MercoPress. South Atlantic News Agency

Nicaragua on verge of FTA with China

We thank God for the good news, Laureano Ortega Murillo said

Nicaraguan authorities Tuesday announced that a Free Trade Agreement (FTA) with China is ready to be signed next month after the “substantial conclusion” of the ongoing negotiations, it was reported in Managua.

Nicaragua and China resumed diplomatic relations in 2021 after the Government of President Daniel Ortega cut ties with Taiwan, which led to the signing of memorandums of understanding to promote Chinese investments in the Central American country.

Laureano Ortega Murillo, the president's son and his advisor for investment, trade, and international cooperation, praised Chinese President Xi Jinping for the conclusion of talks and for “the great attention given to this brotherly relationship.”

“We are happy, content, we thank God for the good news that we have achieved, the substantial conclusion of negotiations” for an FTA, he told reporters.

Nicaragua and the People's Republic of China began negotiations after they reached an Early Harvest Agreement in 2022, considered a preliminary step for the FTA, which is expected to enter into force in January 2024.

Nicaraguan Finance Minister Iván Acosta said the FTA “is an extraordinary moment for the people of Nicaragua.” He added that the FTA could increase by at least 2 additional points the growth of the country's Gross Domestic Product, projected at between 3.4% and 3.5% in the period from 2023 to 2026.