nicaragua was still able to achieve 
real average GDP growth of 2.3% during the period under review.  
4.116.   Third, we welcome Nicaragua’s active role in the WTO. For example, Nicaragua was the first 
Latin American country to ratify the Trade Facilitation Agreement (TFA) and to deposit its instrument 
of acceptance in August 2015. Nicaragua has also notified all its TFA commitments to the WTO and 
acceded to the Protocol amending the Agreement on Trade -Related Aspects of Intellectual Property 
Rights and the Information Technology Agreement, as well as sev eral IP treaties. Furthermore, 
Nicaragua joined the Multi -party Interim Appeal Arbitration Arrangement (MPIA) in May 2020, which 
underlines the systemic importance that Nicaragua accords to the WTO’s two -tier dispute settlement 
mechanism. While Nicaragua h as bound all its tariffs at eight rates, we note that some improvements 
could be made. In particular, the average tariff on agricultural products is 11.8% and remains 
substantially higher than the average applied tariff on non -agricultural products at 5.2% . There is 
also one case in which the MFN applied tariff exceeds the bound rate. We urge Nicaragua to take 
steps to rectify this situation, and we also encourage Nicaragua to avail itself of technical assistance 
to fulfil its outstanding notifications, esp ecially in relation to agriculture.  
4.117.   In conclusion, Singapore looks forward to enhancing bilateral economic engagement as well 
as collaborating closely with Nicaragua to strengthen the WTO. We wish Nicaragua every success for 
this TPR.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.118.   On behalf of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, I would 
like to extend our warm welcome to Minister Orlando Solórzano Delgadillo and his delegation for 
Nicaragua’s 4th Trade Po licy Review.  
4.119.   I would  also like to express our thanks to the discussant, H.E. Ambassador Federico Villegas, 
for his useful discussions, and to the Secretariat for its report. I agree on the comments made by 
Ambassador Villegas, including Nicaragua’s econom ic performance and it being a beautiful country.  
4.120.   We are particularly pleased that Nicaragua has very good performance in trade and 
investment. In this regard, our first applause is on Nicaragua’s achievements in implementing 
several initiatives, including  the electronic exchange of information contained in the Central 
American Single Declaration and the Border Integration Programme, to facilitate trade, improve the 
efficiency of border controls, and enhance competitiveness.  
4.121.   Second, we are pleased to see th at Nicaragua was the first Member from Latin American to 
ratify the Trade Facilitation Agreement. It’s effort in overcoming various difficulties to facilitate 
international trade is worthy of applause.  
4.122.   Third, it is also commendable for Nicaragua’s minimal  use of non -tariff barriers. Although 
some imports and exports of products are banned to protect the environment and human health and 
for security reasons, they are in conformity with international commitments.  
4.123.   Fourth, we recognize the efforts made by Nic aragua to comply with its commitments and are 
pleased to note that since its last Review, Nicaragua has not been a respondent in any complaint 
brought under the DSU.  
4.124.   Having said the above, we would like to encourage Nicaragua to complete pending 
notificati ons, mainly in the field of agriculture.  
4.125.   On Nicaragua’s investment, we would commend the efforts that Nicaragua has made to 
attract foreign direct investment. During the review period, it has adopted new Laws on the 
Investment and Export Promotion Agency, on Export Free Zones and on Public -Private Partnerships 
governing investment projects, to improve and streamline FDIs.  
4.126.   However, some concerns and obstacles still remain in areas of construction permits, 
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  4.127.   Turning to our bilateral relationship, we have enjoyed very strong economic and trade ties 
for a long time. The Free -Trade Agreement between us came into force in January 2008. We are 
pleased to see the increase of our bilater al trade since then and to see that we have become one of 
the Nicaragua’s most important trading partners and its export destinations in Asia.  
4.128.   In conclusion, we commend Nicaragua on its achievements and look forward to deepening 
our bilateral economic and  trade relations. We wish Nicaragua a successful Review.  
INDIA  
4.129.   My delegation is pleased to participate in the 4th Trade Policy Review of Nicaragua. On behalf 
of India, I would like to welcome the delegation of Nicaragua led by H.E. Orlando Sol órzano 
Delgad illo, Minister of Development, Industry and Commerce and the Nicaraguan delegation to the 
WTO in Geneva led by its Ambassador and Permanent Representative Carlos Morales Davila and his 
team for the TPR. We thank H.E. the Minister for his comprehensive  opening statement, Ambassador 
H.E. Federico Villegas of Argentina, for his insightful observations as a discussant, and the 
Secretariat and the Government of Nicaragua for the reports prepared for the Review.  
4.130.   We note from the Secretariat report that Nicaragua witnessed steady growth during the 
initial years of the review period, due to the improvement in infrastructure but the growth suffered 
during the latter part of the review period due to certain domestic challenges the country had to go 
through. India hopes that the people of Nicaragua will overcome the set back quickly and drive the 
Nicaraguan economy towards a positive growth trajectory.  
4.131.   India enjoys a friendly and cordial relati onship with Nicaragua. India is an important 
development partner of Nicaragua and we are actively working to implement various developmental 
projects, being undertaken through the various Lines of Credits (LOC) extended by India to 
Nicaragua over the last decade. We are also happy to note that India has been able to extend a 
helping hand to the people of Nicaragua with the supplies of medicines from time to time, including 
during the current COVID -19 pandemic, when India was able to extend COVID -19 related medical 
supplies to Nicaragua. Further, the supply of COVID -19 vaccines to Nicaragua is also under 
Government’s consideration and India has already made it clear that its vaccine supply capabilities 
will be used for the benefit of entire humanity. We thank  Nicaragua for joining the International 
Solar Alliance and ratifying the ISA Framework Agreement in July 2020. We are also happy to be 
undertaking various capacity building programmes, under the ITEC and PCFD programmes. We are 
also pleased with our work together in various multilateral fora including at the WTO. We are also 
looking forward to the finalization of new cooperation frameworks with Nicaragua in the areas of 
Education, Health, Energy & Agriculture, which will open up new opportunities of cooper ation 
between the two countries. Both countries are keen to further expand their bilateral engagements 
and, in that regard, we welcome the decision of Nicaragua to open their Resident Diplomatic Mission 
at New Delhi and we look forward to its early commiss ioning.  
4.132.   The bilateral trade between the two countries stood at USD 70 million in 2019 -20. 
Unfortunately, the bilateral trade during the Review Period declined, from about USD 89 million in 
2016-17 to the present USD 70 million. There are significant oppor tunities that exists between our 
two countries to trade more and we will work with the Government of Nicaragua to put our bilateral 
trade on a positive growth trajectory. We also look forward to further expanding the presence of 
Indian investments in Nicar agua, so that our companies can actively contribute to the growth and 
employment in the country.  
4.133.   We are pleased that Nicaragua remains an open and expanding economy. We also note the 
significant number of SPS and TBT measures adopted by Nicaragua in the ag riculture sector and call 
for rational use of these measures, in a way that it does not restrict trade.  
4.134.   Before  I conclude I wish to acknowledge the importance of Nicaragua at the WTO. India 
looks forward to working closely with them, both bilaterally and at the multilateral fora, including 
here at the WTO. I wish our Nicaraguan friends a productive and successful TPR.  
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  COSTA  RICA 
4.135.   On behalf of the Government of Costa Rica, I would like to warmly welcome the delegation 
of Nicaragua, headed by Mr Orlando Solórzano Delgadillo, Minister of Development, Industry and 
Trade, as well as Ambassador Morales Dávila and the team from the Perman ent Mission of Nicaragua 
to the WTO. I thank them for their report and for this afternoon's excellent presentation. I would 
also like to extend these thanks to Ambassador Federico Villegas of Argentina for his valuable 
comments, and to the WTO secretariat for its report and for its work, which has been as valuable as 
ever. 
