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On August 5, 2004, the United States signed the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR or Agreement) with five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and the Dominican Republic (the Parties). Under the Agreement, the Parties are significantly liberalizing trade in goods and services.
The CAFTA-DR also includes important disciplines relating to: customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, electronic commerce, intellectual property rights, transparency and labor and environmental protection.
The Agreement entered into force for the United States, El Salvador, Guatemala, Honduras, and Nicaragua in 2006. The CAFTA-DR entered into force for the Dominican Republic on March 1, 2007, and for Costa Rica on January 1, 2009.
In 2008, the Parties implemented amendments to several textile-related provisions of the CAFTA-DR, including, in particular, changing the rules of origin to require the use of U.S. or regional pocket bag fabric in originating apparel. The Parties also implemented a reciprocal textile inputs sourcing rule with Mexico.
Under this rule, Mexico provides duty-free treatment on certain apparel goods produced in a Central American country or the Dominican Republic with U.S. inputs, and the United States provides reciprocal duty-free treatment under the CAFTA-DR on certain apparel goods produced in a Central American country or the Dominican Republic with Mexican inputs.
These changes will further strengthen and integrate regional textile and apparel manufacturing and create new economic opportunities in the United States and the region.
U.S.-Nicaragua Trade Facts
Nicaragua is currently our 65th largest goods trading partner with $3.9 billion in total (two way) goods trade during 2013. Goods exports totaled $1.1 billion; Goods imports totaled $2.8 billion. The U.S. goods trade deficit with Nicaragua was $1.7 billion in 2013.
Nicaragua was the United States' 76th largest goods export market in 2013.
U.S. goods exports to Nicaragua in 2013 were $1.1 billion, down 6.3% ($71 million) from 2012, and up 111% from 2003. U.S. exports to Nicaragua are up 69% from 2005 (Pre-FTA).
The top export categories (2-digit HS) in 2013 were: Machinery ($195 million), Special Other (articles donated for relief) ($108 million), Electrical Machinery ($69 million), Cereals (wheat and corn) ($51 million), and Optic and Medical Instruments ($50 million).
U.S. exports of agricultural products to Nicaragua totaled $199 million in 2013. Leading categories include: soybean meal ($38 million), wheat ($32 million), soybean oil ($31 million), and corn ($13 million).
Nicaragua was the United States' 59th largest supplier of goods imports in 2013.
U.S. goods imports from Nicaragua totaled $2.8 billion in 2013, a 2.0% increase ($56 million) from 2012, and up 264% from 2003. U.S. imports from Nicaragua are up 138% from 2005 (Pre-FTA).
The five largest import categories in 2013 were: Knit Apparel ($1.0 billion), Electrical Machinery ($483 million), Woven Apparel ($397 million), Precious Stones (gold) ($170 million), and Spices, Coffee, and Tea (coffee) ($165 million).
U.S. imports of agricultural products from Nicaragua totaled $405 million in 2013. Leading categories include: coffee (unroasted) ($163 million), and red meats, fresh/chilled/frozen ($127 million).
The U.S. goods trade deficit with Nicaragua was $1.7 billion in 2013, a 7.9% increase ($128 million) over 2012.
U.S. foreign direct investment (FDI) in Nicaragua (stock) was $219 million in 2012 (latest data available), a 38.7 percent decrease from 2011.
There is no information on the distribution of U.S. FDI in Nicaragua.
Nicaragua FDI in the United States (stock) was not available in 2012.
*NOTE: No services trade data with Nicaragua is available.