RESTRICTED  
  
WT/TPR/S/404  
9 December 2020  
(20-8843) Page: 1/87 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
NICARAGUA  
This report, prepared for the fourth Trade Policy Review of Nicaragua, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Nicaragua on its trade policies and practices.  
 
Any technical questions arising from this rep ort may be addressed to Mr Angelo Silvy (022 739 
5249); Mr Ricardo Barba Viniegra (022 739 5088); and Ms Rosen Marinov (022 739 6391).  
 
Document WT/TPR/G/404 contains the policy statement submitted by Nicaragua.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Nicaragua. This report was drafted 
in Spanish.  
  WT/TPR/S/404 • Nicaragua  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  5 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  10 
1.1   Main Features of the Economy  ................................ ................................ ..................... 10 
1.2   Recent Economic Developments  ................................ ................................ ................... 11 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 14 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 14 
1.3.2    Foreign direct investment  ................................ ................................ ......................... 18 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  20 
2.1   General Framework  ................................ ................................ ................................ ....20 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 20 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 21 
2.3.1    WTO ................................ ................................ ................................ ...................... 21 
2.3.2    Regional and Preferential Agreements  ................................ ................................ ........ 23 
2.3.3    Other Agreements and Arrangements  ................................ ................................ ......... 25 
2.4   Investment Regime  ................................ ................................ ................................ ....26 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  29 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 29 
3.1.1    Customs Procedures and Requirements and Customs Valuation  ................................ .....29 
3.1.1.1    Customs Procedures  ................................ ................................ .............................. 29 
3.1.1.2    Customs Valuation  ................................ ................................ ................................ 31 
3.1.2    Rules of Origin  ................................ ................................ ................................ ........ 32 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 33 
3.1.3.1    Tariff Structure  ................................ ................................ ................................ .....33 
3.1.3.2    Tariff Bindings  ................................ ................................ ................................ ......35 
3.1.3.3    Preferential Tariffs ................................ ................................ ................................ .35 
3.1.3.4    Tariff Concessions  ................................ ................................ ................................ .36 
3.1.4    Other Charges Affecting Imports  ................................ ................................ ................ 36 
3.1.5    Import Prohibitions, Restrictions and Licensing  ................................ ............................ 38 
3.1.6    Anti-Dumping, Countervailing, and Safeguard Measures  ................................ ............... 38 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 39 
3.2.1    Customs Procedures and Requirements  ................................ ................................ ......39 
3.2.2    Goods in Transit  ................................ ................................ ................................ ......40 
3.2.3    Taxes, Charges and Levies  ................................ ................................ ........................ 40 
3.2.4    Export Prohibitions, Restrictions, and Licensing  ................................ ........................... 40 
3.2.5    Export Support and Promotion ................................ ................................ ................... 40 
3.2.6    Export Free Zones  ................................ ................................ ................................ ...41 
3.2.7    Inward Processing Regime  ................................ ................................ ........................ 42 
3.2.8    Export Promotion, Financing, Insurance and Guarantees ................................ ............... 43 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......44 WT/TPR/S/404 • Nicaragua  
 
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  3.3.1    Incentives  ................................ ................................ ................................ ............... 44 
3.3.2    Standards and other Technical Requirements  ................................ .............................. 45 
3.3.3    Sanitary and Phytosanitary Requirements  ................................ ................................ ...48 
3.3.4    Competition Policy and Price Controls  ................................ ................................ ......... 50 
3.3.4.1    Competition Policy  ................................ ................................ ................................ 50 
3.3.4.2    Price Controls  ................................ ................................ ................................ .......52 
3.3.5    State Trading, State -Owned Enterprises, and Privatization  ................................ ............ 52 
3.3.6    Government Procurement  ................................ ................................ ......................... 54 
3.3.7    Intellectual Property Rights  ................................ ................................ ....................... 56 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  59 
4.1   Agriculture, Forestry and Fisheries  ................................ ................................ ................ 59 
4.1.1    Overview  ................................ ................................ ................................ ................ 59 
4.1.2    Changes in the Institutional and Legal Framework  ................................ ....................... 60 
4.1.3    Border Measures  ................................ ................................ ................................ ......61 
4.1.4    Domestic Measures  ................................ ................................ ................................ ..62 
4.2   Mining and Energy  ................................ ................................ ................................ ......63 
4.2.1    Mining  ................................ ................................ ................................ .................... 63 
4.2.2    Energy  ................................ ................................ ................................ ................... 64 
4.2.2.1    Electricity  ................................ ................................ ................................ ............. 65 
4.2.2.2    Hydrocarbons  ................................ ................................ ................................ .......67 
4.3   Manufacturing  ................................ ................................ ................................ ............ 68 
4.4   Services  ................................ ................................ ................................ .................... 69 
4.4.1    Financial Services  ................................ ................................ ................................ ....69 
4.4.1.1    Banks and financial companies  ................................ ................................ ............... 70 
4.4.1.2    Insurance  ................................ ................................ ................................ ............ 71 
4.4.2    Telecommunications  ................................ ................................ ................................ .73 
4.4.3    Transport  ................................ ................................ ................................ ................ 75 
4.4.3.1    Road Transport  ................................ ................................ ................................ .....75 
4.4.3.2    Maritime Transport  ................................ ................................ ................................ 75 
4.4.3.3    Air Transport  ................................ ................................ ................................ ........ 76 
4.4.4    Tourism  ................................ ................................ ................................ .................. 78 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 80 
 
CHARTS  
 
Chart 1.1 GDP by economic activity, 2019  ................................ ................................ ............. 10 
Chart 1.2 Merchandise trade by main products, 2012 and 2019  ................................ ............... 16 
Chart 1.3 Merchandise trade by trading partner, 2012 and 2019  ................................ .............. 17 
Chart 3.1 Distribution of MFN tariff rates by frequency, 2020  ................................ .................. 35 
Chart 4.1 Total primary energy supply by source, 2012 and 2018  ................................ ............ 65 
Chart 4.2 Net generation of electricity by source, 2012 and 2019  ................................ ............. 66 WT/TPR/S/404 • Nicaragua  
 
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  Chart 4.3 Consumption and production of hydrocarbons, 2012 and 2019  ................................ ..67 
Chart 4.4 Gross production value of manufacturing, 2012 and 2019  ................................ ......... 68 
Chart 4.5 Disbursements made by the BFP, 2012 -19 ................................ .............................. 72 
 
TABLES  
 
Table 1.1 Basic economic indicators, 2013 -19 ................................ ................................ ........ 12 
Table 1.2. Balance of paymentsa, 2013 -19 ................................ ................................ ............ 14 
Table 1.3 Net flow of FDI by economic sector, 2013 -19 ................................ .......................... 18 
Table 1.4 Net FDI flows by country of origin, 2013 -19 ................................ ............................ 18 
Table 2.1 Main notifications made by Nicaragua to the WTO, 2012 -20 ................................ ......22 
Table 2.2 Trade agreements negotiated by N icaragua, 2012 -20 ................................ ............... 24 
Table 3.1 Bank guarantees required from customs brokers, 2020  ................................ ............ 30 
Table 3.2 Trend in customs declarations and breakdown by channel, 2013 -19 ........................... 30 
Table 3.3 Time and cost to import, 2020  ................................ ................................ ............... 31 
Table 3.4 Preferential rules of origin  ................................ ................................ ..................... 32 
Table 3.5 Revenue structure, 2013 -19 ................................ ................................ .................. 33 
Table 3.6 Structure of applied MFN tariffs, 2012 and 2020 (%)  ................................ ................ 34 
Table 3.7 Summary analysis of the preferential tariff, 2020  ................................ ..................... 36 
Table 3.8 Time and cost to export, 2020  ................................ ................................ ............... 39 
Table 3.9 Main indicators of the free zone regime, 2013 -20a ................................ ................... 42 
Table 3.10 PROCOMPETENCIA cases, 2013 -19 ................................ ................................ .......52 
Table 3.11 State participation in the economy, 2012 and 2020  ................................ ................ 52 
Table 3.12 Outline of IPR protection, 2020  ................................ ................................ ............ 56 
Table 4.1 Gross production value, 2012 -19 ................................ ................................ ........... 59 
Table 4.2 Mining activity indicators, 2012 -19 ................................ ................................ ......... 63 
Table 4.3 Financial system indicators, 2012 -19 ................................ ................................ ......69 
Table 4.4 Principal telecommunications sector indica tors, 2012 -19 ................................ ........... 73 
Table 4.5 Air transport agreements, 2020  ................................ ................................ ............. 77 
Table 4.6 Tourism indicators, 2012 -19 ................................ ................................ .................. 78 
 
BOXES  
 
Box 3.1 Procedure for the preparation and approval of technical regulations .............................. 46 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by HS section, 2012 -19 ................................ ......................... 80 
Table A1.2 Total merchandise imports by HS section, 2012 -19 ................................ ................ 82 
Table A1.3 Merchandise exports by trading partner, 2012 -19 ................................ .................. 84 
Table A1.4 Merchandise imports by trading pa rtner, 2012 -19 ................................ .................. 85 
 
Table A3.1 Summary analysis of the MFN tariff, 2020  ................................ ............................. 86 WT/TPR/S/404 • Nicaragua  
 
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  SUMMARY  
1. This fourth Trade Policy Review of Nicaragua covers the period 2012 -20. In recent years, the 
potential growth of the Nicaraguan economy increased by ha lf a percentage point according to 
International Monetary Fund (IMF) estimates, thanks to significant infrastructure improvements, 
especially to transport, telecommunications and the electricity supply. This additional potential 
growth contributed to avera ge annual real GDP growth of 4.7% between 2013 and 2017. 
Nevertheless, the Nicaraguan economy has been severely affected by the political and social crisis 
that began in April 2018 in connection with reforms to the social security system. The crisis has le d 
to job losses and a fall in consumer and business confidence, which, combined with international 
financial sanctions, caused real GDP to fall by 3.9% in 2018 and 4.0% in 2019. For 2020 and 2021, 
the IMF estimates that the growth rates for real GDP will b e -5.5% and -0.5% respectively, 
essentially as a result of the effects of the COVID -19 pandemic.  
2. Nicaragua's economy is relatively diversified, and the portion of GDP corresponding to services 
and construction showed an upward trend during the review period, whilst that of agriculture (and 
related activities) and manufacturing declined. The agricultural sector continues to play a major role 
in creating jobs. Nicaragua's development has progressed in recent years, with a slight increase in 
per capita GD P and improved poverty indicators. However, reducing poverty and the disparities 
between urban and rural areas are still among the country's main challenges, especially given the 
economic impact of COVID -19. 
3. During the review period, Nicaragua has kept inf lation under control by appropriately 
managing fiscal and monetary policy. The free convertibility of the Nicaraguan córdoba (NIO) has 
been maintained through an exchange -rate system involving pre -determined daily 
mini-devaluations.  The depreciation of the  exchange rate of the córdoba to the US dollar was reduced 
from 5% per year to 3% in November 2019 to reduce costs and improve the purchasing power of 
wages.  The credibility of the pre -determined devaluation programme, backed up by international 
reserves, serves as a nominal anchor for prices, as the economy is highly dollarized.  
4. Fiscal policy has sought to contribute to macroeconomic stability and the sustainability of 
public finances. Nonetheless, the non ‑financial public sector (N FPS) deficit rose as a percentage of 
GDP from 2.2% in 2017 to 4.0% in 2018, due in part to the effect of the slowdown in economic 
activity on tax revenues, especially from value added tax (VAT) and other taxes. Consequently, fiscal 
policy has been adjusted  since 2018 through a cautious approach to containing public spending, a 
package of fiscal and pension reforms and the rationalization of subsidies. These measures reduced 
the NFPS deficit to 2.0% of GDP in 2019. The NFPS deficit is expected to grow in 202 0, as public 
spending is stepped up in response to the pandemic.  
5. Historically, Nicaragua has had a structural savings -investment gap that is reflected in a 
relatively high deficit in the balance -of-payments current account (8.0% of GDP on average in 
2013-18). Nonetheless, the adverse economic climate in 2018 led to the first current account surplus 
since 1979 (6.0% of GDP in 2019). The positive current account balance in 2019 was generated 
primarily by a significant reduction in imports, reflecting domestic  adjustment in the public and 
private sectors, the strong performance of exports, and strong flows of remittances.  
6. Nicaragua is dependent on foreign trade for its development. The lower deficit in trade in 
goods was one of the key elements contributing to the current account surplus in 2019. It was the 
result of lower demand for imports of non -petroleum goods, especially capital goods, and the 
buoyancy of free -zone exports, mainly in the textiles industry.  
7. In recent years, Nicaragua's merchandise exports ha ve been adversely affected by lower 
international prices for its main export products, especially coffee. Thus, textiles and textile articles 
are now the country's main exports, contributing 29.3% of total exports in 2019. Nicaragua's 
merchandise exports g o mainly to the United States (61.7% of all exports in 2019), the other 
members of the Central American Common Market (CACM), and Mexico. In 2019, 96.7% of 
Nicaragua's export income was generated by exports to economies with which it has free trade 
agreeme nts. 
8. As is the case with exports, textiles and textile articles are Nicaragua's main imports, having 
risen from 2.0% of the total in 2012 to 21.7% in 2019. Next come mineral products, chiefly fuel. WT/TPR/S/404 • Nicaragua  
 
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  Imports of merchandise from economies with which Nicaragua  has preferential agreements 
accounted for 74.5% of the total in 2019. The country that provides the largest share of Nicaraguan 
merchandise imports is the United States (almost 30% in 2019), followed by China and Mexico, 
whose shares also increased during  the review period.  
9. Nicaragua is a growing net exporter of services, although total exports of services, especially 
tourism, have been affected by social unrest since April 2018.  
10. During the review period, Nicaragua took measures to attract foreign direct i nvestment (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. Nevertheless, annual FDI inflows, which reached a historic high in 2013, have 
fallen in recent years. In addition to concerns about political and social instability, the main obstacles 
to foreign investment are dealing with construction permits, protecting minority investors, paying 
taxes, and registering property.  
11. Nicaragua's trade policy is largely shaped by the commitments adopted under the Central 
American Common Market and the Dominican  Republic - Central America - United States Free Trade 
Agreement (CAFTA -DR). The main objectives of Nicaragua's trade policy include increasing the 
country's participation in international trade, broadening its exportable supply and forging strategic 
alliances with trading partners to foster innovation and production chains.  
12. During the review period, Nicaragua, together with other Central  American countries, brought 
into force trade agreements with the Republic of Korea and the European  Union, a new 
Central  America –Mexico agreement, and partial scope agreements with Cuba and Ecuador. 
Consequently, in addition to the CACM, Nicaragua has free trade agreements and/or partial scope 
agreements in force with Chile, Colombia, Cuba, the Dominican  Republic, Ecuador, the Republic of 
Korea, Mexico, Panama, Chinese Taipei, the United States, Venezuela and the countries of the 
European Union.  
13. According to the authorities, although trade agreements are important in determining the 
country's trade policy and trade flows, Ni caragua gives special importance to participation in the 
multilateral trading system, which it considers essential for small and vulnerable economies. Since 
its last Review, Nicaragua has not been a complainant or respondent in any case brought under the 
WTO dispute settlement mechanism, but it has participated as a third party in one case. Nicaragua 
has submitted various notifications under different WTO Agreements. Nonetheless, it has a number 
of pending notifications, mainly in the field of agriculture.  
14. The general objective of Nicaragua's trade policy continues to be to promote access to foreign 
markets and further the country's integration into the international economy by negotiating and 
administering international trade and investment agreements. 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 agreement s in force, and signing new trade agreements.  As regards investment 
promotion and facilitation, Nicaragua seeks to continue boosting domestic and foreign investment, 
cutting red tape, modernizing the legal framework, and strengthening the country's perform ance in 
terms of international indicators.  
15. On 4 August 2015, Nicaragua became the first country in Latin America to ratify the WTO 
Trade Facilitation Agreement (TFA) and deposit its instrument of acceptance. Nicaragua has notified 
the WTO of its category A , B, and C commitments under the TFA.  
16. 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 DUCA, which entered i nto force on 7 May 2019, has three variants: DUCA -F, for trade in goods 
originating from the Central American region; DUCA -D, for imports and exports of goods with third 
countries outside the Central American region; and DUCA -T for the movement of goods un der the 
overland international customs transit regime . The Border Integration Programme (PIF), meanwhile, 
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  crossings to improve the efficiency of border controls, reduc e wait times and improve 
competitiveness.  
17. The country's single window for foreign trade (VUCEN), which the authorities have stated they 
expect to implement during the first six months of 2021 at the latest, will facilitate foreign trade 
operations by simpl ifying formalities for pre -customs import and export permits, reducing the time 
required of, and costs incurred by, companies engaged in foreign trade.  
18. Nicaragua's tariff is based on the Central American Tariff System and contains 
7,768  ad valorem  tariff l ines at the 12 -digit level under HS  2017. Nicaragua does not apply seasonal 
or variable tariffs. The simple average of Nicaragua's applied most -favoured nation (MFN) tariffs did 
not change during the period under review, remaining at 6.2%. The average tari ff on agricultural 
products (WTO definition) is 11.8% and remains well above the average applied tariff on 
non-agricultural products (5.2%). Nicaragua bound all its tariffs at rates between 0% and 200% . 
19. Nicaragua grants preferential treatment to imports or iginating in the countries with which it 
has preferential trade agreements. Most imports originating in the CACM enter duty -free, except for 
sugar and coffee. The average preferential tariffs in the agreements negotiated by Nicaragua are all 
well below the  average MFN rate. Preferential tariffs range from 0.1% to 6.1% and are always lower 
for non -agricultural products. The tariff preferences granted under some of the agreements cover 
nearly 100% of the tariff universe.  
20. In addition to customs tariffs, Nicara gua applies internal taxes to imports as well as domestic 
production, namely: VAT, selective consumption tax (ISC), a customs security service fee and a 
goods import service fee  (TSIM).  Customs duties accounted for 2.5% of total receipts in 2019 (3.9% 
in 2013). VAT remains one of the pillars of the tax system, but its weight has diminished in recent 
years, falling from 36.5% of total receipts in 2013 to 30.4% in 2019.  
21. Nicaragua makes little use of non -tariff barriers. Imports and exports of certain products  are 
banned or restricted to protect the environment, human health and species, as well as for security 
reasons, in conformity with domestic legislation or international commitments. Automatic and non -
automatic licences are maintained for the same reasons.  The licensing regime used for all imports, 
irrespective of their origin, has not changed substantially since 2012 and, according to the 
authorities, it is not intended to limit import volumes or values.  
22. Nicaragua did not modify its legislation on anti -dumping, countervailing and safeguard 
measures during the review period, and has not imposed measures or initiated investigations 
pertaining to such measures since the last Review. Moreover, it did not make any use of the special 
safeguard provisions in Artic le 5 of the Agreement on Agriculture during the period 2012 -20. No 
trading partner is exempt from the application of anti -dumping or countervailing measures under 
the preferential trade agreements signed by Nicaragua.  
23. During the review period, Nicaragua di d not provide notification as to having granted, or not, 
any of the subsidies permitted under Annex VII to the WTO Agreement on Subsidies and 
Countervailing Measures. Nicaragua notified the WTO that it did not grant any export subsidies within 
the meaning of the Agreement on Agriculture during the period 2012 -19. 
24. Nicaragua has two subsidy -related programmes: the free zone regime and the inward 
processing regime. These programmes provide tax incentives to domestic and foreign investors that 
meet specific cri teria on investment, employment and national value added. The legal framework 
for free zones was modified in 2015; it is now covered by the Law on Export Free Zones. The activities 
of free zones are exclusively for the purpose of exportation. In some cases , however, subject to 
prior authorization by the Ministry of Development, Industry and Trade (MIFIC), a portion of the 
products concerned are allowed to enter national customs territory for domestic consumption. In 
addition to export incentives, Nicaragua maintains some sectoral incentives for tourism, forestry and 
the generation, transmission, distribution and marketing of electricity for public use.  
25. The institutional and legal framework for standards and other technical requirements has 
changed little dur ing the review period. By December 2019, around 90% of standards and 15% of 
technical regulations were based on international standards. Between  2012 and 2020, Nicaragua WT/TPR/S/404 • Nicaragua  
 
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  adopted numerous standards and technical regulations, including technical regulations harmonized 
at the CACM level, with some  of the measures dealing with conformity assessment procedures.  
26. Major changes have been made to the country's sanitary and phytosanitary (SPS) 
requirements since the previous Review. In 2014, the Institute for Agricul tural and Livestock 
Protection and Health was created to implement SPS measures related to the production, import 
and export of plant material, plants, and agricultural, aquaculture and fisheries products and 
by-products. In 2015, the Basic Law on Animal H ealth and Plant Health entered into force. In 2016, 
the National Commission for the Registration and Control of Toxic Substances (CNRCST) was 
created. No  Member has turned to the WTO's formal dispute settlement procedure in relation to 
matters concerning t he SPS measures applied by Nicaragua.  
27. The institutional and legal framework for competition policy remained essentially the same 
during the review period, but Article 99 of the Constitution was reformed in 2014 to incorporate the 
culture of free competitio n. Between 2013 and 2019, most of the cases addressed by 
PROCOMPETENCIA were related to economic concentrations (51%), followed by unfair behaviour 
(40%), vertical practices and horizontal practices. Nicaragua continues to regulate airport services 
and the  services provided by the National Port Authority, as well as the tariffs for electricity 
(transmission and public consumption), bottled liquefied petroleum gas (LPG), sanitary sewerage 
services and drinking water for public consumption.  Profit margins on pharmaceutical products for 
human consumption are also regulated.  
28. State involvement in the economy remains important. According to the authorities, its purpose 
is to support strategic activities for Nicaragua, such as food security, the supply of water, and the 
administration of ports and airports.  
29. No major changes were made to the regulatory framework for government procurement 
during the review period. The Law on Public Sector Administrative Procurement has no preference 
margin provisions. Nevert heless, government procurement contracts may prioritize products made 
of wood bearing a certificate from the National Forestry Institute (INAFOR), with a preference margin 
of up to 5%.  
30. The main change to Nicaragua's legal framework in the area of intellect ual property rights 
(IPR) since the previous Review is that the owner of a geographical indication or appellation of origin 
is now required to prove that the indication or appellation was registered in its country of origin. 
Previously, this requirement ap plied only to appellations of origin. In 2019, Nicaragua ratified the 
Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired or Otherwise Print Disabled.  
31. Major changes have been made to the institutional framework in the areas of agriculture, 
livestock and forestry since Nicaragua's last Review. In 2012, the Ministry of Family, Community, 
Cooperative and Associative Economy (MEFCCA) was created to promote a nd develop family 
agriculture, family enterprises, small and medium -sized enterprises (SMEs) and cooperativism. 
Following the restructure at the Ministry of Agriculture and Forestry, the Office of the President of 
the Republic, through the National Forestr y Institute (INAFOR), is now responsible for forestry 
management throughout the country. The main agricultural policy objectives for 2018 -21 are: to 
sustainably increase production, productivity, quality and added value in the agricultural sector, and 
to foster good practices in the catching, processing and marketing of fishery and aquaculture 
resources.  
32. Nicaragua supports its agricultural sector and has notified the WTO of seven green -box 
sectoral projects for which it provided support to the sector during  the period 2012 -16. Internal 
support between 2012 and 2016 totalled USD  15.6 million, or an average of USD  3.1 million a year 
(compared with a yearly average of USD  5.4 million for the period 2005 -10). Measures were also 
introduced to foster and support c offee growing, fisheries and aquaculture.  
33. The mines and quarries sector is still not developing to its full potential. Although mining 
output at constant prices gradually rose during the review period, the number of mining concessions 
and the total area un der concession both fell. At 31 December 2019, the total area still available for 
mining activity was 55.2% of Nicaragua's total land area. The state -owned Nicaraguan Mines 
Company (EMIMINAS) was created in 2017 to develop the exploration and rational expl oitation of WT/TPR/S/404 • Nicaragua  
 
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  the country's mineral resources. Meanwhile, the Mining Development and Promotion Fund was 
created to finance and execute mineral promotion activities, while the Mine Monitoring and 
Surveillance Fund was created to finance inspection and monitor ing in the mining sector.  
34. While oil and biofuels still dominate the energy matrix, Nicaragua has reduced its dependency 
on petroleum products to generate electricity. The authorities estimate that, at December 2019, 
Nicaragua was tapping 12.5% of its appro ximately 4,500 MW in potential for renewable energy 
generation. During the review period, Nicaragua adopted legal frameworks for distributed electricity 
generation and more rational and efficient energy use.  
35. Nicaragua does not impose restrictions on the im port, export, storage, refining, transport or 
distribution of petroleum or petroleum products. Apart from LPG, fuel prices are not regulated. The 
mission of the state -owned Nicaraguan Oil Company (PETRONIC) is to promote investment in the 
hydrocarbon subse ctor and guarantee permanent reserves of fuels in Nicaragua. Since 2014, 
PETRONIC is required to participate as the state representative in the surveying, exploration and 
exploitation of domestically produced hydrocarbons.  
36. Since Nicaragua's financial syste m is poorly developed, especially in the non -bank segments, 
it still underperforms in terms of its contribution to the growth of the national economy. Banks 
continue to dominate the financial system, though their relative weight declined from 94.8% of tota l 
assets in 2012 to 91.4% in 2019. During the review period, Nicaragua strengthened its regulatory 
and prudential framework by updating capital adequacy and leverage requirements, adopting a 
standard for comprehensive risk management, establishing counterc yclical provisions and special 
capital buffers , and approving the accounting framework for banks, insurance, securities and 
warehouses on the basis of the International Financial Reporting Standards. Standards have also 
been implemented for simplified savi ngs accounts and for managing and preventing the risks 
associated with the financing of terrorism.  
37. There have been no substantial changes to Nicaragua's institutional and legal framework for 
the telecommunications sector since its last Review. In 2014, the  sector's regulatory body, the 
Nicaraguan Institute of Telecommunications and Postal Services (TELCOR), once again assumed 
exclusive responsibility for dealing with competition -related matters in the telecommunications 
market. The regulatory framework woul d benefit from the adoption of regulatory provisions 
establishing technological neutrality in the granting of authorizations; infrastructure -sharing 
requirements; interconnection conditions (mandatory publication of reference offers and regulated 
interconn ection charges); number portability; and market access for virtual operators.  
38. Following a public tender in 2013, a new telecommunications operator was authorized (for 
fixed telephony, mobile telephony, Internet, subscriber television and data transmission services), 
and began its operations in April 2016.  In 2014, Nicaragua launched Project Broadband ( Proyecto 
Banda Ancha ) to contribute to the country's social and economic development by expanding the 
fibre-optic backbone of the National Electricity Transmi ssion Company (ENATREL), which will provide 
data-carrier services at the wholesale level and passive infrastructure. By May 2020, 2,580  km of 
optical fibre had been laid, serving 93 of Nicaragua's 153 municipalities.  
39. All the telecommunications equipment us ed domestically is imported; manufacturers must be 
approved and import permits must be granted. Nicaragua does not recognize foreign conformity 
certificates.  
40. There have been no major institutional changes in the transport sector since Nicaragua's 
previous Review. In 2013, Nicaragua adopted a new regulatory framework governing the 
construction, administration and operation of ports and port facilities. In 2019, the transport services 
sector (maritime, air and land) accounted for 4.4% of GDP, up from 4.1% in 2012. Most passengers 
and goods are transported by road and water. Nicaragua does not have any rail transport services . 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The Republic of Nicaragua has the lowest population density and largest surface area of all 
Central American countries.1 Most economic activities take place in the Pacific coastal lowlands, while 
the less developed Atlantic coast has forestry assets (timber, biodiversity), as well as fishery and 
mining resources (gold and silver). The Nicaraguan economy is very market -oriented and highly 
dependent on exports of goods (42.1 % of GDP in 2019), family remittances (13.4 % of GDP in 2019), 
income from tourism (4.1 % of GDP in 2019) and FDI flows (4.0 % of GDP in 2019).  
1.2.  Nicaragua's economy is relatively diversified. During the review period the share of GDP 
corresponding to services and construction trended upwards, whilst the shares corresponding to 
agriculture (and related activities) and manufacturing declined. As a result, the services sector has 
become the backbone of Nicaragua's economy in terms of contribution to GDP (55.0 % in 2019), 
thanks mainly to the contribution made by commerce; followed by agriculture, livestock farming, 
forestry and fisheries (17.1 %); and manufacturing (15.7 %). The agriculture and related activities 
secto r is estimated to employ 31.1 % of workers; climatic conditions are still a key determinant in 
the sector's performance. The share of GDP from mining is still small (Chart 1.1).  
Chart 1.1 GDP by economic activi ty, 2019  
 
Source:  WTO Secretariat, based on data provided by the Nicaraguan authorities.  
1.3.  Nicaragua has a population of 6.4  million, and just over 40 % of people live in rural areas. The 
country's development has progressed in recent years, as reflected in  the slight increase in per 
capita GDP from USD  1,790 in 2013 to USD  1,918 in 2019. However, reducing poverty and the 
disparities between rural and urban areas are still among the country's main challenges. According 
to the National Development Information  Institute's most recent Living Standards Survey, between 
2014 and 2016 national poverty fell from 29.6 % to 24.9 %; while in the same period extreme poverty 
declined from 8.3 % to 6.9 %. The World Bank projects that the proportion of poor households living 
below the international poverty line will rise from 13 % in 2019 to 15 % in 2020 chiefly as a result of 
the impact of the COVID -19 pandemic (Section  1.2).2 
 
1 Nicaragua covers an area measuring 130,373 km2 and has coastlines on the Caribbean and the Pacific 
Ocean. About 20% of the country's land area is arable, and the central zone is mountainous. It has a vast 
lowland plain on the Pacific coast; numerous volcanoes; several lakes, including the largest fres hwater lake in 
Central America (Lake Nicaragua); and one of the world's rainiest tropical jungles on its Atlantic coast. 
Information viewed at: https://www.bancomundial.org/es/count ry/nicaragua/overview . 
2 The international poverty line is USD  3.2 a day based on 2011 Parity Purchasing Power (PPP). 
Information viewed at: https://www.worldbank.org/en/p ublication/macropovertyoutlook/mpo_lac . 
Agriculture, 
forestry and 
fisheries
17.1%Manufacturing
15.7%Construction
4.0%Electricity 
and water
4.6%Mining
3.5%
Commerce
10.3%Hotels and 
restaurants
3.7%Transport and 
communications
5.6%Financial 
intermediation
5.2%Housing
6.7%
Public 
administration
5.2%
Education
6.2%
Health
3.3%
Other services
8.8%Services
55.0%WT/TPR/S/404 • Nicaragua  
 
- 11 - 
 
  1.4.  Since 1993, Nicaragua has maintained the free convertibility of its national currency, the 
Nicaraguan c órdoba (NIO), under an exchange -rate system involving pre -determined daily 
mini-devaluations, known as a "crawling -peg system" (Section 1.2). The fundamental objective of 
the Central Bank of Nicaragua (BCN) is to maintain the stability of the national curr ency and the 
functionality of internal and external payments .3 On 30  July 1964, Nicaragua accepted the 
obligations established in Article VIII, Sections 2, 3 and 4, of the Articles of Agreement of the 
International Monetary Fund (IMF).4 
1.5.  According to the IMF, potential annual economic growth in Nicaragua has risen from 4.0 % to 
4.5% in recent years owing chiefly to improvements in some of the country's main bottlenecks such 
as power supply, transport and telecommunications. Electricity gene ration increased almost 50 % 
during 2010 -15, and electricity coverage rose from 56 % in 2006 to the current figure of over 90 %. 
Nicaragua also has better infrastructure as a result of significant investment in transport and 
telecommunications since 2010, fin anced in part with FDI. Planned public sector investment in major 
infrastructure projects for 2017 -20 is estimated at USD  0.5 billion or (3.5 % of GDP). The IMF 
calculate that these investments could contribute about 0.4 % to GDP growth per year.5 
1.6.  Despite t he rise in potential GDP growth, Nicaragua's economic outlook has been seriously 
affected by the profound political and social crisis triggered in April  2018 when the government 
published reforms to the social security system.6 This led to social unrest, job losses, international 
financial sanctions and a deterioration in consumer and business confidence which, in combination 
with a decline in sectors such as tourism and construction, have had a significant social and economic 
cost.7 
1.2  Recent Economic Devel opments  
1.7.  At the time of the previous TPR towards the end of 2012, Nicaragua's macroeconomic outcomes 
had been broadly satisfactory . The economy had overcome the effects of external shocks including 
the global financial crisis, hurricane Felix, and the incre ase in food and oil prices. This was achieved 
without recourse to protectionist measures. Nonetheless, excessive reliance on foreign remittances 
to finance the deficit in the balance -of-payments current account was also noted, as was the still 
high level o f external debt.8 
1.8.  Between 2013 and 2019 Nicaragua achieved real average GDP growth of 2.3 %. This can be 
divided into two periods: 4.7 % over 2013 -17 and a drop of 4.0 % in 2018 -19 (Table  1.1). As noted, 
in April  2018 a series of social and political inciden ts adversely affected various sectors of the 
economy (tourism and construction in particular), reduced employment and damaged infrastructure. 
Additionally, some countries have imposed sanctions on the Nicaraguan Government and specific 
individuals, which i n turn has sharply reduced Nicaragua's access to external financing.9 Domestic 
demand bore the brunt of the ensuing economic contraction with falls in gross capital formation 
(28.5 % in 2018 -19) and consumption (2.9 %). External demand was consistent with l ess buoyant 
exports (2.1 % over the same period) and the adjustment in imports ( -9.7%). For 2020 and 2021, 
the IMF estimates that the growth rates for real GDP will be -5.5% and -0.5% respectively, 
essentially as a result of the effects of the COVID -19 pand emic.10 
 
3 Information viewed at: https://www.bcn.gob.ni/banco/objetivos.php . 
4 Article VIII lays down the obligations incumbent on members when applying their moneta ry policy. 
Section  2 prohibits members from imposing restrictions on current payments, and provides that governments 
must guarantee the availability of foreign currency for the purchase of goods and services and for invisible 
transactions; Section  3 encour ages members to avoid discriminatory currency practices; and Section  4 allows 
convertibility of foreign -held balances.  
5 IMF Country Report No. 17/173 . 
6 On 18  April 2018, the social security reforms were officially published. They included increased 
employer and employee contributions to the Nicaraguan Social Security Institute (INSS), and pension cuts. The 
reforms were dropped on 22  April. 
7 Information viewed at: https://www.bancomundial.org/es/country/nicaragua/overview . 
8 WTO (2013), Trade Policy Review of Nicaragua 2012 , Geneva.  
9 In December 2018, the US Government enacted the Nicaragua Human Rights and Anticorruption Act, 
which severely restricts external financ e to Nicaragua. In June 2019, Canada followed suit imposing sanctions 
on certain Nicaraguan nationals. In October 2019, the European Council established a framework enabling the 
EU to impose targeted sanctions on Nicaragua. IMF Country Report No. 20/59 . 
10 IMF (2020), World Economic Outlook , October 2020, Washington, D.C.  WT/TPR/S/404 • Nicaragua  
 