4.136.   Our countries are bound by deep historical and cultural ties. It is no wonder: on 
15 September this year, together with El Salvador, Guatemala and Honduras, we shall celebrate the 
bicente nary of Central American independence. Since then, our countries have come a long way, 
linked by major migratory flows and a shared history. In the area of trade, we possess a successful 
integration platform under the Central American Common Market, which reflects the extensive 
harmonization of trade rules and the common external tariff, as well as the very rare exceptions to 
free trade among Member countries. At the bilateral level, Nicaragua is an important trading partner 
for Costa Rica. For example, in 2019, it was Costa Rica's fifth largest export destination and almost 
20% of Costa Rican exports to Central America went to the Nicaraguan market.  
4.137.   Turning to macroeconomic policies, the Secretariat's report points to responsible 
management, with inflation  rates and government deficit under control. During the review period, 
Nicaragua's economy showed positive signs, with average annual real GDP growth of close to 4.7%. 
Significant improvements to transport, telecommunications and the electricity supply are  also 
highlighted. On the other hand, the country is still striving to generate more vigorous growth so as 
to sustainably improve the quality of life of its population, which, since 2018, has been heavily 
affected by the social and political crisis and, mo re recently, by the COVID -19 pandemic.  
4.138.   With regard to trade, Nicaragua has been affected by the fall in the international prices of 
products that are crucial for its rural development, such as coffee. However, the textile industry 
remains dynamic and has grown in importance in recent years. Despite the broad trade platform 
developed in recent years and the intensive use of free trade platforms, there is still a high level of 
concentration in terms of products traded and destinations, which exacerbates the vulnerability of 
an economy highly dependent on foreign remittances.  
4.139.   Furthermore, the Secretariat's report shows Nicaragua's progress in opening up trade and 
the improvements it has made to its institutional and legal framework for international trade and  
foreign investment. It is worth underlining the joint work carried out to modernize and deepen the 
economic integration of Central America, including in areas such as trade facilitation, especially the 
Central American Strategy for Trade Facilitation and Competitiveness with Emphasis on the 
Coordinated Management of Borders, the Roadmap Towards the Central American Customs Union, 
the incorporation of Panama in the Economic Integration Subsystem and, most recently, the joint 
negotiation with the Republic of  Korea and the United Kingdom. Costa Rica also welcomes the 
establishment of the Investment and Export Promotion Agency (PRONicaragua), the use of electronic 
information exchange systems through the Central American Single Declaration (DUCA), as well as 
the process to implement the Single Window for Foreign Trade (VUCEN). Costa Rica encourages 
Nicaragua to continue its efforts to improve the investment climate and streamline and increase the 
transparency of customs procedures.  
4.140.   We also note the National Huma n Development Plan 2018 -21, which includes goals to 
strengthen the national quality assurance system and intellectual property register and improve the 
Central American free trade zone. For Costa Rica, these areas represent a major opportunity for 
regional  development and we will therefore follow the implementation of these policies by Nicaragua 
with utmost interest.  
4.141.   While Costa Rica did not submit questions on this occasion, we have an ongoing interest in 
the trade policies of a partner as close and impor tant as Nicaragua and, in particular, in the 
development of its policies to diversify production, attract investment and increase regional 
integration. We therefore appreciate the replies provided by Nicaragua in the framework of this 
Review.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.142.   Let me conclu de by wishing the Nicaraguan delegation every success in this Trade Policy 
Review.  
PANAMA  
4.143.   First of all , I would like to warmly welcome and thank H.E. Orlando Solórzano Delgadillo, 
Minister of Development, Industry and Trade; Ambassador Carlos Morales; and the entire 
Nicaraguan delegation for their outstanding preparatory work. I also wish to welcome Ambass ador 
Federico Villegas, discussant at this fourth Review, and thank the Secretariat for preparing the 
respective reports.  
4.144.   Panama not only shares close historical ties and bonds of friendship with Nicaragua; we are 
also close trading partners thanks to the  integration and free trade agreements with the Central 
American countries.  
4.145.   We congratulate the Government of Nicaragua, which, through prudent macroeconomic 
management, has managed to offset the impact of negative external shocks that affected this small 
and vulnerable economy during the review period.  
4.146.   However, the World Bank's projections for the economies of the world in 2021 point to 
another year of economic downfall for Nicaragua, which is estimated at -0.9%. Should this forecast 
be realized, Nicaragua  would record its fourth consecutive year in recession.  
4.147.   The latest foreign trade report published by the Central Bank of Nicaragua (BCN) for the 
period from January to August 2020 indicates that the goods trade deficit remained lower than it 
was over the s ame period in 2019. This is partly due to improved terms of trade, rises in export 
prices and decreases in import prices, and the overall adjustment of the economy.  
4.148.   Panama recognizes the progress made by Nicaragua in the implementation of a number of 
initiatives to facilitate trade by computerizing most of its procedures, such as through the electronic 
exchange of information contained in the Central American Single Declaration (DUCA) and the Single 
Window for Foreign Trade (VUCEN). We encourage Nicaragua t o continue making the necessary 
improvements to cut red tape and reduce clearance times.  
4.149.   We acknowledge Nicaragua's efforts to promote access to foreign markets and better 
integration in the international economy, as well as its continued interest in boost ing domestic and 
foreign investment by modernizing its legal framework.  
4.150.   For example, the implementation of the National Human Development Plan 2018 -21 includes 
continuing with work to strengthen the national quality assurance system and the intellectual 
property register, improving the Central American free trade zone, taking advantage of the 
preferential agreements in force, and signing new trade agreements.  
4.151.   We cannot fail to mention that the wounds caused by the arrival of SARS -CoV-2 in Latin 
America are  still raw. The Central American Bank for Economic Integration (CABEI) predicted that 
2021 will be the year for emerging from the health crisis in the region caused by the pandemic and 
moving forward with the rebuilding following the severe damage left by tropical storms Eta and Iota, 
thereby consolidating the competitiveness of the Central American countries.  
4.152.   According to predictions by the Association of Producers and Exporters of Nicaragua (APEN), 
exports of Nicaraguan goods are expected to grow by 2.8% for 2021, which, despite being lower 
than the rate observed in 2020, would be a positive development as it would mark three consecutive 
years of growth. This will depend in large part on the impact had by COVID -19 and the existence of 
a good pace of produc tion. 
4.153.   We remain attentive to the development of the discussion during this Review and I reiterate 
that Panama stands ready and willing to strengthen our cooperation with Nicaragua, with a view to 
promoting trade and investment between our countries. We wis h Nicaragua a successful fourth Trade 
Policy Review.  
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  HONDURAS  
4.154.   On behalf of the Republic of Honduras, we welcome and congratulate the Nicaraguan 
authorities on the occasion of their fourth Trade Policy Review.  
4.155.   We warmly welcome the entire distinguished delegation led by the Head of Delegation, 
Mr Orlando Solórzano Delgadillo, Minister of Development, Industry and Trade, and extend our 
greetings to colleagues and friends from the Nicaraguan Mission to the WTO in Geneva.  
4.156.   As always, we thank t he discussant for his informative analysis, as well as the WTO 
Secretariat for the quality of the report and Nicaragua for the presentation of its policy statement.  
4.157.   An assessment of the reports provided reveals that, during the review period, Nicaragua's 
economy was characterized by macroeconomic and financial stability, stable inflation rates, 
sustainable public finances, increased exports, and progress in economic and social development, 
with the industrial, mining and agriculture sectors particularly sta nding out.  
4.158.   In addition, we are pleased to note that, according to the results of the 2016 Living Standards 
Measurement Survey, there had been decrease of 17.6% in overall poverty by 2015 and a reduction 
of 7.7% in extreme poverty between 2009 and 2016.  
