99-4725 MOREPRESS RELEASE
PRESS/TPRB/119
1 November 1999
TRADE POLICY REVIEW BODY
REVIEW OF NICARAGUA
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its
review of Nicaragua's trade policies on 25 and 27 October 1999. The text of the Chairperson'sconcluding remarks is attached as a summary of the salient points which emerged during the
discussion. The review enables the TPRB to conduct a collective examination of the full range of
trade policies and practices of each WTO member countries at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country's trade policies, including
its domestic laws and regulations, the institutional framework, bilateral, regional and other
preferential agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson's summing-up together with these two reports will be published in duecourse as the complete trade policy review of Nicaragua and will be available from the WTO
Secretariat, Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 & 1999),
Australia (1989, 1994 & 1998), Austria (1992), Bang ladesh (1992), Benin (1997), Bolivia (1993 &
1999), Botswana (1998), Brazil (1992 & 1996), Bu rkina Faso (1998), Cameroon (1995), Canada
(1990, 1992, 1994, 1996 & 1998), Chile (1991 & 1997), Colombia (1990 & 1996), Costa Rica (1995),
Côte d'Ivoire (1995), Cyprus (1997), the Czech Republic (1996), the Dominican Republic (1996),
Egypt (1992 & 1999), El Salvador (1996), the European Communities (1991, 1993, 1995 & 1997),
Fiji (1997), Finland (1992), Ghana (1992), Guinea (1999), Hong Kong (1990, 1994 & 1998), Hungary(1991 & 1998), Iceland (1994), I ndia (1993 & 1998), Indonesia (1991, 1994 & 1998), Israel (1994 &
1999), Jamaica (1998), Japan (1990, 1992, 1995 & 1998 ), Kenya (1993), Korea, Rep. of (1992 &
1996), Lesotho (1998), Macau (1994), Malaysia  (1993 & 1997), Mali (1998), Mauritius (1995),
Mexico (1993 & 1997), Morocco (1989 & 1996), New Zealand (1990 & 1996), Namibia (1998),
Nicaragua (1999), Nigeria (1991 & 1998), Norway (1991 & 1996), Pakistan (1995), Paraguay (1997),
Peru (1994), the Philippines (1993 & 1999), Poland (1993), Romania (1992 & 1999), Senegal (1994),
Singapore (1992 & 1996), Slovak Republic (1995), the Solomon Islands (1998), South Africa (1993
& 1998), Sri Lanka(1995), Swaziland (1998), Sweden (1990 & 1994), Switzerland (1991 & 1996),
Thailand (1991 & 1995), Togo (1999), Trinidad and Tobago (1998), Tunisia (1994), Turkey (1994 &
1998), the United States (1989, 1992, 1994, 1996 & 1999), Uganda (1995), Uruguay (1992 & 1998),
Venezuela (1996), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/119
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MORETRADE POLICY REVIEW OF NICARAGUA
25 AND 27 OCTOBER 1999
CONCLUDING REMARKS BY THE CHAIRPERSON
We have had very open and informative discussions on Nicaragua's trade regime, aided by the
very constructive engagement of Minister Sacasa and his delegation.  To me this has been emblematic
of Nicaragua's belief in open trade, with the WTO as its pillar.  Nicaragua is rebuilding its economy,
toward a market-oriented system and a liberal trad ing environment, with an updated legal framework,
including, in particular, modern, clear and stable rules for economic operators and private investors.
This transformation has adjustment costs:  there is also a need for poverty alleviation and social
progress.  I think we have come to see that sustained effort in all these respects would be greatly
assisted by access to markets, a point made clearly by Minister Sacasa.
Our discussions have allowed Members to appreciate both the scale of Nicaragua's economic
recovery and the contribution to that recovery of trade policy reforms to date.  Nicaragua undertook
unilateral tariff reductions and its tariff commitments in the Uruguay Round were comprehensive.
These were followed by the ratification of expanded WTO commitments on financial services.
Nicaragua has eliminated import restrictions and not taken trade defence measures under themultilateral trade agreements.  Members have also heard that implementation of commitments is not
always obvious and that technical assistance would be useful.  More generally, I think we have all
taken note of the difficulties caused by natural disasters, notably El Niño  and hurricane Mitch, and of
Nicaragua's very high level of external indebtedness, which have compounded the adjustment
difficulties.
Members also acknowledge that foreign assistance has been, and continues to be, essential to
the ongoing process of economic and social recovery as well as to meeting public and current account
financing requirements.  The results of the macroeconomic stabilization and structural reforms were
greatly appreciated by Members, while support was expressed for Nicaragua's qualification as a
beneficiary of the HIPC initiative.  Sound governance and transparency were prerequisites forattracting foreign investment.
In addition to these general points, Members were grateful for the comprehensive and well
structured explanation given by the Nicaraguan  delegation on many specific points, including:
(a) measures to cope with the current account deficit;
(b) privatization process, in particular in the telecommunications, electricity and transport
sectors, and progress in resolving property rights/claims;
(c) strategy for attracting private investment;
(d) WTO notification of regional trade agreements, the convergence to a common
external tariff within the CACM and the vision toward further regional integration;
(e) the gap between average applied and bound tariff rates;
(f) elimination of import prohibitions;
(g) status of new legislation on customs valuation, SPS measures, and government
procurement;PRESS/TPRB/119
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END(h) re-introduction of price bands;
(i) consular fees;
(j) elaboration of domestic standards;
(k) timing of compliance with customs valuation and TRIPs obligations;
(l) competition policy and consumer defense;
(m) plans on support to agriculture (subsidies, marketing);