- 12 - 
 
  Table 1.1 Basic economic indicators, 2013 -19 
 
2013  2014  2015  2016  2017  2018  2019a 
Real sector and prices  
Current GDP (NIO  billion)  271.5  308.4  347.7  380.3  414.3  412.2  414.7  
Current GDP (USD million)  10,983  11,880  12,757  13,286  13,786  13,064  12,521  
Real GDP, growth rate (%)  4.9 4.8 4.8 4.6 4.6 -4.0 -3.9 
Per capita GDP (USD)  1,790  1,917  2,037  2,100  2,165  2,031  1,918  
Unemployment rate (%)  5.7 6.6 5.9 4.5 3.7 5.5 .. 
Inflation (CPI average, % change)  7.1 6.0 4.0 3.5 3.9 4.9 5.4 
Monetary sector (growth rates)  
Monetary base  6.7 14.8 26.2 -1.8 13.6 -9.0 14.4 
Total deposits  13.9 19.0 13.9 8.6 10.7 -20.7 1.1 
Gross loans portfolio  21.3 19.5 23.0 18.5 13.9 -8.9 -12.9 
Non-financial public sector (% GDP)  
Balance after grants  -1.1 -1.5 -2.2 -2.5 -2.2 -4.0 -2.0 
External financing  2.3 2.5 2.6 2.3 3.2 1.9 2.4 
Internal financing  -1.1 -1.0 -1.0 -0.3 -1.2 2.2 -0.4 
Public debt        
Balance of total public debt 
(USD million)  5,786  5,800  5,753  5,930  6,487  6,885  7,164  
Total public debt (% GDP)  52.7 48.8 45.1 44.6 46.9 52.7 56.5 
Balance of external public debt 
(USD million)  4,724  4,796  4,804  5,042  5,546  5,950  6,279  
External debt (% GDP)  43.0 40.4 37.7 38.0 40.1 45.4 49.6 
External sector  
Average official exchange rate (NIO 
x USD)  24.7 26.0 27.3 28.6 30.1 31.6 33.1 
Remittances (USD  million)  1,078  1,136  1,193  1,264  1,391  1,501  1,682  
Remittances (% GDP)  9.8 9.6 9.4 9.5 10.1 11.5 13.4 
Income from tourism (USD  million)  417.3  445.6   527.9  642.1  840.5  544.4  515.3  
Current account (% GDP)  -12.6 -8.0 -9.9 -8.5 -7.2 -1.9 6.0 
Gross international reserves 
(USD million)  1,993  2,276  2,492  2,448  2,758  2,261  2,397  
.. Not available.  
a Provisional figures.  
b IMF forecasts.  
Source:  Information viewed at: https://www.bcn.gob.ni/publicaciones/periodicidad/InformeAnual2018 ; IMF 
(2020) World Economic Outlook , October  2020,  Washington, D.C; and data supplied by the 
Nicaraguan authorities.  
1.9.  Nicaragua has implemented various measures in response to the COVID -19 pandemic including 
establishing an inter -institutional commission, declaring a national state of alert and implementin g 
epidemiological surveillance protocols at national level. The government has continued to prioritize 
programmes to strengthen the social safety net, including providing food parcels to vulnerable 
families.11 However, the World Bank projects that the prop ortion of households living below the 
international poverty line will rise from 13 % in 2019 to 15 % in 2020. This negative outlook is 
attributed to less employment in most sectors of the economy, the fall in family remittances and the 
limited application of  countermeasures to contain the social impact of the COVID -19 crisis.12 
1.10.   In 2013 -19, average inflation rate measured using the consumer price index (CPI) was 5.0 %, 
which is below the rate recorded in the period 2002 -11 (8.4 %), mainly as a result of sound fi scal 
and monetary policy management. The crawling -peg exchange rate maintained by the BCN has also 
provided a credible nominal anchor for price stability. Nonetheless, inflation has picked up again 
since 2018 because of higher international prices for oil and certain agricultural products. The IMF 
projects that average inflation will be 4.4 % in 2020 and 4.0 % in 2021.13 
1.11.   During the review period, the General Budget of the Republic was reformed to safeguard fiscal 
sustainability; the Supervisory Authority for Banks and Other Financial Institutions (SIBOIF) issued 
 
11 Information viewed at: https://www.imf.org/en/Topics/imf -and-covid19/Policy -Responses -to-COVID -
19#N . 
12 This will increase the number of people living in poverty by 130,000. Information viewed at: 
https://www.bancomundial.org/es/country/nicaragua/overview . 
13 IMF (2020), World Economic Outlook , October 2020, Washington, D.C.  WT/TPR/S/404 • Nicaragua  
 
- 13 - 
 
  debt relief rules; and the Financial Stability Committee and legal framework for bond issuance were 
established in order to bolster the financial system. Additionally, the BCN supplemented the regime 
for implementing monetary policy by introducing daily currency operations to absorb and inject 
liquidity while relaxi ng policy on minimum reserve requirements and streamlining its financial 
assistance facility.14 
1.12.   During the review period, fiscal policy continued to contribute to macroeconomic stability and 
the sustainability of public finances. Nonetheless, the non -financial public sector (NFPS) deficit15 rose 
as a percentage of GDP from 2.2 % in 2017 to 4.0 % in 2018, due in part to the effect of the slowdown 
in economic activity on tax revenues, especially from VAT, the selective consumption tax and the 
specific fuel tax.  Consequently, fiscal policy was adjusted through the reform of the General Budget 
of the Republic (PGR) in August  201816, in an effort to establish a cautious approach to containing 
public spending.17 In 2019, the government adopted a package of fiscal and pension reforms that 
included freezing wages in 2019 and rationalizing subsidies to cut the NFPS deficit to 2.0 % of GDP.18 
The fiscal deficit is projected to grow in 2020 as the authorities implement  fiscal stimuli in response 
to COVID -19 and a shrinking tax base. It is envisaged that the additional expenditure will be financed 
through the issuing of national bonds, non -concessional loans and, to a lesser extent, concessional 
loans from international financial bodies.19 
1.13.   Finance policy has focused on managing and maximizing concessional funds from multilateral 
bodies. The burden of Nicaragua's total public debt (both external and domestic) had been falling in 
recent years; indeed, its solvency indicator  (total debt/GDP) fell to a record low of 44.6 % in 2016 
(Table 1.1). However, since then, the solvency indicator has rebounded (56.5 % in 2019) because 
of growing external public debt, which rose from USD  4,724  million in 2013 (equivalent to 43.0 % of 
GDP) t o USD  6,279  million in 2019 (49.6 % of GDP).  
1.14.   In view of the unfavourable macroeconomic climate since 2018, as reflected in net sales of 
foreign currency by the BCN to the financial system and the loss of international reserves, the BCN's 
monetary policy has  sought inter alia  to maintain the convertibility of the córdoba at the exchange 
rate set out in exchange -rate policy, to tackle the rise in demand for liquidity, and to have adequate 
coverage of gross international reserves (GIR) in terms of the monetary base and imports of goods. 
At the end of 2019, GIR amounted to USD  2,397  million (compared to USD  1,993  million in 2013), 
equivalent to  more than five months of imports.  
1.15.   Between 2004 and 31  October  2019, the BCN succeeded in keeping the depreciation of the  
exchange rate of the córdoba to the US  dollar in line with an annual rate of 5 %. On 
1 November  2019, the rate was decreased to 3 % in order to rebuild aggregate spending while 
reducing costs and improving the purchasing power of wages. According to the IMF , the credibility 
of the predetermined devaluation programme, backed up by international reserves, serves as a 
nominal anchor for prices , as the economy is highly dollarized.20 
1.16.   Historically, Nicaragua has had a structural savings -investment gap that is ref lected in a 
relatively high deficit in the balance -of-payments current account (8.0 % of GDP on average in 
2013-18). Nonetheless, the adverse economic climate in 2018 led, in 2019, to the first current 
 
14 Information viewed at: https://www.bcn.gob.ni/publicaciones/periodicidad/InformeAnual2018 . 
15 The non -financial publi c sector balance sheet consolidates the central government's balance sheets, 
covering all ministries, offices, establishments and other bodies that are agencies or instruments of central 
authority in the country; the balance of the rest of the general gove rnment, namely the Nicaraguan Social 
Security Institute (INSS) and the Mayoralty of Managua (ALMA); and the balance of state -owned enterprises 
including the National Electricity Transmission Company S.A. (ENTRESA) and the Nicaraguan Water Supply and 
Sewage  Company (ENACAL).  
16 The main operating instrument of fiscal policy was the PGR, published on 15  December  2017 in La 
Gaceta  No. 239 under Law No.  966, the Annual Law on the General Budget of the Republic 2018.  
17 For example, the 2018 PGR included average w age rises of 9.0% in education and 8.0% in health; 
and the continuation of subsidies for electricity and water for the retired, and public urban transport in the 
cities of Managua and Ciudad Sandino. Information viewed at: 
https://www.bcn.gob.ni/publicaciones/periodicidad/InformeAnual2018 . 
18 Other measures included a rise in the minimum rate of corporation tax from 1% to 2 -3% of gross 
sales, the elimination of VAT exemptions for certain consumer goods, and rises in excises, including on 
alcoholic drinks and tobacco. IMF Country Report No. 20/59 . 
19 Information viewed at: https://www.bancomundial.org/es/country/nicaragua/overview . 
20 Around 85% of banks' liabilities and almost all banks' loans are denominated in or indexed to the 
US dollar. IMF Country Report No. 20/59 . WT/TPR/S/404 • Nicaragua  
 
- 14 - 
 
  account surplus since 1979 (6.0 % of GDP) (Table  1.1). I t is clear from Table  1.2 that the positive 
current account balance in 2019 was generated primarily by a significant reduction in imports, 
reflecting domestic adjustment in the public and private sectors, the strong performance of free -zone 
exports, and st rong flows of family remittances.21 The IMF projects that Nicaragua will have a current 
account surplus of 0.5 % of GDP in 2020 and a deficit of 0.2 % in 2021.22 
Table 1.2. Balance of paymentsa, 2013 -19 
(USD million)   
2013  2014  2015  2016  2017  2018  2019b 
Current account  -1,380.4  -953.8  -1259.6  -1,127.1  -987.1  -242.7  755.9  
Goods and services  -2215.2  -1,955.8  -2,285.1  -2,105.0  -1,842.5  -1,201.8  -535.6  
Goods  -2,234.9  -2,142.9  -2,514.2  -2,497.0  -2,369.6  -1,604.1  -1,054.9  
Exports f.o.b.c 3,879.0  4,175.8  3,873.4  3,794.6  4,179.5  4,197.4  4,342.0  
General goods  3,446.3  3,790.0  3,555.5  3,437.6  3,852.2  3,827.1  3,844.2  
Exports of goods  2,463.3  2,696.5  2,435.7  2,249.4  2,585.3  2,545.7  2,696.8  
Free-zone exports  1,388.2  1,450.9  1,416.4  1,528.0  1,570.4  1,628.6  1,625.6  
Goods procured in  
ports 27.8 28.4 21.3 17.2 23.8 23.1 19.6 
Imports f.o.b.  -6,113.9  -6,318.7  -6,387.6  -6,291.6  -6,549.1  -5,801.5  -5,396.9  
General goods  -6,113.9  -6,318.7  -6,387.6  -6,291.6  -6,549.1  -5,801.5  -5,396.9  
Imports of goods  -5,225.4  -5,452.9  -5,418.6  -5,361.8  5,597.8  4,829.4  -4,352.4  
Free-zone imports  -888.5  -865.8  -969.0  -929.8  -951.3  -972.1  -1,044.5  
Services (balance)  19.7 187.1  229.1  392.0  527.1  402.3  519.3  
Primary income 
(Income)  -534.2  -447.9  -489.0  -634.2  -711.7  -652.2  -466.4  
Secondary income  1,369.0  1,449.9  1,514.5  1,612.1  1,567.1  1,611.3  1,757.9  
Family remittances  1,077.7  1,135.8  1,193.4  1,264.1  1,390.8  1,501.2  1,682.4  
Capital account  228.6  298.7  374.8  202.2  177.7  112.6  103.1  
Net loan (+)/net 
borrowing  
(-) -1,751.8  -655.1  -884.8  -924.9  -809.4  -130.1  859.0  
Financial account  -1,407.4  -1,242.7  -1,299.9  -1,118.0  -1,120.6  -614.7  509.6  
Net direct investment  -1,374.0  -1,586.5  -1,300.1  -1,538.8  -1,670.0  -1,188.0  -808.4  
Net portfolio investment  -128.6  -67.4 0.9 139.5  -1.8 -60.3 342.0  
Financial derivatives and 
ESOs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other net investment  -559.3  -474.4  -575.9  -277.0  -447.9  720.9  492.4  
Reserve assets  95.5 281.9  197.1  -56.7 300.0  -512.8  119.1  
Errors and omissions  -255.6  -587.6  -415.1  -193.1  -311.2  -484.6  -349.4  
a According to the Sixth Edition of the Balance of Payments Manual.  
b Preliminary figures.  
c Exports of goods under the free -zone regime, excluding processing services posted in services.  
Source:  Information viewed at: https://www.bcn.gob.ni/publicaciones/periodicidad/InformeAnual2018 ; and 
data supplied by the Nicaragua n authorities.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.17.   Nicaragua is dependent on foreign  trade for its development. During 2016 -18, trade (exports 
and imports of merchandise and services) accounted for 46. 6% of GDP.23 As is clear from Table  1.2, 
the lower deficit in trade in goods was one of the key elements contributing to the current account 
surplus in 2019. The lower deficit in trade in goods was the result of lower demand for imports of 
non-petroleum goods, especia lly capital goods, and the buoyancy of free -zone exports, mainly in 
the textiles industry24, which in 2019 rose to USD  2,601  million (3.4 % higher than in 2018).  
1.18.   In recent years, Nicaragua's merchandise exports have been adversely affected by lower 
internat ional prices for its main export products, especially coffee. Thus, as classified under the 
 
21 Strong remittances can be explain ed principally by the increase in flows from the United  States, Spain 
and Costa Rica.  
22 IMF (2020), World Economic Outlook , October 2020, Washington, D.C.  
23 WTO Statistics Database, "Trade Profiles: Nicaragua". Viewed at: 
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&amp;amp;Country=NI . 
24 In 2018, 60% of free -zone exports were from the textiles and garments industry.  WT/TPR/S/404 • Nicaragua  
 
- 15 - 
 
  sections of the Harmonized System (HS), textiles and textile articles are now the country's main 
exports, contributing 29.3 % of total exports in 2019 (25.7 % in 2012 ). Next come exports of live 
animals and animal products (19.6 % of total exports of goods in 2019), and exports of vegetable 
products (14.6 %). The share of exports represented by metals and precious stones rose from 9.7 % 
in 2012 to 10.4 % in 2019 (Chart  1.2 and Table  A1.1).25 
1.19.   Nicaragua's merchandise exports go mainly to the United States (61.7 % of all exports in 
2019, higher than the 2012 figure of 46.2 %), the other members of the Central American Common 
Market (CACM) and Mexico. The relative share of the Bolivarian Republic of Venezuela in total exports 
fell sharply during the review period, from 9.8 % in 2012 to 0.3 % in 2019. Similarly, Canada's share 
as a destination market for Nicaragua's exports fell from 7.1 % to 0.9 % over the same period. Some 
7.6% of Nicaraguan exports in 2019 went to the European  Union (7.5 % in 2012), where the main 
destinations were the United Kingdom, Germany and Spain (Chart  1.3 an d Table  A1.3).  
1.20.   In 2019, 96.7 % of Nicaragua's export income was generated by exports to economies with 
which it has free trade agreements (Section 2.2.2).  
1.21.   Under the HS classification, textiles and textile articles are Nicaragua's main imports, having 
risen from 2.0 % of the total in 2012 to 21.7 % in 2019. Next come mineral products, chiefly fuel, 
which accounted for 14.2 % of all imports in 2019 (compared to 25.1 % in 2012).26 Imports of 
electrical machinery or equipment and chemicals also fell in terms of shar e of the total volume of 
imports in 2012 -19. However, imports of live animals and animal products retained their share of 
total imports at around 1.3 % during the review period (Chart  1.2 and Table  A1.2).  
 
25 According to information from the authorities, the top exports in 2018 were: textiles and clothing 
(33.2%), motor vehicle harnesses (10.3%), beef (8.9%), coffee (7.8%), gold (6.9%), cigars and tobacco 
(4.8%), fish and crustaceans (4.2%), dairy products (3.1%), sugar (3 .1%), and groundnuts (2.1%).  
26 Rising international oil prices were offset generally by a fall in the volumes of fuel imported during the 
review period.  WT/TPR/S/404 • Nicaragua  
 
- 16 - 
 
  Chart 1.2 Merchandise trade by main products, 2012 and 2019  
 
Source:  WTO Secretariat calculations based on data from the Comtrade database and the Nicaraguan 
authorities.  
 
2012 2019
(a)    Exports
Total: USD 4,551 millon
(b)    Imports
Total: USD 6,030 millon Total: USD 6,985 millonTotal: USD 5,273 millonOther
5.1%Other
4.2%
Mineral 
products
25.1%Food industry 
products
7.8%
Chemicals
14.5%Plastics
4.9%Electrical 
machinery or 
equipment
15.6%Other
20.6%
Mineral 
products
14.2%
Chemicals
12.8%
Plastics
5.8%Base metals
5.3%Electrical 
machinery or 
equipment
12.8%Other
13.9%
Base 
metals
6.9%Textiles
2.0%Food industry 
products
9.6%
Textiles
21.7%Vegetables
17.6%Vegetables
14.4%Precious 
metals and 
precious 
stones
9.7%Animal products
19.6%
Precious 
metals and 
stones
10.4%Animal products
19.0%
Timber, 
paper
2.4%Timber, 
paper
3.9%Textiles
25.7%
Food industry 
products
10.4%Fats and 
oils
2.2%Textiles
29.3%Food industry 
products
11.0%Fats and oils
1.1%Electrical 
machinery 
and 
equipment
10.3%Electrical 
machinery 
and 
equipment
10.0%WT/TPR/S/404 • Nicaragua  
 
- 17 - 
 
  Chart 1.3 Merchandise trade by trading partner, 2012 and 2019  
 
Source:  WTO Secretariat calculations based on data from the Comtrade database and the Nicaraguan 
authorities.  
1.22.   The largest share of imported  goods come s from the United States, which in 2019 supplied 
28.4% of total merchandi se imports (compared to 18.0 % in 2012). The second most significant 
country of origin is China, which in 2019 supplied 13.0 % of total merchandise imports (compared to 
9.6% in 2012), followed by Mexico (10.1 %), and Honduras (4.7 %). The proportion of merchan dise 
imports from the Bolivarian Republic of Venezuela fell significantly from 13.4 % of the total in 2012 
to 0.4 % in 2019, whilst the share from the European  Union fell from 5.8 % to 5.1 % over the same 
period (Chart  1.3 and Table  A1.4). Imports of merchandi se from economies with which Nicaragua 
has preferential agreements accounted for 74.5 % of the total in 2019 (Section  2.2.2).  
2012 2019
(a)    Exports
Total: USD 4,551 millon
(b)    Imports
Total: USD 6,030 millon Total: USD 6,985 millonTotal: USD 5,273 millonCosta Rica
2.8%Other
0.9%
United 
States
46.2%Other 
America
20.8%
El Salvador
5.5%
Honduras
2.6%America
86.7%United 
States
61.7%Other America
6.1%
Mexico
5.6%Other
0.9%
Asia
4.6%
America
88.3%Asia
3.1%
United 
States
18.0%
Other 
America
28.3%Guatemala
5.7%China
9.6%Other 
Asia
5.2%Other
1.8%
United 
States
28.3%
Mexico
10.0%Other 
America
8.7%
El Salvador
4.4%China
12.8%Other 
Asia
6.0%Other
1.2%
America
74.2%America
72.9%Europe
6.2% Europe
5.7%Asia
17.7%Asia
20.2%Europe
7.7% Europe
7.8%
Mexico
10.6%Honduras
4.7%
Costa Rica
7.7%
Guatemala
6.6%Honduras
2.5%Costa Rica
3.0%
Honduras
8.7%Other 
Asia
2.1%
El Salvador
4.5%Other 
Asia
2.4%
El 
Salvador
5.6%
Mexico
7.4%
Costa 
Rica
6.2%Chinese 
Taipei
1.0%Chinese 
Taipei
2.2%
Japan
1.4%Japan
2.9%WT/TPR/S/404 • Nicaragua  
 
- 18 - 
 
  1.23.   Balance -of-payments data show that Nicaragua has become a net exporter of services, with 
a surplus that rose from USD  19.7 million in 2013 to USD  519.3  million in 2019 (Table  1.2). This is 
despite the fact that total exports of services, mainly tourism, were adversely affected by the unrest 
of April  2018. The largest deficits occurred in freight and passenger transport and in insuranc e. 
1.3.2   Foreign direct investment  
1.24.   During the review period, Nicaragua took measures to attract greater inflows of FDI, in 
particular through the adoption of the Law establishing the Investment and Export Promotion Agency 
(PRONicaragua) (Sections  2.1 and 2.3); t he Law on Export Free Zones (Section  3.2.6); and the Law 
on Public -Private Partnerships governing the formulation, tendering, financing, implementation, 
operation and termination of investment projects (Section  2.3). 
1.25.   FDI inflows to Nicaragua have still not  reached their full potential. In addition to concerns 
about political and social instability, the latest World Bank survey of the business sector notes that 
the main obstacles include dealing with construction permits, protecting minority investors, payin g 
taxes, and registering property. On the other hand, areas where improvement has occurred include 
enforcing contracts and getting electricity.27 
1.26.   In 2013, inflows of FDI as a proportion of GDP stood at a record 12.3 %.28 Since 2018, the 
favourable development of FDI in Nicaragua has been seriously affected by the social and political 
unrest referred to previously. Net flows of FDI29 fell from an average of USD  1,007  million in 2013 -17 
to USD  838 million in 2018 and USD  503 million in 2019 (Table  1.3). In 2019, 29.9 % of net FDI 
flows were channelled into the telecommunications sector (30 %), followed by mining (26.2 %), 
commerce and services (10.7 %), and the financial sector (10.0 %). 
Table 1.3 Net flow of FDI by economic sector, 2013 -19 
(USD million)   
2013  2014  2015  2016  2017  2018  2019  
Total  965.7  1,076.8  967.0  989.1  1,035.4  837.6  503.0  
Industry  212.1  365.4  305.4  292.0  233.6  110.0  24.5 
Finance  88.3 101.7  115.7  144.3  130.8  125.5  50.3 
Commerce and services  98.5 32.4 140.2  217.7  211.8  137.2  53.9 
Energy  329.8  325.4  107.8  18.3 175.1  165.3  14.2 
Telecommunications  124.5  189.3  225.5  179.5  153.8  135.9  150.5  
Agriculture  41.4 36.7 36.5 57.8 10.0 28.6 25.5 
Mining  2.4 -17.8 -13.0 24.4 18.3 65.2 131.9  
Forestry  19.4 13.2 17.5 9.8 2.7 0.4 0.1 
Construction  0.0 5.8 8.6 26.9 1.6 2.2 -1.6 
Tourism  1.0 6.9 30.0 9.3 36.5 19.5 34.4 
Transport  34.3 -6.7 -32.0 -6.7 45.4 2.5 10.8 
Other  13.4 24.5 24.8 15.8 15.8 45.3 8.5 
Source:  Information supplied by the Ministry of Development, Industry and Trade (MIFIC).  
1.27.   In 2019, Panama was Nicaragua's largest foreign investor, accounting for a net flow of 
USD 127.1  million, or 25.3 % of total FDI inflows. As Table  1.4 shows, other significant investors 
were the United  States (33.3 % of the total), Canada (17.1 %), and Mexico (13.2 %). 
Table 1.4 Net FDI flows by country of origin, 2013 -19 
(USD million)   
2013  2014  2015  2016  2017  2018  2019  
Total  965.7  1,076.8  967.0  989.1  1,035.4  837.6  503.0  
Panama  134.8  111.8  119.9  162.2  74.0 171.4  127.1  
Mexico  96.8 143.8  179.2  140.8  178.3  164.4  66.8 
United  States  277.7  84.7 189.7  302.1  270.0  234.4  167.6  
Guatemala  53.9 26.1 28.2 30.4 61.8 -64.1 -94.3 
 
27 Information viewed at: http://espanol.doingbusiness.org/es/data/exploreeconomies/nicaragua . 
28 FDI inflows are gross inflows of foreign investment into the country excluding finance from unrelated 
sources such as multilateral or bilateral bodies and commercial banking.  
29 "Net flows of FDI" refers to flows of foreign investment into the country excluding financing from 
unrelated sources, less capital outflows and payments abroad.  WT/TPR/S/404 • Nicaragua  
 
- 19 - 
 
   
2013  2014  2015  2016  2017  2018  2019  
Bolivarian Republic of 
Venezuela  100.9  186.3  72.9 116.8  203.3  0.3 0.0 
Spain  136.9  63.5 32.8 -126.0  52.6 40.1 24.9 
China  0.0 59.9 90.6 87.4 24.7 5.7 3.1 
Costa  Rica 16.2 21.6 -3.1 32.7 47.6 29.9 17.3 
Republic  of Korea  47.7 84.5 43.1 67.8 45.3 32.8 23.1 
Canada  -24.1 11.8 32.2 41.0 -56.1 115.2  86.0 
El Salvador  -17.3 22.8 34.0 43.2 6.5 10.0 4.6 
Switzerland  42.8 78.2 28.6 17.5 32.6 16.8 17.2 
Other  98.8 181.8  119.0  73.0 94.9 80.8 59.7 
Source:  Information supplied by the Ministry of Development, Industry and Trade (MIFIC).  WT/TPR/S/404 • Nicaragua  
- 20 - 
  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  There are three branches of power1 in the Republic of Nicaragua: the  executive, the legislature 
and the judiciary. Executive power is exercised by the President of the Republic, who is elected by 
universal suffrage for a five -year term. The President appoints a cabinet of 15 ministers, who  do not 
have to be members of the National Assembly, and has the power to initiate and veto legislation, 
and to issue regulations pursuant to laws. The President is also responsible for negotiating, entering 
into, and signing international treaties, conven tions or agreements; and directing the country's 
economy by deciding on economic and social policy. The most recent presidential election was held 
in November  2016 and the next is scheduled for 2021.  
2.2.  The legislature consists of the single -chamber National Assembly, which consists of  90 deputies 
(20 elected nationally and 70  by district), plus any presidential or vice -presidential candidates who 
gain over 1.1% of the national vote. Deputies are elected by proportional representation for five -year 
terms. The National Assembly is responsible for drafting and approving laws and decrees, and for 
reforming and repealing those currently in force. The Assembly does not have power to alter the 
texts of international agreements, but can only debate them and either app rove or reject them in 
their entirety. Legislative approval gives such instruments legal force both inside and outside 
Nicaragua, provided that they have entered into force internationally by means of the deposit or 
exchange of ratifications, or fulfilment  of the requirements or deadlines provided for in the 
international instrument in question.  
2.3.  The judiciary comprises the Supreme Court of Justice, which consists of 12 members, and lower 
courts (appeal courts, district and local courts). The National Assemb ly elects Supreme Court judges 
for seven -year terms from a list of candidates proposed by the Government.  
2.4.  Regional and municipal authorities are elected for five -year terms. There are 15 Regional 
Departments, two Autonomous Regional Councils of the Atlanti c Coast, and 131 Municipal Councils. 
These subnational authorities are elected for  five-year terms, are administratively and financially 
autonomous, and have power to impose various types of local taxes, in particular those levied on 
income, construction, municipal services, leisure activities and commercial licences.  
2.5.  The Constitution of the Republic of Nicaragua is the country's main law, and takes precedence 
over all other legislation. Article 182 states that the Constitution is the country's bedrock, and  any 
law, treaty, order or provision that contravenes or alters its provisions is null and void.  
2.6.  The provisions of international agreements form part of the country's law once they have been 
ratified and published in Official Journal  La Gaceta . Domestic le gislative procedures must be followed 
in order for provisions requiring implementing regulations to become national law; any alteration 
must be made through legal amendments to the instruments in question. The provisions of 
WTO Agreements that are transpos ed into Nicaragua's domestic law take effect once the established 
legislative procedures have been completed, and enjoy the same protection and legal remedies as 
other national laws. A similar legal regime applies to the decisions and regulations of the Ce ntral 
American Common Market (CACM), although in certain circumstances approval by the domestic 
legislature is not required and a ministerial decision suffices.  
2.2  Trade Policy Formulation and Objectives  
2.7.  The Ministry of Development, Industry and Trade (MIFIC)  is tasked with formulating and 
implementing trade policy, and negotiating and administering international and regional agreements 
on trade and investment.2 It is also responsible for implementing policies on investment, whether 
domestic or foreign, and f or issues relating to standards, the National Quality Assurance System, 
consumer protection and intellectual property rights, the promotion and development of industry 
and technology, and export promotion.  
 
1 In addition to the electoral power exercised by the Supreme Electoral Council.  
2 Further information on MIFIC is available at: www.mific.gob.ni . WT/TPR/S/404 • Nicaragua  
- 21 - 
  2.8.  MIFIC coordinates the formulation and implementati on of trade policy with the corresponding 
ministries (for example the Ministry of Agriculture and Forestry (MAG), the Ministry of Family, 
Community, Cooperative and Associative Economy (MEFCCA), the Ministry of Finance and Public 
Credit (MHCP), the Ministr y of the Environment and  Natural  Resources (MARENA), and the Institute 
for Agricultural and Livestock Protection and Health (IPSA)); and, while the Ministry of Foreign Affairs 
represents Nicaragua at the WTO, MIFIC is responsible for international trade ne gotiations, including 
the negotiation of tariffs, in consultation with other ministries on topics within their areas of 
responsibility.  
2.9.  Responsibility for the promotion of export -oriented investment projects to develop the 
economy lies with the Investment and Export Promotion Agency (PRONicaragua), a public -private 
institution attached to the Office of the President of the Republic.3 Its main objectives are to attract 
private investment to drive exports of goods and services, decentralize investment at nat ional level 
and promote a business -friendly environment (Section  2.3).4 
2.10.   The National Commission for the Promotion of Exports (CNPE), chaired by the Minister for 
Development, Industry and Trade, has five representatives from the business sector and five from 
the public sector. Its role is to propose new policy measures that contribute to the development of 
exports.  
2.11.   The general objective of Nicaragua's trade policy continues to be to promote access to foreign 
markets and further the country's inte gration into the international economy by negotiating and 
administering international trade and investment agreements.5 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 national agreements in force , and signing new trade agreements. As regards investment 
promotion and facilitation, work will continue to boost Nicaraguan and foreign investment, cut red 
tape, modernize the legal framework, and strengthen the country's performance in terms of 
international indicators.6 
2.12.   The main sectoral objectives of the National Human Development Plan 2018 -21 are: to ensure 
the supply of p ower by expanding infrastructure, introducing better technologies and involving 
regional electricity agencies; to sustainably increase production, productivity, quality and added 
value in the agricultural sector; to promote the development of new businesse s and the 
establishment of partnership networks and networks of suppliers among SMEs; to implement an 
industrialization policy in order to compete on local and export markets by promoting innovative 
methods and technology to boost quality; to promote the e stablishment of industrial and 
agri-business parks; to foster good practices in the catching, processing and marketing of fishery 
and aquaculture resources; to develop sustainable, job -creating tourism; to make progress in 
extending broadband on the high -speed internet; to bolster the postal network; and to foster the 
development of transport infrastructure in terms of roads, ports, airports, railways, and border 
crossing points.7 
2.3   Trade Agreements and Arrangements  
2.3.1   WTO  
2.13.   Nicaragua became a contracting party to the General Agreement on Tariffs and Trade  (GATT) 
on 28  May 1950. It participated fully in the Uruguay Round, ratifying the Marrakesh Agreement on 
27 July 1995, and became a WTO Member on 3  September  1995. Nicaragua grants at least 
 
3 Law No.  915 published in La Gaceta of 16 October  2015. PRONicaragua is the legal successor to the 
Presidential Delegation for Investment Promotion and Foreign Trade Facilitation (PRONICARAGUA) established 
under Presidential Decree No.  12-2011, published in La Gaceta  No. 70 of 12  April 2011, and to the Special  
Commission for Private Investment Promotion (PRO -NICARAGUA), established under Executive Decree 
No. 75-2002, published in La Gaceta  No. 154 of 16 August  2002.  
4 Article  1 of Law No.  915. 
5 Information viewed at: https://www.mific.gob.ni/QuienesSomos . 
6 Information viewed at: https://www.bcn.gob.ni . 
7 Information viewed at: https://www.bcn.gob.ni . WT/TPR/S/404 • Nicaragua  
- 22 - 
  most-favoured -nation (MFN) treatment to all its trade partners. This is the fourth Trade Policy Review 
of Nicaragua; the previous Review took place in 2012.  
2.14.   On 4  August  2015, Nicaragua became the first Latin American country to ratify the 
WTO Agreement on Trade Facilitation (T FA) and to deposit its instrument of acceptance. Nicaragua 
has notified the WTO of its Category A, B and C commitments under the TFA.8 
2.15.   On 25  January  2010, Nicaragua accepted the Protocol amending the Agreement on 
Trade -Related Aspects of Intellectual Prop erty Rights  in order to make permanent a decision on 
patents and public health. In 1999, Nicaragua also accepted the Fifth Protocol (financial services) to 
the General Agreement on Trade in Services.  
2.16.   On 20  October  2005, Nicaragua acceded to the Information  Technology Agreement (ITA).9 
Nonetheless, Nicaragua is not participating in the expansion of the ITA agreed at the Nairobi 
Ministerial Conference of 2015.10 
2.17.   Nicaragua is not party to the WTO's Plurilateral Agreement on Government Procurement nor 
to the A greement on Trade in Civil Aircraft.  
2.18.   Since its last Review, Nicaragua has not been a complainant or respondent in any case brought 
under the WTO dispute settlement mechanism, but it has participated as a third party in one case.11 
2.19.   During the review period,  Nicaragua has submitted various notifications under different 
WTO Agreements (Table  2.1). Nonetheless, it has a number of pending notifications, mainly in the 
field of agriculture.12 
Table 2.1 Main notifications made by Nicaragua to the WTO, 2012 -20 
Agreement  Description  Frequency  WTO documents (most 
recent if submitted 
periodically)  
Agreement on Trade Facilitation (WT/L/911, replaced by WT/L/931)  
Article 15  Commitments designated under 
Category  A Ad hoc  WT/PCTF/N/NIC/1, 
03/07/2014  
Article 16  Deadlines for the 
implementation of Category B 
and C commitments   
G/TFA/N/NIC/1, 
27/07/2017  
 
G/TFA/N/NIC/1/Add.1,  
30/07/2018  
Article 1, 
paragraph 4  Procedures for importation, 
exportation, and transit   
G/TFA/N/NIC/3, 
06/01/2020  
 
 
 
 
G/TFA/N/NIC/2, 
20/11/2019   Article 10, 
paragraph 4.3  Operation of the single window   
Article 10, 
paragraph 6.2  Use of customs brokers   
Article  12, 
paragraph  2.2 Contact point for the exchange 
of information   
Agreement on Agriculture  
Articles  10 and 
18.2; ES:1  Export subsidies  Annually  G/AG/N/NIC/53, 
15/04/2019  
Article  18.2; DS:1  Domestic support  Annually  G/AG/N/NIC/47, 
29/08/2017  
Article  18.2; MA:2  Tariff and other quota 
commitments  Annually  G/AG/N/NIC/51, 
12/04/2019  
Articles  5.7 and 
18.2; MA:5  Special safeguard provisions  Annually  G/AG/N/NIC/49, 
09/04/2019  
 