4.159.   We also recognize Nicaragua's efforts to improve its institutional and legal framework 
examined in this Review and highlight the registration of its first designation of origin for coffee, as 
well as its willingness to continue working on the protection of o ther designations of origin.  
4.160.   The reports show that, through the National Production Plan 2019 -2020, agricultural 
production increased by 3.2% compared to the previous cycle, as a result of higher productivity 
driven by programmes, projects, strategies and actions to promote the agricultural and 
agro-industrial sector.  
4.161.   In 2019, Nicaragua saw over 1.5 million tourist arrivals, the main markets being Central 
America, North America and Europe.  
4.162.   It should also be noted that, in the same year, 96.7% of Nicaragua 's export income was 
generated by exports to economies with which it has free trade agreements. This explains our shared 
vision of and the importance we grant to the joint signing of preferential agreements and the 
strengthening of Central American economi c integration.  
4.163.   In this vein, and turning to the bilateral level, our trade had a positive balance for 2020, 
during which we exported over USD 208 million and imported around USD 111 million. It is therefore 
a priority for our country to continue promoting,  defending and deepening our trade relations.  
4.164.   We share challenges with our Nicaraguan brothers such as addressing the impact on 
domestic economic activity caused mainly by the adverse effects of the COVID -19 pandemic, in 
addition to the recent damage cause d by Hurricanes Eta and Iota.  
4.165.   In addition to sharing a border, we also share many common public policy objectives at the 
national, regional and multilateral levels. Within this Organization, we participate in a number of 
similar groups with common positio ns on matters of interest that have a bearing on the well -being 
of our populations.  
4.166.   This year, we will both be celebrating the bicentenary of Central American independence and 
the 30th anniversary of the Central American Integration System and the Esquipul as Agreements, 
for which reason we hope to continue working together to achieve the goals set.  
4.167.   Lastly, we would like to congratulate Nicaragua on its achievements during the review period 
and wish it every success.  
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  JAMAICA  
4.168.   Jamaica congratulates Nicaragua on this its Fourth Trade Policy Review and extends a warm 
welcome to its distinguished delegation joining us from Managua and here in Geneva, led by His 
Excellency Orlando Sol órzano  Delgadillo , Minister of Development, Industry and Commerce. We 
thank Nicaragua for the report presented and further wish to register our appreciation to our 
discussant, Ambassador Villegas of Argentina for his very insightful perspectives, as well as to you 
Chair and the Secretariat for your respective co ntributions to this exercise.  
4.169.   Jamaica and Nicaragua share a long history of friendship and cooperation, with Nicaragua 
being home to a sizable Jamaican community located in Managua and Bluefields. In recent years, 
interest has been expressed by our two cou ntries to deepen the existing relations at the bilateral, 
regional and multilateral levels, with particular focus on boosting trade and investment exchanges, 
in a manner that is mutually beneficial to both countries.  
4.170.   We note positively that the Nicaraguan economy performed creditably for most of the review 
period, registering an average growth of 2.8%. This should be commended and is an outgrowth of 
the Government’s prudent fiscal and monetary management, as well as major infrastructural 
developments in tra nsport, telecommunications and electricity supply. Nevertheless, projections are 
that the country’s internal challenges, which have been further compounded by the current 
COVID -19 pandemic, will result in an economic fallout in the 2020/2021 period.  
4.171.   In ad dition, significant strides have been made by Nicaragua in diversifying its economy, 
which is considered to be relatively diversified. We encourage Nicaragua to continue these efforts 
going forward. It is noted that the services sector which is the leading  contributor to GDP remains 
dominant and has been strengthening significantly, in contrast to the agriculture and manufacturing 
sectors. Nevertheless, agriculture continues to be an important provider of employment within the 
country.  
4.172.   Moreover, Nicaragua’ s positive steps to improve the investment climate within the country 
and attract foreign direct investment (FDI), in particular through the adoption of the Law establishing 
the Investment and Export Promotion Agency (PRONicaragua); the Law on Export Free Zones; and 
the Law on Public -Private Partnerships governing the formulation, tendering, financing, 
implementation, operation and termination of investment projects, must also be highlighted for 
commendation and should be continued.  
4.173.   Like many other small vulnerable economies, Nicaragua attaches high priority to its 
participation in the rules -based multilateral trading system, with the WTO at its core given the critical 
importance of trade to the realisation of the country’s economic growth and development o bjectives. 
In alignment with its trade policy, Nicaragua has been seeking to increase its participation in 
international trade, expand exports and forge strategic alliances with key trading partners within 
Central America and beyond, through a network of t rade agreements. These actions which are 
ultimately aimed at fostering enhanced opportunities for innovation and integration of Nicaragua in 
global production and value chains are greatly encouraged.  
4.174.   Positively also, as the first country in Latin America t o ratify the WTO Trade Facilitation 
Agreement (TFA) and deposit its instrument of acceptance in 2105, Nicaragua has notified the WTO 
of its category A, B, and C commitments. Nicaragua has also been actively implementing several 
initiatives to better facili tate trade, including through use of the electronic exchange of information 
contained in the Central American Single Declaration (DUCA). We also encourage the Government 
to move forward with the implementation and full operationalisation of the country's s ingle window 
for foreign trade (VUCEN) during the first six months of 2021 which would doubtless serve to bolster 
its ongoing trade facilitation efforts.  
4.175.   In closing, Jamaica once more extends its best wishes to Nicaragua for a successful Trade 
Policy Revie w. 
BOLIVARIAN  REPUBLIC  OF VENEZUELA  
4.176.   The delegation of the Bolivarian Republic of Venezuela wishes to extend a fraternal welcome 
to the delegation of Nicaragua, headed by the Minister of Development, Industry and Trade, WT/TPR/M/40 4 • Nicaragua  
 
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  Mr Orlando Solórzano Delgadillo. We w ould also like thank the discussant, Ambassador of Argentina, 
Mr Federico Villegas, for the analysis setting the context for us, and the Secretariat for the 
organization and documentation.  
4.177.   At the outset, we wish to underline the ties of brotherhood and strategic trade cooperation 
that unite us with Nicaragua. Our two countries enjoy a mutually beneficial relationship, 
characterized by complementarity, solidarity and respect for the self -determination of peoples, 
bolstered by the Bolivarian Alliance for the Peoples of Our America (ALBA) and the Peoples' Trade 
Agreement (TCP).  
4.178.   With regard to the report by the WTO Secretariat for Nicaragua's fourth Trade Policy Review 
covering the period 2012 -2020, we note many positive points that demonstrate the Nicaraguan 
economy's exponential growth thanks to significant infrastructure improvements, especially to 
transport, telecommunications and the electricity supply. We note with satisfaction that Nicaragu a's 
economy is relatively diversified and the portion of GDP corresponding to services and construction 
showed an upward trend during the review period.  
4.179.   In this regard, we highlight the macroeconomic and financial stability of Nicaragua's 
economy, as well as the sustainable public finances, stable inflation rates, increased exports and 
progress made in economic and social development, with the industrial, mining and agricultural 
sectors showing particularly positive results.  
4.180.   Another important element is Ni caragua's National Human Development Plan 2018 -21, which 
includes continuing with work to strengthen the national quality assurance system and the 
intellectual property register, improving the Central American free trade zone, taking advantage of 
the prefe rential agreements in force, and signing new trade agreements. As regards investment 
promotion and facilitation, the plan seeks to continue boosting domestic and foreign investment, 
cutting red tape, modernizing the legal framework, and strengthening the c ountry's performance in 
terms of international indicators.  
4.181.   In our case, the report notes relevant developments in trade relations with Nicaragua, 
including the signing of a Partial Scope Agreement (PSA) with the Bolivarian Republic of Venezuela 
on 15 Augu st 1986, which was amended in September 1992. The Bolivarian Republic of Venezuela 
grants Nicaragua preferences on 312 tariff lines, including bovine livestock, beef cuts and offal, bone 
meal, crustacean shells and carapaces, black beans, cashew nuts and t una fish, among others.  
4.182.   Another element of note already mentioned at the outset is that, along with Antigua and 
Barbuda, Cuba, Dominica, Saint Vincent and the Grenadines and the Bolivarian Republic of 
Venezuela, Nicaragua is a member of the Bolivarian All iance for the Peoples of Our America (ALBA). 
These countries are signatories to the Peoples' Trade Agreement (ALBA -TCP).  
4.183.   It should be noted that the ALBA -TCP is a platform for the integration of Latin American and 
Caribbean countries, which places emphasi s on solidarity, complementarity, justice and cooperation. 
Its fundamental historic purpose is to bring together the skills and strengths of member countries, 
with a view to promoting the structural transformations and the system of relations necessary to 
achieve the comprehensive development required for the continuity of our existence as sovereign 
and fair nations. In addition, it is a political, economic and social partnership for the defence of the 
independence, self -determination and identity of the pe oples that form part of it.  
4.184.   Through the ALBA -TCP, a variety of products have been traded between our countries. In 
addition, Nicaragua and Venezuela have exchanged experiences on post COVID -19 management, 
refining strategies and protocols to be implemented  in both countries. Within the ALBA Bank, a 
financial institution established under the ALBA -TCP, the funds for the Post -pandemic Work Plan 
2021 have been approved by the regional platform's member States, in order to create a 
humanitarian fund for the pur chase of COVID -19 vaccines. The ALBA Bank initially has 2 million 
dollars for the immediate purchase of vaccines.  
4.185.   Another element that we must highlight is the Bolivarian Republic of Venezuela's emphatic 
rejection of the illegal unilateral coercive measures imposed by the Government of the United States 
on the peoples of the Republic of Cuba, Nicaragua and Venezuela. These measures constitute an 
instrument of colonial domination.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.186.   As we wish Nicaragua a successful Trade Policy Review, we would like to close our statement 
by reaffirming our ties and the shared commitment to the shaping of a strong, fair and predictable 
multilateral trading system, based on common and transparent rules. Venezuela extends fraternal 
greetings to the distinguished Nicaraguan delegation and expresses its gratitude for the heartfelt 
commitment of the Nicaraguan people to continuing to build a homeland of peace that is more 
dignified, fair and human.  
GEORGIA  
4.187.   We would like to thank you for chairing this meeting also the Secretariat for preparing and 
distributing the documents for our Review. We would also like to extend our thanks to the discussa nt 
for his insightful report.  
4.188.   We would like to inform the WTO Membership that on 28 November 2008 Georgia broke the 
diplomatic relations with Nicaragua aft er the illegal recognition by the latter of so -called 
independence of Russian occupied Abkhazia and T skhinvali regions of Georgia. Since then, Nicaragua 
has been developing illegal trade and economic relations with those illegal regimes. A set of illegal 
documents with null and void status have been signed with Sokhumi and Tskhinvali occupation 
regimes co ncerning enhancing trade and economic cooperation and relations in various sectors like 
agriculture, banking and transport.  
4.189.   In 2010 , Nicaragua signed illegal documents with Sokhumi occupation regime, namely:  
• So-called memorandum of Intent between so -called  National Bank of Abkhazia and the 
Central Bank of Nicaragua;  
• So-called bilateral Agreement on trade and economic cooperation;  
• So-called bilateral Agreement on merchant shipping;   
• So-called bilateral Agreement on air transport.  
 
4.190.   In 2010 , Nicaragua sign ed the so-called Agreement on trade and economic cooperation with 
Tskhinvali occupation regime.  
4.191.   In 2020 , Nicaragua and Sokhumi occupation regime signed the so-called Agricultural 
Cooperation Agreement.  
4.192.   By doing so, Nicaragua undermines the sovereignty and  territorial integrity of Georgia, 
blatantly violating fundamental norms and principles of international law, including the UN Charter, 
as well as the law of Georgia on Occupied Territories.  
4.193.   At the same time, we would like to emphasize that on 21 January , the European Court of 
Human Rights (ECHR) delivered its historical judgement in case Georgia v. Russia, confirming illegal 
occupation and effective control by the Russian Federation of Georgia’s sovereign territories.  
4.194.   Finally, we call on Nicaragua to imme diately seize all trade and economic contacts with 
Russian occupied Abkhazia and Tskhinvali regions, in the conduct of its external trade and economic 
policies be abided by norms and principles of international law and , ultimately, reverse its illegal 
decision on recognition of indivisible regions of Georgia - Abkhazia and the Tskhinvali region/South 
Ossetia.  
JAPAN  
4.195.   Let me first  extend a warm welcome to this f ourth Trade Policy Review meeting to the 
distinguished delegation of Nicaragua headed by H.E. Mr. Orlando Solórzano Delgadillo , Minister of 
Development, Industry and Commerce. Japan would like to express its appreciation to the 
Government of Nicaragua and  to the WTO Secretariat for their dedicated efforts to prepare the 
insightful reports shared wi th the Members in advance of today's Review.  
4.196.   Nicaragua is an important partner for Japan in Latin America. Japan welcomes the economic 
growth Nicaragua achieved during the review period by improving its basic infrastructure, including 
transport, telecommunications and the electricity supply. However, in 2020, like many other 
economies, the COVID -19 pandemic hit Nicaragua hard and the current growth rate is estimated at WT/TPR/M/40 4 • Nicaragua  
 
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  minus 5.5%. We look forward to seeing Nicaragua recovering from this severe sit uation as quickly 
as possible.  
4.197.   Japan appreciates Nicaragua’s participation in the Trade Facilitation Agreement in 2015 as 
the first Latin America member to ratify the Agreement. In addition, we acknowledge Nicaragua’s 
active participation in plurilateral f rameworks under the WTO, including the Joint Statement Initiative 
on E-Commerce, MSMEs and Investment Facilitation (for Development). We look forward to 
Nicaragua actively and continuously engaging in both multilateral and plurilateral frameworks under 
the WTO to further strengthen the Multilateral Trading System.  
4.198.   On Investment, Japan welcomes Nicaragua’s efforts during the review period to promote 
foreign investment by taking such measures as the adoption of the Law for Establishing the 
Investment and Exp ort Promotion Agency (PRONicaragua), the Law on Export Free Zones, and the 
Law on Public -Private Partnerships. Having said that, we observed that FDI inflows have declined in 
recent years. Therefore, we expect Nicaragua to accelerate its efforts to further  promote Foreign 
Direct Investment by reducing the impact of some of the main obstacles to FDI such as construction 
permits, protection of minority investors, taxes, and property registration.  
4.199.   In conclusion, Japan appreciates Nicaragua’s efforts to improve  its economic environment 
since the previous review. We also appreciate Nicaragua’s efforts to hold this TPR meeting today, 
even under the current adverse circumstances caused by COVID -19. Japan wishes Nicaragua a very 
successful and productive Review.  
INDONESIA  
4.200.   We would like to extend our welcome to the delegation of Nicaragua lead by Minister Orlando 
Solórzano Delgadillo, and thank  the discussant for his contribution to this Review, as well as to the 
Government of Nicaragua and the Secretariat for their report s.  
4.201.   We observe that Nicaragua put s an emphasis on the development of its agriculture sectors. 
However, climate change and natural disaster such as Huracan Eta and Iota are big challenges to 
this sector. In this connection, we would like to seek detai l information regarding strategy to revive 
this sector especially the program me to help farmers in order to meet the needs of fertilizers, seeds 
and agricultural equipment.  