8 WTO documents G/TFA/N/NIC/ 1 and G/TFA/N/NIC/1/Add.1 of 27  July 2017 and 30  July 2018 
respectively.  
9 WTO document WT/Let/512 of 28  February  2006.  
10 Information viewed at: https://www.wto.org/english/tratop_e /inftec_e/inftec_e.htm . 
11 Disputes DS434, DS435, DS441, DS458 and DS467: Australia - Certain Measures Concerning 
Trademarks, Geographical Indications and Other Plain Packaging Requirements Applicable to Tobacco Products 
and Packaging . 
12 See WTO document G/ L/223/Rev.27 of 11  February  2020.  WT/TPR/S/404 • Nicaragua  
- 23 - 
  Agreement  Description  Frequency  WTO documents (most 
recent if submitted 
periodically)  
General Agreement on Trade in Services  
Article III:4 and/or 
Article IV:2  Enquiry points/contact points  Once only (within two 
years of the entry into 
force of the Agreement).  S/ENQ/78/Rev.19, 
29/08/2019  
Article V:7(a)  Economic integration 
agreements  Ad hoc  S/C/N/680, 27/02/2013  
S/C/N/717/Rev.1, 
28/01/2014  
Agreement on Implementation of Article  VII of the GATT  (customs valuation)  
Article 22.2  Changes in laws/regulations 
and administrative 
arrangements  Ad hoc  G/VAL/N/1/NIC/1, 
15/10/2012  
GATT  1994  
Article XVII:4(a)  State trading activities  Annually  G/STR/N/17/NIC, 
20/03/2018  
Article XXIV:7(a)  Formation of a free trade area  Ad hoc  WT/REG376/N/1, 
01/11/2016  
WT/REG357/N/1, 
21/11/2014  
WT/REG349/N/1/Rev.1, 
28/01/2014  
WT/REG347/N/1, 
17/09/2013  
WT/REG342/N/1, 
06/06/2013  
WT/REG332/N/1, 
27/02/2013  
Agreement on Import Licensing Procedures  
Article 1.4(a) 
and/or Article 
8.2(b)  Changes in laws and 
regulations and in their 
administration  Ad hoc  G/LIC/N/1/NIC/2, 
23/03/2012  
Article 7.3  Replies to questionnaire on 
import licensing procedures  Annually  G/LIC/N/3/NIC/10, 
14/03/2019  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7 and 
Annex  B Sanitary/phytosanitary 
regulations  Ad hoc  G/SPS/N/NIC/109, 
28/08/2019  
Agreement on Rules of Origin  
Article  5 and 
Annex  II, 
paragraph  4  Changes to preferential rules of 
origin; new preferential rules of 
origin  Ad hoc  G/RO/N/114, 02/04/2014  
G/RO/N/93, 09/04/2013  
Article  5 and 
Annex  II, 
paragraph  4 
- First time  Existing preferential rules of 
origin; judicial decisions and 
administrative rulings of 
general application relating to 
preferential rules of origin  Once only (within 90  days 
of the date of entry into 
force of the 
WTO Agreement for the 
Member concerned)  G/RO/N/161, 21/07/2017  
Agreement on Technical Barriers to Trade  
Article  2.9.2 Technical regulations  Ad hoc  G/TBT/N/NIC/159, 
11/04/2019  
Decision on Notification Procedures for Quantitative Restrictions (G/L/59/Rev.1)   
List of quantitative restrictions 
in force  Once only, before 
30 September  2012 
(within two years of 
1 October  2012); Ad hoc 
(changes)  G/MA/QR/N/NIC/3, 
01/11/2018  
Source:  WTO Secretariat.  
2.3.2   Regional and Preferential Agreements  
2.20.   Since its last Trade Policy Review in 2012, Nicaragua, together with other Central  American 
countries, has brought into force trade agreements with the Republic of Korea and the 
European  Union, a new Central  America -Mexico agreement, and partial scope agreements wit h Cuba 
and Ecuador. An agreement was also signed to govern relations with Central  America after the 
United  Kingdom leaves the European  Union. Consequently, in addition to the CACM (with Costa  Rica, 
Guatemala, El  Salvador and Honduras), Nicaragua has free t rade agreements and/or partial scope WT/TPR/S/404 • Nicaragua  
- 24 - 
  agreements in force with Chile, Colombia, Cuba, the Dominican  Republic, Ecuador, the European 
Union, the Republic of Korea, Mexico, Panama, Chinese Taipei, the United States and Venezuela. 
The trade agreements applicabl e to Nicaragua have been notified to the WTO, with the exception of 
the agreement with the Republic of Korea.13 
2.21.   According to information from the Nicaraguan authorities, in 2019 exports to economies with 
which Nicaragua has preferential agreements in force  accounted for 96.7% of all merchandise 
exports; imports of merchandise under that framework accounted for 74.5% of the total.  
2.22.   The new trade agreements signed by Nicaragua include provisions on market access for goods 
and services, as well as measures to p romote investment. As regards access to markets for 
merchandise, the agreements provide for progressive tariff reduction (Table  2.2) and a number of 
provisions have been negotiated to eliminate non -tariff barriers. The agreements set out 
two arrangements f or access to services markets, namely a "negative list" and a "positive list" . 
Table 2.2 Trade agreements negotiated by Nicaragua, 2012 -20 
 Free Trade 
Agreement 
between 
Central  Americaa 
and Mexico  Association 
Agreement 
between 
Central  Americab 
and the EU  Free Trade 
Agreement 
between 
Central  Americac 
and the Republic 
of Korea  Partial 
Scope 
Agreement 
between 
Nicaragua 
and Cuba  Partial 
Scope 
Agreement 
between 
Nicaragua 
and Ecuador  
Date of 
entry into 
force  1 Sept 2012 1 Aug 2013 1 Oct 2019 9 Oct 2014 19 Nov 2017 
Coverage  Goods and services  Goods and services  Goods and services  Goods  Goods  
End of tariff 
reduction 
period  2012 2027 2037 n.a. n.a. 
Tariff-free 
lines 99.6 95.7 95.3 96.3 2.3 
Immediate 
reduction  99.6 47.9 51.2 96.3 2.3 
Less than 
10 years  0.0 7.4 13.0 0.0 0.0 
10 years  0.0 36.3 24.7 0.0 0.0 
More than 
10 years  0.0 4.1 6.3 0.0 0.0 
Lines where 
tariffs 
remain  0.4 4.0 4.7 3.7d 97.7 
Tariff quotas  n.a. 0.3 n.a. n.a. n.a. 
n.a. Not applicable.  
a Costa  Rica, El  Salvador, Guatemala, Honduras, and Nicaragua.  
b Costa  Rica, El  Salvador, Guatemala, Honduras, Nicaragua and Panama.  
c Costa  Rica, El  Salvador, Honduras, Nicaragua and Panama.  
d Includes 60  lines (0.8%) to which a lower tariff applies.  
Source:  Information supplied by MIFIC . 
2.23.   The Free Trade Agreement between Central  America14 and the Republic of Korea was ratified 
by the Nat ional Assembly of Nicaragua on 12  September  2018 and entered into force on 
1 October  2019. The aim of the agreement, which covers goods as well as services, is to foster the 
expansion and diversification of trade between the Parties, eliminate barriers to trade, facilitate 
cross-border movement, promote conditions of fair competition, increase investment opportunities, 
and protect intellectual property rights. The provisions of the agreement apply on a bilateral basis 
between the Republic of Korea as one pa rty and Costa  Rica, El  Salvador, Honduras, Nicaragua and 
Panama, considered individually, as the other party. In terms of market access, the agreement 
 
13 See the WTO Regional Trade Agreements Database. Viewed at: 
http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . 
14 Costa  Rica, El Salvador, Honduras, Nicaragua and Panama.  WT/TPR/S/404 • Nicaragua  
- 25 - 
  includes preferential coverage of 96.0%. Trade liberalization will be achieved within no more than 
19 years from the date of the agreement's entry into force.  
2.24.   The aim of the Association Agreement between the European Union and Central America  is to 
improve political dialogue between the two regions, step up cooperation in various fields, and 
facilitate trade and investment flows. The agreement consolidates and expands the preferences 
granted under the Generalized System of Preferences (GSP). Nicaragua undertook to eliminate tariffs 
immediately with respect to the EU for 47.9% of tariff lines. Broadly speaking,  Nicaragua will 
eliminate most tariffs over a period not exceeding 10 years (Table  2.2). All other goods are subject 
to a lengthier period of reduction (never more than 15  years) or will be excluded from the reduction 
schedule.15 
2.25.   The Free Trade Agreement b etween Central  America and Mexico of 2012 replaced 
three  previous bilateral agreements and consolidated them into a single text.16 With regard to rules 
of origin, the new Free Trade Agreement between Central America and Mexico amended the 
preferential rules of origin in force under the previous agreement. Specifically, the new agreement 
allows for regional and extended cumulation of origin.17 
2.26.   Nicaragua is participating in the process of establishing a customs union, the Central American 
Common Market (CACM), established in 1960 under the General Treaty on Central American 
Economic Integration.18 The other founder members of the CACM are Costa  Rica, El  Salvador, 
Guatemala and Honduras; Panama has participated since 6  May 2013.19 Most of the p referential 
agreements that Nicaragua has signed are with Central  American countries, and one of the most 
important is the Dominican Republic - Central America - United States Free Trade Agreement 
(CAFTA -DR).20 
2.27.   During the review period, Nicaragua continued  to implement the Tariff Reduction Programme 
agreed under the CAFTA -DR The bulk of Nicaragua's scheduled tariff liberalization took place in the 
year that the agreement entered into force (2006). By 1  January of the 10th year of application of 
the agreemen t (2015), 96.5% of Nicaragua's tariff lines were free of duty, and, when the transition 
period ends in 2025, all Nicaragua's tariff lines will be duty -free except for one, white corn, which 
falls under category H (Exclusion) where the applicable tariff wil l be the MFN rate of 15%. Under the 
agreement, Nicaragua has opened a number of tariff -rate quotas (TRQs) that apply exclusively to 
US and Dominican  Republic suppliers. In the case of imports from the United  States, these cover 
cheese, milk powder, butter,  ice cream, other dairy products, pork, yellow corn, white corn, rough 
rice, milled rice, and chicken leg quarters. For imports from the Dominican  Republic, Nicaragua 
applies TRQs to chicken breasts, onions and shallots, and beans.21 
2.3.3   Other Agreements and Arrangements  
2.28.   On 14  April 2009, Nicaragua applied to join the Latin American Integration Association (LAIA), 
which comprises Argentina, the Plurinational State of Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, 
Mexico, Paraguay, Peru, Uruguay , and the Bolivarian Republic of Venezuela. Nicaragua has reached 
agreements on Market Opening Lists (NAM) with all LAIA members except Paraguay, with which it 
is still waiting to complete negotiations. This has delayed the full incorporation of Nicaragua into the 
LAIA integration arrangements. Joining LAIA is an opportunity for Nicaragua to boost its exports 
under preferential conditions because it was classified in the preliminary phase as a country with a 
relatively lower level of economic development, a llowing it to negotiate under non -reciprocal 
conditions with other member countries that are not relatively less developed economies.  
 
15 For further information on this agreement, see WTO documents in the series WT/REG332.  
16 The signatories of the three free trade agreements were: Mexico and Costa  Rica; Mexico and 
Nicaragua; and Me xico and the "Northern Triangle" (El  Salvador, Guatemala and Honduras).  
17 For further information on this agreement, see WTO documents in the series WT/REG349.  
18 Further information on the CACM can be found in the factual presentations by the WTO Committee  on 
Regional Trade Agreements: WTO documents WT/REG384.  
19 The General Treaty on Central American Economic Integration (TGIEC), adopted by Panama under the 
Protocol Incorporating the Republic of Panama into the Central American Economic Integration Subsyste m. 
20 The CAFTA -DR was signed in 2004 and entered into force on 1  March  2006 for El  Salvador and the 
United  States; 1  April 2006 for Honduras and Nicaragua; 1  July 2006 for Guatemala; 1 March  2007 for the 
Dominican  Republic; and 1  January  2009 for Costa  Rica. 
21 WTO document WT/REG211/3 of 18  July 2016.  WT/TPR/S/404 • Nicaragua  
- 26 - 
  2.29.   Nicaragua has concluded various agreements with LAIA countries, including the partial scope 
agreements signed with Colombi a, Cuba, Ecuador and the Bolivarian Republic of Venezuela. 
Nicaragua also participates, within the LAIA framework, in the agreement between MERCOSUR and 
the CACM concluded in 1998, which seeks to foster  trade, investment, and technology transfer, but 
does not include tariff preferences.  
2.30.   Nicaragua signed a partial scope agreement (AAP) with Colombia, under which the latter 
grants tariff preferences of between 12% and 100% on 25  tariff lines including fresh garlic, 
ginger,  sorghum, peanuts, tomato concentrate , light tobacco, silicaceous sands, kaolin, chlorine, 
hydrochloric  acid, organic curing products, calcium carbonate, mahogany and cedar, and electric 
accumulators.  
2.31.   The AAP with Cuba was signed on 13  March  2014 and entered into force on 9  October  2014. 
It aims to bolster alternative integration by means of solidarity, cooperation and economic, 
commercial and productive complementarity. The agreement provides for negative trade lists, and 
the entire tariff schedule is subject to free trade except for the prod ucts listed in Annexes  1A and 1B 
(Exceptions to free trade) and Annexes  2A and 2B (Reciprocal partial preferences).  
2.32.   The AAP with Ecuador entered into force on 19  November  2017 and aims to strengthen and 
invigorate trade flows, as well as deepen trade relat ions and ties of friendship. Ecuador grants 
Nicaragua immediate free trade in live fish, lobsters, natural honey, seed potatoes, garlic, beans, 
chewing gum and sweets, mixtures of vegetables, rum, cigars and wooden furniture, among other 
items. Nicaragua o pened its market immediately to products of Ecuadorian origin such as herring, 
natural honey, rice for sowing, seeds, fish oil, tuna loins, confectionery, sweet biscuits, jams, 
medicinal products, pneumatic tyres, paper and paperboard, books, and flags and  paving, among 
other items.  
2.33.   Nicaragua signed an AAP with the Bolivarian Republic of  Venezuela on  15 August  1986, which 
was amended in September  1992. Under this agreement, the Bolivarian Republic of  Venezuela 
grants Nicaragua preferences on 312  tariff line s, including bovine livestock, beef cuts and offal, bone 
meal, crustacean shells and carapaces, black beans, cashew nuts, and tuna fish.  
2.34.   Along with Antigua and Barbuda, Cuba, Dominica, Saint Vincent and the Grenadines, and the 
Bolivarian Republic of Venezu ela, Nicaragua is a member of the Bolivarian Alliance for the Peoples  of 
Our America (ALBA ).22 ALBA is an integration project governed by the principles of complementarity 
and cooperation among its members, who are the signatories to the People's Trade Agr eement 
(ALBA -TCP).  
2.35.   Nicaragua benefits from several schemes under the GSP, including those of Canada, Japan, 
Norway, Russia and Switzerland.  
2.36.   Nicaragua is party to the International Coffee Agreement  2007, the International Sugar 
Agreement  1992, the Internati onal Cocoa Agreement  2010 and the Agreement Establishing the 
Common Fund for Commodities.  
2.4  Investment Regime  
2.37.   In the review period, Nicaragua took measures to attract greater inflows of foreign direct 
investment (FDI), in particular through the adoption of v arious laws including the Law establishing 
the Investment and Export Promotion Agency (PRONicaragua) which in 2015, as already noted, 
replaced the Presidential Delegation for Investment Promotion and Foreign Trade Facilitation 
(PRONICARAGUA)23; the Law on Export Free Zones (Section  3.2.6)24; and the Law on Public -Private 
Partnerships governing the formulation, tendering, financing, implementation, operation and 
termination of investment projects for production infrastructure programmes (ports, airports, roa ds, 
 
22 On 23  August  2018 Ecuador withdrew from ALBA, and on 15  November  2019 the 
Plurinational  State  of Bolivia followed suit. Haiti is an observer.  
23 Law No.  915 published in La Gaceta No. 196 of 16  October  2015.  
24 Law No.  917 published in La Gaceta No. 196 of 16  October  2015.  WT/TPR/S/404 • Nicaragua  
- 27 - 
  etc.) or for social programmes (hospitals, schools, safety, etc.) in partnership with the Government 
of Nicaragua.25 
2.38.   The legal framework governing foreign investment in Nicaragua is defined in the country's 
Constitution. It requires the State to protec t, foster, and promote economic investments with social 
responsibility to guarantee economic and social democracy. The Constitution also establishes equal 
rights and obligations in respect of foreign and national investments, guarantees private property 
rights and prohibits confiscation. The Foreign Investment Promotion Law (Law No.  344 of 2000) 
ensures national treatment for foreign investment and allows free currency convertibility; transfers 
abroad in relation to the capital invested; remittance of any p rofit, dividend or gain generated in the 
country; and payments arising from compensation in respect of expropriation. Foreign investors may 
also take out insurance pursuant to international agreements.26 
2.39.   Foreign investment may enter Nicaragua without any r equirement to sign an investment 
contract; no restrictions or conditions are imposed on foreign capital entering the country. The 
amount of investment is not subject to limits or ceilings. There are no restrictions on foreigners 
owning property in Nicaragu a. The law recognizes the right of investors to freely dispose of their 
property and, in the event of declaration of public utility, to receive appropriate compensation. 
Foreign investors enjoy the same investment incentives in Nicaragua as Nicaraguan inve stors, and 
they may own up to 100% of the shares or equity in a national enterprise. The law allows for 
accelerated depreciation of assets (subject to certain conditions), and free access for foreign 
investors to bank loans. Registration of foreign investo rs is not compulsory, however foreign 
investors investing more than USD  30,000 may be entered in the Foreign Investment Statistical 
Register27 on a voluntary basis, for which they have to complete a form entitled "Notification for 
Registration of Foreign I nvestments".  
2.40.   National legislation recognizes the right to establish, acquire and freely dispose of practically 
any type of enterprise, goods or services, except where activities reserved to the State are concerned 
(for example electric power transmission, the water supply and sewage system, and airport 
services), or those that are subject to specific restrictions such as border zones and certain transport 
services.  
2.41.   MIFIC is tasked with enforcing the Foreign Investment Promotion Law (Law No.  344 of 2000). 
Acting through the Investment Directorate, MIFIC proposes policies and strategies that coordinate 
and stimulate investment in the country. The Directorate's functions include facilitating and 
simplifying procedures, helping to improve the legal framework, mo nitoring foreign investment 
flows, and  administering the Foreign Investment Law and its regulations. The Directorate also 
participates in negotiations for bilateral and multilateral investment agreements.  
2.42.   Promoting and facilitating investment is the respon sibility of PRONicaragua, a  decentralized 
public -private institution attached to the Office of the President of the Republic. The aim of this 
agency is to work with the public and private sectors in directing the establishment of a national 
promotion syste m capable of attracting large direct investments from international firms. Its mission 
is to generate economic growth and create jobs in Nicaragua by attracting high -quality foreign direct 
investment; it also provides services free of charge to investors w ishing to explore investment 
opportunities in the country. The services provided by PRONicaragua to qualified investors28 include 
the following: supplying information on investment opportunities in Nicaragua; arranging visits to 
locations of interest to th e investor; logistical support for the investor throughout the investment 
process; advice on identifying suppliers, finding local companies and setting up joint ventures; 
and assistance in identifying real estate property for investors' projects.29 
2.43.   In 2003 , one-stop investment facilities (VUI) for the public that aimed to simplify business 
start-up procedures became operational.30 The VUIs receive support from several of the public 
 
25 Law No.  935 published in La Gaceta No. 191 of 12  October  2016.  
26 Law No.  344 published in La Gaceta  of 24 May 2000.  
27 At MIFIC.  
28 A "qualified investor" is one who meets the agency's criter ia for the sector of interest and type of 
investment concerned. For example, PRONicaragua does not promote regulated sectors such as commercial 
banking.  
29 Information viewed at: http://pronicaragua.gob.ni . 
30 Further information on the VUIs can be found online at: https://www.mific.gob.ni . WT/TPR/S/404 • Nicaragua  
- 28 - 
  institutions involved in setting up businesses, such as the Managua Public Mercantile Register for 
business registrations, the Directorate -General of Revenue (DGI) and the Municipality of Managua 
(ALMA) for taxpayer registrations, and MIFIC for foreign investment registrations. The Ministry of 
Transport and Infrastructure (MTI) has a public information centre (CAPAI) that acts as a one -stop 
shop for over 400  MTI procedures. CAPAI deals with the inbox for online enquiries, a direct telephone 
line specifically for information on procedural formalities and requirements, and on line procedures 
for the construction and water and land transport sectors. The Centre for Export Formalities 
(CETREX) is a government office that aims to simplify, centralize and streamline export procedures. 
The aim of the one -stop free -zone services faci lity (VUSZF) is to simplify and facilitate procedures 
related to the launch and operation of firms with free -zone status, as well as procedures such firms 
must follow when trading internally and externally. Meanwhile, the responsibilities of the Nicaraguan  
Tourism Board (INTUR) include streamlining procedures for projects under the tourism incentives 
law and improving the system for citizens living abroad who apply for the Resident Pensioner or 
Rentier Regime.31 
2.44.  The Ministry of Finance and Public Credit (MH CP) regulates tax and fiscal policy, while tax 
administration and collection is the responsibility of the DGI and the Directorate -General of Customs 
Services (DGA). The main national taxes are: income tax (IR); value added tax (VAT); selective 
consumption tax (ISC); the single specific tax on fuels (IECC); special road maintenance fund tax 
(IEFOMAV); special tax on casinos, gaming machines and gaming tables; stamp duty (ITF); and the flat 
fee (simplified regime). There are also municipal taxes on income (IM I) and taxes on real estate (IBI).  
2.45.   Income tax (IR) is levied on net income originating in Nicaragua for an individual or 
corporation, whether or not resident in Nicaragua . Income or profits resulting from the exportation 
of products that are manufactured, processed, or purchased in the country are considered to be of 
Nicaraguan origin. While corporate IR is charged at a flat 30%, individuals face progressive rates, 
rising from 0 to 30%. All corporations and individuals who engage in income -taxable activitie s, are 
also subject to a definitive minimum IR payment (PMD) of 1.0%, 2.0% or 3.0% of their gross annual 
income, depending on the financial category to which they belong. The IR payable annually will be 
either 30% of net income or the PMD on gross income, whichever is higher. Taxpayers subject to IR 
on economic activity must make monthly IR payments on account to the value of 1.0%, 2.0% or 
3.0%, as appropriate.  
2.46.  Foreign investment enjoys tax concessions granted for special regimes such as free zones 
(Section  3.3.6) and those covered by the Law on Temporary Admission (Section 3.3.7). There are also 
tax concessions for specific sectors with export potential, such as tourism, renewable energy, and 
forestry plantations (Section  3.3.1). In general, investors are n ot required to fulfil performance criteria, 
such as achieving predefined export levels or incorporating a minimum local content percentage.  
2.47.   In order to facilitate and promote foreign investment, Nicaragua has bilateral investment 
agreements with Argentina,  Chile, the Czech Republic, Denmark, France, Germany, Italy, the 
Republic of Korea, the Netherlands, the Russian Federation,  Spain, Sweden, Switzerland, and the 
United Kingdom.  
2.48.   Nicaragua has not signed any international double taxation agreements.  
2.49.   Nicaragua has been a member of the International Centre for Settlement of Investment 
Disputes (ICSID) since 1995; and, since 2003, it has been party to the New York Convention 
of 10 June 1958 and the Inter -American Convention on International C ommercial Arbitration. It is 
also party to international investment agreements with the World Bank's Multilateral Investment 
Guarantee Agency (MIGA), signed in 1990, and with the Overseas Private Investment Corporation 
(OPIC, 2004). Nicaragua participates in the United Nations Commission on International Trade Law 
(UNCITRAL); it also has dispute settlement mechanisms under its free trade agreements.  
 
31 The Law Promoting Income Inflows from Resident Pensioners or Rentiers (Law No.  694), aimed at 
Nicaraguan or foreign pensioners or retirees with stable permanent incomes generated abroad of at least 
USD 1,000 and USD  1,250, plus USD  150 for each family dependent, grants the following incentives: 
exemption from import duties on a once -only basis up to USD  20,000 in respect of personal property 
(household effects); exemption every four years from import duties in respect of a vehicle for personal use or 
use by a dependent relative up to a c.i.f. price of USD  13,000; where the price is higher, the beneficiary is 
required to pay levies on the excess amount. Further information can be obtained at: www.intur.gob.ni . WT/TPR/S/404 • Nicaragua  
- 29 - 
  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs Procedures and Requirements and Customs Valuation  
3.1.1.1   Customs Procedures  
3.1.  Customs procedures in Nicaragua continue to be governed mainly by the Central American 
Uniform Customs Code (CAUCA IV) and its implementing regulations (RECAUCA IV)1, and by national 
legislation. The Directorate -General of Customs Services (DGA), under the direction of  the Ministry 
of Finance and Public Credit (MHCP), is responsible for administering customs services for purposes 
of foreign trade control and facilitation, as well as taxes levied by the State on internationally 
traded goods .2 
3.2.  In 2018, the Council of Ministers for Central  American Economic Integration (COMIECO), of 
which the Ministry of Development, Industry and Trade  (MIFIC) is an integral part, approved 
Resolution No.  409-2018 on the Central American Single Declaration (DUCA), which brings together 
the three main documen ts pertaining to trade in goods in the region. The DUCA, which entered into 
force on 7  May 2019, incorporates the Central American Single Customs Form (FAUCA), used for 
trade in goods originating in the region, within the region; the Overland International  Customs 
Transit Declaration (DUT), used for the overland international transit of goods in Central America; 
and the Goods Declaration (DM), used for trade with third countries outside the region. There are 
three variants of the DUCA: DUCA -F, for trade in goods originating in the Central American region; 
DUCA -D, for imports and exports of goods with third countries outside the Central American region; 
and DUCA -T for the movement of goods under the overland international customs transit regime.3 
3.3.  Importers or exporters must register with the DGA by producing their Single Taxpayers 
Registration (RUC) certificate issued by MHCP's Directorate -General of Revenue (DGI).4 Listing in 
these registers is performed electronically, followed by a process of v erification of the information 
provided, without registration costs or differential treatment for foreigners. All economic operators 
must obtain fiscal clearance from the DGI to gain customs clearance for imports.5 Following 
registration, fiscal clearance  is verified electronically through the DGA's and DGI's interoperable 
computer systems . 
3.4.  Commercial imports are cleared on the basis of the following documents: the customs 
declaration for goods; the commercial invoice; the value declaration6; the transpor t documents; 
and, where appropriate, the certificate of origin, the phytosanitary certificate, and evidence of 
registration (for example, with the Ministry of Health). Imports from other members of the CACM 
are exempt from the requirement to produce a comm ercial invoice, a value declaration and a 
certificate of origin. Nicaragua is developing a pilot program for the electronic transmission of air 
cargo manifests.7 The DUCA -T serves as a cargo manifest in the case of overland transport and is 
transmitted el ectronically to the customs IT system from the SIECA regional node.  
3.5.  In general, imports must be cleared through customs by a licensed customs broker; the 
intervention of a broker is unnecessary in the following cases, among others: clearance of 
passengers'  baggage; importation of goods other than passengers' baggage with a value of less than 
CA$2,000 (Central American pesos)8; and imports by parcel and express delivery companies, with 
a value of not more than CA$1,000. Natural persons who request authoriza tion to act as customs 
 
1 Both instruments entered into force on 25 August 2008.  
2 Article 4 of Law No. 339, establishing the Directorate -General of Customs Servi ces, published on 
17 March 2000. Information viewed at: https://www.dga.gob.ni . 
3 Information viewed at: https://www.sieca.int/index.php/plataformas -electronicas/servicios -en-
linea/declaracion -unica -centroamericana . 
4 Legal persons must have been previously enrolled as traders in the Public Register.  
5 Within the Automated System for Customs Da ta, the authorization of the importer corresponds to the 
period of validity of fiscal clearance, namely, up to 30 days. There is a charge of NIO 30 for the fiscal clearance 
document, paid by affixing a revenue stamp.  
6 The RECAUCA (Article 212) specifies t he cases in which a declaration of value is not required.  
7 CT-113-2018 of 28 November 2018.  
8 The Central American peso (CA$) is the unit of account used by CACM member countries. The Central 
American Monetary Council has set its value as equivalent to US D 1. WT/TPR/S/404 • Nicaragua  
- 30 - 
  brokers must have the nationality of one of the States that have signed the Third Protocol to the 
CAUCA IV; moreover, they must pass a psychometric test and a qualifying examination.9 The cost 
of accreditation (indefinite) is CA$5 p er brokerage and CA$5 per customs broker. Customs brokers 
must provide an annual (renewable) bank guarantee depending on the c.i.f. amount declared to the 
DGA in the previous year of operations (Table 3.1).10 
Table 3.1 Bank guarantees required from customs brokers, 2020  
(Annual)  
Import declarations (total amount for previous year)  Amount of bank guarantee (CA$)  
Up to CA$10,000,000  20,000  
CA$10,000,001 - CA$20,000,000  30,000  
CA$20,000,001 - CA$30,000,000  40,000  
From CA$30,000,001  50,000  
Source:  Information provided by DGA authorities.  
3.6.  Nicaragua continues to use the Web -based ASYCUDA World system for the automation of 
customs clearance procedures.11 ASYCUDA World users must pay CA$100 for the right to use the 
system (per entity) and CA$20 for each user tag (login). The electronic transmission of customs 
declarations is subject to the payment of CA$5 per declaration (CA$2.50 per additional declaration ). 
3.7.  The DGA may subject imported goods to physical or documentary inspections, depending on 
the level of risk. The risk assessment system is based on fixed rules and on probabilistic and random 
models. The main selection criteria are based on policies relat ed to, inter alia , health and public 
safety (arms, precursors), the environment and facilitation, and these criteria are reviewed 
continually. The risk assessment system is in operation at all the country's border control points. 
The selection channels are  green (no inspection), amber (documentary inspection) and red 
(documentary and physical inspection). The breakdown of declarations by channel is shown in 
Table  3.2. 
Table 3.2 Trend in customs declarations and  breakdown by channel, 2013 -19 
 
2013  2014  2015  2016  2017  2018  2019  
Total declarations  230,874  233,462  248,349  254,446  258,632  209,472  207,974  
Green channel (%)  73 71 71 70 71 55 57 
Red channel (%)  19 27 27 28 27 21 39 
Amber channel (%)  8 2 2 2 2 24 4 
Source:  Information provided by DGA authorities.  
3.8.  Whatever the origin of the goods, importers may request from the DGA, inter alia : advance 
tariff classification rulings; the application of customs valuation criteria; and the application of duty 
drawback,  deferral, or other relief from customs duties. The mechanism for challenging the DGA's 
decisions is set out in Article 127 of the CAUCA and Articles 623 to 629 of the RECAUCA. An 
application for review may be lodged, within a period of 10 days, with the h ighest Customs Service 
authority; the latter must complete the administrative inquiry within a period of 20 days following 
receipt of the application. Within a period of 10 days following notification of the decision, an appeal 
may be made to the same auth ority, which will simply refer the proceedings to the Customs and Tax 
Administrative Tribunal (TATA) within three days. TATA must issue its ruling within a period of 
30 days starting from the day following receipt of the appeal. The applicant or appellant must be 
notified of any decision taken during the proceedings; notification may be in electronic form. The 
decisions issued by TATA represent the exhaustion of administrative remedies and are subject to 
appeal through an amparo  (protective) application or recourse to the administrative law courts.  
3.9.  According to the World Bank's Doing Business Indicator, the time required to import goods in 
Nicaragua fell from 23 days in 2012 to 72 hours in 2020. This is longer than the average for 
Latin America (55.6 hours) even though customs clearance is faster in Nicaragua. Nicaragua's import 
procedures are more cost -efficient than the average for Latin America (Table 3.3).  
 
9 CT-224-2009 of 16 November 2009.  
10 The c.i.f. amount of goods that are exempt by virtue of the Constitution is not taken into account in 
defining categories.  
11 The Automated System for Customs Data (ASYCUDA ) was developed by UNCTAD as software 
desig ned to cover all aspects of customs administration.  WT/TPR/S/404 • Nicaragua  
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  Table 3.3 Time and cost to import, 2020  
 Nicaragua  Latin America  
Time to import  
Border compliance   72 hours  55.6 hours  
Documentary compliance  16 hours  43.2 hours  
Cost to import  
Border compliance  USD 400 USD 628.4  
Documentary compliance   USD 86 USD 107.3  
Source:  World Bank Group (2020), Doing Business 2020: Nicaragua . Viewed at:  
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Profiles/Country/NIC.pdf . 
Trade Facilitation  
3.10.   On 4  August  2015, Nicaragua became the fir st country in Latin America to ratify the 
WTO Trade Facilitation Agreement (TFA) and deposit its instrument of acceptance. Nicaragua has 
notified the WTO of its category A, B, and C commitments under the TFA.12 
3.11.   Nicaragua has implemented several initiatives  in recent years to facilitate trade, including the 
electronic exchange of information contained in the DUCA -T and the DUCA -F in the CACM, and the 
Border Integration Programme (PIF).  
3.12.   The PIF aims to modernize infrastructure, equipment and information techn ology systems at 
border crossings to improve the efficiency of border controls, reduce wait times and improve 
competitiveness.13 The executing agency for the PIF is MHCP's Office of General Programme and 
Project Coordination (CGPP), with support from other  institutions (DGA,  MIFIC , Ministry of 
Government Affairs, Ministry of Health, Institute for Agricultural and Livestock Protection and Health, 
National Commission for the Registration and Control of Toxic Substances, Nicaraguan Army and 
National Police). N icaragua has also modernized the infrastructure for access to the community of 
San Pancho, on the border with Costa Rica.14 
3.13.   At regional level, a project is being conducted to implement a Central American digital trade 
platform for use in conducting intra -and extra -regional trade operations by means of customs, 
migration, health and single window information exchange systems. It is based on the needs 
(functionalities, services) of the Central American countries and the model they have adopted.  
3.14.   The country's single window for foreign trade (VUCEN) will 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. Implementation of the VUCE is 
expected by late 2020 or early 2021.  
3.15.   Nicaragua is a member of the World Customs Organization but is not a contracting party to 
the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures.  
3.1.1.2   Customs Valuation  
3.16.   Since the last Review of Nicaragua there have been no substantial changes in the procedures 
for determining the value of imported goods. The regulations on customs valuation include the 
WTOCustoms Valuation Agreement (CVA), the Central American Uniform Customs  Code (CAUCA IV) 
and its regulations (RECAUCA IV).  
3.17.   In principle, imported goods are valued following the first CVA method, transaction value, 
that is, the price actually paid or payable for the goods when sold for export to the country of 
importation, adju sted in accordance with Article 8 of the CVA. When necessary, recourse to 
alternative methods follows the hierarchy set out in the CVA. Inversion of the valuation methods 
described in Articles 5 and 6 of that Agreement is not automatic; the importer's requ est must first 
 
12 WTO documents G/TFA/N/NIC/1 and G/TFA/N/NIC/1/Add.1, of 27 July 2017 and 30 July 2018, 
respectively.  
13 Nicaragua's border crossings are El Guasaule, Las Manos and El Espino, on the border with Honduras,  
and Peña Blanca on the border with Costa Rica.  
14 Modernization of the San Pancho border crossing will accommodate exports that now cross by way of 
Peña Blanca destined for Puerto Limón, cutting approximately 140 km from the journey.  WT/TPR/S/404 • Nicaragua  
- 32 - 
  be accepted by Customs. Nicaragua collects duties on the customs value of imported goods, 
calculated as the sum of all the costs up to the point of entry into its customs territory. If satisfactory 
documentary evidence relating to any of the  transport, handling or insurance costs is lacking, an 
amount considered to be consistent with the tariffs normally applicable in trade is added.  
3.18.    According to the authorities, no minimum values are applied to any goods; the DGA maintains 
a price database,  for the purpose of investigating values declared by importers. In the event of an 
unavoidable delay in the definitive determination of the customs value of the goods, RECAUCA  IV 
provides for the release of the goods against security.15 The security must b e sufficient to cover the 
amount of the customs duties and other taxes, determined on the basis of values that satisfy the 
criterion of reasonable doubt.  
3.1.2   Rules of Origin  
3.19.   Nicaragua does not use non -preferential rules of origin.16 
3.20.   Nicaragua applies preferential rules of origin as a member of the CACM and under other free 
trade agreements in force (Table 3.4). The criteria conferring origin may be general or specific . All 
the agreements allow changes in tariff classification and bilateral and regional cumulation . Goods 
that have not been wholly obtained or produced entirely in the territory of one of the signatory 
countries must satisfy certain substantial transformation criteria, mainly based on change of tariff 
classification. The p referential rules of origin also establish regional value content criteria, which are 
applied separately or in combination with the criterion of change in tariff classification. Preferential 
tariff treatment is conditional upon the presentation of a certif icate of origin , even in the case of the 
CACM, for which the DUCA -F is used.  
Table 3.4 Preferential rules of origin  
 Value of regional 
content  Principal tolerances  Cross -cumulation  
CAFTA -DR 30%, 35%, 45% or 
50%, depending on the 
calculation method; 
other thresholds are 
applied to certain 
products.  10% of the value or weight of 
fibres or yarns in the case of 
textiles and made -up articles.  Cumulation with Mexico is permitted 
in respect of certain textile products 
used to produce articles of apparel 
under HS Chapter 62.  
Chile 30% 8% of the value of all 
non-originating materials  used 
in the production of a good 
that do not meet the tariff 
classification change 
requirement.  
8% of the weight of the fibres 
and yarns compared to the 
weight of the good produced.  No 
CACMb 30% of the value of the 
goods.  
50% of the weight of 
the goods.  10% of the value or weight of 
fibres or yarns in the case of 
textiles and made -up articles.  No 
Mexico  41.66% (net cost) or 
50% (transaction 
value)  10% of the transaction value 
or weight of fibres or yarns in 
the case of textiles and 
made -up articles.  Cumulation with the United States is 
permitted for certain textile products 
used to produce articles of ap parel 
under HS Chapter 62.  
Republic of 
Korea  30% – 50% depending 
on the method of 
calculation or increase 
in value  10% of the f.o.b. value of all 
non-originating materials used 
in the production of a good  
that do not meet the tariff 
classification change 
requirement.  
10% of the weight of the fibres 
and yarns compared to the 
weight of the good produced.  No 
 
15 Article 202 of the RECAUCA.  
16 WTO document G/RO/N/10 of 16 August 1996.  WT/TPR/S/404 • Nicaragua  
- 33 - 
   Value of regional 
content  Principal tolerances  Cross -cumulation  
Dominican 
Republic  None 7% of the value or weight of 
fibres or yarns in the case of 
textiles and made -up articles.  No 
Chinese 
Taipei  35% - 45% 10% of the value of the goods 
(de minimis  rulec). No 
European 
Union  25% - 50% of the 
ex-factory price  10% of the ex -factory price.  Cumulation is permitted with Bolivia, 
Colombia, Ecuador, Peru and 
Venezuela.  
At the request of a Central American 
or European Union country, materials 
originating from Mexico, South 
America or Caribbean countries are 
considered as originating in Central 
America or the European Union, 
respectively, when they are 
processed or incorporated into a 
product  obtained there.  
a Refers to the existence of provisions in accordance with which inputs from non -beneficiary countries 
that are not parties to the Agreement are deemed to be originating.  
b Panama has been part of the CACM since the entry into force of th e Protocol incorporating the 
country into the Central American Economic Integration System . 
c De minimis  refers to the permissible limits on the use of materials from non -beneficiary countries 
which otherwise would not be accepted.  
Source:  WTO Secretariat, based on Nicaragua's existing trade agreements.  
3.1.3   Tariffs  
3.21.   Customs duties accounted for 2.5% of total receipts in 2019, compared to 3.9% in 2013. 
Value added tax (VAT) remains one of the pillars of the tax system, but its weight has diminished in  
recent years, falling from 36.5% of total receipts in 2013 to 30.4% in 2019  (Table 3.5).  
Table 3.5 Revenue structure, 2013 -19 
(%)  
2013  2014  2015  2016  2017  2018  2019  
Total receipts  100.0  100.0  100.0  100.0  100.0  100.0  100.0  
Tax revenue  92.4 93.0 93.1 92.9 92.9 92.6 92.4 
 Income tax  33.7 35.6 36.6 37.7 38.7 42.0 41.7 
 Value added tax (VAT)  36.5 36.7 35.6 34.5 34.6 31.4 30.4 
 Selective consumption 
tax (ISC)  18.0 16.8 16.8 16.6 15.9 15.6 17.0 
 Tariffs  3.9 3.6 3.7 3.8 3.6 2.8 2.5 
Other revenue  8.0 7.3 7.2 7.4 7.3 8.2 8.4 
Source:  Ministry of Finance and Public Credit.  
3.1.3.1   Tariff Structure  
3.22.   Nicaragua's tariff is based on the Central American Tariff System (SAC) and the corresponding 
Import Duties (DAI). The SAC is currently based on the 2017 version of the Harmonized System 
(HS). The range of applied duties, all ad valorem , includes four basi c rates: 0%, 5%, 10% and 15% 
(98.8% of all lines).17 CACM member countries can apply different rates, which must be approved 
by the Council of Ministers for Economic Integration.  
3.23.   Nicaragua's tariff contains 7,768 12 -digit tariff lines under HS 2017 (compar ed to 7,359 under 
HS 2012). Of these tariff lines, 46.5% are duty -free (compared to 46.4% in 2012). The average 
tariff on lines with greater -than-zero rates rose from 11.6%  in 2012 to 11.7% in 2020 (Table 3.6). 
Nicaragua does not apply seasonal or variable  tariffs. Tariff quotas increased from 0.1% of all tariff 
lines in 2012 to 0.3% in 2020 and apply both bilaterally and multilaterally (Section 3.1.5).  
 