4.202.   With regard to the impact of COVID -19 pandemic, we learn that textile industry, whi ch is 
one of the most important industr ies in Nicaragua, also suffer s a negative growth since  the demand 
in traditional market of this product decreased. We would also like to know more on Nicaragua' s 
policy in order to support this industry and to diversi fy its export market.  
4.203.   On bilateral trade, we note that trade and investment relations between Indonesia and 
Nicaragua have not reach ed its potential with total trade in 2019 only account ing for around  USD 30 
million. In this regard, we hope that Indonesia and Nicaragua can work together to encourage 
business to business contact , as well as to improve trade facilitation and market access . 
EL SALVADOR  
4.204.   First of all, we would like to welcome the delegation of Nicaragua, led by Mr Orlando 
Solórzano Delgadillo, Minister of Development, Industry and Trade. We would also like to thank the 
WTO Secretariat for its detailed report. We note the efforts of both the Government of Nicaragua 
and the Secretariat to carry out this exercise, especially in these co mplex circumstances. Likewise, 
we wish to thank Ambassador Villegas of Argentina for his words and introductory comments as 
discussant.  
4.205.   El Salvador and Nicaragua are bound by close historical, commercial and cultural ties. Our 
trading relationship is sound  and based on the General Treaty on Central American Economic 
Integration governing the Central American Common Market.  
4.206.   Both El Salvador and Nicaragua are of the view that trade among nations is a key tool for 
sustainable development. Therefore, both count ries remain committed to promoting and 
strengthening the multilateral trading system and the WTO.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.207.   With regard to the current exercise, we would like to highlight Nicaragua's positive 
macroeconomic performance since its last Trade Policy Review. As a small and open economy, it has 
managed to sustain significant growth during most of the review period. This real growth stood at 
about 4.7% between 2012 and 2017, although, from 2018, it was affected by the country's domestic 
challenges.  
4.208.   Nicaragua depends on for eign trade for its development. It is important to note that 
Nicaragua's trade policy seeks primarily to promote its products to external markets and improve 
integration in the international economy, including through the negotiation and administration of 
international agreements that address the country's economic and social needs.  
4.209.   Nicaragua's main trade policy objectives include boosting the country's participation in 
international trade, mainly by increasing the exportable supply and creating strategic a lliances with 
trading partners to promote innovation and production chains.  
4.210.   During the review period, Nicaragua, together with other Central American countries 
including El Salvador, brought into force a number of trade agreements, such as with the Republi c 
of Korea and the European Union.  
4.211.   Furthermore, one of the main achievements over the period is the implementation of 
Nicaragua's Single Window for Foreign Trade, which will simplify procedures and reduce import and 
export times, thereby helping to promote  foreign trade.  
4.212.   With regard to investment, Nicaragua maintains a relatively open investment regime. 
Against this backdrop, I believe it is worth highlighting that, according to the Government report, 
the Nicaraguan Investment Office (PRONicaragua) has mana ged to set up some 123 new investment 
projects in the last seven years. According to the information provided, these projects have created 
25,725 new jobs.  
4.213.   As regards bilateral trade, Nicaragua is one of our main trading partners and ranks fourth 
among our  leading export destinations. At the multilateral level, Nicaragua attaches particular 
importance to participation in the multilateral trading system, which it considers essential for small 
and vulnerable economies. In this connection, we note the active a nd constructive role played by 
Nicaragua in both routine and non -routine WTO work.  
4.214.   It only remains for us to wish our sister Central American nation every success in this Trade 
Policy Review.  
ARGENTINA  
4.215.   We would like to join other Members in welcoming the Nicaraguan delegation, headed by the 
Minister of Development, Industry and Trade, Orlando Solórzano Delgadillo. We extend our 
appreciation for the work of the country's Permanent Representative to this Organization, 
Ambassador Carlos Morales Dávila.  
4.216.   We are  also grateful for the reports prepared by Nicaragua and the Secretariat.  
4.217.   Nicaragua and Argentina are friendly countries that, in addition to the Spanish language, 
share a long history of diplomatic relations.  
4.218.   As regards trade, clothing and clothing accessories account for approximately half of our 
imports from Nicaragua, while  we export pharmaceutical products, beverages, spirits, vinegar and 
cereals. Worthy of note is the recent year -on-year increase in Argentine exports to Nicaragua of 
goods transport vehicles.  
4.219.   In the last year, despite the pandemic and the severe global econ omic downturn, there was 
an 18.3% increase in Argentine exports from USD 26.7 million in 2019 to USD 32.1 million between 
January and October 2020. We hope to be able to increase bilateral trade and cooperation between 
our countries in the near future, in addition to progressing in the ongoing MERCOSUR discussions to 
deliver trade agreements with Nicaragua and other Central American countries.  WT/TPR/M/40 4 • Nicaragua  
 
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  4.220.   Argentina is pleased to note that, since its last Trade Policy Review, Nicaragua's GDP grew 
by 5% annually for the  period 2013 -2017. It did so despite the financial difficulties of the last few 
years and the fact that the pandemic, of course, has affected the Nicaraguan economy. Therefore, 
now more than ever, efforts need to be redoubled to reduce poverty and the disp arities between 
urban and rural areas, which are likely to have increased as a result of the pandemic.  
4.221.   Our country welcomes Nicaragua's efforts to attract more foreign direct investment (FDI). 
These efforts are particularly valuable considering that FDI re ached historic highs in 2013 and has 
since remained relatively stagnant. Worthy of note are, inter alia , the Law establishing the 
Investment and Export Promotion Agency (PRONicaragua), the Law on Export Free Zones, and the 
Law on Public -Private Partnership s governing the management of investment projects.  
4.222.   Equally noteworthy is the fact that Nicaragua was the first Latin American country to ratify 
the Trade Facilitation Agreement, as was already highlighted by the discussant in his intervention. 
We note wit h satisfaction that, since 2019, Nicaragua has digitally exchanged information through 
the Central American Single Declaration (DUCA) and that the Nicaraguan authorities will implement 
a Single Window for Foreign Trade (VUCEN) in the coming months. We trus t that these efforts will 
help to simplify procedures and reduce costs.  
4.223.   On technical standards, Argentina is pleased that Nicaragua has expanded its regulatory 
framework in line with the international trade trends and that it started using the WTO online 
notification submission system in mid -2019.  
4.224.   By way of conclusion, we wish to express our gratitude for this fresh opportunity to address 
Nicaragua's trade practices. We wish the Nicaraguan authorities a successful conclusion to this 
Review.  
RUSSIAN  FEDERAT ION 
4.225.   On behalf of the delegation of the Russian Federation, I would like to extend a warm welcome 
to the delegation of Nicaragua, headed by H.E. Mr Orlando Solórzano Delgadillo, Minister of 
Development, Industry and Trade. We appreciate the comprehensive re ports by the Government of 
Nicaragua and the WTO Secretariat. I also thank the discussant, H.E. Mr Federico Villegas of 
Argentina, for his thoughtful comments. We hope that this Trade Policy Review will contribute to the 
transparency of Nicaragua's trade r egime.  
4.226.   We commend the Government of Nicaragua for maintaining a relatively diversified economy 
and wish Managua success in overcoming the adverse impact of the COVID -19 pandemic.  
4.227.   Since the 1980s, Russia and Nicaragua have developed bilateral economic coope ration in 
many areas. Over the review period, our trade turnover showed an upward trend, amounting to 
almost USD 68 million in 2019, which represented a 26.7% increase on the previous year. Our 
countries have established several joint ventures, including t he only high -tech joint venture for the 
production of vaccines for the region in the Western Hemisphere. The successful implementation of 
this project is a glowing example of the fruitful cooperation between Russia and Latin America in the 
field of public health, the importance of which has increased due to the spread of the coronavirus 
pandemic.  
4.228.   In December 2020, Russia signed a Memorandum of Understanding with the UN World Food 
Programme on the donation for the development of sustainable school nutrition systems in Cuba 
and Nicaragua. This is particularly important during the current COVID -19 pandemic and will help to 
reduce child disease and mortality rates, as well as the scale of child labour.  
4.229.   We hope that we will continue to build on our bila teral trade and economic potential.  
4.230.   In conclusion, I would like to thank you, Mr Chair, as well as the delegation of Nicaragua, 
the Secretariat and the discussant for the impressive work carried out so far. I wish Nicaragua a 
successful Trade Policy Review . 
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  REPUBLIC  OF KOREA  
4.231.   I would like to thank the delegation of Nicaragua for preparing this Review. Our special 
thanks go as well to Ambassador Federico Villegas  for his insightful contribution and to the 
Secretariat for its informative report.  
4.232.   Korea and Ni caragua have enjoyed an excellent economic relationship over the years. 
Despite some fluctuations, Korea’s import from Nicaragua has rapidly increased recently.  
4.233.   While Korea mainly exports transport equipment, metals, machinery and chemicals, 
Nicaragua’s to p export commodities are minerals, sugar, agricultural products such as coffee, and 
textiles. So, I believe that our trading relationship is quite complimentary, utilizing the respective 
competitive advantages.  
4.234.   The Free Trade Agreement (FTA) between the R epublic of Korea and the Republics of Central 
America was signed in Seoul in February 2018. The Republic of Korea and Nicaragua entered into 
force the FTA in October 2019. Nicaragua was the first country in Central America to complete the 
procedures for en try into force. We expect that this FTA will contribute to trade cooperation between 
the two countries and mutual economic benefits in the future.   
4.235.   We note that Nicaragua achieved steady economic growth between 2013 and 2017 before 
the political and socia l crisis in 2018 and the global health crisis in 2020. It is noteworthy that its 
real GDP grew at 4.7% annually between 2013 and 2017. Nevertheless, Nicaragua historically 
suffered huge deficits in the BOP current account despite the first current account surplus due to the 
domestic crisis in 2019, which might be a temporary surplus without fundamental economic change. 
More savings, more efficient resource allocation and higher productivity are required for Nicaragua.  
4.236.   We also recognize Nicaragua’s strong co mmitment to an open and multilateral trade system. 
During the review period, Nicaragua continued to promote access to foreign markets and further its 
integration into the international economy. And it also improved its regulatory system and national 
plans,  which include the National Human Development Plan 2018 -21, the electronic exchange of 
trade information among Central American countries, and the single window for foreign trade. Above 
all, we also note and praise that Nicaragua continued to pursue trade liberalization through regional 
and bilateral trade agreements.  
4.237.   Finally, I would like to point out some potential areas to be improved. We are concerned that 
Nicaragua’s export depends on agricultural products and textiles, which is not desirable in terms of 
vulnerability from external shocks. Therefore, more diversity in terms of product portfolio is required 
in addition to market diversification. We encourage Nicaragua to continue to expand free trade 
agreements with other countries such as non -EU Europea n countries and Asian countries while 
deepening the economic integration within Central America.  
4.238.   Considering the large population of the young generation, we also note that Nicaragua needs 
to pay attention to building on healthy and skilled human capital. Education, vocational training, and 
health are definitely the sectors to be financed by public resources. Young people in a young country 
can do anything positively in any area if they are educated and trained.  
4.239.   We wish Nicaragua a successful Review.  
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  5  REPLIES BY THE REPRESENTATIVE OF NICARAGUA  AND ADDITIONAL COMMENTS  
5.1.  We are grateful for the participation of all the delegations that joined us in Nicaragua's fourth 
Trade Policy Review.  
5.2.  We note with great satisfaction the positive elements identified by the delegations as part of 
this Review:  
• Nicaragua's opening up to th e outside world;  
• The low tariff levels;  
• A trade policy compliant with international trade rules;  
• The country's active participation in the defence of the multilateral trading system and the 
WTO;  
• Its progress in trade facilitation;  
• Its participation in C entral American economic integration;  
• Our country's progress in terms of macroeconomic stability;  
• The control of inflation;  
• The progress in combatting poverty; and  
• Policies in favour of MSMEs, the environment and gender equality.  
5.3.  For small countries, su ch as Nicaragua, active participation in international trade is a vital 
element for their economic and social development prospects, along with support for production and 
social policies. It is for this reason that our National Human Development Plan inclu des this area in 
its strategic guidelines.  
5.4.  Together with the other Central American countries, Nicaragua has made progress in the 
following matters related to economic integration:  
• We have adopted the Strategic Route for the acceleration of Central Ameri can economic 
integration;  
• We approved the COVID -19 Biosafety Guidelines applicable to the Central American land 
transport sector, thereby preserving fluid trade and supplies for our peoples;  
• We updated the Central American Regulations on Sanitary and Phyto sanitary Measures and 
Procedures;  
• We signed the Protocol Incorporating the Republic of Panama into the Central American 
Economic Integration Subsystem;  
• We approved the Sanitary and Phytosanitary Directive on Trade Facilitation in Respect of 
Central Americ an Shipments and Goods;  
• We implemented the Central American Strategy for Trade Facilitation and Competitiveness 
with an Emphasis on Coordinated Border Management;  
• We brought into force the Central American Single Declaration (DUCA); and  
• We implemented the Regional Strategy for Comprehensive Risk Management in Customs.  
5.5.  With regard to investment promotion, our country faces new challenges as a result of the 
economic crisis caused by COVID -19 and the subsequent fall in foreign direct investment flows. 
PRONicaragua is working to enc ourage reinvestment, expansion and job protection in established 
firms, without losing sight of the search for new investment projects.  
5.6.  The investment in productive infrastructure, especially energy, telecommunications and road 
and port infrastructure, wi ll have a positive impact in the future on the performance of the economy 
and, in particular, the productive sectors that will enjoy better logistical services. For example, 
national electricity coverage reached 97.16% in 2019, compared to 73.7% in 2012.  
5.7.  In telecommunications, 2,580 km of optical fibre was laid through the broadband programme, 
thereby improving the coverage of the backbone and "last mile" networks in 93 of the country's 
municipalities. Under the CARCIP programme, 18 mobile communications ba se stations were 
established in the Caribbean area.  
5.8.  Turning to road infrastructure, Nicaragua had a 24,763 km -long road network in 2019, of which 
18% was paved and 29.9% usable only in the dry season. Compared to 2012, the total network and 
the paved netwo rk have grown by 3.6% and 36.1% respectively.  WT/TPR/M/40 4 • Nicaragua  
 
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  5.9.  In the area of gender policy, we appreciate the particular interest expressed by the delegation 
of Iceland, the country ranking first in the Global Gender Gap Report. Nicaragua is ranked 5th in the 
report, whic h is the highest position of all countries in the Latin American region. Our National Human 
Development Plan sets out clear guidelines on gender policy, which has enabled us to continue 
moving forward resolutely in this area.  
5.10.   As mentioned in the report, Ni caragua belongs to the international organizations governing 
sanitary and phytosanitary standards. The development of its new legal framework seeks to 
guarantee, maintain and strengthen health in the agricultural, aquaculture and fisheries industry, 
contri buting to public health and national and international trade, while also taking into account 
Nicaragua's commitments to the international organizations and the WTO SPS Agreement.  
5.11.   Nicaragua reaffirms that international standards are used as the basis for th e development of 
Nicaraguan Mandatory Technical Standards. Moreover, these international standards are referenced 
in each technical regulation, mainly those used for the mandatory standards' conformity assessment 
schemes.  
5.12.   As regards customs procedures, Nic aragua applies the WTO Agreement on Customs Valuation, 
as well as the Uniform Central American Customs Code (CAUCA) and its Regulations (RECAUCA).  