17 Other rates are: 20%, 30%, 35%, 40%, 45%, 55%, 60% and 164% (1.2% of all tariff lines).  WT/TPR/S/404 • Nicaragua  
- 34 - 
  Table 3.6 Structure of applied MFN tariffs, 2012 and 2020 (%) 
  
2012  2020    
(HS12)  (HS17)  
1. Total number of lines  7,359  7,768  
2. Non-ad valorem  tariffs (% of tariff lines)  0.0 0.0 
3. Non-ad valorem  tariffs with no ad valorem  equivalents (% of tariff lines)  0.0 0.0 
4. Tariff quotas (% of tariff lines)  0.1 0.3 
5. Duty-free tariff lines (% of tariff lines)  46.4 46.5 
6. Average of lines exceeding zero (%)  11.6 11.7 
7. Simple average  6.2 6.2 
8. Agricultural products (WTO definition)  11.8 11.8 
9. Non-agricultural products (including petroleum, WTO definition)  5.2 5.2 
10. Domestic tariff peaks (% of tariff lines)a 1.3 1.3 
11. International tariff peaks (% of tariff lines)b 1.3 1.3 
12. Overall standard deviation of applied rates  8.1 8.1 
13. Bound tariff lines (% of tariff lines)  100.0  100.0  
a Domestic tariff peaks are defined as rates that exceed three times the overall simple average applied 
rate. 
b International tariff peaks are defined as rates that exceed 15%.  
Source:  Calculations by the WTO Secretariat based on data provided by the authorities.  
3.24.   The simple average of Nicaragua's applied MFN tariffs did not cha nge during the period under 
review, remaining at 6.2%. The average tariff on agricultural products (WTO definition) is 11.8% 
and remains substantially higher than the average applied tariff on non -agricultural products (5.2%). 
The products with the highest  average tariff are live animals and animal products, with a tariff of up 
to 164%18, followed by dairy products, cereals and prepared foodstuffs (60.0%), and sugar and 
confectionery  (55.0%) (Table A3.1).  
3.25.   The distribution of tariffs by rate did not change s ubstantially during the period under review. 
The coefficient of variation remained 1.3  (Table A3.1), which indicates substantial tariff rate 
dispersion, with rates that range from 0 to 164%. Under the ISIC (Revision 2) definition, agriculture 
and fisheries  remains the most highly protected sector, with an average tariff of 8.3%, followed by 
manufacturing (6.1%) and mining (1.8%). In 2020, 60.1% of tariff lines were subject to rates 
ranging from 0% to 5%; only 1.2% of all lines are higher than 25% (Chart  3.1). 
 
18 Fresh, chilled and frozen chicken legs and thighs (HS 0207.13.93.00.00, 0207.13.94.00.00, 
0207.14.93.00.00 and 0207.14.94.00.00).  WT/TPR/S/404 • Nicaragua  
- 35 - 
  Chart 3.1 Distribution of MFN tariff rates by frequency, 2020  
 
a The total number of lines is 7,768.  
Source:  Calculations by the WTO Secretariat based on data provided by the authorities.  
3.1.3.2   Tariff Bindings  
3.26.   In the Uruguay Round, Nicaragua bound all its tariffs at eight rates ranging between 0% and 
200%. About 89% of tariff lines are bound at a maximum rate of 40%, after a progressive reduction 
starting from a maximum rate of 60%, completed at the begi nning of 2004; the exceptions to the 
bound ceiling of 40% can be found in Nicaragua's 2006 Review.19 In its schedule of tariff concessions, 
Nicaragua left blank the column corresponding to other duties and charges, which is equivalent to 
binding at a rate of 0%.  
3.27.   Comparing the applied MFN tariff in 2020 with the bound tariff, and taking into account only 
the lines that are strictly comparable in view of the change in nomenclature, there is one case in 
which the MFN applied tariff of Nicaragua exceeds the bou nd rate: HS 2017 8486.20.91.00.00, where 
the MFN tariff of 10% exceeds the bound tariff of 0%.20 
3.1.3.3   Preferential Tariffs  
3.28.   Nicaragua grants preferential treatment to imports originating in the countries with which it 
has preferential trade agreements (Table 3.7 ). Most imports originating in the CACM enter duty -free, 
except for sugar and coffee . Nicaragua also extends preferential treatment to imports from countries 
with which it has signed plurilateral and bilateral agreements.  
3.29.   The average preferential tariffs i n the agreements negotiated by Nicaragua are all well below 
the average MFN rate. Preferential tariffs range from 0.1% to 6.1% and are always lower for 
non-agricultural products. The tariff preferences granted under some of the agreements cover nearly 
100%  of the tariff universe (Table 3.7).  
 
19 WTO document WT/TPR/S/167/Rev.1 of 26 September 2006.  
20 The line 8486.20.91.00.00 in HS 2017 is comparable to the line 8486.20.00.00 in HS 2012 given 
Nicaragua's participation in the Information Technology Agreement (ITA). Some tar iff lines were simplified at 
the six -digit level, including the new subheading 8486.20 in HS 2007 with a bound tariff rate of 0%. 
WTO document JOB/MA/108 of 9 July 2013.  
(46.5%)
(13.2%)(16.5%)(22.2%)
(0.1%) (0.0%)(1.2%)
0102030405060708090100
05001,0001,5002,0002,5003,0003,5004,000
Duty free >0-5 >5-10 >10-15 >15-20 >20-25 >25Number of linesa
Percentage
Cumulative percentage
Number of lines (% of total)WT/TPR/S/404 • Nicaragua  
- 36 - 
  Table 3.7 Summary analysis of the preferential tariff, 2020  
 Total  Agricultural products 
(WTO category)  Non-agricultural 
products (WTO 
category)  
Average 
(%) Zero-tarif
f lines 
(%) Average 
(%) Zero-tarif
f lines 
(%) Average 
(%) Zero-tariff 
lines (%)  
MFN  6.2 46.5 11.8 23.6 5.2 50.9 
CAFTA  0.1 99.3 0.9 95.8 0.0 100.0  
CAFTA -DR 0.4 98.1 2.2 89.3 0.0 100.0  
Chile 0.7 85.9 3.3 78.4 0.2 87.3 
Cuba 0.7 96.3 3.7 82.5 0.1 98.9 
Ecuador  6.1 48.0 11.7 24.3 5.0 52.5 
Mexico  0.1 99.5 0.9 96.8 0.0 100.0  
Panama  1.2 92.7 3.6 84.5 0.7 94.3 
Republic of Korea  4.7 51.5 9.7 32.8 3.7 55.1 
Dominican Republic  1.2 92.8 3.1 88.0 0.8 93.9 
Chinese Taipei  1.0 89.7 2.5 73.6 0.7 92.8 
European Union  2.2 55.1 7.4 36.9 1.1 58.6 
Source:  Calculations by the WTO Secretariat based on data provided by the authorities.  
3.1.3.4   Tariff Concessions  
3.30.   Nicaragua grants tariff concessions under several import regimes, as stipulated in Article  288 
of the text amending the Nicaraguan Tax Law (Ley de Concertación Tributaria ).21 Duty-free imports 
include: transport equipment, raw materials, inputs and spare parts used to provide public transport 
services for the Nicaraguan Army, the National Police  and transport cooperatives; machinery, 
equipment and spare parts therefor, asphalt, cement, paving stones, vehicles and spare parts 
therefor used in the construction and maintenance of highways, roads, streets and in public cleaning 
for the Central Govern ment and its subordinate enterprises, municipal governments and regional 
governments; the Nicaraguan fire brigades and Red Cross; as well as missions, international 
organizations and international cooperation agencies and their representatives; programmes and 
projects financed through international cooperation  and implemented by non -profit organizations 
registered in the relevant bodies; and public programmes and projects financed with international 
cooperation under agreements signed by the Nicaraguan gove rnment. There is an exception in the 
case of nationals providing services in such representations and organizations.  
3.1.4   Other Charges Affecting Imports  
3.31.   In addition to customs tariffs, Nicaragua applies internal taxes to imports as well as domestic 
production, including VAT, selective consumption tax (ISC), a customs security service fee and a 
goods import service fee  (TSIM).  
3.32.   Nicaragua applies VAT of 15% on the supply of goods and services, including on their 
importation; exports are subject to 0% VA T. If the goods and services are sold on the local market, 
the taxable base for the VAT is the price indicated on the invoice plus any additional amounts for 
other items, with the exception of tips for services provided and the VAT itself. The taxable base  for 
imports is their customs value plus duties and any other taxes (including the ISC, where 
appropriate), again excepting the VAT itself.  
3.33.   The following products, inter alia , are exempt from VAT: (i) books, pamphlets, magazines, 
school and scientific mate rials, newspapers and other periodicals, as well as the inputs and raw 
materials needed to produce them; (ii) medicines, vaccines and serums for human use, orthotic and 
prosthetic appliances; glucose -measuring equipment, such as lancets, measuring devices and kits 
and test strips, oxygen for clinical or hospital use, chemical reagents for clinical or hospital 
examinations , wheelchairs and other devices designed for persons with disabilities, as well as the 
machinery, equipment, spare parts, inputs and raw m aterials needed to produce them; (iii) surgical, 
optometric, odontological and diagnostic medical equipment and instruments for human medicine, 
including the strips used in electronic devices to monitor blood glucose levels; (iv) agricultural goods 
not pro cessed or packaged: rice, maize, wheat, black and red beans, tomatoes, white and yellow 
onions, sweet peppers, cabbage, potatoes, bananas, plantains, sorghum, soya, sugar cane and palm 
 
21 Law No. 987 amending Law No. 822.  WT/TPR/S/404 • Nicaragua  
- 37 - 
  kernels; (v) rice with quality of 80/20 or less, soya and palm oil; edi ble salt, cane sugar, excluding 
specialty sugars, and ground coffee in containers of 115 grams or less (vi) hen eggs, tortillas, maize, 
pinol and pinolillo, wheat flour, ordinary bread and traditional buns, excluding pastries, live yeast 
exclusively for ma king ordinary bread and traditional buns, maize flour and soya flour; (vii) modified 
milk, infant formula, liquid whole milk ; food preparations for infants based on milk and traditional 
cheese; (viii) live animals, excluding pets and pure bred horses; (ix)  fresh fish; (x) the following 
meats provided fresh, chilled or frozen,  provided that they have not been processed, made into 
sausages or packaged : (a) beef, provided as different cuts and offal , including ordinary ground beef 
but excluding fillets, loins, ribs, other special cuts and tongue; (b) pork, provided as different cuts 
and offal  but excluding fillets, loins, chops, ribs and bacon; and (c) chicken meat, provided as 
different pieces and o ffal, including whole chickens but excluding breasts with or without wings and 
fillets; (xi) butane gas, propane gas or a mixture of both in containers of up to 25 pounds; (xii)  crude 
or partially refined or reconstituted oil and oil derivatives, which are  subject to a s ingle ("lumped") 
specific tax on fuels (IECC) and a special tax to finance the road maintenance fund (IEFOMAV); (xiii) 
used moveable property; (xiv) real estate transfers; (xv) goods purchased by companies operating 
under the free port syste m in accordance with the applicable law and customs legislation; (xvi) 
purchases made at international or Central American fairs that promote the development of, and 
relate directly to, the activities of the agricultural, micro, small and medium -sized ente rprise sectors; 
(xvii) notes and coins in national circulation , national and authorized lottery games, partnership 
shares, revenue stationery issued or authorized by the MHCP, as well as other securities, excluding 
certificates of deposit that carry owners hip of property that if disposed of is subject to VAT; and 
(xviii) solar panels and deep -cycle solar batteries used for renewable electric power generation and 
energy -saving lamps and bulbs.  
3.34.   With respect to imports, the goods subject to general exemption f rom VAT represent about 
4.14% of Nicaragua's tariff lines. The Law on Incentives for the Tourism Industry and the Law on 
Fiscal and Business Equity contain provisions on specific VAT exemptions.  
3.35.   The following services are exempt from VAT: (i) medical and d ental care, excluding cosmetic 
and aesthetic treatments not arising from an illness, disorder or accident the after -effects of which 
place a person's physical or mental health at risk; (ii) premiums paid for agricultural insurance and 
legally required auto mobile insurance22; (iii) not -for-profit entertainment or sporting events ; 
(iv) religious events promoted by churches, associations and religious faiths; (v) internal, air, land, 
lake, river and maritime transport; (vi)  transport of cargo for export by air , land, lake, river and 
sea; (vii)  instruction provided by entities and organizations the primary purpose of which is 
education; (viii)  supply of electric power used for agricultural irrigation activities; (ix)  supply of 
drinking water through a public sys tem; (x) services connected with banking and micro -finance; 
(xi interest, including interest on financial leasing; (xii) commissions for transactions on stock and 
agricultural exchanges duly authorized to operate in the country; (xiii) services provided to  the 
transferor under commercial financing contracts for the sale of a client's receivables (factoring) ; 
(xiv) leasing of buildings intended for housing unless they are furnished; and (xv) leasing of land, 
machinery or equipment for use in agriculture, for estry or aquaculture.  
3.36.   According to the authorities, most exemptions from VAT are granted for social purposes, or 
to promote the development of small and medium -sized enterprises. The available estimates for 
2013-19 ascribe an annual fiscal cost of between 0.6% and 0.2% of GDP to VAT not collected on 
imports, and between 6.6% and 7.3% of GDP to VAT not collected on the domestic market.  
3.37.   Nicaragua levies a selective consumption tax (ISC) on a series of domestically produced and 
imported goods, encompassing 1,727 tariff lines (22.3% of the tariff universe). According to the 
information provided by the authorities, the ISC is levied at 22 rates ranging from 2% to 100%, plus 
a non -ad valorem  rate on cigarettes and other tobacco products .23 Domestic manufacturers a nd 
importers of eligible goods are subject to the tax. The tax base for the ISC is the customs value plus 
the amount of any additional taxes (tariff or non -tariff) collected at the time of importation or entry, 
excluding VAT. In the case of alcoholic bever ages, wines and beers24, juices, soft drinks, aerated 
 
22 Law No. 431, Law on the Traffic Regime and Traff ic Offences, as amended, published in La Gaceta  No. 
86 of 27 May 2014.  
23 The ISC rates on motor vehicles are: 10% (up to 1,600 cc); 15% (from 1,601 to 2,600 cc); 20% 
(from 2,601 to 3,000 cc); 30% (from 3,001 to 4,000 cc); and 35% (over 4,001 cc). Starting in January 2020, 
the ISC rate for cigarettes and other tobacco products is NIO 2,500 per  thousand or fraction thereof.  
24 In the case of alcoholic beverages, wines and beers, an additional non -ad valorem  tax of NIO 50 per 
litre of alcohol is applied to both  imports and domestic production.  WT/TPR/S/404 • Nicaragua  
- 38 - 
  waters, aerated waters containing added sugar or flavouring and energy drinks, the tax base is the 
retail price. The tax base for domestic products is the sales price charged by the manufacturer or 
producer. The ISC on petroleum products is a s ingle ("lumped") tax which replaces all other taxes 
and is collected at the time of sale to the retailer.25 
3.38.   Final imports of goods for consumption are also subject to a customs charge: the import 
service fee (TSIM) , of USD  0.5 per tonne or fraction thereof.26 According to the authorities, the 
absence of a ceiling on the amount of TSIM that traders have to pay seems hard to reconcile with 
the real cost of the services provided by the DGA.  
3.1.5   Import Prohibitions, Restrictions and Licensing  
3.39.   Nicaragua bans imports of  certain products with the aim of protecting the environment and 
human health, protecting species, and for security reasons, in conformity with its domestic 
legislation or international commitments.  
3.40.   Nicaragua has notified the WTO Committee on Import Licens ing of the licensing system in use 
for the administration of its import tariff quotas; its latest notification does not mention any other 
cases in which import licences are required.27 However, imports of some categories of products are 
subject to a licens ing/prior authorization regime applied for the purpose of protecting the public 
and/or national interest, or for health or public security reasons. In this connection, special permits 
are required to import chemicals (raw materials) for industrial use; syn thetic pesticides (National 
Commission for the Registration and Control of Toxic Substances); animal feed, pesticides and 
fertilizers (Ministry of Agriculture); firearms, explosives and other related materials (National Police); 
foodstuffs, medicines and c ontrolled substances (Ministry of Health); and X -ray equipment (National 
Atomic Energy Commission). The importation of citrus planting material that could harbour the 
bacterium Candidatus  Liberibacter spp. has to be approved by the official responsible for  quarantine 
control at the border post where the material is cleared through customs.  
3.41.   Telecommunications equipment entering Nicaragua must be cleared through customs solely 
and exclusively in the customs warehouses authorized by the DGA in the city of Mana gua, for prior 
inspection and approval by the Nicaraguan Institute of Telecommunications and Postal Services 
(TELCOR). The list of the items in question includes 152 groups of equipment and accessories.  
3.42.   Nicaragua also uses a non -automatic import licensing system for the management of tariff 
quotas . 
3.1.6   Anti-Dumping, Countervailing, and Safeguard Measures  
3.43.   Since 2012, there has been no change to the legislation in this area. The legal framework 
governing trade defence mechanisms includes, at the multilateral leve l, the provisions of the relevant 
WTO Agreements and of the GATT  1994, and at the CACM level, the Regulations on Unfair Trade 
Practices and on Safeguard Measures.  
3.44.   Nicaragua did not impose any anti -dumping or countervailing measures or initiate any 
investig ations for this purpose during the review period. No trading partner is exempt from the 
application of anti -dumping or countervailing measures under the preferential trade agreements 
signed by Nicaragua.  
3.45.   Nicaragua has not imposed safeguard measures on impo rts from third countries and no 
investigations pertaining to such measures have been initiated since the last Review.  
3.46.   Nicaragua exempts the other members of the CACM from the application of safeguard 
measures.28 Moreover, subject to certain conditions, Nic aragua exempts most of its other 
preferential trading partners from safeguard measures applied within the context of the 
 
25 Single ("lumped") specific tax on fuels (IECC)on the transfer, importation or entry of petroleum 
derivatives. The tax base is the litre. Premium and regular gasoline and diesel are also subject to the IEFOMAV.  
26 Decree N o. 192 of 14 May 1986.  
27 WTO document G/LIC/N/1/NIC/2 of 23 March 2012.  
28 Article 3 of the Central American Regulations on Safeguard Measures.  WT/TPR/S/404 • Nicaragua  
- 39 - 
  WTO provisions. In general, the requirements are that the preferential trading partner's imports not 
be "substantial" and not make a si gnificant contribution to the injury.  
3.47.   Nicaragua did not make any use of the special safeguard provisions in Article 5 of the 
Agreement on Agriculture during the period 2012 -20.29 Under these provisions, Nicaragua can 
impose additional duties on nine 4 - or 8-digit HS headings (meat and dairy products); some of these 
headings are subject to tariff quotas (Section 3.1.5).  
3.48.   MIFIC administers trade defence mechanisms (anti -dumping, countervailing and safeguard 
measures) through the Directorate -General of Foreign Trade, which is the investigating authority.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs Procedures and Requirements  
3.49.   Exports are subject to customs clearance procedures similar to  those applying to imports 
(Section 3.1.1.1). The Exporters Register is maintained by the Centre for Export Formalities 
(CETREX). The aim of CEREX as a single export window, according to Decree No.  30-94, which 
established it, is to centralize the executio n of specific functions performed by the public entities 
concerned with export formalities.30 Export documents connected with functions performed by 
CETREX can be requested at local CETREX offices, or online via the Integrated Export Formalities 
System (Si Trade). The use of a customs broker to handle these formalities is optional; in this case, 
a notarized power of attorney from the exporter must be submitted to CETREX.  
3.50.   The documentation required for exports is the goods declaration, the commercial invoice,  the 
transport documents, and where appropriate, any special certificates and permits. CETREX applies 
a range of fees for the services provided, depending on the f.o.b. value of the goods, the minimum 
being NIO  150 and the maximum NIO  1,275. These fees inc lude the cost of issuing documents: the 
single export form (FUE) and the DUCA -F.31 
3.51.   According to the World Bank's most recent ease of doing business ranking, the time needed 
to export goods is 72 hours (compared to an average of 55.3 hours for Latin America ). Nicaragua's 
export procedures are more cost -efficient than the average for Latin America (Table 3.8).  
Table 3.8 Time and cost to export, 2020  
 Nicaragua  Latin America  
Time required to export  
Border compliance   72 hours  55.3 hours  
Documentary compliance  48 hours  35.7 hours  
Cost to export  
Border compliance  USD 240 USD 516 
Documentary compliance   USD 47 USD 100.3  
Source:  World Bank Group (2020), Doing Business 2020: Nicaragua . Viewed at:  
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Profiles/Country/ NIC.pdf . 
3.52.   Beginning in the second semester of 2020, the authorities expect to implement the Single 
Window for Foreign Trade  (VUCEN), which will help to streamline formalities and reduce costs and 
delays for companies engaged in foreign trade operations by m eans of an electronic platform for the 
centralized administration of import and export permits (Section  3.1.1.1).32 
 
29 WTO documents G/AG/N/1/NIC/35 of 24 May 2013; G/AG/N/1/NIC/37 of 28 March 2014; 
G/AG/N/1/NIC/40 of 23 April 2015; G/AG/N/1/NIC/45 of 9 February 2017; G/AG/N/1/NIC/48 of 9 April 2019; 
and G/AG/N/1/NIC/49 of 9 April 2019.  
30 The registration requirements are listed on the CETREX website. Viewed at: 
http://www.cetrex.gob.ni/website/servicios/inscripcion.jsp . 
31 The DUCA -F serves as certificate of origin, commercial invoice and customs declaration for exports to 
CACM countries.  
32 Transparency notification under the Trade Facilitation Agree ment, G/TFA/N/NIC/3.  WT/TPR/S/404 • Nicaragua  
- 40 - 
  3.2.2   Goods in Transit  
3.53.   International land transit within the CACM and between its member countries and Panama is 
governed by Resolution No.  65-2001 (COMRIEDRE) of 16  March  2001, which establishes a full 
freedom -of-transit regime, with national treatment in contracting for international land freight 
transport. SIECA has maintained a regional database on carriers and means of transport authorized 
for international customs transit by land. The lack or suspension of registration is grounds for the 
disqualification of the carrier and/or means of transport . Nicaragua electronically exchanges data 
from its customs information system with the system for regi onal control of overland transit 
administered by SIECA.  
3.54.   The requirements for international customs transit by land  include completion, printing and 
electronic transmission of a "Central American single declaration for overland international customs 
transit" (DUCA -T), plus the customs seal, and carry a total cost of CA$ 25. In addition to the DUCA -T, 
goods not originating in States parties to the Central American Economic Integration Treaty must 
be accompanied by the export declaration, the commercial  invoice, the transport document and the 
cargo manifest; for Central American goods the DUCA -F is required.  
3.2.3   Taxes, Charges and Levies  
3.55.   Nicaragua does not apply duties, taxes or minimum prices to exports. Exports are subject to 
0% VAT, which enables exporter s to obtain a refund of VAT paid on inputs and services incorporated 
in their production.  
3.2.4   Export Prohibitions, Restrictions, and Licensing  
3.56.   Nicaragua bans exports of: roundwood of forest species, timber and sawn wood33; lobsters 
during their reproductive ph ase or when moulting or spawning (with eggs) or with a sperm 
receptacle ; Caribbean spiny lobsters ( panulirus argus ), which require a classification of at least five 
ounces of tail to be marketed;  Pacific lobsters ( panurilus gracilis ), which require a classification of 
at least three ounces of tail to be marketed ; estuary shrimps in the larval or juvenile phase; and 
sawfish and bull shark ( carcharhinus leucas ). In accordance with its international environmental and 
public health commitments, the Ministry of  the Environment and Natural Resources (MARENA)  can 
authorize exports of toxic waste when there is no adequate procedure in Nicaragua to render it 
harmless or destroy it , subject to prior express consent from the receiving country to destroy the 
waste on i ts territory.34 
3.57.   Green coffee exporters must, as part of the process, register their sales contracts in advance 
and submit a coffee quality export certificate (issued by the National Coffee Council (CONACAFE)), 
together with a certificate of origin from the  International Coffee Organization (ICO). CETREX 
maintains an online database which can be used to make searches for export requirements by 
product , and which shows the documents required.35 According to the notification made by the 
authorities to the WTO,  Nicaragua does not issue export licences within the context of free trade 
agreements that stipulate bilateral tariff quotas.36 
3.2.5   Export Support and Promotion  
3.58.   During the period under review, Nicaragua did not provide notification as to having granted, 
or not , any of the subsidies permitted under Annex VII to the WTO Agreement on Subsidies and 
Countervailing Measures.37 
 
33 With the exception of wood from plantations and pine ( Pinus sp.) trees and in special cases, such as 
after hurricanes.  
34 Article 133, Law No. 217 of 6 June 1996, as amended by Law No. 647 of 3 April 2008.  
35 Information viewed at:  https://www.cetrex.gob.ni/website/institucion/reqexpproducto.jsp . 
36 WTO document G/LIC/N/3/NIC/2 of 19 July 2010.  
37 The last notification was in 2012, WTO document G/SCM/N/220/N IC of 13 June 2012.  WT/TPR/S/404 • Nicaragua  
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  3.59.   Nicaragua has notified the WTO that it did not grant any export subsidies within the meaning 
of the Agreement on Agriculture during the period 2012 -19.38 
3.60.   Starting in 2013, in accordance with Law No.  822 (Nicaragua n Tax Law), as amended39, 
producers and exporters of goods originating in Nicaragua enjoy a tax credit of 1.5% of the f.o.b. 
value of their exports. This credit is applied to their monthly advances or annual income tax during 
the period in which the goods are exported, provided t hat the exporter transfers to the producer or 
manufacturer, in cash or in kind, the amount corresponding to its value added.  
3.2.6   Export Free Zones  
3.61.   The legal framework for free zones was modified during the review period; it is now covered 
by the Law on Export Free Zones (Law No.  917) of 2015 and its implementing regulations ( Executive 
Decree No.  12) of 2016.40 This framework replaced the Law on Export Processing Zones , Decree 
No. 46-91 of 22  November  1991, and Decree No.  50-2005, Implementing Regulations for th e 
Decree on Export Processing Zones . According to the authorities, the reform arose from a need for 
updated regulations.  
3.62.   The main purpose of free zones  is to promote investment and exports through the 
establishment and operation of free zones  for the proce ssing and production of industrial and 
agro-industrial goods ; logistical free zones; free zones  for services; free zones for outsourcing; and 
others dedicated to the production and export of goods and/or services under an exceptional fiscal 
and customs reg ime. The activities of free zones are to be exclusively for the purpose of 
exportation.41 In some cases, subject to prior authorization by MIFIC, a portion of such products 
may be allowed to enter national customs territory for domestic consumption.  
3.63.   Free z ones are monitored by the DGA, subjected to special customs control, and regulated by 
the National Free Zones Commission  (CNZF). A single window for free zone services within the CNZF 
facilitates formalities for participating companies vis-à-vis such Nicaraguan government agencies as 
the DGA, DGI, DGMI, MARENA and MITRAB. Among other services, it also provides advice on legal 
and labour matters.  
3.64.   "Operator" companies approved by the CNZF enjoy the following fiscal benefits42: 100% 
exemption from t ax on the income generated by operations in the zone for 15 years from the start 
of their operations, renewable for an equal period; total exemption from the payment of import 
taxes on machinery, equipment, tools, spare parts and other implements needed to  operate the 
zone; exemption from the payment of taxes chargeable on enterprise establishment, transformation, 
merger and restructuring, and also from stamp duty; total exemption from the payment of taxes on 
the transfer of properties attached to the zone;  total exemption from indirect taxes on sales or 
selective consumption taxes; and total exemption from municipal taxes.  
3.65.   In turn, the "user" companies of a free zone enjoy the following fiscal benefits43:: 100% 
exemption from tax on the income generated by their activities in the zone during the first 10 years 
of operation, renewable for an equal period, and 60% thereafter44; exemption from any tax on the 
disposal of real estate , including the capital gains tax, where applicable, provided that the company 
is terminating operations in the zone and that the property is still covered by the free zone regime; 
 
38 WTO documents G/AG/N/NIC/33 of 24 May 2013; G/AG/N/NIC/39 of 28 March 2014; G/AG/N/NIC/42 
of 23 April 2015; G/AG/N/NIC/44 of 9 February 2017; G/AG/N/NIC/52 of 15  April 2019; and G/AG/N/NIC/53 of 
15 April 2019.  
39 Law No. 822, Nicaragua n Tax Law , published in La Gaceta  No. 241 of 17  December 2012, and 
amendments thereto.  
40 Law No. 917  approved on 8 October 2015 and published in La Gaceta No. 196 of 16 October 2015. 
The implementing regulations for that law were approved by Executive Decr ee No. 12 -2016 of 28 June 2016 
and published in La Gaceta No. 153 of 16 August 2016.  
41 Article 3 of Law No. 917.  
42 Article 16 of Law No. 917.  
43 Article 20 of Law No. 917.  
44 This exemption does not include taxes on personal income, salaries, wages or emolum ents paid to 
Nicaraguan or foreign personnel working for the company established in the zone. It does include payments to 
foreign non -residents as interest on loans, commissions, honoraria and remittances for legal services in 
Nicaragua or abroad, as well as those for promotion, marketing, advisory assistance and related services, 
payments for which such companies need not have made withholdings.  WT/TPR/S/404 • Nicaragua  
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  exemption from the payment of taxes chargeable on enterprise establishment, transformation, 
merger and restructuring, and also from stamp duty; exemption fr om all import -related customs 
and consumption taxes and duties45; exemption from customs taxes on transport equipment, 
including cargo, passenger or service vehicles, for normal use by the company in the zone46; total 
exemption from indirect taxes, sales t ax and selective consumption tax ; total exemption from 
municipal taxes; total exemption from export taxes on products produced in the zone; and 
exemption from fiscal and municipal taxes on local purchases.  
3.66.   The Free Zones Corporation (CZF) is a state compan y that administers and creates new zones 
in any part of Nicaragua; its purpose is to promote, develop, operate, guide and administer public 
free zones on Nicaraguan territory.47 The CZF enjoys the same fiscal benefits as the operator 
companies of private f ree zones.48 
3.67.   At the end of 2019, 49 active industrial parks and 219 user companies (174 in 2013) were 
operating under the free zone regime. Occupying an industrial area of 1,816,680 m2 (1,339,760 m2 
in 2013 ), they directly generated 121,913 jobs (109,310 i n 2013) and USD  905.41  million in value 
added. By July  2020, the benefiting population had reached approximately 2.2  million (Table 3.9).  
3.68.   In 2019, 42.2% of the user companies were located in Managua, about one third of which 
(74) operated in textiles and c lothing; 16.7% in the tobacco industry; 14.9% in outsourced services; 
and 11.3% in agribusiness. Most of these user companies are from the United States (69), followed 
by South Korea (37) and Nicaragua (32). The United States is also the main recipient of exports 
from Nicaragua's free zones (accounting for about three quarters), and the origin of nearly one third 
of Nicaragua's imports.  
3.69.   During the period under review, the performance of free zone exports, mainly in the textile 
industry, was highly dynamic (Section 1.3.1). In 2019, free zone exports accounted for 49.3% of all 
exported Nicaraguan goods (45.3% in 2012).  
Table 3.9 Main indicators of the free zone regime, 2013 -20a 
 
2013  2014  2015  2016  2017  2018  2019  2020b 
Industrial parks (unit)  49 49 50 52 52 52 49 49 
User companies (unit)  174 174 207 212 225 224 219 219 
Direct jobs (thousand)  109.3  109.3  110.3  115.1  118.6  125.6  121.9  108.4  
Population benefitted (thousand)  2,186  2,186  2,206  2,302  2,372  2,511  2,438  2,168  
Industrial area (thousand m²)  1,340  1,402  1,410  1,442  1,523  1,771  1,816  1,839  
Value added (USD million)  716.2  716.2  757.0  803.2  815.0  894.7  905.4  416.8  
a Year-end figures.  
b January -July 2020.  
Source:  National Free Zones Commission . 
3.2.7   Inward Processing Regime  
3.70.   The inward processing regime (RPA) is governed primarily by the Law on Temporary 
Admission for Inward Processing and Export Facilitation (Law No.  382) and its implementing 
regulations (Executive Decree No.  80), bo th of 2001.49 The temporary admission procedure  allows 
 
45 Applicable to the importation of raw materials, materials, equipment, machinery, matrices, parts or 
spare parts, samples, moulds and accessories to be used in equipping the company for operation in the zone; 
and, in addition, taxes applicable to the equipment needed to install and operate cafeterias, health services, 
medical assistance, childcare centres, recr eational facilities and goods of any other kind that contribute to 
meeting the needs of company personnel working in the zone.  
46 If these vehicles are sold to buyers outside the zone, the customs taxes will be charged, with 
reductions that apply owing to t he time in use, similar to such sales made by diplomatic missions and 
international agencies.  
47 Article 9 of Law No. 917.  
48 The CZF is administered by a board of directors acting as a collegial body, composed of members of 
the CZF, MIFIC and MHCP.  
49 Law No . 382, published in La Gaceta  No. 70 of 16 April 2001. The implementing regulations for this 
law were approved by Executive Decree No. 80 -2001, published in La Gaceta No. 177 of 19 September 2001. 
In addition, Law No. 817 amending Article 30 of the Law on Temporary Admission for Inward Processing and 
Export Facilitation, published in La Gaceta No. 226 of 26 November 2012.  WT/TPR/S/404 • Nicaragua  
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  both the entry of goods into Nicaraguan customs territory and the local purchase of goods or raw 
materials free from any duty or tax (VAT, ISC, DAI) , provided the goods are re -exported after 
undergoing  processing, repair or alteration . User companies in export free zones are not eligible for 
the temporary admission procedure.  
3.71.   To benefit from the RPA, a company must present its project to the Technical Secretariat of 
the National Commission for the Promo tion of Exports (CNPE). Based on the Secretariat's evaluation 
of the application, the CNPE considers it for approval (Section 3.2.8). Suspended taxes must be paid 
when the manufactured products are destined for the domestic market or for export. To be elig ible 
for the benefits under this regime, companies must directly or indirectly export at least 25% of their 
total sales, for a value of at least USD  50,000 per year.  
3.72.    The goods eligible for RPA treatment include intermediate goods and raw materials, inputs , 
semi-processed products, containers, packaging, and any type of good used in the final products for 
export; as well as samples, models and templates required for production and staff training50; capital 
goods used directly in production, which may stay i n national territory for a non -renewable period 
of up to five years; and material and equipment that are essential parts in production facilities.  
3.73.   When goods enter the country under the temporary admission procedure, the beneficiary 
must post a guarantee w ith the DGA ensuring the payment of suspended duties and taxes. The 
guarantee is returned at the time of export or re -export.  
3.74.   The Law on Fishing and Aquaculture  (Law No.  489) of 2004, as amended by Law No.  797, 
establishes the right to suspension of taxes on diesel fuel used for fishing activities and industrial 
aquaculture when this input is used to generate products for the domestic and export markets .51 To 
qualify for this benefit, interested parties must adhere to Law No.  489 and apply to the CNPE for t he 
suspension of taxes. This law also establishes the right to prior suspension of taxes on diesel fuel 
and gasoline used for fishing activities and artisanal aquaculture to generate export products . 
Interested parties need to apply to the CNPE for the sus pension of taxes.  
3.2.8   Export Promotion, Financing, Insurance and Guarantees  
3.75.   The CNPE is the highest policy -making and administrative body for the RPA  and for the 
development of proposals to improve the promotion and facilitation of exports.52 In addition to 
administering the RPA (Section 3.2.7), its functions include the formulation of general policy for 
CETREX. The CNPE comprises several ministries (MIFIC as chair, MHCP, MAG and MARENA), as well 
as PRONicaragua and five representatives from private sector expo rters' associations.53 
3.76.   One of the tasks of the Association of Producers and Exporters of Nicaragua (APEN), a 
non-profit organization, is to support Nicaraguan producers with a view to making them stronger 
and promoting their internationalization. The servi ces offered by APEN include the facilitation of 
business meetings; training; commercial intelligence; and assistance with export formalities. APEN 
receives no budget resources from the State.  
3.77.   The Bank for the Promotion of Production (BFP, also known as P roduzcamos ) is Nicaragua's 
development bank.54 In accordance with the Law establishing the BFP, its main objective is to 
promote production for the benefit of micro, small and medium -sized producers in the agricultural 
and industrial sectors. The BFP manages resources that come from the Treasury, financial 
 
50 These articles can remain in national territory for up to six months, and the DGA can extend this 
period for another six months, subjec t to prior favourable decision by the CNPE.  
51 Law No. 489,  published in La Gaceta No. 251 of 27 December 2004; and implementing regulations for 
Law No.  489, approved by Executive Decree No. 9-2005, published in La Gaceta  No. 40 of 25 February 2005. 
Law No.  797, Law amending Article 111 of Law No. 489, Law on Fishing and Aquaculture, and Article 126 of 
Law No. 453, Fiscal Equity Law, published in La Gaceta No. 121 of 28 June 2012.  
52 Decree No. 37 -91 of 26 August 1991.  
53 Law No. 382, published in La Gaceta  No. 70 of 16 April 2001. Law No. 817, Law amending Article  30 
of Law No. 382, Law on Temporary Admission for Inward Processing and Export Facilitation, published in La 
Gaceta  No. 226 of 26 November 2012.  
54 Law No. 640, Law establishing the Bank for the Promo tion of Production, approved on 6 November 
2007 and published in La Gaceta No. 223 of 20 November 2007. Law No. 684, Law amending the Law 
establishing the Bank for the Promotion of Production, approved on 27 May 2014 and published in La Gaceta 
No. 123 of 3  July 2014.  WT/TPR/S/404 • Nicaragua  
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  institutions and international cooperation bodies, and can carry out the same banking operations as 
banks operating in the national  financial system, with the exception of taking deposits from the 
public.55 According to its institutional strategy, the BFP channels financial resources through 
first- and second -tier portfolios and trust funds. Its operations are concentrated in the foll owing 
sectors: agriculture and livestock; export markets; urban development, construction and housing; 
tourism and hotel development; governmental and private projects; and industry, infrastructure and 
technology. At 31  December  2019, the BFP had a total i n its own portfolio of 19,453 beneficiaries, 
3.3% of which were directly engaged in the export sector. In addition, the BFP's gross portfolio 
balance reached USD  83.2 million. Out of that total, 75% of the first -tier portfolio and 16.7% of the 
second -tier portfolio went  to the agricultural sector; 18% to the commercial sector through direct 
lending and 39% to housing development and financing through the second -tier portfolio.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.78.   In addition to export incentiv es, Nicaragua maintains some sectoral incentives for tourism, 
forestry and the generation, transmission, distribution and marketing of electricity for public use.  
3.79.   The Law on Incentives for the Tourism Industry of the Republic of Nicaragua (Law No.  306), 
passed in 1999, grants exemptions to natural and legal persons that invest between USD  30,000 
and USD  500,000 directly in the development of tourism activities or, if they do not reach the 
minimum investment amount, fulfil the criteria for their economic act ivity. The largest incentives are 
available to infrastructure projects. Eligible tourism activities include: hotel industry services; duly 
authorized investments in protected areas of touristic, ecological or cultural interest; air and water 
transport and public land transport for tourists; food, drink and entertainment services; the filming 
of movies and artistic, sporting and other events that benefit tourism; the renting of land vehicles, 
aircraft and watercraft to tourists; related tourism activities an d equipment; and investment (direct 
or indirect) in the development of tourism activities and Nicaraguan handicrafts.56 
3.80.   The Law on the Conservation, Promotion and Sustainable Development of the Forestry Sector 
(Law No.  462) provides tax incentives for forestry plantations for a period of 10 years. These 
incentives include exemption from the payment of income tax and real estate taxes in the case of 
forestry plantations and areas under forestry management; exemption from tariffs for second - and 
third-level processing firms that import machinery, equipment and accessories; and a 50% reduction 
in municipal taxes on land sales and on capital gains taxes. All procurement procedures by state 
institutions must give priority to the procurement of goods made of wood bearing the proper forestry 
certificate issued by the National Forestry Institute (INAFOR), which may have a price difference of 
up to 5% in procurement bidding or competitions.57 
3.81.   The Law on the Electricity Industry (Law No.  272) provide s a three -year exemption from all 
import duties on machinery, equipment, materials and inputs intended exclusively for the 
generation, transmission, distribution and marketing of electricity for public use. In addition, the 
fuels used to generate electric power are exempted indefinitely from any duty.58 The Law on the 
Promotion of Renewable Electricity Generation (Law No.  532) provides that new projects and 
expansion projects undertaken by private, public or mixed -ownership entities will benefit from the 
following incentives: (i)  exemption from the payment of tariffs and VAT on machinery, equipment, 
materials and inputs; (ii)  exemption from the payment of income tax for up to seven years after the 
project has started commercial operations; (iii)  exemption fr om current municipal taxes on real 
estate property, sales and registrations during the project construction, for 10 years, applied 
gradually (75% exemption in the first three years, 50% in the next five years, and 25% in the final 
two years); (iv) exemptio n from stamp duty for 10 years, and exemption from all taxes that may 
apply to the exploitation of natural resources for five years after the start of operations.59 The Law 
 
55 The BFP's authorized capital is administered by the following state institutions: the Rural Development 
Institute (IDR), the Nicaraguan Agricultural Technology Institute  (INTA), the Ministry of Agriculture and 
Forestry, the Nicaraguan Institute for Small and Medium -Sized Enterprises, and the Rural Credit Fund (FCR).  
56 Law No. 306, published in La Gaceta  No. 117 of 21 June 1999.  
57 Law No. 462, passed on 26 June 2003 and published in La Gaceta  No. 168 of 4 September 2003. 
Decree regulating the procedure for the approval and implementation of tax incentives, Presidential Decree 
No. 03-2019, published in La Gaceta  No. 13 of 22 January 2019.  
58 Law No. 272, passed on 18 March 1998 and published in La Gaceta  No. 74 of 23 April 1998.  
59 Law No. 532, passed on 13  April 2005 and published in La Gaceta  No. 102 of 27  May 2005.  WT/TPR/S/404 • Nicaragua  
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  on the Exploration and Exploitation of Geothermal Resources (Law No.  443), as amend ed by the 
Law amending and supplementing Law  No. 443 (Law No.  656), provides that, for projects involving 
geothermal exploration or exploitation, the incentives may be extended for 10 years from the date 
on which the plant concerned starts operations.60 
3.3.2   Standards and other Technical Requirements  
3.82.   The institutional and legal framework for standards and other technical requirements has 
changed little since the previous Review. MIFIC coordinates the National Quality Assurance System 
(SNC) and chairs the Nationa l Commission on Technical Standardization and Quality (CNNC), which 
is the coordinating body and the highest national authority for voluntary and mandatory 
standardization. The Commission has  17 members who represent the private sector, the scientific 
and technical sector, consumers and public institutions.  
3.83.   The Information and Notification Office (OIN), under MIFIC's Directorate of Standardization 
and Metrology (DNM), is the enquiry point provided for in the Agreement on Technical Barriers to 
Trade (TBT Agr eement) and is also responsible for implementing the provisions of that Agreement 
related to notification procedures.61 
3.84.   The National Accreditation Office (ONA), attached to MIFIC, is a non -profit public entity that 
administers the National Accreditation Sy stem for conformity assessment bodies. Currently, the 
accredited bodies in Nicaragua comprise 14 testing laboratories, four calibration laboratories and 
one inspection body. ONA has also signed three mutual recognition agreements with the 
Inter-American Ac creditation Cooperation (IAAC) and the International Laboratory Accreditation 
Cooperation (ILAC), which cover test laboratories, calibration laboratories and inspection bodies.  
3.85.   In 2015, Nicaragua opened the new physical facilities of the National Metrology  Laboratory 
(LANAMET) and the Food Technology Laboratory (LABAL).62 LANAMET is responsible for ensuring 
and maintaining the traceability of national measurement standards and acts as a reference 
laboratory for industrial and legal metrology and for test la boratories and calibration laboratories. 
LANAMET protects national standards for physical quantities of mass, volume, pressure, 
temperature, force, power and length. LABAL provides food -analysis services.63 Controls on 
conformity with technical regulations  are carried out by the respective competent authority at the 
point of entry into Nicaragua or at points of sale, as appropriate, through on -site inspections and 
sampling.  
3.86.   The DNM coordinates the development of Nicaraguan technical standards (NTN), which a re 
voluntary, and Nicaraguan Mandatory Technical Standards (NTONs, referred to as technical 
regulations by the WTO) through various technical committees, the most significant of which are for 
veterinary medicines, milk and dairy products, meat and meat pro ducts, fish and fisheries products, 
conformity assessment, food additives, building material and microbiological criteria. The technical 
committees work in the different areas of standardization (NTN and NTON), according to their sphere 
of competence. They  are made up of professional and technical staff from the public and private 
bodies and entities in the sectors with an interest in standardization/regulations and are entrusted 
with the drafting and review of proposals for both mandatory and voluntary tec hnical standards.64 
3.87.   A list of Nicaragua's mandatory technical regulations is available on the DNM's website.65 In 
December  2019, there were 289 NTONs in force. Of those, 104 were in the food sector, 31 were 
related to the environment, 43 to agriculture and  health protection, 24 to hydrocarbons, and the 
rest covered a range of areas such as pesticides, pharmaceutical products and transport.  
 
60 Law No. 443, passed on 24  October  2002 and published in La Gaceta  No. 222 of 21  November 2002; 
and Law No. 656, passed on 4  June 2008 and published in La Gaceta  No. 217 of 13  November 2008.  
61 WTO document G/TBT/2/Add.82 of 25  October  2004.  
62 Both laboratories were financed from cooperation funds and own funds.  
63 Informati on viewed at: https://www.mific.gob.ni/Comercio -Interior/Oficina -Nacional -de-
Acreditaci%C3%B3n/Organismos -Evaluadores -de-la-Conformidad -Acreditados . 
64 Each committee is chaired by the representative of the public entity that is competent in  its field. 
65 Information viewed at: https://www.mific.gob.ni/DIPRODEC/Inspección -y-Verificación/Inspección -de-
Normas -Técnicas . WT/TPR/S/404 • Nicaragua  
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  3.88.   Between  2012 and 2019, Nicaragua adopted 153 NTNs and 90 NTONs, including technical 
regulations harmonized at the CACM level, with some  of the measures dealing with conformity 
assessment procedures. During the same period, Nicaragua notified the WTO Committee on 
Technical Barriers to Trade of 62 draft technical regulations relating to international trade measures. 
By Decem ber 2019, around 90% of NTNs and 15% of NTONs were based on international standards.  
3.89.   Standardization, accreditation and metrology activities are governed by the Law on Technical 
Standardization and Quality (Law No.  219) and its implementing regulations66, and the Metrology 
Law (Law No.  225) and its implementing regulations.67 Nicaragua also applies the provisions laid 
down by COMIECO within the framework of the CACM for the preparation of Central American 
Technical Regulations.  
3.90.   The purpose of Law No.  219 is  to order and integrate the activities of the public, private, 
scientific and technical sectors and consumer activities in order to prepare, adopt, adapt and review 
technical  standards. The Law establishes a uniform procedure for developing technical stand ards, 
similar to the procedure used internationally. It also created the CNNC. Under this Law, all products, 
processes, methods, installations, services and activities for which the use or consumption is affected 
by NTONs must comply with the relevant stan dards, and those producing or offering them in the 
national territory must ensure compliance with those standards by means of the appropriate 
certification. Where a product subject to compliance with a particular NTON fails to meet all the 
corresponding sp ecifications, its marketing or supply is prohibited forthwith. The Law allows 
imported products to comply with a standard in force in the country of origin or an international 
standard in place of the NTON, provided such compliance is certified before and during  marketing.  
3.91.   The procedure for preparing technical regulations in Nicaragua is laid down in the Regulations 
for the Preparation and Approval of Nicaraguan Mandatory and Voluntary Technical Standards, which 
were approved at the Second Regular Meeting ( 002-98) of the National Commission for Technical 
Standardization and Quality (CNNC) and are summarized in Box 3.1.  
Box 3.1 Procedure for the preparation and approval of technical regulations  
1. The public institutions competent in the field will, in accordance with their functions and in their capacity 
as chair of the appropriate Technical Standardization Committees, be responsible for formulating and 
presenting preliminary drafts that fall within their com petence, as well as for issuing the definitive standards 
and for monitoring compliance.  
2. The NTONs to be prepared must be included in the annual National Standardization Plan approved by the 
CNNC. The interested entities must submit the subject for stan dardization to the Executive Secretariat of the 
CNNC at the latest by 30  November of the year prior to the introduction of the programme under the Plan. 
However, the proposal may come from any interested party, but must be considered by the competent 
national authority.  
3. In order to prepare preliminary draft standards, a search must be made for other related standards, both 
Nicaraguan and international. If no such standards exist, reference may be made to the provisions contained 
in regional or foreign s tandards or guidelines or in other technical specifications, provided that they 
constitute an effective means of achieving the objectives established in the  WTO TBT Agreement.  
4. The chair of the corresponding Technical Committee presents the preliminary draft standard to the 
Technical Committee for its approval and attaches the Regulatory Impact Statement (MIR). This statement 
must contain a succinct explanation of the purpose of the standard, of the measures proposed, and of the 
alternatives considered a nd the reasons for rejecting them; a comparison of the measures with any past 
regulations that it has; and a general description of the advantages and disadvantages of the standard and 
the technical feasibility of verifying it.  
5. The Technical Committee examines the technical content of the preliminary draft and its regulatory 
impact and makes any relevant comments on the draft prior to its approval. The draft must be approved by 
consensus or, failing that, by a majority of votes.  
6. Once the document is approved by the Technical Committee, it is submitted for national and international 
public consultation.  
 
66 Law No. 219, published in La Gaceta  of 2 July 1996. Regulations implementing the Law on Technical 
Standardization and Quality, Decree No. 71 -97, published in La Gaceta  No. 241 of 18  December 1997.  
67 Law No. 225, published in La Gaceta  of 18 July 1996. Regulations implementing the Metrology Law, 
Decree No. 65 -97, published in La Gaceta  No. 227 of 27 November 1997.  WT/TPR/S/404 • Nicaragua  
- 47 - 
  7. The consultation period lasts 60 calendar days. During this period, any interested party may comment on 
the draft standard . The Technical Committee that prepared the standard is responsible for replying to the 
comments received as a result of the public consultation on the standard.  
8. At the end of the public consultation, the Technical Committee studies the comments receiv ed and, where 
justified, amends the draft  accordingly.  
9. Once this has been done, the chair of the Committee submits the final document for approval and, if it is 
found to be satisfactory, forwards it to the CNNC for approval as a definitive standard.  
10. If approved, the corresponding Ministry will order that it be published in full in the Gaceta Oficial  as an 
NTON.  
11. The date of entry into force indicated in the standards may not be less than 60 calendar days after their 
date of publicat ion. Sanitary,  zoosanitary and phytosanitary standards form an exception to this rule.  
Source:  Regulations for the Preparation and Approval of Nicaraguan Mandatory and Voluntary Technical 
Standards.  
3.92.   In the event of a national emergency, the competent publ ic institution may prepare and issue 
an emergency NTON jointly with MIFIC and the other ministries involved, without going through the 
ordinary drafting procedure, and order its publication in the Official Journal, La Gaceta . Emergency 
NTONs may not remain  in force for more than six months after publication. If the emergency 
continues for more than six months, the NTON may be extended for a further six months, in which 
case a Regulatory Impact Statement indicating the need for an extension must be submitted . MIFIC 
must justify the extension in coordination with the government entity that participated in preparing 
the standard.  
3.93.   The amendment of an NTON follows the same procedure as that followed during its 
preparation, unless the specifications are obsolete o r inapplicable or the purpose of the NTON is to 
deregulate provisions contained in the standard, in which case, on its own initiative or at the request 
of the CNNC, the public institution that issued the standard may amend or cancel it without following 
the same procedure as that used for its preparation.  
3.94.   The Code of Good Practice annexed to the TBT Agreement has been accepted by the DNM, 
the Nicaraguan Institute of Water Supply and Sewage Systems (INAA) and the Nicaraguan Energy 
Institute (INE).68 The auth orities have pointed out that no mutual recognition agreement concerning 
technical regulations or analytical procedures has been concluded between the competent entities 
in Nicaragua and their foreign counterparts. Within the context of Central American in tegration, 
mutual recognition exists only in the field of registration. Technical regulations harmonized at the 
CACM level (foodstuffs, medicines, hygiene products and cosmetics)69 are applied by the member 
countries.  
3.95.   Nicaragua participates in the activiti es of the International Organization for Standardization, 
the Pan American Standards Commission, the IAAC, ILAC and the Inter -American Metrology System.  
3.96.   Within the context of the CACM, the request for the preparation of new technical regulations 
and confor mity assessment procedures or for the revision of those already in force must be 
submitted by a member State.70 Requests accepted by the Directors of Economic Integration are 
forwarded to working subgroups, composed of technical representatives of the member countries, 
for examination and the preparation of draft regulations. In principle, the WTO public consultati on 
period is  60 calendar days from publication of the notification by the WTO.71 The internal consultation 
must be carried out in accordance with each member's own legislation, but the comments received 
must be examined before the end of the WTO public con sultation period. The draft technical 
regulation or conformity assessment procedure prepared in the working subgroup is submitted to 
 
68 WTO documents G/TBT/CS/N/133 and G/TBT/CS/N/134 of 1  November  2001, and G/TBT/CS/N/157 
of 12 October  2004.  
69 Other product s may be subject to inspection at the border between two Central American countries.  
70 Resolution No.  162-2006 (COMIECO -XXXVI) of 16  June 2006.  
71 Before the 60 days in question have expired, a third country may request an extension of no more 
than 30 calen dar days to the public consultation period.  WT/TPR/S/404 • Nicaragua  
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  COMIECO for approval. Each member country must publish and incorporate the approved text in 
accordance with its national le gislation.  
3.97.   The Law on the Protection of Consumer and User Rights stipulates that goods and services 
sold in Nicaragua must comply with conditions concerning quantity, quality, security and safety, in 
accordance with mandatory technical standards concerning  products, quality, labels, weights and 
measures and other requirements within the domestic and international regulatory framework for 
goods and services sold in Nicaragua.72 
3.3.3   Sanitary and Phytosanitary Requirements  
3.98.   Major changes have been made to sanitary and phytosanitary requirements since the previous 
Review. In 2014, the Institute for Agricultural and Livestock Protection and Health (IPSA) was 
established by Law No.  862.73 IPSA replaced the Directorate -General of Agricultural and Livestock 
Protection an d Health (DGPSA) of the Ministry of Agriculture and Forestry as the institution 
responsible for implementing sanitary and phytosanitary measures related to the production, import 
and export of plant material, plants, and agricultur al, aquaculture and fishe ries products and 
by-products.74 
3.99.   IPSA is responsible for strengthening prevention, diagnosis, research and epidemiological 
surveillance; agricultural quarantine; the registration and control of agricultural, aquaculture, 
fisheries, forestry and agro -forest ry inputs; the registration of importers of consignments and goods 
of animal origin; and sanitary inspections in establishments processing agricultural, aquaculture and 
fisheries products and by -products of animal and plant origin. IPSA is also responsible  for promoting 
pest and disease management, control and eradication programmes and campaigns; emergency 
agricultural health arrangements; the accreditation of professionals and businesses for sanitary and 
phytosanitary programmes and other domestic and int ernational harmonization and coordination 
mechanisms. IPSA will create the register for radioactive veterinary products of biochemical origin 
and animal feed, as well as agricultural inputs not listed in the National Register of Pesticides, Toxic 
Substance s, Hazardous Substances and Other Similar Substances.75 
3.100.   In 2016, Law No.  941 created the National Commission for the Registration and Control of 
Toxic Substances (CNRCST).76 The CNRCST is responsible for "regulating, implementing, facilitating, 
developing and coordinating policies, actions and activities related to the import, export, production, 
marketing, distribution, use and consumption of everything relating to toxic substances".77 
3.101.   MIFIC is the authority responsible for submitting notifications to the WTO Committee on 
Sanitary and Phytosanitary Measures (SPS) through the Directorate of Standardization and 
Metrology's Information and Notification Office. The Ministry of Health (MINSA) is responsible for 
sanitary measures applied to i mports of processed foods. MARENA, through its Directorate -General 
of Natural Heritage and Biodiversity, is the competent authority for biodiversity conservation.  
3.102.   The purpose of the Basic Law on Animal Health and Plant Health (Law No.  291 of 1998) is 
to establish key provisions to protect the health and conservation of animals, plants and animal and 
plant products and by -products from the harmful effects of pests and diseases with a strong 
economic, quarantine and social impact, while protecting sustainable  agricultural activity, human 
health, natural resources, biodiversity and the environment.  
 
72 Information viewed at: 
http://legislacion.asamblea.gob.ni/normaweb. nsf/b92aaea87dac762406257265005d21f7/b6ee59fb75e2e20b0
6257bb900763f0b?OpenDocument . 
73 Law creating the Institute for Agricultural and Livestock Protection and Health (Law No. 862), 
published in La Gaceta  No. 91 of 20 May 2014. There are, as yet, no impleme nting regulations for this Law.  
74 Article 1 of Law No. 862.  
75 Title VI, Single Chapter of the Basic Law on the Regulation and Control of Pesticides, Toxic 
Substances, Hazardous Substances and Other Similar Substances (Law No. 274 of 5 November 1997).  
76 Law creating the National Commission for the Registration and Control of Toxic Substances (CNRCST) 
(Law No. 941), published in La Gaceta  No. 230 of 6 December 2016. Created by Decree No. 04 -2014, which 
was published in La Gaceta  No. 27 of 11 February 2014, th e CNRCST succeeded the National Commission for 
the Registration and Control of Toxic Substances without interruption.  
77 Article 2 of Law No. 941.  WT/TPR/S/404 • Nicaragua  
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  3.103.   In 2012, the Law on the Conservation and the Sustainable Use of Biodiversity (Law No.  807) 
was adopted to "regulate the conservation and sustainable use of biodivers ity in Nicaragua, ensuring 
equitable participation in and sharing of the benefits of biodiversity, with special emphasis on 
indigenous communities and communities of African descent, and upholding and recognizing the 
local communities' intellectual propert y rights and traditional and customary forms of use".78 
3.104.   Nicaragua also applies the Central American Regulations on Sanitary and  Phytosanitary 
Measures and Procedures as part of the trade facilitation process in the region. COMIECO's 
resolutions include: CO MIECO Resolution No.  175-2006, which contains a list of products and 
by-products of plant origin which, by their very nature, are exempt from import authorization and 
phytosanitary export certificates and may be inspected within the territory of the member  countries 
of the customs union; Resolution No.  219-2007 (COMIECO -XLVII), which sets out the procedure for 
authorizing the international and regional transit of consignments of agricultural goods; Resolution 
No. 338-2014 (COMIECO -EX), which is the sanitary  and phytosanitary directive for the facilitation 
of trade in Central American consignments and goods, listing products and by -products of plant and 
animal origin. These products may be subjected to random inspection at the point of entry into CACM 
territo ry only if their nature needs to be verified physically. The CACM member countries mutually 
recognize each other's sanitary registers of food for human consumption.  
3.105.   During the period under review, Nicaragua harmonized sanitary export certificates for goods  
of animal origin with Mexico, Chile and Central America. Currently, the requirements for importing 
live bovine animals for reproduction, as well as some sanitary requirements for importing live 
animals and aquaculture -sourced products, are aligned with th ose of Panama, Honduras, Mexico, 
Ecuador, El  Salvador, Costa  Rica and Guatemala . Certain requirements, mainly for products of 
animal origin, may change on account of some countries having a different health status.  
3.106.   Nicaragua is a member of the Codex Alimen tarius and the  World Organisation for Animal 
Health (OIE) and a contracting party to the International Plant  Protection Convention (IPPC). 
Nicaragua took over the General Secretariat of the OIE Regional Commission for the Americas in 
2019. On 22  May 2018, Nicaragua was certified as having a negligible risk for bovine spongiform 
encephalopathy (BSE).79 According to the authorities, in determining sanitary or phytosanitary 
requirements as a condition for permitting imports, risks are assessed on the basis of the health 
status of the exporting country and the goods to be imported, in accordance with OIE, 
Codex  Alimentarius and IPPC recommendations.  
3.107.   Between 2012 and 2019, Nicaragua notified the WTO of 67  sanitary and phytosanitary 
measures and draft measures, of  which around 20% relate to standards issued by one of the three 
standardization organizations explicitly mentioned in the SPS Agreement. The great majority of 
notifications allow a period of 60 days for making comments. In general, the drafting and review  of 
SPS measures follow a procedure similar to that used for NTONs (Section 3.3.2). However, 
SPS measures may also be issued as Ministerial Decisions drawn up by the competent authorities, 
in which case the measures are not subject to a centralized review procedure.  
3.108.   Importers of agricultural inputs (veterinary drugs and related products, products used in 
animal feed and agricultural products and inputs, botanical and microbiological pesticides, bioinputs, 
biosolids and related substances) are subject to reg istration requirements with IPSA. Registration 
for agricultural establishments is possible online and is issued once the requirements have been met.  
3.109.   Moreover, Nicaragua does not permit imports of food, plants, animals or derived products 
unless IPSA or MIN SA, whichever is competent, has issued a sanitary/phytosanitary import permit 
or, in the case of food, a free sale certificate. To obtain those documents, it is necessary to submit 
a phytosanitary and health certificate and a certificate of origin, based o n the risk associated with 
the products and the origin of the products. IPSA maintains a database which can be used to make 
searches for the sanitary and phytosanitary requirements with which products and by -products of 
animal or plant origin must comply. Pharmaceutical products, medical devices, machinery, 
equipment, spare parts, inputs and raw materials used in the preparation of pharmaceutical products 
are subject to registration requirements and to import authorization by MINSA. Importers must also 
comp ly with registration and sanitary licensing requirements.  
 
78 Article 1 of Law No. 807, published in La Gaceta  No. 200 of 19 October 2012.  
79 According to Article 11.4.3 o f the OIE Terrestrial Animal Health Code.  WT/TPR/S/404 • Nicaragua  
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  3.110.   At present, IPSA and the CNRCST regulate and control agricultural and livestock inputs, as 
well as the entire input marketing chain at the domestic level, including importers, distributors, 
marketer s and formulators. Various software applications exist for monitoring IPSA -regulated 
products, which is done by a group of specialists trained for that purpose. Foreign establishments 
that manufacture medicines and feed for animals are regulated and monito red. 
3.111.   No Member has turned to the WTO's formal dispute settlement procedure in relation to 
matters concerning the  SPS measures applied by Nicaragua.  
3.3.4   Competition Policy and Price Controls  
3.3.4.1   Competition Policy  
3.112.   The institutional and legal framework for competition policy has changed little since the 
previous Review. The National Institute for the Promotion of Competition (PROCOMPETENCIA), a 
technical public -law administrative tribunal with administrative and budgetary autonomy, has been 
operational since  June 2009. PROCOMPETENCIA may act ex officio , or on receipt of a complaint 
lodged by any economic operator or legally constituted organization with a legitimate interest. In 
cases of unfair competition it acts only on receiving a complaint. PROCOMPETENCIA  may make 
ex officio  assessments of competition in whole sectors and is authorized to seek information of all 
kinds, provided that constitutional guarantees are respected. PROCOMPETENCIA also seeks to 
protect the interests of Nicaraguan consumers.  
3.113.   The Law on the Promotion of Competition (Law No.  601) and its implementing regulations 
entered into force on 25  June 2007.80 Both texts regulate anti -competitive agreements, abuse of 
dominant position and concentrations (mergers and acquisitions). The practices of  public entities are 
covered by the legislation. With respect to public aid, however, the competition authority may only 
give opinions on the formulation of sectoral laws and make policy proposals. Generally speaking, 
Nicaragua prohibits any agreement or c oncerted practice between economic operators designed to 
restrict competition, including where an economic operator is denied market access or forced out of 
the market. Law No.  601 contains an illustrative list of prohibited behaviours and practices, which  
are summarized in the previous report.81 
3.114.   In 2014, the Law on the Partial Reform of the Political Constitution of the Republic of 
Nicaragua (Law No.  854) amended Article 99 of the Constitution to incorporate the culture of free 
competition. As a result of the constitutional reform, Article 99 states: "The State shall promote and 
safeguard the culture of free and healthy competition among economic operators in order to protect 
the rights of consumers and users, in accordance with the relevant laws."82 
3.115.   In all proceedings concerning the application of the Law on the Promotion of Competition, 
the burden of proof rests with the complainant. After a period for lodging claims and producing 
evidence (130 days in total), the case file is forwarded to the president of  PROCOMPETENCIA for a 
reasoned ruling, which must be handed down within a period of 60 days, which can be extended 
once for a further 30  days. The Law provides for an application for review to the president of 
PROCOMPETENCIA and an appeal to its Executive Council. The ruling on the appeal exhausts 
administrative proceedings, the next step being an amparo  application to the Supreme Court of 
Justice. PROCOMPETENCIA does not determine damages. The economic operators affected 
(including third parties) can bring  an action for damages in the courts.  
3.116.   Nicaragua's competition regime follows the doctrine of effects on the domestic market, which 
is common in many jurisdictions. Export -oriented anti -competitive practices (including cartels) that 
have no effect on the Ni caraguan market are excluded from its scope. Insofar as they do not involve 
anti-competitive practices, the exercise of intellectual property rights (IPR) and acts aimed at 
 
80 Law No. 601, published in La Gaceta  No. 206 of 24 October 2006. Law No. 601 has been amended 
by: Law No. 668, published in La Gaceta  No. 174 of 9  September 2008; Law No. 773 of 24 October  2011, 
published in La Gaceta  No. 200 of 24  October 2011; Law No. 868, published in La Gaceta  No. 106 of 
10 June 2014; and Decree No. 79 -2006 of 21  December  2006. The regulations implementing Law No. 601 
were published through Decree No. 79 -2006, published in La Gaceta  No. 10 of  15 January 2007. The 
regulations have been amended by Decree No. 21 -2014, published in La Gaceta  No. 82 of 7  May 2014.  
81 See Table III.10, WTO (2013), Trade Policy Review of Nicaragua 2012 , Geneva.  
82 Law No. 854, published in La Gaceta  No. 26 of 10  Februa ry 2014.  WT/TPR/S/404 • Nicaragua  
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  improving production and/or marketing efficiency are exempted. Actions undertaken b y the State 
for the purpose of safeguarding the health and the food and nutritional security of the Nicaraguan 
population also  fall outside the scope of the Law. Moreover, anti -competitive practices that have 
their origin in regulations issued by regulator y entities must be resolved by those entities, after 
obtaining PROCOMPETENCIA's opinion. The publication of that opinion must act as a moral sanction, 
since the legislation does not provide for any remedy if this opinion is not taken satisfactorily into 
consideration.  
3.117.   Concentrations are subject to prior notification where they result in a share equal to or 
greater than 25% of the "relevant market" or where they exceed the threshold of 642,857 minimum 
wages with respect to the combined gross incomes of the e conomic operators in the concentration.83 
PROCOMPETENCIA must examine the proposed concentration within 30  working days to determine 
whether it would significantly limit competition. If an investigation is deemed necessary, its 
maximum duration shall be 18 0 days. Concentrations may not be rejected if there is potential for 
significant gains in efficiency and direct benefits for the consumer, provided it can be shown that 
these gains cannot be achieved by other means and that the concentration will not resul t in a 
reduction in supply on the market.  
3.118.   Concentrations are classified as follows:  
• Vertical: where participating economic operators are part of the various stages of the 
production process, from the manufacture and processing of raw materials to the 
distribution and marketing stages84; 
• Horizontal: where the economic operators with the same production or marketing levels 
seek to merge85; 
• Cluster concentrations: where economic operators participating in unrelated markets 
seek to merge to expand the scope of their activity.  
3.119.   The first economic operator to report to PROCOMPETENCIA anti -competitive behaviour of 
which PROCOMPETENCIA was not previously aware will be exempted from any pecuniary sanction 
imposed on the other participants in that activity. The Nicarag uan regime does not include a 
programme of leniency for a possible second participant that cooperates with PROCOMPETENCIA in 
the investigation of the behaviour in question. In addition to economic sanctions86, 
PROCOMPETENCIA may penalize economic operators  for unfounded complaints intended to limit 
competition. The maximum penalty is that which would have been imposed if the offence had been 
proved. PROCOMPETENCIA may also impose penalties equal to 15 minimum wages per day that an 
economic operator delays c omplying with a requirement to provide information. Furthermore, 
natural persons who participate directly as secondary parties or accessories after the fact may 
receive a fine of between 15 and 100  minimum wages. The Law on the Promotion of Competition 
does not provide for criminal sanctions.  
3.120.   Between 2013 and 2019, around 51% of the cases addressed by PROCOMPETENCIA were 
related to economic concentrations, 40% to unfair behaviour, 6% to vertical practices and 3% to 
horizontal practices (Table 3.10). During this period, PROCOMPETENCIA made transfers, amounting 
to USD  746,850, to different markets due to aspects concerning economic concentrations. The funds 
were allocated to training, campaigns that benefit society (environmental, donations to hospitals, 
etc.) and support for consumers and micro, small and medium -sized enterprises (MSMEs).  
 