5.13.   Turning to the facilitation of business establishment, the Government of Nicaragua considers 
that the initia tives being implemented in the area of trade facilitation and cutting red tape will have 
a positive impact on Nicaragua's position with regard to the ease of doing business.  
5.14.   Nicaragua is an open country. In terms of climate change challenges, the areas hom e to 
African palm and livestock saw the highest levels of deforestation over the period 2000 -2005. From 
2007 to 2020, there has been a decrease in the net rate of deforestation and an increase in plant 
cover by 30,000 hectares annually. This is the result of the policies of our Government of 
Reconciliation and National Unity, which are aimed at the promotion, conservation and sustainable 
management of natural resources.  
5.15.   Under the Paris Agreement, in 2020 the Government of Nicaragua updated its Nationally 
Determined Contributions, including mitigation in the agricultural sector, through incentives for the 
green transformation and the reduction of emissions from deforestation and forest degradation 
(REDD+), which includes the restoration of production landsca pes, deforestation -free production, 
the national system of safeguards ensuring the rights of indigenous peoples and people of African 
descent, and bovine environmental traceability from source to destination.  
5.16.   We take note of the recommendations of the part icipating countries to ensure compliance with 
all transparency requirements, particularly agriculture notifications, which we will complete in the 
coming period.  
5.17.   Lastly, we have found that almost all WTO Members are conscious of the Organization's 
purview , which Nicaragua respects and upholds. It is not the place for political opinions and 
pronouncements, and even less so for repeating misrepresentations and misconceptions regarding 
the regrettable events of April 2018, which certainly affected our country 's image and economic 
performance.  
5.18.   These events are now fully behind us. Today, Nicaragua is at peace and continues to be one 
of the safest and most peaceful countries in the Americas. A country capable, as we have 
demonstrated, of addressing the COVID -19 pandemic and the significant damage caused by 
Hurricanes Eta and Iota with the support of friendly countries and the relevant international 
organizations.  
5.19.   We thank you again for your participation and support. We stand ready to answer the latest 
question s that we received early this morning in Nicaragua and shall do so with accuracy, clarity and 
transparency, in consultation with the country's competent specialized agencies. Once again, thank 
you for your participation and may God bless us all.  
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  DISCUSSA NT 
5.20.   I would like to thank Minister Solórzano Delgadillo for the very comprehensive intervention 
and particularly for the clarifications and responses to the interventions of the Members that took 
the floor.  
5.21.   It is notable that a number of Members commended N icaragua for its macroeconomic stability, 
as well as the fact that the country has a stable fiscal policy that has successfully curbed inflation. 
Nicaragua's efforts to increase the share of services in the economy and achieve greater 
diversification were discussed. The fact that Nicaragua has managed to reduce its dependency on 
petroleum products to generate electricity was also underlined. Furthermore, Members highlighted 
the significant infrastructure improvements, particularly in transport, telecommunic ations, and the 
electricity supply.  
5.22.   With regard to  trade policy, a number of Members commended Nicaragua's early ratification 
in 2015 of the Trade Facilitation Agreement (TFA) and the implementation of its commitments under 
the same Agreement, including the notifications.  
5.23.   Moreover, Members congratulated Nicaragua for its active participation in the multilateral 
trading system, and especially for its involvement in the joint initiatives on e -commerce, investment 
facilitation for development, and micro, small and medium -sized enterprises (MSMEs). Nicaragua 
was encouraged to consider its participation in the Buenos Aires Joint Declaration on Trade and 
Women's Economic Empowerment, which would be welcome, and in the discussions taking place in 
this Organization on women's participation in the economy.  
5.24.   Notwiths tanding the foregoing, there are areas of Nicaragua's trade policy with regards to 
which Members expressed concerns. I will now briefly turn to these concerns.  
5.25.   A first aspect that a number of Members deemed to require improvement is the political and 
social stability in the country, highlighting the need to guarantee the full rule of law in order to 
ensure sustainable economic growth. They also pointed out that greater stability in these areas 
would lead to substantive improvements in terms of attracting fo reign direct investment and 
increased economic welfare.  
5.26.   Another aspect that Members felt could be examined in greater detail is the business 
framework. Despite Nicaragua's major progress in the area of legislation to attract greater foreign 
direct investme nt (highlighted by several delegations), it was noted that foreign investors still face 
difficulties in entering the Nicaraguan market. Similarly, and in spite of the significant progress in 
trade facilitation such as the rapid implementation of a single w indow, Nicaragua was invited to 
review the implementation and transparency of its customs procedures. Also linked to the need to 
improve the business climate in the country, one delegation encouraged Nicaragua to consider 
joining the OECD Convention on Com bating Bribery of Foreign Public Officials in International 
Business Transactions.  
5.27.   Lastly, Nicaragua was encouraged to speed up its notifications to the WTO, particularly in the 
areas of agriculture and sanitary and phytosanitary measures. While Members acknowledged that 
Nicaragua had notified a significant number of SPS measures and pro cedures during the review 
period, the country was encouraged to update those outstanding notifications. One delegation 
suggested that, if necessary, Nicaragua could request technical assistance so as to ensure the proper 
and timely submission of these noti fications.  
5.28.   The quality of the delegations' interventions during this fourth Trade Policy Review of 
Nicaragua reflects the interest that Members have in this country's trade policies and practices.  
5.29.   As I already expressed in my intervention on Wednesday, pa rticipating as discussant has been 
a great opportunity for me to also deepen my knowledge of Nicaragua's specific trade practices. I 
would once again like to thank the delegation of this brother country for its detailed responses and 
active participation i n its fourth Trade Policy Review. Thank you very much, Mr Chair.  
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  UNITED  STATES  
5.30.   The United States would very much like to thank the delegation of Nicaragua for your presence 
online here today in addition to expressing appreciation for the work which has g one into preparation 
for Nicaragua’s fourth Trade Policy Review. We value the insights received from Minister Solórzano 
and Ambassador Morales and as always, the expert con tributions of the Secretariat.  
5.31.   We appreciated Nicaragua’s responses to our advanced written questions and look forward to 
reviewing their responses to a handful of follow -up questions that were submitted early this morning.  
5.32.   We would again like to commend Nicaragua’s efforts with regards to the implementation of 
the Trade  Facilitation Agr eement (TFA). It is no small achievement that Nicaragua was the first 
country in La tin America to ratify the TFA. Moreover, we take note of Nicaragua’s positive path 
towards trade integration, including its adoption of reform measures and its pursuit of bi lateral, 
regional, and multilateral initiatives.  
5.33.   As expressed in the first day of the TPR, we would like to highlight our continued interest in 
gaining further understanding of Nicaragua’s plans to implement its single window for foreign trade 
(VUCEN) by the first half of 2021. In addition to better understanding how VUCEN will improve the 
issuance of import and export permits, we would also like a more robust underst anding of additional 
steps the G overnment is taking to increase the overall transparency, predictability, and 
accountability of taxes and fines le vied by the Customs Authority.  
5.34.   We additionally welcome Nicaragua’s timely submission of notifications under a number of 
WTO agreements, and at the same time encourage Nicaragua to expeditiously submit  its outstanding 
notifications.  
5.35.   In closing, we would like to thank Nicaragua’s team fo r their engagement during this R eview 
and we thank the Secretariat and the discussant for their valuable support and insights.  
EUROPEAN  UNION  
5.36.   On behalf of the EU, let me first thank the delegation of Nicaragua for their comprehensive 
overview presented of the main trade and economic developments that occurred under the review 
period and the statement today.  
5.37.   The EU welcomes these useful insights that this Review has provide d into Nicaragua’s ongoing 
and planned policies and initiatives to foster economic growth, enhance its integration in global 
supply chains and strengthen its regulatory environment.  