83 In either case, the notification cost depends on the value of the assets in the concentration: 
USD 20,000 for assets of up to USD  20 million, USD  35,000 for assets with a value between USD  2 million and 
USD 35 million, and USD  45,000 for assets with a value greater than USD  35 million.  
84 In these cases, the economic operator that is absorbed or controlled is a customer or supplier of the 
other. Such concentrations can occur in the goods and/or services sectors.  
85 This refers to a company acquirin g a competitor to strengthen its position in its market, which can 
have both positive and negative effects on competition.  
86 See Table III.10, WTO (2013), Trade Policy Review of Nicaragua 2012 , Geneva.  WT/TPR/S/404 • Nicaragua  
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  Table 3.10 PROCOMPETENCIA cases, 2013 -19 
 
2013  2014  2015  2016  2017  2018  2019  
Total complaints/applications  3 7 9 10 15 14 9 
  Concentration notifications  1 3 4 7 9 1 8 
Processes and investigations 
initiated  2 4 5 3 6 13 9 
   Unfair competition  1 0 0 2 2 3 1 
   Horizontal practices  0 0 1 10 0 0 0 
   Vertical practices  1 0 0 2 2 3 0 
   Economic concentrations  1 3 4 7 9 1 8 
Total amount of fines and 
pecuniary sanctions (USD)  0 0 0 8,716  0 0 110,142  
Appeals for review  1 0 0 3 2 0 2 
Appeals  1 0 0 1 0 0 2 
Source:  Data provided by PROCOMPETENCIA.  
3.121.   PROCOMPETENCIA has signed cooperation agreements with the competition authorities of 
Central America, Colombia, Spain, Mexico, Panama and Peru. These are goodwill agreements, with 
certain restrictions where confidential information is concerned.  
3.3.4.2   Price Controls  
3.122.   Nicaragua continues t o regulate airport services and the services provided by the National 
Port Authority, as well as the tariffs for electricity (transmission and public consumption)87, bottled 
liquefied petroleum gas (LPG), sanitary sewerage services and drinking water for p ublic 
consumption. Profit margins on pharmaceutical products for human consumption are also regulated.  
3.123.   The Nicaraguan Energy Institute (INE) sets the maximum price for LPG sold in 4.53  kg, 
11.34  kg and 45.36  kg cylinder bottles for domestic use, according to variations in international LPG 
prices and the crawling exchange rate. The price adjustments are made every 28  days. The INE may 
penalize economic operators in the distribution chain that sell the cylinders above the maximum 
price for each cylinder size . 
3.3.5   State Trading, State-Owned Enterprises, and Privatization  
3.124.   In 2015, Nicaragua notified the WTO that it has no state trading enterprises within the 
meaning of Article XVII of the GATT and the Understanding on the Interpretation of Article XVII.88 
3.125.   The purpo se of state involvement is to support strategic activities such as food security, the 
supply of water, and the administration of ports and airports (Table 3.11).  
Table 3.11 State participation in the economy, 2012 and 2020  
Enterprise  State participation Area(s) of activity  Prerogatives  
2012  2020  
International Airports 
Management Company (EAAI)  100%  100%  Nicaragua's 
international airport 
operator  Enjoys the incentives 
granted by Law  No. 303 
(Law on Incentives for the 
Tourism Industry), 
including exemption from 
the payment of duties and 
taxes on imports of airport 
beacon equipment, ramp 
equipment and radio aids  
The Nicaraguan Water Supply 
and Sewage Company 
(ENACAL)  100%  100%  Drinking water and 
sanitary sewerage 
services  Exempt from the payment 
of VAT and import duties  
 
87 Large consumers (1 MW of demand) may negotiate supply contracts freely with the generating or 
importing companies.  
88 WTO document G/STR/N/1/NIC, G/STR/N/4/NIC, G/STR/N/7/NIC, G/STR/N/10/NIC, 
G/STR/N/11/NIC, G/STR/N/12/NIC of 24  February  2015.  WT/TPR/S/404 • Nicaragua  
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  Enterprise  State participation Area(s) of activity  Prerogatives  
2012  2020  
National Lottery  100%  100%  Non-profit entity that 
manages the sale of 
lottery tickets to 
generate financial 
resources for 
governmental social 
projects  .. 
Nicaraguan Basic Foods 
Enterprise (ENABAS)  100%  100%  Building up of stocks, 
storage and 
distribution of  basic 
foods for coping  with 
national emergency 
situations; cannot 
carry out import 
or export operations  Exempt from the payment 
of income  tax (ISR)  
National Port Authority (EPN)  100%  100%  Provision of port 
services in maritime, 
river and lake port 
facilities owned by 
the EPN  EPN manages Nicaragua's 
international ports 
(these  can be allocated to 
private operators on 
concession). Stevedoring 
services are provided by 
three private 
concessionaires (their 
tariffs are not regulated)  
National Electricity 
Transmission Company 
(ENATREL)  100%  100%  Electricity 
transmission and 
related activities; 
marketing of surplus 
optic fibre 
communications 
capacity (without 
last-mile service)  Manages electricity 
transmission services; 
exempt from the payment 
of duties and taxes of any 
kind, including those levied 
on the import or local 
purchase of machinery and 
inputs for its activities  
Nicaraguan Electricity Company 
(ENEL)  100%  100%  Electricity generation 
and marketing; 
distribution of 
electricity in 
non-concession 
areas  Enjoys the incentives 
granted by Law No.  272 
(Law on the Electricity 
Industry); assets exempt 
from the payment of 
duties and taxes of any 
kind, including those levied 
on the import or local 
purchase of machinery and 
inputs for its activities  
Regional Construction 
Enterprises Corporation 
(COERCO)  100%  100%  Construction  Exempt from the payment 
of income  tax (IR); 
exempt from the payment 
of VAT on goods, works 
and services included on a 
specific list; exempt from 
municipal taxes on 
income, except for 
attached companies  
Bank for the Promotion of 
Production  100%  100%  Development bank  .. 
Nicaraguan Postal Services  100%  100%  Postal services  Exempt from the payment 
of all national and 
municipal taxes  
Free Zones Corporation (CZF)  100%  100%  Free zones  .. 
Nicaraguan Mines Company 
(EMIMINAS)  100%  100%  Mining  Exemption from the 
payment of all national 
and municipal taxes for 
associations, 
mixed -economy 
companies, temporary WT/TPR/S/404 • Nicaragua  
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  Enterprise  State participation Area(s) of activity  Prerogatives  
2012  2020  
associations, strategic 
alliances and other forms 
of association;  
Exempt from the payment 
of all ordinary and special 
taxes, levies, fees, duties 
and royalties envisaged in 
national legis lation, 
whether national, 
municipal or otherwise, 
and whether on movable 
or immovable property, 
rents or sales, when 
conducting mineral 
resource exploration 
activities  
Nicaraguan Oil Company 
(PETRONIC)  100%  100%  Hydrocarbons  Assets unattachable and 
exempt from the payment 
of all ordinary and special 
taxes, levies, fees, duties 
and royalties envisaged in 
national legislation, 
whether national, 
municipal or otherwise, 
and whether on movable 
or immovable property, 
rents, shares, profits , sales 
or services;  
Exempt from all taxes and 
duties levied on the import 
or local purchase of 
machinery, equipment, 
materials, inputs and other 
goods to be used 
exclusively for the purpose 
of achieving its objectives 
and functions  
Nicaraguan Insurance and 
Reinsurance Institute  100%  100%  Insurance  .. 
.. Not available . 
Source:  Information provided by the Nicaraguan authorities . 
3.3.6   Government Procurement  
3.126.   No major changes have been made to Nicaragua's government procurement system since 
the country's last Review. The system is governed by the Law on Public Sector Administrative 
Procurement (Law No.  737) and its implementing regulations, which entered into f orce on 
9 February  201189, and the Law on Municipal Procurement (Law No.  801) and its implementing 
regulations, which entered into force on 25  January  2013.90 
3.127.   The Directorate -General of Government Procurement (DGCE), in its capacity as the 
governing body f or the procurement management system used by the public and municipal sector, 
promotes improvements to the various aspects of the government procurement system. The DGCE, 
among others, manages the Electronic Government Procurement System (SISCAE) and its v arious 
registers, and proposes regulatory policies to strengthen the procurement system. Each contracting 
entity is responsible for managing its procurement procedures, from the planning to the 
 
89 Law No. 737 and its implementing regulations, pu blished in La Gaceta  No. 213 of 8  November  2010 
and No. 214 of 9  November  2010.  
90 Law No. 801, published in La Gaceta  No. 192 of 9  October  2012. Its implementing regulations were 
published through Decree No. 08 -2013, published in La Gaceta  No. 24 of 7  February 2013.  WT/TPR/S/404 • Nicaragua  
- 55 - 
  implementation stage. The SISCAE now includes the publication of municipal procurement 
procedures.  
3.128.   The Law on Public Sector Administrative Procurement applies to all state bodies, including: 
autonomous entities; universities, with regard to funding from the General Budget of the Republic; 
state-owned enterprises (exc ept when exposed to competition)91; and all institutions in which the 
State has a majority interest. The provisions of this Law do not apply to public contracts entered 
into in the following circumstances: international contracts concluded by the Executive  that require 
National Assembly approval; procurement financed with international funds; procurement abroad 
exclusively for the use of the institution providing the service in question outside the country; and 
public services provided for indeterminate use rs in exchange for a tariff of general application 
(including transport). Purchases and procurement by the municipalities and the municipal sector 
(municipal enterprises, partnerships and consortia) are governed by the Law on Municipal 
Administrative Procu rement. Procurement covered by the free trade agreements signed by 
Nicaragua is subject to the procedures stipulated therein.  
3.129.   The procurement procedures employed in the public sector are as follows: open tendering 
(amounts greater than NIO  3 million); sele ctive tendering (competition among at least five 
suppliers, amounts greater than NIO  500,000 and up to NIO  3 million); minor procurement 
(competition among at least three suppliers, amounts up to NIO  500,000); simplified procurement92; 
and competition for the selection of consultants (award determined by technical qualifications rather 
than price). Any natural or legal person wishing to submit a bid must be enrolled in the register of 
public sector suppliers or the register of suppliers of the municipality,  as appropriate.93 
3.130.   Government procurement contracts may prioritize products made of wood bearing a 
certificate from the National Forestry Institute (INAFOR), with a preference margin of up to 5% 
(Section 3.3.1). Law No.  737 has no preference margin provisi ons. Sustainable purchases have not 
yet been implemented.  
3.131.   The municipal procurement regime envisages that, following the evaluation of tenders, a 
10% preference margin may be applied to local suppliers only where the bidder has met the 
requirements set out in the terms and conditions, terms of reference or techni cal specifications, and 
only where the tender is on equal terms with those of other bidders. Foreigners  may participate in 
any procedure, provided that they comply with all the requirements laid down.  
3.132.   Invitations to tender for any procedure in the public o r municipal sector must be published 
in the SISCAE, without prejudice to the use of other publication mechanisms. Bids may be submitted 
in writing or, if the conditions are met to ensure they cannot be altered, electronically. The deadline 
for submitting b ids cannot be less than 30 calendar days. Where an invitation has been duly 
published, an award may be made if only a single bid is submitted, provided that the bid meets the 
stipulated requirements. The contracting entity makes the award by means of a rea soned decision, 
which must be notified to the bidders within a maximum of two working days and is published in the 
SISCAE.  
3.133.   According to the authorities, Nicaragua grants national treatment within the context 
of government procurement to all its trading par tners. The purpose of the relevant provisions94 
 
91 Every state enterprise must produce a procurement manual and submit it to the DGCE for approval.  
92 The use of simplified procurement must be approved by the highest authority and is permitted only in 
the following specific cases: procurement e xclusively for police or military purposes; emergency situations that 
totally interrupt the operations of the procuring entity; only one supplier in the market; purchase of supplies 
for the operation of the contracting entity, without commercial intent; pu rchases made using the petty cash 
fund; and inter -administrative contracts between public -sector bodies or entities. All the publication and 
evaluation requirements must also be met. Municipal procurement is no longer used for the army or police or 
for int er-administrative contracts, and petty cash is excluded.  
93 The same supplier may register with several municipalities.  
94 Chapter XII of the Free Trade Agreement between Central America and the Dominican Republic; 
Chapter 16 of the Free Trade Agreement betw een Central America and Chile; Chapter 16 of the Free Trade 
Agreement between Central America and Panama; Chapter IX of the CAFTA -DR; Title V of the Association 
Agreement between Central America and the European Union; and Chapter VIII of the Free Trade Ag reement 
between Central America and Korea.  WT/TPR/S/404 • Nicaragua  
- 56 - 
  contained in the free trade agreements to which Nicaragua is party is to open up foreign markets 
and to ensure certainty in the dispute settlement process.  
3.134.   Nicaragua is not party to the WTO's Plurilateral Agr eement on Government Procurement.  
3.3.7   Intellectual Property Rights  
3.135.   The main change to Nicaragua's legal framework in the area of intellectual property rights 
(IPR) since the previous Review is that Decree No.  25-2012 requires the owner of a geographical 
indica tion or appellation of origin to prove that it was registered in its country of origin and addresses 
duplicate names for wines and spirits, the specifications required based on the product type, and 
the rules of use and/or administration. Previously, this requirement applied only to appellations of 
origin.95 
3.136.   In 2012, Nicaragua also adopted the Law on the Conservation and Sustainable Use of 
Biodiversity (Law No.  807)96 (Section 3.3.3), Decree No.  18-2012 on the Promotion and Protection 
of Intellectual Proper ty Rights of the People, Decree No.  25-2012 amending and supplementing 
Decree No.  83-200197, and the regulations implementing the Law on Trademarks and Other 
Distinctive Signs (Law No.  380).  
3.137.   On 2 August  2019, Nicaragua ratified the Marrakesh Treaty to Faci litate Access to Published 
Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled.98 Nicaragua has 
also acceded to the Lisbon Agreement on the Protection of Appellations of Origin (in force in its 
territory since 15  June 2006), the Budapest Treaty on the International Recognition of the Deposit 
of Microorganisms for the Purposes of Patent Procedure (in  force since 10  August  2006) and the 
Trademark Law Treaty (in force since 22  September  2009).  
3.138.   Nicaragua has entered into IPR commitmen ts under several free trade agreements to which 
it is party: the Free Trade Agreement between the Dominican Republic, Central America and the 
United States (CAFTA -DR), the Free Trade Agreement between Central America and the Dominican 
Republic, the Free Tr ade Agreement between Central America and Panama, the Free Trade 
Agreement between Central America and the Republic of Chile, the Free Trade Agreement between 
Mexico and Nicaragua, the Free Trade Agreement between Chinese Taipei and Nicaragua, the 
Associat ion Agreement between Central America and the European Union, and the Free Trade 
Agreement between Central America and the Republic of Korea.  
3.139.   On 25  January  2010, Nicaragua accepted the Protocol Amending the Agreement on 
Trade -Related Aspects of Intellectua l Property Rights in order to make permanent a decision on 
patents and public health.  
3.140.   Nicaragua has notified the WTO of its laws and regulations on IPR (Table  3.12). The Council 
for Trade -Related Aspects of Intellectual Property Rights (TRIPS) examined Nic araguan legislation 
in 2001.99 
Table 3.12 Outline of IPR protection, 2020  
Legislation  Coverage  Terms of protection  Penalties  
Copyright and related rights  
Law No.  312 of 
1 September  1999;  
Decree No.  22-2000 
of 5 May 2000;  
Law No.  577 of 
16 March  2006 Literary, artistic and scientific 
works (including databases that, 
by reason of the selection or 
arrangement of their contents, 
constitute intellectual 
creations); computer programs; 
and the rights of perfor ming 
artists, producers of Copyright, entire life of the 
author plus 70 years after their 
death  
Rights of the performer, the 
phonogram producer or 
broadcasting organization, 
70 years from 1  January of the 90- to 150 -day fine or 
imprisonment for six  months to 
two years and specific 
disqualification for unauthorized 
exercise of copyright and related 
rights; 300 - to 500 -day fine or 
imprisonment for o ne to 
three  years and specific 
 
95 Decree No. 25 -2012, published in La Gaceta  No. 121 of 28  June 2012.  
96 Law No. 807, published in La Gaceta  No. 200 of 19  October  2012.  
97 Decree No. 18 -2012, published in La Gaceta  No. 89 of 15  May 2012.  
98 Decree No. 8591 -2019 approving Nicaragua's accession to the Marrakesh Treaty, published in La 
Gaceta  No. 185 of 30  September  2019. The 2013 Marrakesh Treaty forms part of a body of international 
treaties on copyright  that are administered by the World Intellectual Property Organization (WIPO).  
99 WTO document IP/Q/NIC/1 of 13  February  2002.  WT/TPR/S/404 • Nicaragua  
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  Legislation  Coverage  Terms of protection  Penalties  
phonograms and broadcasting 
organizations  year foll owing that of first 
publication, broadcasting or 
performance  disqualification for unlawful 
reproduction  
Law No.  322 of 
16 December  1999;  
Decree No.  44-2000 
of 6 October  2000;  
Law No.  578 of 
24 March  2006 Wire-borne or wireless 
programme -carrying signals, 
including broadcasts going to or 
passing through a satellite  Protection of 
programme -carrying satellite 
signals, 50 years from 1  January 
of the year following that of 
broadcasting  300- to 500 -day fine or 
imprisonment for one to three 
years and specific 
disqualificat ion 
Patents, utility models and industrial designs  
Law No.  354 of 
25 September  2000;  
Decree No.  88-2001 
of 
28 September  2001;  
Law No.  579 of 
21 March  2006;  
Law No.  634 of 
13 September  2007;  
Decree No.  16-2006 
of 9 March  2006 Inventions, utility models and 
designs, and industrial designs  
The following are excluded from 
patent protection for inventions 
or utility models: animal breeds; 
therapeutic, surgical and 
diagnostic methods for the 
treatment of humans or 
animals; inventions whose 
commercial e xploitation must be 
prevented to protect public 
order, morality, or human, 
animal or plant health or life, or 
to preserve the environment; 
processes (no protection by 
patents for utility models) and 
chemical, metallurgical or any 
other substances or 
compos itions (no protection by 
patents for utility models)  Patent, 20 years non -renewable; 
utility model, 10 years 
non-renewable; industrial 
design, three years of protection 
without formalities and five 
years by registering the design 
(renewable for two additio nal 
five-year periods)  300- to 500 -day fine or 
imprisonment for one to two 
years and specific 
disqualification for the same 
period in the case of fraud on 
patents, utility models or 
industrial designs; 300 - to 
500-day fine or imprisonment 
for one to three years and 
specific disqualification for 
infringement of patent, utility 
model  or industrial design rights  
Law No.  324 of 
1 February  2000;  
Decree No.  38-2001 
of 18 April 2001 Layout -designs or topographies 
of integrated circuits  Registration of layout -designs of 
integrated circuits, 10 years 
non-renewable  300- to 500 -day fine or 
imprisonment for one to three 
years and specific 
disqualification for the same 
period  
Trademarks and other distinctive signs    
Law No.  380 of 
16 April 2001;  
Decree No.  83-2001 
of 
27 September  2001;  
Law No.  580 of 
21 March  2006;  
Decree No.  25-2012 
of 28 June 2012 Trademarks (including collective 
and certification marks), 
distinctive signs (logos, 
emblems, geographical 
indications, appellations of  
origin), trade names and domain 
names  Registration of a trademark, 
10 years (renewable indefinitely 
for periods of 10 years and 
subject to cancellation if the 
trademark is not used for a 
continuous period 
of three  years)  
Trade names (including logos 
and emblems), with the 
exclusive right being acquired 
when the name is first used  in 
trade and ending when the user 
abandons it or ceases activities  
Registration of an appellation of 
origin, indefinite duration  300- to 500 -day fine or 
imprisonment for one to t hree 
years and specific 
disqualification for the same 
period  
New plant varieties  
Law No.  318 of 
29 November  1999;  
Decree No.  37-2000 
of 31 May 2000 All genera and species that meet 
the requirements of novelty, 
distinctiveness, uniformity, 
stability and acceptable 
denomination  Registration of the breeder's 
right, 20 years non -renewable  300- to 500 -day fine or 
imprisonment for one to three 
years and specific 
disqualification for the same 
period  
Source:  Information provided by the Nicaraguan authorities.  
3.141.   Nicaragua's patent legislation provides for the granting of compulsory licences for reasons 
of public interest or national emergency, or to control any anti -competitive practice.100 These 
licences are non -transferable and are granted  by the Intellectual Property Registry mainly to supply 
the domestic market and provide for adequate remuneration according to the circumstances of each 
particular case. Where the patent protects any kind of semiconductor technology, a compulsory 
 
100 The lawful exercise of a patent right does not include practices that unduly affect free co mpetition or 
constitute an abuse of dominant market position.  WT/TPR/S/404 • Nicaragua  
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  licence m ay be granted only for non -commercial public use, or to control a practice declared to be 
anti-competitive. A person who requests a compulsory licence must show that they have been unable 
to obtain a contractual licence from the owner of the patent within a reasonable time frame and in 
reasonable commercial conditions. This requirement need not be met in cases of extreme urgency, 
non-commercial use of the invention by a public body or control of an anti -competitive practice.  
3.142.   In general, a right holder prote cted by the Law on Trademarks and Other Distinctive Signs 
with valid grounds for suspecting that preparations are being made to import or export products 
which infringe that right may apply to the competent court to order the customs authority to suspend 
the import or export of the products at the time of clearance. The person applying for border 
measures must supply the customs authorities with the necessary information and a description of 
the goods sufficiently detailed and precise as to make them readil y identifiable and recognizable.  
3.143.   With respect to parallel imports of goods protected by IPRs, Nicaraguan legislation stipulates 
that the owner of a patent or registered trademark does not have the right to prohibit a  third party 
from engaging in commercial  acts in relation to a legitimate product that has been brought onto the 
market in any country by the owner or by another person who has the owner's consent or is 
economically connected with the owner, provided that the product has not undergone any change .101 
 
101 Law No.  380 (Article 29) and Law No.  354 (Article 47).  WT/TPR/S/404 • Nicaragua  
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry and Fisheries  
4.1.1   Overview  
4.1.  The agriculture sector, which in addition to agricultural activities includes livestock, fisheries 
and forestry, as defined in Nicaragua 's national accounts, remains vitally important to the country 's 
economy . Its contribution to national GDP, at constant prices, was estimated as 15.9 % in 2019, 
compared to 15.7 % in 2012 .1 The sector also remains the leadin g source of employment in 
Nicaragua, accounting for 31.1 % of the total employed population  in the fourth quarter of 2018, 
compared to 33.3 % in 2012.2 
4.2.  During the years 2012 -19, agricultural activities accounted on average for 42 % of the overall 
sector 's gross production value, at constant prices (Table 4.1) . This subsector also remained the 
largest contributor to real GDP, accounting for 8 % in 2012 and 8.3 % in 2019 . Coffee ( green ) 
continues to be Nicaragua 's most important crop (in terms of production value ), followed by sugar  
cane and beans . Maize and beans accounted for 60 % of the country 's area under cultivation during 
the 2012 -19 period .3 The value of livestock was concentrated largely (more than 70 %) in cattle.  
4.3.  The contribution made to Nicaragua 's real  GDP by fisheries and aquaculture was estimated at 
1.1% in 2019 . Their potential, however, is much greater, given the country 's 989 km coastline 
(Pacific and Caribbean) and inland waters (9,328  km2), covering more than 7.8 % of the country 's 
territory . Fishing activities have concentrated largely on shrimp (both farmed and from the sea)  and 
lobster, accounting for 55.7 % and 24.1 %, respectively, of this subsector 's gross production value  in 
2019. 
4.4.  Forestry accounted for approximately 1 % of Nicar agua's real GDP for the period 2012 -19. 
According to Nicaraguan authorities, forests cover about 30.2 % of Nicaraguan territory, which also 
offers a potential 2.6  million  hectares  for silvopastoral systems  and 4.4  million  hectares  for forestry 
and/or agrofo restry . 
Table 4.1 Gross production value, 2012 -19 
(millions of 2006 córdobas)  
Products  2012  2013  2014  2015  2016p 2017p 2018e 2019e 
Agricultural activities  17,541.5  17,187.3  17,456.7  17,886.7  19,326.4  20,913.9  21,353.4  22,144.7  
For export  8,684.6  8,194.7  9,233.8  9,272.8  10,104,1  11,513.0  12,023.3  12,561.2  
Green coffee  4,627.1  3,890.9  4,789.1  5,058.9  5,485.2  6,504.4  7,258.1  8,116.0  
Sugar  cane  2,038.5  2,425.6  2,298.3  1,932.3  2,133.3  2,515.3  2,362.3  2,368.7  
Bananas  350.3  302.9  427.1  512.9  695.2  794.2  760.4  778.7  
Groundnuts  1,094.6  1,091.1  1,229.8  1,130.2  1,217.4  1,483.3  1,255.8  1,001.5  
Soya  40.1 39.3 25.1 48.4 49.8 49.5 49.7 49.8 
Sesame  166.6  201.4  240.4  347.8  218.3  172.5  193.8  193.4  
Havana tobacco   503.9  495.6  543.3  597.7  642.2  508.7  581.4  573.6  
For domestic consumption  8,755.7  9,008.8  8,096.3  8,490.6  9,085.2  9,267.4  9,163.7  9,404.9  
Rice 1,613.9  1,524.6  1,443.0  1,581.2  1,643.7  1,665.6  1,748.0  1,814.0  
Beans  1,919.1  2,166.7  1,755.1  1,997.3  2,058.8  2,348.0  2,014.1  2,103.4  
Maize  740.6  965.6  589.4  612.7  779.7  744.0  663.9  693.9  
Sorghum  194.6  213.9  220.6  278.9  259.4  192.8  158.4  132.5  
Other  4,287.5  4,127.7  4,140.5  4,016.7  4,187.7  4,393.9  4,547.0  4,659.8  
Livestock activities  13,180.4  13,130.5  13,526.0  13,529.1  13,814.0  15,409.1  14,768.2  15,390.8  
 
1 Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas  (2019).  
2 National Development Information Institute, Encuesta Conti nua de Hogares  (fourth quarter, 2018).  
3 Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas  (2019).  WT/TPR/S/404 • Nicaragua  
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  Products  2012  2013  2014  2015  2016p 2017p 2018e 2019e 
Cattle  10,016.8  9,754.7  9,950.1  9,770.6  10,015.7  11,414 .1 10,914.3  11,458.8  
 Head  5,698.5  5,343.2  5,572.2  4,898.6  5,070.2  6,006.3  6,071.9  6,739.6  
 Milk production  3,942.4  3,753 .2 3,739.2  4,867.4  5,220.3  5,485.7  4,807.1  4,625.1  
Swine  219.2  242.7  248.6  253.9  263.7  283.5  278.5  306.6  
Poultry -keeping  2,864.8  3,032 .5 3,189.5  3,349 .6 3,384,4  3,544.7  3,392.1  3,432.8  
 Poultr y  1,879.4  1,979 .7 2,147.1  2,183.0  2,166,7  2,260.3  2,088.0  2,039.7  
 Eggs  984.6  1,052 .5 1,043.2  1,164.9  1,213.4  1,278.0  1,302.7  1,404.2  
Fishery activities   2,992.4  3,203 .8 3,755.2  3,567.5  3,351.4  3,682.9  4,144.3  3,786.8  
Shrimp  1,649.4  1,773 .3 2,101.2  1,781.4  1,661.9  1,888.8  2,217.1  2,109.7  
 Farmed   1,495.5  1,643 .7 1,886.8  1,522.0  1,395.5  1,633.1  1,933.0  1,933.0  
 Trawled   153.9  129.6  214.4  259.4  266.4  255.7  284.1  176.7  
Lobster  741.0  761.6  818.2  1,105.1  949.0  917.7  806.2  913.4  
Fish  467.0  475.9  541.3  481.2  437.5  498.0  505.0  483.3  
p Preliminary figures.  
e Estimated figures.  
Note:  The statistical discrepancy in respect of  the sum of the components  results from the chain -linking 
methodology used  to obtain constant values.  
Source:  Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas  (2019).  
4.5.  Nicaragua 's agricultural sector faces challenges, including : deficiencies in the coverage and 
quality of production services ( electricity , telecommunications, drinking water supply,  transport, and 
support services), the small size of local markets, the inadequate administrative and business 
capacity of producers, difficult access to credit and limited use of technologies.  
4.1.2   Changes in the Institutional and Legal Framework  
4.6.  After a restr ucturing in 2014, the Ministry of Agriculture (MAG) is responsible for formulating, 
coordinating, monitoring and evaluating agricultural policy in Nicaragua, thereby contributing to 
growth in production  and productivity and improved food security .4 The Ministry of Family, 
Community, Cooperative and Associative Econom y (MEFCCA) was established in 2012 to promote 
and develop family farming, fam ily enterprises, SMEs and cooperativism .5 MEFCCA is responsible  for 
coordinating and implementing capacity -building  program mes in five strategic areas : family and 
community farming ; generation of value -added and processing for family farm products ; workshops 
and small businesses ; cooperative association and development ; and development of the Caribbean 
coast.  
4.7.  Other ent ities participating in the formulation and implementation of agricultural policy include : 
the Ministry of the Environment and Natural Resources (MARENA), responsible for the management 
and sustainable use of natural resources and the conservation of biodiv ersity6; the Nicaraguan 
Agricultural Technology Institute (INTA), responsible for generating and transferring agricultural 
technology ; the Institute for Agricultural and Livestock Protection and Health (IPSA), established in 
 
4 Law No. 864 amending Law No. 290 on the Organization, Competence and Procedures of the 
Executive, published in La Gaceta  No. 91 of 20 May 2014.  
5 MEFCCA absorbed and assumed the functions of the Rural Development Institute (IDR) and the 
National Institute for Micro, Small and Medium -Sized Enterprise Support (INPYME). Also placed under 
MEFCCA's direction as a decentralized agency was the Nicaraguan Cooperative Development  Institute  
(INFOCOOP). MEFCCA took over two ongoing food security programmes (the PSAN and the PPA) previously 
managed by the former Ministry of Agriculture and Forestry, as well as several programmes from the Ministry 
of Development, Industry and Trade (MIFIC) for the development of micro, small and medium -sized 
enterprises (Law No. 804 amending Law No. 290 on the Organization, Competence and Procedures of the 
Executive, published in La Gaceta  No. 134 of 17 July 2012, and Presidential Decision No. 201 -2012, published 
in La Gaceta  No. 221 of 19 November 2012).  
6 MARENA's functions include operation of the National System of Protected Areas and the 
Environmental Assessment System.  WT/TPR/S/404 • Nicaragua  
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  2014 to regulate and implement  sanitary and phytosanitary measures7; and the Nicaraguan Basic 
Foods Enterprise (ENABAS), responsible for stockpiling, storing and distributing staple grains and 
foods.  
4.8.  The Office of the President of the Republic  has been in charge of forestry administra tion 
throughout national territory, executed through the National Forestry Institute (INAFOR), since 
2017. INAFOR is responsible for formulating forest ry policy and rules, supervising forestry 
development programmes, managing national forested areas, disse minating information on the 
forestry sector and setting reference prices for the sector . The National Forestry Commission 
(CONAFOR) is the highest -level agency and forum for social engagement with the forestry sector . It 
participat es in the approval and mo nitoring of forest ry policy, including supervision of the National 
Forestry Development Fund (FONADEFO).8 
4.9.  There have been no significant legislative or institutional changes with respect to fisheries and 
aquaculture  since the last Review of Nicaragua . The Nicaraguan Fishing and Aquaculture Institute 
(INPESCA) is responsible for formulating and implementing the policy for harnessing hydrobiological 
resources  in Nicaragua . INPESCA also has responsibility for issuing  fishing and resource utilization 
permits . Under the current regulatory framework, traditional (small -scale) fishing is reserved 
exclusively for Nicaraguan nationals . In addition, all export products generated by fishing and 
aquaculture must be processed i n authorized plants established in Nicaraguan territory . MIFIC is 
authorized to issue special permits for the exportation of production that cannot be processed in 
Nicaragua owing to capacity limitations.9 
4.10.   The National Human Development Programme  (PNDH) 2 018-21 defines the main objectives  
for the sector : to increase its production, productivity, quality and value  added under sustainable 
conditions ; and to promote good practices for the capture, processing and marketing of fis hery and 
aquaculture resources . Strategies implemented during the review period included : promoting 
technological research and the use of technologies ; capitalizing family operations ; protecting Mother 
Earth and adapting to climate change ; widening roads and highways ; and sustainably tr ansforming 
the livestock sector . Each strategy defines the action to be taken by public institutions concerned 
with the national production, consumption and trade system, as reflected in the production, 
consumption and trade plans developed for each agricu ltural cycle.  
4.11.   During the review period, Nicaragua established legal frameworks for the conservation and 
sustainable development of biological diversity10, for the transformation and development of coffee 
growing11, and for the promotion of small -scale prod uction of staple grains and sesame .12 In 
addition, a Nicaraguan legal digest was issued on food and nutritional sovereignty and security, a 
compilation and analysis of current law in this area.13 
4.1.3   Border Measures  
4.12.   Nicaragua notified the WTO that it did not i nvoke the special safeguard mechanism provided 
for in the WTO Agreement on Agriculture  during the period 2012 -18 (Section 3.1.6).  
4.13.   Agriculture continues to maintain the country 's highest levels of tariff protection against 
imports . The average tariff applied to the agricultural sector (11.8 % based on the WTO definition) 
is more than double the average tariff for non -agricultural products (5.2 %). The agricultural products 
 
7 Law No. 862 establishing the Institute for Agricultural and Livestock Protection and Health, published 
in La Gaceta  No. 91 of 20 May 2014.  
8 Law No. 947 partially amending Law No. 290 on the Organization, Competence and Procedures of the 
Executive, Law No. 462 on the Conservation, Promotion and Sus tainable Development of the Forestry Sector, 
and Law No. 862 establishing the Institute for Agricultural and Livestock Protection and Health, published in 
La Gaceta  No. 87 of 11 May 2017.  
9 Law No. 489 on Fishing and Aquaculture, published in La Gaceta No. 251 of 27 December 2004.  
10 Law No. 807 on the Conservation and Sustainable Use of Biodiversity, published in La Gaceta  No. 200 
of 19 October 2012.  
11 Law No. 853 on the Transformation and Development of Coffee Growing, published in La Gaceta  
No. 174 of 11 September 2019.  
12 Law No. 930 promoting the production of staple grains and sesame by small -scale producers (both 
men and women), published in La Gaceta  No. 97 of 25 May 2016.  
13 Law No. 881 establishing the Nicaraguan Legal Digest on Food and Nutritional S overeignty and 
Security, published in La Gaceta  No. 43 of 4 March 2015.  WT/TPR/S/404 • Nicaragua  
- 62 - 
  that continue to be protected by MFN tariffs higher than the sector average are sugar and 
confectionery  (31.6 %); dairy products (25 %); animals and animal products  (19.6 %); and coffee 
and tea (13.2 %). 
4.14.   Under its commitments, Nicaragua can apply import quotas to maize (HS 1005.90.20 and 
1005.90.30, 193.2  thousand  quintals) ; beef (HS 0201 a nd 0202, 3.48  million pounds) ; poultry 
(HS 0207.10.00 and 0207.31.00, 1.88  million pounds) ; milk (HS  0401, 0402 and 0403, 
13.41  million  litres); beans (HS 0713.3, 53.1  thousand  quintals) ; rice (HS  1006.10.90 and 
1006.30.00, 109.6  thousand  quintals) ; sorghu m (HS 1007.00.90, 138 ,000 quintals) ; oil (HS  1507, 
1511 and 1512.2, 1.89  million  litres) ; and sugar (HS 1701, 48.3  short ton nes). Nicaragua has 
notified the WTO that it applied quotas each year during the period 2012 -18 to powdered milk and 
rice.14 
4.1.4   Domestic Measures  
4.15.   Nicaragua notified the WTO that it did not subsidize exports of agricultural products  during 
the period 2012 -18.15 
4.16.   Nicaragua did not make specific commitments  during the Uruguay Round to reduce financial 
assistance to agricultural produce rs.16 Nicaragua notified the WTO of seven Green Box sectoral 
projects  providing assistance to agriculture during the 2012 -16 period .17 According to the 
notifications, those projects were concerned with food security, training and technology 
dissemination a nd sanitary and phytosanitary threats . The domestic support provided  between 2012 
and 2016  amounted to USD  15.6 million , or an annual average of USD  3.1 million. T his is below the 
levels reported in the previous Review, for the 2005 -10 period, when the ave rage was 
USD 5.4 million  per year.  
4.17.   In June 2012, Nicaragua established a prior suspension mechanism for taxes on diesel fuel 
for industrial fishing and aquaculture, as well as both diesel fuel and gasoline for small -scale fishing 
and aquaculture . In the ca se of small -scale fishing and aquaculture, eligibility is conditioned on the 
use of these fuels to capture products for export . There were also exemptions from duties and taxes 
until 31 December  2012 for the import and sale of raw materials, intermediate g oods, capital goods, 
spare parts, parts and accessories for machinery and equipment to be used for agricultural activities 
and the activities of micro, small and m edium-sized industrial and fishing enterprises.18 
4.18.   In 2013 , with the aim of promoting coffee p roduction, Nicaragua established the Fund for the 
Transformation and Development of Coffee Growing (FTDC), constituted with resources derived fro m 
coffee exports use d to support the development and strengthening of domestic coffee growing .19 
According to t he authorities, the FTDC 's capital increased from NIO  181,350,505.04 in 2015 to 
NIO 932,841,164.44 by the end of 2019 . FTDC resources have been used to develop financial 
support and technical assistance program mes for coffee producers as well as specialized courses 
and promotional activities at international fairs.  
4.19.   In 2016, Nicaragua established a mechanism for access to credit on favourable terms for 
small -scale producers of staple grains and sesame . These producers can enjoy an interest rate 
reduced by three percentage points (a reduction referred to as  the "development rate "), permitting 
creditor institutions to obtain a tax credit (applicable to income tax) that is generated during the 
 