5.38.   The EU hopes that the comments received by the WTO Members will support Nicaragua in 
further reviewing and reforming its trade policies, addressing the challenges and the shortcomings 
highlighted by several delegations on Wednesday.  
5.39.   To this respect, the EU notes that the annual FDI flows have fallen in recent years whi ch is 
damaging for a country reliant on foreign investment to develop its economy and create jobs. The 
Secretariat report shows that the major obstacles to foreign investment are technical difficulties 
regarding permits, and taxes.  
5.40.   The EU would like to enc ourage Nicaragua to continue cutting red tape, modernizing its legal 
framework, and strengthening its investment policy.  
5.41.   The EU has submitted some follow -up questions to Nicaragua on the topics of publishing 
existing import authorizations and certificates,  recognition of standards equivalents, SMEs use of 
fiscal exceptions, sustainable purchase initiative, and prevention of illegal deforestation for 
agriculture, among other issues.  
5.42.   We thank Nicaragua in advance for the replies within the timelines foreseen for this exercise.  WT/TPR/M/40 4 • Nicaragua  
 
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  5.43.   In conclusion, the EU would like to thank the delegation of Nicaragua for undergoing this 
important transparency exercise in a virtual format and , in spite of  the challenging circumstances, 
thus demonstrating Nicaragua’s commitment to the WTO.  
5.44.   We are confident that our good cooperation will continue and will contribute to sustainable 
social economic recovery from the pandemic and to the economic growth.  
HEAD  OF DELEGATION  (MR. ORLANDO  SOLÓRZANO  DELGADILLO)  
5.45.   The delegation of Nicaragua and our Government hope that all WTO Member delegations are 
fully reassured. Nicaragua is a country with long -term stability. We have all the facilities required 
for the establishme nt of foreign investment. As the discussant said so well, Nicaragua, as a small 
developing country, depends largely on domestic and foreign investment. There is no difference for 
us in how foreign investment and domestic investment are treated. As a Govern ment, we remain in 
touch. As we said in the first presentation, one of the key elements for development is 
communication and dialogue with all productive sectors, be they small, medium or large. Micro, 
small and medium -sized enterprises account for over 90 %-95% of all enterprises in terms of the 
number of enterprises in the country. We have special support and follow -up policies for all 
enterprises without discrimination.  
5.46.   We are going to review the questions and look forward to providing timely answers as best 
we can. In addition to these questions, we are able to answer any questions outside of this Review 
that you may want to raise, and will do so with great pleasure. Greetings to all friends, and in 
particular to Gloria Abraham of Costa Rica, with whom I  worked at the Inter -American Institute for 
Cooperation on Agriculture. Nicaragua is primarily an agricultural country and is able to continue 
producing, improve its production and supply food to all countries of the world. We are open for 
business. Thank you God and good luck to all.  
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON  
6.1.  The fourth Trade Policy Review of Nicaragua has given us the opportunity to better understand 
the trade, economic, and investment policies adopted by Nicaragua since its previous Review in 
2012, and to identify the challenges that it continues to face. This has been aided by the information 
contained in the Government and Secretariat reports, together with Nicaragua's responses to the 
questions from Members. Thanks to the collaboration of  the Nicaraguan authorities, this review has 
taken place despite the constraints posed by the COVID -19 pandemic on the preparation process. 
Our discussion has benefited from the active participation of the Nicaraguan delegation, led by the 
Minister for Dev elopment, Industry and Trade, Mr. Orlando Solórzano, as well as from the insightful 
contribution of the discussant, H.E. Ambassador Federico Vi llegas of Argentina, and the 
25 delegations that spoke during the first day. Nicaragua responded to all 154 written questions 
posed by Members before the meeting.  
6.2.  Members commended Nicaragua for its solid economic growth between 2013 and 2017 which 
translated into reduced poverty levels, noting that this positive performance had been helped by the 
significant in frastructure improvements made in recent years, especially in transport, 
telecommunications and the supply of electricity. They indicated, however, that the 2018 socio -
political crisis and the COVID -19 pandemic had led to a contraction in GDP growth, emplo yment, 
exports, private investment and consumption. Nicaragua was urged to continue its efforts to address 
the economic effects of the pandemic and tackle its structural challenges, notably income and 
regional disparities, as well as low levels of public a nd private investment.  
6.3.  Members praised Nicaragua’s commitment and support for the rules -based multilateral trading 
system. Specifically, they appreciated its prompt ratification of the Trade Facilitation Agreement 
(TFA) and active participation in plurilat eral initiatives on e -commerce, MSMEs, and investment 
facilitation for development. Some Members invited Nicaragua to join the WTO Informal Working 
Group on Trade and Gender. Members encouraged Nicaragua to submit pending notifications to the 
WTO, mainly i n the fields of agriculture and subsidies.  
6.4.  Nicaragua's continued regional cooperation efforts during the review period, mainly through 
the Central American Common Market but also individually with other parties was noted by Members, 
some of whom requested information on the remaining steps to achieve the Central American 
Common Market. Questions were also raised regarding preferential rules of origin, and the economic 
and business opportunities offered to foreign companies by these regional trade agreements , 
including participation in infrastructure projects.  
6.5.  Members were appreciative of Nicaragua's recent initiatives to attract larger FDI inflows, in 
particular through the adoption of laws on a new Investment and Export Promotion Agency 
(PRONicaragua), on E xport Free Zones, and on Public -Private Partnerships. To enhance the 
attractiveness of Nicaragua as a destination for FDI, some Members noted the need to improve the 
business environment in areas such as transparency, the rule of law, infrastructure, and g overnance.  
6.6.  Regarding trade procedures, they welcomed Nicaragua's participation in the electronic 
exchange of information contained in the Central American Single Declaration and the Border 
Integration Programme, and sought further details on the single wi ndow for foreign trade (VUCEN), 
which Nicaragua plans to gradually implement during 2021. Members hoped that, once in place, 
VUCEN would simplify formalities for, inter alia, import and export permits, thereby reducing the 
time required of, and costs incur red by, companies engaged in foreign trade.  
6.7.  Members noted that Nicaragua’s trade policy had remained largely unchanged since the 
previous Review, with continued heavy reliance on instruments such as the tariff, the import service 
fee, import and export res trictions, and licensing, to attain domestic policy goals. While Members 
commended Nicaragua for making little use of non -tariff measures, concerns were raised about 
Nicaragua's use of technical regulations and SPS measures, including compliance with inter national 
standards.  
6.8.  Noting the reform progress made, Nicaragua was invited to further strengthen its regulatory 
regime in order to help attract more investment and create a more predictable business 
environment. In this respect, Members enquired about the  sizeable role of the state in several 
sectors vis -à-vis private sector competition and requested Nicaragua to submit updated information WT/TPR/M/40 4 • Nicaragua  
 
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  on state trading enterprises. Members also sought clarifications on legal and regulatory changes 
currently under revie w in areas such as competition policy, government procurement, intellectual 
property, and services. Questions were formulated about Nicaragua's recent changes made to its 
institutional framework in the agriculture sector, strategies to support this sector and the textile 
industry in light of recent natural disasters, efforts to diversify its export markets, and plans to 
reduce the digital divide and for broadband deployment and penetration.  
6.9.  These points reflect some of the main issues that emerged in our di scussion during this Review. 
Let me once again thank Nicaragua, the discussant, and the rest of the Members for their very 
positive and active contribution to our two days of discussions, which provided us with a better 
understanding of Nicaragua's trade a nd related policies and practices and helped us identify the 
achievements accomplished since the last Review in 2012, and the challenges that remain ahead. 
Members hoped that the Nicaraguan economy would soon return to its growth path, through a 
stronger a nd more diversified integration into the world economy. Members look forward to receiving 
written answers to follow -up questions within one month, at which point this Review will be 
successfully concluded.  
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