14 WTO documents G/AG/N/NIC/34 of 24 May 2013; G/AG/N/NIC/38 of 28 March 2014; G/AG/N/NIC/41 
of 23 April 2015; G/AG/N/NIC/43 of 8 April 2016; G/AG/N/NIC/46 of 31 July 2017; G/AG/N/NIC/50 of 
11 April 2019; and G/AG/N/NIC/51 of 12 April 2019.  
15 WTO documents G/AG/N/NIC/33 of 24 May 2013; G/AG/N/NIC/39 of 28 March 2014; G/AG/N/NIC/42 
of 23 April 2015; G/AG/N/NIC/44 of 9 February 2017; and G/AG/N/NIC/52 -53 of 15 April 2019.  
16 Section I of Part IV of Schedule XXIX of 15  April 1994; WTO document G/AG/AGST/Vol.  2; and 
Article  15, Article 9.4 and Article 7.2(b) of the WTO Agreement on Agriculture.  
17 WTO documents G/AG/N/NIC/36 of 12 July 2013, and G/AG/N/NIC/47 of 29 August 2017.  
18 Law No. 797 amending Article 111 of Law No. 489 on Fishing and Aquaculture and amending 
Article  126 of Law No. 453 on Fiscal Equity, published in La Gaceta  No. 121 of 28 June 2012.  
19 Law No. 853 on the Transformation and Development of Coffee Growing, publis hed in La Gaceta  
No. 239 of 17 December 2013.  WT/TPR/S/404 • Nicaragua  
- 63 - 
  term of the loan .20 According to the authorities, the mecha nism has been slow to attract the 
participation of banks and small -scale producers of staple grains and sesame.  
4.2  Mining and Energy  
4.2.1   Mining  
4.20.   The performance of the mining and quarry sector continues to fall short of its potential, 
accounting for 0.7 % of the total employed population21 in Nicaragua in 2018 and a n estimated 1.7 % 
of real GDP in 2019 (compared to 1.4 % in 2012) .22 While mining production rose gradually at 
constant prices during the review period, the number of mining concessions and their total area 
diminished (Table  4.2). As of 3 1 December  2019, they encompassed 9,677  km2 (8.13 % of 
Nicaragua 's total land area) . The area still available for mining activities was 55.2 % of the country 's 
total land area.  
4.21.   Nicaragua has various subsoil resources , including gold, silver, limestone, basalt, tuff 
(quarry  stone) and sand . Mining activity remains dedicated largely to metals, which accounted for 
more than 93 % of the total concession area and approximately two thirds of the gross value of 
production dur ing the 2012 -19 period . During those same years, Nicaragua 's metal exports consisted 
mainly of gold and silver (Table  4.2). 
Table 4.2 Mining activity  indicators , 2012 -19 
 2012  2013  2014  2015  2016  2017  2018  2019  
Number of 
concessions  301 293 277 260 252 262 265 258 
 Metallic (%)  55.5 60.8 62.5 56.2 56.0 55.7 55.8 54.7 
 Non-metallic (%)  44.5 39.2 37.5 43.8 44.0 44.3 44.2 45.3 
Total concession area 
(thousand km2) 15.4 17.9 13.7 10.0 9.5 9.8 10.0 9.7 
 Metallic (%)  95.5 96.3 95.8 93.5 93.2 93.4 93.5 93.3 
 Non-metallic (%)  4.5 3.7 4.2 6.5 6.8 6.6 6.5 6.7 
Surface rights and 
royalties 
(NIO million ) 349.8  363.9  370.5  348.0  415.8  404.3  441.7  551.7  
Gross value of 
production 
(NIO million  (2006))a 4,448.6  5,289.4  5,363.0  5,414.6  5,816.0  5,421.6  5,527.7  6,275.8  
 Metallic (%)  63.6 65.8 64.9 59.7 61.4 58.2 59.7 64.1 
 Non-metallic (%)  30.4 25.6 27.2 35.4 32.9 38.0 35.6 28.0 
Exports f.o.b.  
(USD million )b 436.1  448.0  399.5  330.5  372.2  338.3  383.1  509.2  
 Gold (%) 97.0 96.6 96.6 96.2 95.9 96.7 96.7 97.8 
 Silver (%)  2.5 2.5 2.1 2.8 3.2 2.7 2.6 1.8 
 Other (%)  0.6 1.0 1.3 1.1 0.9 0.6 0.7 0.4 
a Preliminary figures for 2018 ; estimated figures for 2019 . The statistical discrepancy in respect of the 
sum of the components results from the chain -linking methodology used to obtain constant values . 
b Preliminary figures for 2017, 2018 and 2019.  
Source:  Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas (2019) , and Ministry of Energy 
and Mi ning. 
4.22.   All natural resources in Nicaragua are property of the State . The Ministry of Energy and Mining 
(MEM) is responsible for formulating and executing national policy for the rational and sustainable 
development of extractive mining resources . MEM's responsibilities include geological research ; the 
 
20 Law No. 930 promoting the production of staple grains and sesame by small -scale producers (both 
men and women), published in La Gaceta  No. 97 of 25 May 2016.  
21 National Development Information Institute, Encuesta Continua de Hogares  (fourth quarter, 2018).  
22 Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas (2019).  WT/TPR/S/404 • Nicaragua  
- 64 - 
  concession of mining rights ; monitoring and control ; and the development and promotion of the 
sector . MEM also has the power to declare as national mining reserve s those "free" areas  that are 
considered sui table for cadastre, geological research, mine exploration and development, scientific 
research and small -scale and artisanal mining.23 
4.23.   MEM grants mining concessions with a maximum surface area of 50,000 h ectares  on a lot 
basis for renewable periods of 25 y ears. The mining concession is regarded as exclusively conferring 
the right to engage in surveying,  exploration, production, processing plant installation and the 
marketing of minerals found in the concession area .24 The concessionaire must pay surface roy alties 
and extraction duty or royalties ; submit monthly production reports and an annual technical report ; 
and comply with rules pertaining to the environment, hygiene, workplace safety  and social 
responsibility.  
4.24.   According to the authorities, domestic marketing and export activities for minerals mined in 
Nicaragua are not subject to any special regime, and the State does not have priority purchasing 
rights . It is required of the exporter, however, to demonstrate the legal provenance of the mine rals 
to be exported . The proliferation of small -scale, informal mining operations is one of the main 
problems facing Nicaragua's mining sector . Nicaragua does not participate in the Extractive 
Industries Transparency Initiative  (EITI).  
4.25.   The Nicaraguan Mines  Company (ENIMINAS), a public enterprise under the direction of MEM, 
was established in 2017 with the aim of conducting exploration and rational exploitation of mining 
resources in Nicaragua . Two funds were established : the Mining Development and Promotion  Fund, 
to finance and execute mining development activities, including research on mineral resources ; and 
the Mine Monitoring and Surveillance Fund, to finance monitoring and control of the mining sector, 
including environmental protection . These funds rec eive 15 % and 10 %, respectively, of revenues 
generated by royalties from the concessionaires.25 
4.26.    The participation of ENIMINAS is required for all projects in national mining reserve areas . 
When participating in any form of partnership, ENIMINAS is exempted from all national and municipal 
taxes, and when engaged in exploration for mineral resources it is exempted from all taxes, fees, 
royalties or duties (excluding the percentage of surface duty intended for municipalities and regional 
governments) . When ENIMINAS operates in competition with the private sector, however, it must 
submit to the same tax regime.  
4.27.   Nicaragua grants incentives for domestic and foreign investment in mining  activities . 
Concessionaires may be  exempted from taxes on the real estate, inputs, machinery and other items 
they use directly in operating the mining concession.26 
4.2.2   Energy  
4.28.   Oil and biofuels dominate Nicaragua 's energy m atrix, generating approximately 42 % and 
38%, respectively, of total primary energy supply (STEP) in 2018 (Chart 4.1) . In addition to biomass, 
the country 's renewable energy sources  include , in order of importance , geothermal, wind, hydraulic 
and solar . The authorities estimate that as at December  2019, Nicaragua was tapping 12.5 % of its 
approximately 4,500  MW in potential for renewable energy generation . No petroleum resources have 
been discovered in Nicaragua, wh ich remains an oil importer . The International Energy Agency 
estimates that the energy intensity of the Nicaraguan economy in 2018 was double the average for 
Central and South America, with a STEP/GDP ratio of 0.3 compared to 0.15.27 
 
23 The area dedicated to national mining reserves represented 7.05% of Nicaragua's  total land area in 
2019.  
24 Applicants need to demonstrate that they have the technical and financial capacity to conduct the 
project and have received backing and no objections from the relevant local and regional authorities.  
25 Law No. 953 establishing t he Nicaraguan Mines Company, published in La Gaceta  No. 127 of 
6 July 2017.  
26 Law No. 387, Special Law on Mining Prospecting and Exploitation, published in La Gaceta  No. 151 of 
13 August 2001.  
27 The energy intensity indicator tracks total primary energy us e (tonnes of oil equivalent) per 
USD 1,000 of GDP, at constant prices. Viewed at: https://www.iea.org/articles/energy -transitions -indicators . WT/TPR/S/404 • Nicaragua  
- 65 - 
  Chart 4.1 Total primary energy supply by source, 2012 and 2018  
 
ktoe Thousand tonnes of oil equivalent . 
Source:  International Energy Agency, based on data from IEA World Energy Balances  (2020).  
4.29.   The Ministry of Energy and Mining (MEM) is responsible  for formulating and implementing 
national energy policy (electricity and hydrocarbons), and for overseeing and verifying compliance 
with that policy . Regulating, supervising and controlling the energy sector  is the responsibility of the 
Nicaraguan Energy Institute (INE) .28 The INE 's functions include approving and monitoring the 
electricity tariffs  paid by the final consumer for consumption and related services (tolls) ; applying 
sanctions where indicate d by the regulations ; and settling disputes among the sector 's economic 
operators.  
4.30.   The main areas covered up by the PNDH for 2018 -21, as far as the energy sector is concerned, 
include : continuity of national electricity  supply with the expansion of infrast ructure, introduction of 
technological improvements and active participation in regional electricity interconnection 
organizations ; diversification of the energy mix for electricity  generation ; increases in electricity  
generating capacity ; facilitation of research on and access to non -polluting energy technologies ; and 
support for hydrocarbon exploration and production . These objectives are reflected in the Action 
Plan for the Energy and Mining Sector 2012 -17 and in the Strategic Plan for the Energy Sector 
2019-33. 
4.31.    Nicaragua launched several reforms during the 2012 -20 period to strengthen the energy 
sector and attract new investment, including the approval of legal frameworks for distributed 
electricity generation29 and more rational and efficient en ergy use.30 
4.2.2.1   Electricity  
4.32.   Nicaragua 's electricity  infrastructure includes the National Interconnected System (SIN), a 
series of generating plants and distribution networks interconnected by the National Transmission 
System (SNT), as well as 32 isolated syste ms supplying the least populated regions of Nicaragua . 
As at March  2020, Nicaragua had nominal installed electricity generation capacity of 1,619.73  MW 
(1,321.98  MW effective) compared to 1,286.81  MW (1,041.11  MW effective) in 2012 . The SIN 
covered 98.8 % of installed capacity (nominal and effective).31 
 
28 The INE is financed through charges of up to 1.5% on the amounts invoiced by electric power 
suppliers and up to USD 0.06 per sold barrel of oil or derivatives thereof.  
29 Law No. 951 amending and supplementing Law No. 272 on the Electricity Industry, published in 
La Gaceta  No. 126 of 5 July 2017.  
30 Law No. 956 on Energy Efficiency, published in La Gaceta  No. 128 of 7  July 2017.  
31 Viewed at: 
https://www.ine.gob.ni/DGE/estadisticas/2020/Capacidad_instalada_2020_actagost20.pdf . 
2012 2018
3,285 ktoe 3,965 ktoeOil
43.3%Wind, solar, geothermal
14.6%Hydro
1.1%
Biofuels and 
residues
41.1%Hydro
0.9%
Wind, solar, geothermal
19.2%
Biofuels and 
residues
38.2%Oil
41.7%WT/TPR/S/404 • Nicaragua  
- 66 - 
  4.33.   Nicaragua continued during the review period to reduce its dependence on thermal generators 
fuelled by petroleum derivatives . In 2019, thermal electricity contributed 46.1 % to electricity supply 
compared to 60.3 % in 2012 (Chart  4.2); 98.8% of net electricity generation took place within the  
SIN. During most of the review period, Nicaragua was a net importer of electricity , and its demand 
for imported electricity began increa sing significantly in 2017.  
Chart 4.2 Net generation of electricity by source, 2012 and 2019  
 
Source:  Nicaraguan Energy Institute.  
4.34.    By December  2019, the SNT had expanded to 3,204 km of transmission lines and 
103 electrical substations ; 583 km of the transmission lines and 22 of the substations were privately 
owned . National electricity coverage rose from 73.7 % of all Nicaraguan households in 2012 to 98.3 % 
in October  2020.32 In 2019, transmission and distribution losses in the SIN were 2.3 % and 18.4 %, 
respectively, compared to 2.5 % and 21 % in 2012 . 
4.35.   The Nicaraguan Electricity Company (ENEL), a state -owned enterprise under MEM, has the 
mission to expand electricity generation capacity in Nic aragua through the development of its own 
projects or in association with domestic or foreign investors . ENEL is exempted from the payment 
of taxes or fees of any kind under national tax law, and from any fiscal duties or taxes on imports 
or local purchase s of machinery, equipment, materials and inputs to be used exclusively for 
electricity  generation and related activities.33 
4.36.   Nicaragua maintains a series of incentives to promote the use of renewable energy sources 
for electricity generation . The benefits g ranted  include exemptions from , and reductions on, import 
tariffs, VAT, income tax, municipal tax, stamp duty and taxes on natural resource exploitation .34 In 
addition, new generation projects based on renewable sources may, under certain conditions , enter 
into contracts with distributors without having to  participate in a competitive bidding process.  
4.37.   The National Electricity Transmission Company (ENATREL), a state -owned company under 
MEM, is responsible for administering and operating the SNT ; admini stering the National Load 
Dispatching Centr e (CNDC) ; operating and maintaining the regional transmission network as part of 
the Electrical Interconnection System for Central America (SIEPAC) ; and executing urban or rural 
 
32 Viewed at: http://www.enatrel.gob.ni/evolucion -de-la-cobertura . 
33 Law No. 746 amending Executive Decree No. 46 -94 establishing the Nicaraguan Electricity Company 
(ENEL), and also amending Law No. 272 on the Electricity Industry and Law No. 554 on Energy Stability, 
published in La Gaceta  No. 17 of 27 January 2011.  
34 Law No. 532 on the Promotion of Renewable Electricity Generation, published in La Gaceta  No. 102 of 
27 May 2005, as amended; Law No. 467 on  the Promotion of the Hydroelectricity Subsector, published in 
La Gaceta  No. 169 of 5 September 2003, as amended; and Law No. 443 on the Exploration and Exploitation of 
Geothermal Resources, as amended, published in La Gaceta  No. 218 of 17 November 2014.  
2012 2019
3,672.6 GWh 4,105.5 GWhBiomass
6.8%
Geothermal
12.9%Wind
8.8%
Hydroelectric
11.2%Thermal
60.3%Biomass
13.3%
Wind
17.4%
Geothermal
17.1%
Hydroelectric
5.4%Thermal
46.1%Solar
0.6%WT/TPR/S/404 • Nicaragua  
- 67 - 
  electrification projects .35 ENATREL  is exempted from the payment of all taxes or fees set out in 
national tax law , as well as all fiscal duties and taxes on imports or local purchases of machinery, 
equipment, materials and input s to be used exclusively for electricity  transmission and relat ed 
activities.36 
4.38.   The Nicaraguan electricity  market , as administered by ENATREL through the CNDC, consists 
of four segments : the contract market, regional market, second -hand market and wholesale market . 
In the contract market, electricity is allocated  by means of bilateral contracts between generators, 
distributors and major consumers that must be approved by the INE and MEM . In 2019, according 
to the authorities, the national electricity  market included 27 generators, three transmitters, 
17 distributors an d 16 major consumers.  
4.2.2.2   Hydrocarbons  
4.39.   During the review period, Nicaragua continued to be a net importer of crude oil and derivatives 
thereof . The share of these products in the total value of imported goods was 19.6 % in 2019, 
compared to 22 % in 2012 .37 Nicaragua has a single refinery . It refines imported crude oil with a 
capacity of up to 20,000 barrels per day .38 The value added by refining petroleum domestically, at 
constant 2006 prices, rose from NIO  319.3  million  in 2012 to NIO  581 million  in 2019 .39 The refiner y 
met nearly all domestic demand for kerosene during the 2012 -19 period and accounted for about a 
third of domestic gasoline and diesel sales (Chart  4.3). 
Chart 4.3 Consumption and production of hydrocarbons, 2012 and 2019  
(Thousands of barrels)  
 
 
Source:  Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas (2019).  
4.40.   Nicaragua does not impose restrictions on the import ation/export ation,  storage, refining, 
transport or distribution of petroleum and derivatives thereof . Most fuel prices are not regulated, 
the only exception being liqu efied petroleum gas (LPG), the price of which i s regulated by the INE . 
According to the authorities, crude oil is imported into Nicaragua by the transnational company Puma 
Energy, which owns the country 's only refinery . In 2019, there were eight companies importing 
petroleum derivatives and nine companies marketing them domestically . In addition to being 
 
35 ENATREL also provides telecommunication services (data transmission and Internet).  
36 Law No. 583 establishing the National Electricity Transmission Company, published in La Gaceta  No. 4 
of 5 January 2007, as amended.  
37 Central Bank of Nicaragua, Anuario d e estadísticas macroeconómicas  (2019).  
38 According to the authorities, average annual imports of crude oil during the 2012 -18 period amounted 
to 4,834,770 barrels.  
39 Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas  (2019).  
05001,0001,5002,0002,5003,0003,5004,0004,500
2012 2019
Kerosone /turbo Liquified gas Gasoline Diesel Fuel oil
Consumption
ProductionWT/TPR/S/404 • Nicaragua  
- 68 - 
  Nicara gua's only refiner, Puma Energy both imports and markets significant quantities of petroleum 
derivatives.  
4.41.   The Nicaraguan Oil Company  (PETRONIC), another state -owned company under MEM, is 
responsible for promoting investment in the exploration, exploitation , marketing, storage, transport 
and distribution of hydrocarbons ; crude oil refining ; and LPG bottling . It is also PETRONIC 's mission 
to guarantee permanent fuel reserves in Nicaragua .40 Since 2014, PETRONIC has participate d as a 
state representative in the surveying, exploration and exploitation  of hydrocarbons produced in 
Nicaragua, as well as in the transport, storage and marketing  thereof .41 PETRONIC is exempted from 
the payment of any tax or fee set out in Nicaraguan law  as well as any tax or duty on imports or 
local purchases of machinery, equipment, materials and inputs to be used exclusively for the 
performance of its mission and functions.42 
4.42.   Nicaragua maintains incentives for hydrocarbon prospection  and exploitation , including 
exemption from any tax on the imports of goods and inputs during the prospection  phase and the 
first four years after the announcement of a commercial discovery ; exemption from any tax on 
assets , sales revenue, the purchase of goods and services and the construction and expansion of 
works ; and exemption from the payment of contributions, duties or fees in connection with income 
or capital invested during the prospection  phase .43 The authorities calculate the fiscal sacrifice  of the 
incentives for local purchases during the 2012 -19 period at USD  15,264,374 . Duty-free imports with 
a c.i.f. value of USD  24,601,589 were also approved.  
4.3  Manufacturing  
4.43.    The manufacturing sector 's share of Nicaragua's real GDP rose from 14.3 % in 2012 to 15.5 % 
in 2019 . Agricultural processing industries  continue to contribute more than half of the sector 's gross 
production value (Chart  4.4). Nicaragua remains a net importer of manufactured products, owing 
largely to the dynamic performance of imported electrical machinery and  equipment, chemicals and 
transport equipment (Tables  A1 and A2).  
Chart 4.4 Gross production value of manufacturing, 2012 and 2019  
(NIO (2006) and  %) 
 
Source:  Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas (2019).  
 
40 Law No. 993 a mending Law No. 277 on Hydrocarbon Supplies, published in La Gaceta  No. 102 of 
31 May 2019.  
41 Executive Decree No. 29 -2014, published in La Gaceta  No. 94 of 23 May 2014.  
42 Law No. 883, Organic Law on the Nicaraguan Oil Company (PETRONIC), as amended, publi shed in 
La Gaceta  No. 239 of 17 December 2014.  
43 Law No. 1012 amending and supplementing Law No. 286, Special Law on Hydrocarbon Prospection 
and Exploitation, as amended, published in La Gaceta  No. 243 of 19 May 2019.  
2012 2019
Refined 
petroleum
6.1%Food 
products
54.2%Other
5.9%Non-metallic 
products
3.3%
Chemicals, 
plastics
3.1%
Textiles
16.5%Machinery
10.8%
Food 
products
53.6%
Textiles
18.9%Refined 
petroleum
5.3%Chemicals, 
plastics
2.6%Machinery
11.9%Non-metallic 
products
2.4%Other
5.4%
75,934
millon92,528
millonWT/TPR/S/404 • Nicaragua  
- 69 - 
  4.44.   There is considerable potential for growth and diversification in manufacturing, which can be 
realized by making better use of available resources and establishing stronger links with other 
sectors of the eco nomy  – particularly agriculture and mining . Realization of this potential has been 
stymied, however, by recent political instability, which has discouraged investment . Most branches 
of the economy have encountered problems in being internationally competit ive, as a result, among 
other factors, of restricted access to financing and limited adoption of the most modern production 
technologies.  
4.45.   MIFIC has responsibility for formulating and implementing policies and rules to strengthen 
the industrial sector, cont ributing to sustainable growth in productive and business activity in 
Nicaragua . During the period under review, MIFIC has focused on developing strategies  by branch 
of industry , giving priority to the industrialization of agricultural production as well a s the 
consolidation of SMEs and their access to international markets . According to the authorities, all 
industrial activity in Nicaragua falls within the private sector . There are incentives for the 
pharmaceutical industry and for agribusinesses that proc ess staple foods ; at the time of this report 
more detailed information in this regard was unavailable.  
4.46.   During the review period , Nicaragua made no significant changes to its MFN tariffs on 
imported manufactured goods ; the average MFN tariff applied to manu factured products 
(WTO  definition) remained at 5.2 %. Apparel, textiles, leather, paper and transport equipment have 
remained among the products with the highest levels of tariff protection (Section 3.1.3).  
4.4  Services  
4.4.1   Financial Services  
4.47.   Since Nicaragua's financial system is poorly developed, especially in the non-bank segments, 
it still underperforms in terms of its contribution to  the growth of the national economy. Financial 
intermediation and related services represented 3.1% of Nicara gua's real GDP in 2019 (as in 2012). 
Domestic socio -political unrest had a considerable effect on the sector's performance from 2018 
onward. Financial intermediation, as reflected by the ratio of the overall credit portfolio (dominated 
by the banking segme nt) to GDP, grew steadily during 2012 -17 to approximately 40%, but 
contracted to 31.7% in 2019. Additionally, the ratio of deposits to GDP fell from 34.9% in 2012 to 
29.6% in 2019 (Table  4.3).  
Table 4.3 Financial system indicators, 2012 -19 
 
2012  2013  2014  2015  2016  2017  2018  2019  
Total financial 
system assetsa  5,065.8  5,669.6  6,423.1  7,144.1  7,948.9  8,646.6  7,584.5  7,136.1  
 Banks  4,800.3  5,363.2  6,037.0  6,692.1  7,356.3  7,930.6  6,923.7  6,525.1  
 State -owned 
bank 144.8  169.7  171.6  177.5  178.5  186.3  179.5  185.7  
 Non-bank 
financial 
companies  43.3 58.9 108.0  145.9  248.9  325.4  258.9  195.0  
 Insurance 
companies  204.9  228.7  255.5  281.3  316.0  361.5  371.5  379.8  
 General deposit 
warehouses  11.8 13.0 15.6 17.3 19.4 19.3 21.0 27.7 
 Securities 
market  5.5 5.8 7.0 7.5 8.3 9.7 9.4 8.6 
Loan portfolio 
(NIO million)  69,457.2  84,281.8  100,712.1  123,839.2  146,721.6  167,150.3  152,240.2  131,323.4  
 Banks  68,528.2  82,980.6  98,199.3  120,317.6  140,297.7  158,236.5  144,693.8  125,642.8  
 State -owned 
bank 929.9  984.6  1,275.3  1,245.5  1,948.1  3,168.8  3,056.7  2,853.8  
 Non-bank 
financial 
companies  929.0  1,301.2  2,512.7  3,521.7  6,423.9  8,913.8  7,546.4  5,680.5  
Non-performing 
portfolio/Loan 
portfolio (%)  1.7 0.9 1.0 0.9 0.9 1.1 2.6 3.2 
 Banks  1.7 0.9 1.0 0.9 0.9 1.0 2.5 3.0 WT/TPR/S/404 • Nicaragua  
- 70 - 
   
2012  2013  2014  2015  2016  2017  2018  2019  
 Non-bank 
financial 
companies  1.4 1.2 0.9 1.1 1.0 1.9 5.9 8.9 
Credits in 
USD/Total 
portfolio  91.7 91.2 90.8 90.9 88.9 88.4 88.3 89.0 
Loan 
portfolio/GDP 
(%) 28.0 31.0 32.7 35.6 38.6 40.4 36.9 31.7  
Deposits with 
the public 
(NIO million)  86,550.1  98,591.8  117,345.7  133,636.1  145,144.1  160,719.0  127,434.1  122,787.3  
 Banks  86,550.1  98,591.8  117,345.7  133,636.1  145,144.1  160,719.0  127,434.1  122,787.3  
 State -owned 
bank 0 0 0 0 0 0 0 0 
Deposits in 
foreign 
currency/total 
deposits (%)  74.3 73.8 75.6 74.0 76.0 75.6 75.0 70.6 
Deposits/GDP 
(%) 34.9 36.3 38.0 38.4 38.2 38.8 30.9 29.6 
Interest rate 
spread in NIOb 12.1 13.2 12.8 13.5 9.7 10.5 8.9 5.0 
Interest rate 
spread in foreign 
currencyb 6.2 5.8 6.0 4.9 4.0 4.0 3.7 4.0 
a USD million.  
b Difference in percentage points between rates for credits and deposits of more than one year.  
Source:  Data supplied by the Nicaraguan authorities.  
4.48.   The banks continue to dominate the Nicaraguan financial system, accounting for 91.4% of 
total assets in 2019 compared to 94.8% in 2012. Most other assets in the financial sector are held 
by insurance companies and non -bank finance companies. T he relative weight of the securities 
market continues to be modest, although it rose marginally from 0.11% in 2012 to 0.12% in 2019 
(Table  4.3). 
4.49.   The Nicaraguan economy continues to be highly dollarized, as reflected in the fact that loans 
and deposits are still predominantly in foreign currency (Table  4.3). The main economic destinations 
for loans are commercial activities, consumption (personal and credit card), housing and industrial 
and agricultural activities.44 
4.50.   Responsibility for regulating the financi al system lies with the Supervisory Authority for Banks 
and other Financial Institutions (SIBOIF). SIBOIF grants business licences, regulates and supervises 
banks and non -banking finance  companies, insurance companies, general deposit warehouses, the 
Nicaraguan Stock Exchange (BVDN), securities exchanges, and investment and securities fund 
management companies. SIBOIF approval is also required for the acquisition of shares in financial 
institutions, a merger with another financial institution, a reduction i n capital stock and any 
amendment to articles of incorporation. During the review period, SIBOIF continued to bolster the 
regulatory and prudential framework by updating capital adequacy and leverage requirements; 
adopting a standard for comprehensive risk  management; establishing countercyclical provisions 
and special capital buffers; and approving the accounting framework for the banking, insurance, 
securities and warehousing industries based on the International Financial Reporting Standards. 
Standards h ave also been implemented for simplified savings accounts and for manag ing and 
preventi ng the risks associated with the financing of terrorism.  
4.4.1.1   Banks and financial companies  
4.51.   In February  2020, the banking segment in Nicaragua comprised seven private commercial 
banks, one state development bank (Bank for the Promotion of Production (BFP), also known as 
Produzcamos )45, four private non -bank financial companies and four representa tive offices of foreign 
 
44 Central Bank of Nicaragua, Anuario de estadísticas macroeconómicas (2019 ). 
45 The BFP is governed by current banking legislation except for requirements and authorizations for 
commercial banks concerning incorporation and the commencement of operations.  WT/TPR/S/404 • Nicaragua  
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  banks. The number of branches and one -stop facilities rose from 319 in December  2012 to 501 in 
December  2019. Some 42.9% of all current branches and one -stop facilities were located in 
Managua.  
4.52.   Any bank established in Nicaragua must  be set up as a public limited company  and operate 
as such. Foreign banks can enter the Nicaraguan market by establishing a branch or a locally 
incorporated bank with no foreign equity caps. Foreign banks and  financial institutions may also set 
up agencies  in Nicaragua subject to authorization by the  head of the Supervisory Authority. In 
principle, the requirements governing entry to the banking industry and those related to supervision 
continue to apply uniformly to foreign, national and state -owned banks.  Shareholders who have a 
5% or greater share in the equity must comply with specific solvency and integrity requirements.46 
According to the authorities, SIBOIF has implemented the Basel  III recommendations concerning 
the liquidity coverage ratio, the capi tal conservation buffer, higher -quality capital and the interest 
rate risk.  
4.53.   The BFP's authorized capital is made up from the state contributions set out in the Law 
establishing the BFP, and all liquid funds and other assets originating in and associated wi th the 
credit portfolios managed, administered or held by the following state institutions: the Rural 
Development Institute; the Nicaraguan Agricultural Technology Institute; the Ministry of Agriculture; 
the Nicaraguan Institute for Small and Medium -Sized Enterprises; and the Rural Credit Fund. In 
February 2020, the assets of the BFP amounted to around NIO  6,355.8  million, representing 2.7% 
of banks' and financial companies' assets.  
4.54.   The BFP's strategic objectives include: channelling financial resources to wards small and 
medium -sized producers; consolidating its position as a benchmark for foreign investment in 
Nicaragua; and positioning itself as a benchmark for developing domestic public investment. Until 
July 2019, the BFP was exempt from all classes of taxation, whether national, municipal or of any 
other kind, including registration fees for transfers of movable and immovable property. The 
liabilities incurred by the BFP cannot be backed or guaranteed by the State.47  
4.55.   The BFP aims its direct and interme diated portfolios as well as the funds it manages in trust 
at the following sectors of the national economy: agriculture and livestock; export markets; 
urbanization, construction and housing; tourism -related developments and hotel services; 
governmental an d private projects; and industry, infrastructure and technology. Since 2015, the 
BFP has channelled resources mainly through its intermediated portfolio (Chart  4.5). In 
February  2020, the loans granted by the BFP represented 2.1% of the overall loans portf olio of 
Nicaraguan banks and financial companies, compared to 1.3% in 2012.  
4.4.1.2   Insurance  
4.56.   In March 2020, four private equity insurance companies were authorized to operate in 
Nicaragua in addition to the state insurer (the Nicaraguan Insurance and Reinsurance  Institute 
(INISER)). There were also 106  authorized independent insurance intermediaries: 16  mass 
insurance  marketers, 19 independent brokers and 71  registered insurance brokers.  
4.57.   Compulsory insurance covers passenger accident, third -party liability for m otor vehicles, and 
third-party liability for vehicles with a foreign registration plate. On 29  February  2020, the insurance 
market in Nicaragua took in NIO  1,225.93  million in net premiums written, compared to 
NIO 528.83  million in 2012. The main types of insurance were motor vehicle, fire and related lines, 
which represented 20.6% and 20.5% of all insurance premiums respectively. Compulsory insurance 
accounted for 14.2%. INISER's share in total earnings from premiums fell from 28% in 2012 to 
20.1% at 31  December  2019. Nonetheless, INISER continues to be the largest insurer in terms of 
assets with 35.9% of all assets in the insurance system at February  2020.  
4.58.   Insurance services can be provided only by public limited companies established in Nicaragua 
engaged  solely in insurance. Foreign insurers may enter the Nicaraguan market by establishing a 
 
46 The acquisition of shares valued at less than 5% of the equity does not have to be  authorized, but 
must be notified to SIBOIF.  
47 Law No.  640 establishing the Bank for the Promotion of Production (Produzcamos), as amended, 
published in La Gaceta  No. 146 of 5  August  2014.  WT/TPR/S/404 • Nicaragua  
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  branch or locally incorporated insurance company with no equity caps.48 There are minimum 
compulsory equity requirements for insurance companies, depending on the type  of activity.49 
Insurance companies incorporated abroad may not market their services in Nicaragua.  
Chart 4.5 Disbursements made by the BFP, 2012 -19 
(USD million)  
 
Source : Information provided by the Nicaraguan authorities.  
4.59.   Insurers may be authorized to engage in both life and non -life insurance activities at the same 
time. All authorized insurers may offer compulsory insurance without restriction. As part of the 
national financial inclusion strategy, during the review period SIBOIF approved a standard on 
micro -insurance50 and amended the standard for mass insurance marketing.51 
4.60.   The law allows insurance companies to enter into reinsurance contracts with reinsurers of 
which they are branches or subsidiar ies, or which belong to the same financial group. Nicaraguan 
insurance companies, like branches of foreign insurance companies operating legally in Nicaragua, 
may use the services of reinsurers or reinsurance brokers abroad if these are listed in the relev ant 
SIBOIF register. At March  2020, 82 international reinsurers and 26  reinsurance brokers had 
registered. Insurance companies may invest no more than 50% of the sums assigned to a single 
reinsurer in operating contracts, unless that reinsurer has an inter national financial soundness rating 
of "A" or above.  
4.61.   In addition to offering insurance, reinsurance and bonds, insurance companies may also 
manage the sums received in the form of profits or compensation entrusted to them by those insured 
or their benefici aries and the reserves retained from entities in Nicaragua or abroad for insurance, 
 
48 Nicaraguan branches of foreign insurance companies must be manage d and legally represented by a 
manager who is resident in Nicaragua.  
49 The Standard on Alignment of Registered Capital for Insurance Companies (Resolution 
No. CD-SIBOIF -1083-1-NOV20 -2018) lays down the following amounts: property insurance and compulsory 
insurance, NIO  59,790,000; personal insurance (life, personal accident, health, social or retirement insurance), 
NIO 59,790,000; property insurance, compulsory insurance and personal, retirement and pensions insurance, 
NIO 119,580,000; and bonds, NIO  14,947 ,500. For  companies offering reinsurance or refinancing, the 
minimum capital is the sum equivalent to  1.5 times the amounts set for each of the areas in which they 
operate.  
50 Resolution No. CD SIBOIF ‑892‑1‑JUN2‑2015.  
51 Resolution No.  CD-SIBOIF -1025-1-NOV7 -2017.  
0102030405060708090
2012 2013 2014 2015 2016 2017 2018 2019
Direct portfolio Intermediated portfolio Trust fundsWT/TPR/S/404 • Nicaragua  
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  reinsurance or bond transactions. They may also invest abroad and grant loans or credit. Authorized 
insurers in Nicaragua may invest up to 100% of their asset -portfolio -backed technical reserves within 
Nicaragua itself and up to 20% abroad.  
4.4.2   Telecommunications  
4.62.   During the review period, the Nicaraguan telecommunications market continued to grow, 
driven by the strong momentum driving take -up of mobile telephony and Internet ser vices. The 
postal consignment and mailbox segments shrank steadily (Table  4.4). Most mobile telephony users 
(92.5% at December  2019) still use a pre -payment model. Communications services 
(telecommunications and post) represented 4.1% of GDP in 2019, compa red to 4.2% in 2012.  
Table 4.4 Principal telecommunications sector indicators, 2012 -19 
 
2012  2013  2014  2015  2016  2017  2018  2019  
Subscriptions (thousand)  
Fixed telephony  299.1  324.9  339.6  354.0  366.6  375.9  325.8  228.8  
Mobile telephony  5,851.7  6,808.9  7,069.3  7,265.5  7,745.5  8,179.9  7,441.5  5,788.4  
Fixed Internet  575.5  689.6  580.9  659.1  708.1  727.4  769.7  866.4  
Mobile Internet  31.8 290.5  753.7  1,126.7  1,443.2  1,112.5  1,207.1  1,176.2  
Densitya (%) 
Fixed telephony  5.0 5.4 5.6 5.7 5.9 6.0 5.1 3.6 
Mobile telephony  98.2 112.9  115.8  117.6  124.0  129.6  116.6  89.8 
Fixed Internet  9.7 11.4 9.5 10.7 11.3 11.5 12.1 13.4 
Mobile Internet  0.5 4.8 12.3 18.2 23.1 17.6 18.9 18.2 
Number of active service providers       
Fixed telephony  2 2 2 2 3 3 3 3 
Mobile telephony  2 2 2 2 3 3 3 3 
Fixed Internet  24 24 24 19 19 23 20 21 
Mobile Internet  2 2 2 2 3 3 3 3 
Main provider's market share (%)  
Fixed telephony  100.0  100.0  100.0  100.0  100.0  100.0  89.2 99.9 
Mobile telephony  56.4 53.9 54.6 54.6 53.3 51.8 52.8 57.0 
Fixed Internet  88.3 96.4 93.1 92.8 91.2 97.7 97.3 87.4 
Mobile Internet  90.0 87.8 59.3 62.5 61.1 99.5 97.7 94.6 
Postal services ( thousand ) 
Postal consignments  4,724.7  4,516.5  3,484.0  3,511.5  3,122.3  2,723.0  2,337.6  1,765.0  
EMS consignmentsb 29.4 30.5 29.5 32.8 35.8 36.8 27.9 34.2 
Mailbox  0.5 0.4 0.4 0.3 0.3 0.3 0.2 0.2 
a Subscriptions per 100  inhabitants.  
b Express Mail Service  
Source:  Nicaraguan Institute of Telecommunications and Postal Services  
4.63.   Following a public call for tenders in 2013, a new telecommunications operator was awarded 
the authorizations to provide fixed telephony, mobile telephony, Internet, subscriber television and 
data-transmission service s. This operator, trading as Cootel, began operating in Nicaragua in April 
2016.  
4.64.   There have been no substantial changes in the institutional and legal framework governing 
the sector since Nicaragua's last Review. The Nicaraguan Institute of Telecommunicat ions and Postal 
Services (TELCOR) continues to carry out the functions of a ministry and regulatory body. TELCOR 
is the body responsible for the setting of standards, regulation, technical planning, supervision, WT/TPR/S/404 • Nicaragua  
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  application and enforcement of the laws and rules governing the installation, interconnection, 
operation and provision of telecommunications and postal services. As part of its mandate, TELCOR 
administers the radiofrequency spectrum, and grants concessions, licences, permits and registration 
certifi cates to businesses interested in providing telecommunications and postal services or in using 
radio frequencies. TELCOR also oversees compliance with targets related to quality and the 
development of authorized services.52 In 2014, TELCOR was again given exclusive responsibility to 
resolve telecommunications market competition cases.53  
4.65.   In 2014, Nicaragua launched a project to increase broadband penetration ( Proyecto Banda 
Ancha  (PBA)), with the ultimate goal of contributing to the country's economic and s ocial 
development. The PBA comprises three aspects: expansion of the fibre -optic backbone of the 
National Electricity Transmission Company (ENATREL); revision and updating of the regulatory 
framework to lay down open, equitable access to backbone and last mile networks; and 
implementation of pilot connectivity programmes (IT equipment and applications) in health and 
agriculture. Responsibility for delivering the first aspect lies with ENATREL, a state -owned business 
authorized to provide wholesale data -carrier services and passive infrastructure. By May 2020, 
2,580  km of optical fibre had been installed under the project, serving  93 of Nicaragua's 153 
municipalities. TELCOR is responsible for delivering the other two aspects. At March  2020, TELCOR 
approved t he Open Tender for Wholesale Services (reference offer) that ENATREL is required to 
publish on its website. In order to prevent discrimination, each of the contracts that ENATREL signs 
with its users  must be registered by ENATREL with TELCOR.  
4.66.   TELCOR administers the Telecommunications Investment Fund (FITEL), which provides 
incentives to operators to participate in providing telecommunications services to areas of the 
country with poor or no coverage in order to promote universal access and clos e the digital gap 
across the national territory. FITEL was established in 2006 with a minimum of 20% of the income 
received by TELCOR in the performance of its regulatory functions. Projects financed by FITEL are 
awarded by open tender to  Nicaraguan and in ternational operators.  
4.67.   Nicaragua does not apply caps to foreign equity in telecommunications services, with the 
exception of mass media (49%). Nicaraguan and foreign telecommunications operators enjoy the 
same rights. Under the current regulatory framewor k, telecommunications services are classified 
into five categories: public services, services in the public interest, services of special interest, 
services of specific interest, and unregulated services.54 The authorities state that although the 
principle  of technological neutrality is not covered as such in the current regulatory framework, the 
authorizations awarded by TELCOR do not require a specific technology to be used in the provision 
of services. The regulatory framework could also be improved by a dopting regulatory provisions that 
provide for infrastructure -sharing requirements; interconnection conditions (compulsory publication 
of reference offer s and regulated interconnection charges); number portability; and market access 
for virtual operators.  
4.68.   Nicaragua imports all the telecommunications equipment that it uses. All equipment that 
connects to or is used in a telecommunications network must have a type -approval certificate prior 
to being marketed, used or operated in Nicaragua. The responsibility for conducting type approval 
for equipment producers and granting import permits lies with TELCOR.55 Although type approval of 
a product model is valid for subsequent imports of that model, an application for an import licence 
must nevertheless be made. Ni caragua does not recognize conformity certificates awarded abroad. 
 
52 For basic and cellular telephony services specifically, concessions and licences (respectively) are 
awarded following a public call for tenders. Nevertheless, TELCOR will conduct open tendering procedures for 
permits to allocate the radio spectrum when the number of applications for a particular segment of the 
spectrum is greater than the frequencies available to meet all the applications. The current regulatory 
framework does not permit secondary spectrum trading.  
53 When making decisions, TELCOR wi ll take account of the technical reports issued by 
PROCOMPETENCIA. Failure to issue a report on time and in due form does not reduce or restrict the authority 
of TELCOR to make a decision.  
54 Viewed at: https://www.telcor.gob.ni/Desplegar.asp?PAG_ID=11 . 
55 Nicaragua does not have a testing laboratory that is accredited as a conformity assessor specifically 
for telecommunications equipment. In order to obtain a type -approval certificate, the app licant must provide a 
brief description of the equipment and its application, and list its technical specifications. The data are 
validated by TELCOR. The mechanism for granting import permits is still not among the procedures available 
via Nicaragua's Sin gle Window for Foreign Trade.  WT/TPR/S/404 • Nicaragua  
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  Between January  2012 and March  2020, 2,013  type-approval certificates and 84,415  import permits 
for telecommunications equipment, apparatus and accessories were issued.  
4.69.   Private businesses intending to provide postal services in Nicaragua must be established in 
the country and obtain authorizations from TELCOR. Nicaraguan Postal Services ( Correos de 
Nicaragua ) is the state entity responsible for the postal service. Stamped correspondence, th e 
installation of mail boxes, use of the word "post" (" correos ") and the issue of postage stamps, are 
its exclusive purview in its capacity as postal administrator of Nicaragua. In 2020, 10 private 
operators had postal concessions and were active in the co untry. The regulatory framework provides 
for FITEL to finance universal postal service projects to be delivered in conjunction with Nicaraguan 
Postal Services.  
4.4.3   Transport  
4.70.   In 2019, the transport services sector (maritime, air and land transport) accounted f or 4.4% 
of GDP, compared to 4.1% in 2012. Most passengers and merchandise are carried by road or 
waterborne transport. Nicaragua does not have a railway service.  
4.71.   Since the last Review there have been no major institutional changes in transport in 
Nicaragu a. The Ministry of Transport and Infrastructure (MTI) is the entity responsible for 
formulating and delivering land, maritime and lake transport policies. Air transport and civil aviation 
are the responsibility of the Nicaraguan Civil Aviation Institute (I NAC),  an autonomous technical 
body that acts as the national civil aviation authority  and regulator. In 2013, Nicaragua adopted a 
new regulatory framework governing the construction, administration and operation of ports and 
port installations.56  
4.4.3.1   Road Tra nsport  
4.72.   In 2019 Nicaragua had a 24,763  km-long road network, of which 18% was paved and 29.9% 
useable only in the dry season.57 Compared to 2012, the total network and the paved network have 
grown by 3.6% and 36.1% respectively. The paved roads are chiefly within Nicaragua's trunk routes 
system. The road network is owned by the State.  
4.73.   The number of vehicles in Nicaragua rose from 511,631 in 2012 to 950,762 in 2018. 
International passenger road transport services are provided over five routes determined at t he 
Central American level. Seven Nicaraguan businesses with a fleet of 39  buses operate on these 
routes. In 2020 there were 44  road transport terminals in Nicaragua, 23 of them owned by 
municipalities and 21 by private equity.  
4.74.   The Road Maintenance Fund (FO MAV), an autonomous  entity with its own legal personality, 
is responsible for maintaining the road network in a roadworthy state as set out in an annual 
agreement between FOMAV and the MTI.58 FOMAV conducts open tendering procedures for private 
businesses established in Nicaragua to execute road maintenance works. FOMAV is funded by 
earmarked contributions in the General Budget of Nicaragua, foreign and domestic borrowing for 
road maintenance, and grants.  
4.4.3.2   Maritime Transport  
4.75.   Nicaragua has six international ports (five maritime ports and one river port) authorized to 
facilitate foreign trade and tourism. Three of the maritime ports are on the Pacific coast 
(Puerto  Corinto, Puerto Sandino and Puerto San Juan del Sur (for cruise ships only)), and two on 
the Caribbean coast (Puerto Cabezas and Puerto El Bluff). Puerto Corinto is Nicaragua's main port 
and handles around 84% of the total volume of international cargo. The river port of El  Rama 
(Arlen  Siú) is 40  miles from the Caribbean coast. There ar e also lake and river terminals and berths 
intended mainly for recreational and tourism -related activities. All current ports are owned by the 
 
56 Law No.  838, General Nicaraguan Ports Law, published in La Gaceta  No. 92 of 21  May 2013, and 
Decree No.  32-2013, published in La Gaceta  No. 200 of 22  October  2013.  
57 MTI, Red vial de Nicaragua  (2018).  
58 Law No.  355 establishing the Road Maintenance Fund, published in La Gaceta  No. 157 of 
21 August  2000.  WT/TPR/S/404 • Nicaragua  
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  State; two private terminals in Puerto  Sandino provide services to merchant vessels and handle 
petroleum and its derivatives.  
4.76.   The Directorate -General of Waterborne Transport (DGTA) at the MTI is the national maritime 
and port authority. It lays down standards and regulations and authorizes the operation of shipping 
agencies, cargo agencies, maritime carriers that do  not operate vessels and the Nicaraguan 
merchant navy. The DGTA also has the power to authorize the construction and operation both of 
international ports and of domestic marinas, wharfs and berths. The DGTA is also the entity 
responsible for issuing navig ation certificates to Nicaraguan and international vessels, and 
certificates of competency for deck and engine crew.  
4.77.   The National Port Authority (EPN) is the State's administrative authority for the 
six international ports and the three lake port authoriti es (Cocibolca,  San Jorge and Xolotlán). The 
EPN is responsible for operating port installations, handling and storing cargo, and for the port 
services related to the embarkation and disembarkation of passengers. The EPN drafts proposals for 
regulations gov erning the provision of port services. The DGTA  is the authority with competence to 
approve the proposals, review and authorize the system of port fees and prices, and oversee its 
implementation.  
4.78.   Since October  2013, in addition to entering into contracts for the use of port services and 
installations, the EPN has had the authority to grant 25 -year concessions (that can be extended) in 
respect of state -owned ports.59 The EPN provides pilotage, provisioning and cargo handling services. 
The EPN may grant an a uthorization  to private stevedoring companies, under a contract, to operate 
within the port area in order to ensure that services are provided in a competitive environment.60 
According to the authorities, staff from the EPN and the stevedoring companies ar e actively involved 
when handling a vessel and its cargo.  
4.79.   The investment projects conducted under the terms laid down in the General Nicaraguan Ports 
Law (Law No.  838) are, for the duration of the works, exempt from import duties and taxes, taxes 
on local purchases  and municipal taxes in respect of equipment, mac hinery, materials, spare parts 
and tools required to construct, improve, extend or develop port infrastructure.  
4.80.   Despite not having a merchant navy register61, Nicaragua restricts domestic traffic and 
cabotage to  Nicaraguan -registered ships operated by Nica raguan ship -owners. Nevertheless, if  no 
Nicaraguan or Central American vessel is available, foreign vessels may be authorized.  
4.4.3.3   Air Transport  
4.81.   Nicaragua has one international airport in Managua and six national airports in Bluefields, 
Puerto Cabezas, Corn Is land, Costa Esmeralda, San Juan de Nicaragua and Ometepe. There are also 
rural airports in San Carlos, Siuna, Waspam and Bonanza. The International Airports Management 
Company (EAAI) is responsible for managing Nicaragua's airports.62 
4.82.   In March  2020, domest ic scheduled flights operated between Managua and Bluefields, 
Corn Island, Waspam, Siuna, Bonanza and Puerto  Cabezas. Managua airport has direct scheduled 
flights to nine cities: Miami, Atlanta, Houston, Fort  Lauderdale, San  José, Guatemala  City, 
Panama  City, San  Salvador and Havana. Six of these routes are de facto monopolies where only 
one airline provides services.  
4.83.   Any airline operating domestic commercial flights must be registered in Nicaragua, and at 
least 51% of the members of its board of directors (including the Chair) must be of Nicaraguan 
origin. Aviation staff employed in domestic air transport services must be Nicaraguan nationals. 
 
59 Law No.  838, General Nicaraguan Ports Law, published in La Gaceta  No. 92 of 21  May 2013, and 
Decree No.  32-2013, published in La Gaceta  No. 200 of 22  October 2013.  
60 The authorized stevedoring companies provide lashing/unlashing and cargo -handling services to 
vessels. Rolling cargo is a special case, and the drivers who board the vessels to transfer the cargo to its 
storage point are EPN workers.  
61 Accord ing to the authorities, to date only fishing vessels have been registered.  
62 Rural airports are owned by municipalities. The Costa  Esmeralda airport is privately owned.  WT/TPR/S/404 • Nicaragua  
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  Fares for domestic air passenger transport are regulated by INAC using a banding system with 
maximum and minimum pr ices for each route.  
4.84.   International air transport services continue to be governed by bilateral agreements. 
Nicaragua applies an open skies policy based on reciprocal concessions. In 2020, Nicaragua had 
11 bilateral air transport agreements (Table  4.5). Th ey essentially deal with fifth freedom traffic 
rights (on the basis of reciprocity), multiple designation of airlines, freedom to determine frequencies 
(in line with airport capacity) and prices (subject to notification and registration) for commercial 
operations.  
Table 4.5 Air transport agreements, 2020  Country  
Date 
concluded  
Entry into 
force  
5th freedom 
7th freedom 
Cabotage 
Cooperation
a 
Designation
b 
Ownership+
c 
Pricingd 
Capacitye 
Statisticsf 
Cuba 2015 2016 Yes No No Yes M SOEC  FP FD Yes 
United Arab Emirates  2016 2017 Yes No No Yes M SOEC  FP FD Yes 
United States of America  1997 1999 Yes No No Yes M SOEC  FP FD Yes 
Spain  1992 1997 Yes No No Yes M SOEC  FP FD Yes 
Finland  2019 2019 Yes No No Yes M SOEC  FP FD Yes 
Panama  2001 2011 Yes No No Yes M SOEC  FP FD Yes 
Peru 1980 1980 Yes No No Yes M SOEC  FP FD Yes 
Qatar  2016 2017 Yes No No Yes M SOEC  FP FD Yes 
Chinese Taipei  2016 2017 Yes No No Yes M SOEC  FP FD Yes 
Turkey  2017 2017 Yes No No Yes M SOEC  FP FD Yes 
Venezuela  2019 2019 Yes No No Yes M SOEC  FP FD Yes 
a Clauses allowing cooperation between airlines, e.g. code -sharing.  
b Type of designation: single (S) or multiple (M).  
c Clause on air carrier ownership and control: substantial ownership and effective control (SOEC), 
principal place of business (PPoB), community of interest (COI), or not available (n/a).  
d Pricing clause: double approval (DA), double disapproval (DD), country of origin (CoO), zone pricing 
(ZP), free pricing (FP),  and not available (n/a).  
e Capacity clause: predetermination (PD), Bermuda I (B1), free determination (FD), other (O), or not 
available (n/a).  
f Whether the agreement provides for the exchange of statistical data.  
Note:  The term "air transport agreements"  covers air services agreements, memorandums of 
understanding, exchanges of notes and other relevant instruments.  
Source : Information provided by the authorities.  
4.85.   INAC has responsibility for formulating, approving, updating and publishing technical 
regulations on civil aviation consistent with International Civil Aviation Organization (ICAO) 
standards. It also has the authority to inspect aircraft, airfields and related aviation services, as well 
as aviation technical staff. Furthermore, it  is responsible for issuing the following documents: air 
operators' certificates (COA); exploitation certificates to providers of air transport or aviation -related 
work; registration certificates and air navigation certificates for aircraft; and licences a nd 
authorizations for aviation staff. The award of a COA to foreign persons or businesses depends on 
whether there is reciprocal treatment for Nicaraguan persons or businesses in the candidate's 
country of origin.  
4.86.   In 2020, one Nicaraguan carrier and nine foreign carriers held valid documents for operating 
flights in Nicaraguan airspace. The authorities state that they have not provided state aid to any WT/TPR/S/404 • Nicaragua  
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  airline. Additionally, there would be no subsidies or other support measures to incentivize airlines to 
open new routes from Nicaragua's airports.  
4.87.   INAC is mainly financed through the revenue earned from providing its civil aviation -related 
services, and by 7% of the income from fees for the use of terminals in public airfields in Nicaragua.  
4.4.4   Tourism  
4.88.   Tourism co ntinues to be an important source of foreign currency for the Nicaraguan economy, 
although the sector's performance has been adversely affected by domestic sociopolitical unrest 
since 2018 (Table  4.6). The share of hotel and catering services in Nicaragua' s real GDP rose from 
2.9% in 2012 to 3.3% in 2017, but stood at 2.6% in 2018 and 2.8% in 2019.  
Table 4.6 Tourism indicators, 2012 -19 
 
2012  2013  2014  2015  2016  2017  2018  2019  
Tourist arrivals (thousand)  1,179.6  1,229.4  1,329.7  1,386.5  1,504.4  1,787.3  1,412.4  1,454.5  
 Arrivals from Central  America  726.4  766.1  786.0  840.5  953.7  1,170.6  887.2  863.7  
 Arrivals from North America  339.4  337.3  386.7  365.3  385.3  440.9  265.9  283.8  
Receipts (USD million)  421.5  417.3  445.6  527.9  642.1  840.5  544.4  515.3  
Hotel rooms (thousand)  11.3 11.8 13.2 13.9 15.3 16.2 15.2 14.2 
Hotel beds (thousand)  18.6 19.9 22.3 23.6 26.1 27.7 25.9 23.6 
Operating licences  5.9 6.4 6.7 6.7 7.0 7.5 6.6 6.4 
Source:  Nicaraguan Tourism Board.  
4.89.   Nicaragua's range of natural attractions, including lakes, beaches, mountains and more than 
20 volcanoes, offers considerable potential for the country as a provider of tourism -related services.  
Protected areas of ecological and t ourist interest cover 21.3% of Nicaragua's land space. Its 989  km 
coastline (Pacific Ocean and Caribbean Sea) offers ample opportunities for water -based activities 
such as surfing, diving, snorkelling and recreational fishing. The country's many attraction s include 
the world's largest island within a freshwater lake, Ometepe, which UNESCO declared a Biosphere 
Reserve 2010. Nicaragua also offers cultural attractions, colonial cities and an impressive variety of 
cuisine.  
4.90.   Since 2012, there have been no major i nstitutional changes in tourism. The Nicaraguan 
Tourism Board (INTUR) is responsible for formulating and implementing policies in the sector. The 
sources of finance for its operations include the following charges: USD  0.5 for each user who 
requests motel service (except for category "D" motels) at national level; 2% per night of occupancy 
for a guest registered in a hotel charging more than USD  30; USD  5 for every airline ticket procured 
abroad (purchase not covered by an invoice legally issued in Nicaragu a); USD  5, 10 or 15 for each 
vehicle, minibus or bus entering the country; USD  10 for each tourism card (visa); USD  3 for each 
passenger leaving Nicaragua who is required to pay airport duty; 4% of the VAT collected from the 
tourism industry; 5% of the inv oice for air tickets for international trips (from the VAT collected).  
4.91.   The main laws governing tourism services are the General Tourism Law63, and the Law on 
Incentives for the Tourism Industry.64 The latter provides for a number of tax and tariff exemptio ns 
for investments in guesthouses; protected areas; sites of tourism -related and cultural interest; 
transport (by air, water, and overland public transport for tourism); food, beverage and 
entertainment services; and filming of movies and events of benefit  to tourism. Generally the 
incentives apply during execution of the project (no more than three years) and the initial operating 
phase (10  years).  
4.92.   Changes to the tax exemption for goods imported for the tourist industry were introduced on 
28 February  2019 as a result of amendments to the Nicaraguan Tax Law. The imported goods in 
question are now subject to import duties and the Selective Consumption Tax and are exempt from 
 
63 Law No.  495, General Tourism Law, published in La Gaceta  No. 184 of 22  September  2004. 
64 Law No.  306, Law on Incentives for the Tourism Industry, published in La Gaceta  No. 117 of 
21 June 1999, as amended in part by Law No.  575, published in La Gaceta  No. 149 of 2  August  2006.  WT/TPR/S/404 • Nicaragua  
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  VAT only. Moreover, imported vehicles up to a maximum c.i.f. value of USD  13,000 are also exempt; 
for vehicles of higher value, the excess amount is subject to the usual levies.65  
4.93.   The Nicaraguan authorities state that they make no distinction between foreigners and 
Nicaraguans where operating licences and incentives are concerned. Operating licences are valid 
from the date of issue by INTUR to 31  December of the same year.  
 
65 Law No.  987 amending and supplementing Law No.  822, Nicaragua n Tax Law, published in La Gaceta  
No. 41 of 28  February  2019.  WT/TPR/S/404 • Nicaragua  
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section, 2012 -19 
(USD million and %)  
Description  2012   2013  2014  2015  2016  2017  2018  2019  
 (USD million)  
Total exports  4,551  4,594 4,974 4,667 4,592 4,926 5,014 5,273  
 (% of exports ) 
1 -  Live animals; animal products  19.0  19.0 20.4 21.1 19.4 20.5 19.5 19.6 
02. Meat and edible meat offal  10.2  8.7 9.4 10.0 9.5 10.8 10.0 10.3 
03. Fish and crustaceans, 
molluscs and other aquatic 
invertebrates  4.5  5.8 6.3 5.8 5.4 5.6 5.8 5.8 
04. Dairy produce; birds' eggs; 
natural honey; edible products of 
animal origin  3.7  3.6 3.7 4.3 3.7 3.6 3.3 3.2 
2 -  Vegetable  products  17.6  12.9 14.3 14.7 14.5 16.9 15.0 14.4 
09. Coffee, tea, maté and spices  11.6  7.7 8.0 8.5 8.8 10.4 8.4 8.7 
12. Oil seeds and oleaginous 
fruits; miscellaneous grains, 
seeds and fruit; industrial or 
medicinal plants  3.1  2.5 2.8 2.6 2.0 2.5 2.5 2.1 
07. Edible vegetables and certain 
roots and tubers  1.5  1.3 1.9 1.9 1.7 1.8 2.0 1.8 
08. Edible fruit and nuts; peel of 
citrus fruit or melons  0.9  0.8 1.0 1.1 1.4 1.7 1.6 1.2 
3 -  Animal or vegetable fats and 
oils 2.2  2.0 2.0 1.6 1.0 1.0 1.1 1.1 
4 -  Prepared foodstuffs; beverages, 
spirits and vinegar; tobacco and 
manufactured tobacco substitutes  10.4  11.0 11.1 10.6 9.7 10.9 11.5 11.0 
24. Tobacco and manufactured 
tobacco substitutes  3.2  3.6 3.4 3.9 4.3 4.6 5.1 4.7 
17. Sugars and sugar 
confectionery  4.5  4.5 4.9 3.7 2.9 4.1 3.9 3.8 
22. Beverages, spirits and 
vinegar  1.0  1.0 1.0 0.8 0.8 0.8 1.0 1.2 
21. Miscellaneous edible 
preparations  0.1  0.1 0.5 0.6 0.5 0.5 0.5 0.5 
5 -  Mineral products  1.1  0.5 0.4 0.4 0.3 0.3 0.3 0.3 
6 -  Products of the chemical or 
allied industries  0.4  0.5 0.5 0.4 0.7 0.8 0.9 1.1 
30. Pharmaceutical products  0.1  0.1 0.1 0.1 0.2 0.2 0.3 0.6 
32. Tanning or dyeing extracts; 
tannins and their derivatives; 
dyes, pigments and other 
colouring matter  0.0  0.0 0.0 0.0 0.2 0.2 0.2 0.3 
38. Miscellaneous chemical 
products  0.1  0.1 0.1 0.1 0.2 0.1 0.2 0.1 
7 -  Plastics and articles thereof  0.2  0.3 0.3 0.3 0.3 0.2 0.2 0.2 
8 -  Raw hides and skins, leather, 
furskins  and articles thereof; 
saddlery and harness  0.6  0.6 0.7 0.6 0.4 0.4 0.3 0.1 
9 -  Wood and articles of wood; 
wood charcoal  0.3  0.3 0.4 0.3 0.2 0.2 0.2 0.2 
10 -  Pulp of wood or of other 
fibrous cellulosic material; paper 
and paperboard and articles thereof  0.3  0.3 0.3 0.3 0.2 0.3 0.3 0.2 
11 -  Textiles and textile articles  25.7  28.5 28.2 28.3 28.7 27.3 29.1 29.3 
61. Articles of apparel and 
clothing accessories, knitted or 
crocheted  10.8  13.5 15.3 16.2 17.1 16.6 20.1 21.4 
62. Articles of apparel and 
clothing accessories, not knitted 
or crocheted  14.1  14.2 12.2 11.2 10.6 9.7 8.2 7.1 
63. Other made up textile 
articles; sets; worn clothing and 
worn textile articles; rags  0.5  0.4 0.4 0.7 0.6 0.6 0.5 0.6 WT/TPR/S/404 • Nicaragua  
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  Description  2012   2013  2014  2015  2016  2017  2018  2019  
12 -  Footwear, headgear, umbrellas, 
sun umbrellas, walking sticks, seat -
sticks, whips, riding -crops and parts 
thereof; prepared feathers and 
articles made therewith  0.8  0.3 0.5 0.7 0.5 0.4 0.4 0.4 
64. Footwear, gaiters and the 
like; parts of such articles  0.8  0.3 0.5 0.7 0.5 0.3 0.4 0.4 
13 -  Articles  of stone, plaster, 
cement, asbestos, mica or similar 
materials; ceramic products; glass 
and glassware  0.2  0.2 0.2 0.3 0.2 0.2 0.2 0.2 
14 -  Natural  or cultured pearls, 
precious or semi -precious stones, 
precious metals  9.7  9.8 8.0 7.0 8.2 7.2 8.3 10.4 
15 -  Base metals and articles of 
base metal  0.7  0.7 0.7 0.5 0.5 0.6 0.9 0.7 
16 -  Machinery  and mechanical 
appliances; electrical equipment; 
parts thereof  10.3  12.8 11.7 12.5 14.7 12.3 11.1 10.0 
85. Electrical machinery and 
equipment and parts thereof; 
sound recorders and reproducers  10.0  12.6 11.5 12.3 14.4 12.1 10.7 9.8 
17 -  Transport equipment  0.1  0.1 0.1 0.1 0.1 0.2 0.3 0.1 
18 -  Optical, photographic, 
cinematographic, measuring, 
checking  or precision  instruments 
and apparatus  0.1  0.1 0.1 0.1 0.2 0.2 0.2 0.3 
19 -  Arms and ammunition; parts 
and accessories thereof  0.0  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 -  Miscellaneous manufactured 
articles  0.0  0.0 0.1 0.1 0.2 0.1 0.2 0.1 
21 -  Works of art, collectors' pieces 
and antiques  0.0  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source : WTO Secretariat calculations based on data from  the UNSD  Comtrade database and the Nicaraguan 
authorities.  
  WT/TPR/S/404 • Nicaragua  
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  Table  A1.2 Total merchandise imports by HS section , 2012 -19 
(USD million and  %) 
Descrip tion 2012  2013  2014  2015  2016  2017  2018  2019  
(USD million ) 
Total imports  6,030 5,499 5,746 5,866 7,476 7,704 7,351 6,985 
(% of imports ) 
1 -  Live animals; animal products  1.2 1.2 1.3 1.5 1.2 1.2 1.3 1.3 
04. Dairy produce; birds' eggs; natural 
honey; edible products of animal origin  0.8 0.9 0.9 0.9 0.7 0.7 0.7 0.7 
02. Meat and edible meat offal  0.2 0.2 0.3 0.4 0.3 0.4 0.3 0.4 
2 -  Vegetable products  3.8 4.7 3.9 3.8 2.9 2.7 2.8 3.0 
10. Cereals  2.6 3.3 2.3 2.3 1.8 1.6 1.8 2.0 
11. Products of the milling industry; malt; 
starches; inulin; wheat gluten  0.6 0.7 0.6 0.6 0.4 0.5 0.4 0.4 
3 -  Animal or vegetable fats and oils  2.4 2.1 2.2 1.9 1.3 1.2 1.1 1.0 
4 -  Prepared  foodstuffs; beverages, spirits 
and vinegar; tobacco and manufactured 
tobacco substitutes  7.8 9.4 9.4 10.0 8.9 9.1 9.3 9.6 
21. Miscellaneous edible preparations  1.8 2.1 2.2 2.3 1.8 1.8 1.9 2.0 
19. Preparations of cereals, flour, starch 
or milk  1.9 2.2 2.3 2.3 1.9 2.0 2.0 1.9 
23. Residues and waste from the food 
industries  1.1 1.3 1.3 1.5 1.3 1.3 1.6 1.7 
24. Tobacco and manufactured tobacco 
substitutes  0.5 0.6 0.6 0.5 1.1 1.3 1.4 1.6 
22. Beverages, spirits and vinegar  1.0 1.3 1.2 1.3 1.1 1.0 1.0 1.0 
5 -  Mineral  products  25.1 19.9 18.5 13.7 9.0 9.6 15.0 14.2 
27. Mineral fuels, mineral oils and 
products of their distillation  24.4 18.8 17.6 12.7 8.2 8.7 14.3 13.6 
25. Salt; sulphur; earths and stone; 
plastering materials, lime and cement  0.7 1.1 1.0 1.0 0.8 0.9 0.7 0.6 
6. - Products of the chemical or allied 
industries  14.5 15.7 15.2 16.8 13.6 14.2 12.7 12.8 
30. Pharmaceutical products  6.0 6.0 6.0 7.0 5.6 5.9 5.1 5.2 
38. Miscellaneous chemical products  2.0 2.4 2.3 2.4 2.0 2.1 1.9 1.8 
33. Essential oils and resinoids; 
perfumery, cosmetic or toilet 
preparations  1.6 1.9 1.9 1.9 1.6 1.5 1.4 1.5 
34. Soap, organic surface -active agents, 
washing preparations, lubricating 
preparations  1.1 1.3 1.3 1.4 1.2 1.2 1.2 1.2 
31. Fertilisers  1.8 1.7 1.5 1.7 1.1 1.3 1.0 1.1 
7 -  Plastics and articles thereof  4.9 5.3 5.4 5.6 6.4 6.0 5.5 5.8 
39. Plastics and articles thereof  3.5 3.8 4.0 4.1 4.9 4.6 4.3 4.5 
40. Rubber and articles thereof  1.4 1.5 1.4 1.5 1.5 1.3 1.2 1.3 
8 -  Raw hides and skins, leather, furskins 
and articles thereof; saddlery and harness  0.2 0.3 0.4 0.4 0.4 0.3 0.2 0.3 
9 -  Wood and articles of wood; wood 
charcoal  0.2 0.3 0.3 0.3 0.4 0.4 0.3 0.3 
10 -  Pulp of wood or of other fibrous 
cellulosic material; paper and paperboard 
and articles thereof  2.4 2.5 2.7 3.1 2.7 3.0 2.8 3.9 
48. Paper and paperboard; articles of 
paper pulp, of paper or of paperboard  1.9 2.0 2.2 2.2 2.2 2.5 2.4 3.5 
49. Printed books, newspapers, pictures 
and other products of the printing 
industry  0.6 0.5 0.5 0.9 0.5 0.5 0.4 0.4 
11 -  Textiles and textile articles  2.0 2.1 2.2 2.3 15.7 16.6 20.0 21.7 
60. Knitted or crocheted fabrics  0.0 0.1 0.1 0.1 5.0 5.5 6.7 6.7 
61. Articles of apparel and clothing 
accessories, knitted or crocheted  0.4 0.4 0.4 0.4 4.0 4.5 5.4 6.3 
52. Cotton  0.0 0.0 0.0 0.0 2.5 2.2 2.8 3.2 
55. Man-made staple fibres  0.0 0.1 0.1 0.1 1.1 1.1 1.5 1.5 
63. Other made up textile articles; sets; 
worn clothing and worn textile articles; 
rags 0.7 0.8 0.8 0.9 1.0 1.1 1.1 1.2 WT/TPR/S/404 • Nicaragua  
- 83 - 
  Descrip tion 2012  2013  2014  2015  2016  2017  2018  2019  
12 -  Footwear, headgear, umbrellas, sun 
umbrellas, walking sticks, seat -sticks, 
whips, riding -crops and parts thereof; 
prepared feathers and articles made 
therewith  0.8 0.8 0.9 0.9 0.7 0.7 0.7 0.7 
64. Footwear, gaiters and the like; parts 
of such articles  0.7 0.7 0.8 0.8 0.6 0.7 0.6 0.6 
13 -  Articles  of stone, plaster, cement, 
asbestos, mica or similar materials; 
ceramic products; glass and glassware  1.2 1.6 1.5 1.6 1.3 1.3 1.0 1.0 
69. Ceramic products  0.5 0.6 0.6 0.6 0.5 0.5 0.3 0.4 
68. Articles of stone, plaster, cement, 
asbestos, mica or similar materials  0.5 0.6 0.6 0.6 0.4 0.4 0.3 0.4 
70. Glass and glassware  0.3 0.4 0.4 0.4 0.4 0.4 0.3 0.3 
14 -  Natural  or cultured pearls, precious or 
semi-precious stones, precious metals  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
15 -  Base metals and articles of base 
metal  6.9 7.7 7.3 7.4 6.4 6.5 5.8 5.3 
72. Iron and steel  3.4 3.5 3.4 3.2 2.3 2.3 2.1 2.1 
73. Articles of iron or steel  2.1 2.4 2.1 2.5 2.2 2.2 1.9 1.9 
76. Aluminium and articles thereof  0.5 0.7 0.7 0.7 0.5 0.6 0.5 0.5 
16 -  Machinery and mechanical appliances; 
electrical equipment; parts thereof  15.6 14.3 16.6 17.5 18.1 16.7 14.0 12.8 
85. Electrical machinery and equipment 
and parts thereof; sound recorders and 
reproducers  8.7 6.6 8.1 9.5 10.5 10.0 8.2 7.8 
84. Nuclear reactors, boilers, machinery 
and mechanical appliances  6.9 7.7 8.5 8.0 7.6 6.7 5.8 5.0 
17 -  Transport equipment  7.0 7.7 7.3 8.2 6.7 6.1 3.7 2.4 
87. Vehicles other than railway or 
tramway rolling -stock, and parts and 
accessories thereof  6.9 7.6 7.1 7.9 6.6 5.9 3.6 2.4 
18 -  Optical, photographic, 
cinematographic, measuring, checking  or 
precision instruments and apparatus  1.3 1.5 1.9 1.9 1.3 1.5 1.2 1.3 
90. Optical, photographic, 
cinematographic, measuring, checking, 
precision, medical or surgical  
instruments and apparatus  1.3 1.4 1.9 1.8 1.3 1.4 1.2 1.3 
19 -  Arms and ammunition; parts and 
accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 -  Miscellaneous manufactured articles  2.2 2.7 2.9 3.1 2.7 2.9 2.4 2.4 
96. Miscellaneous manufactured articles  0.8 0.9 0.9 1.0 1.0 1.1 1.1 1.3 
94. Furniture; bedding, mattresses, 
mattress supports, cushions and similar 
stuffed furnishings; lamps and lighting 
fittings, not elsewhere specified or 
included  1.1 1.4 1.5 1.6 1.4 1.4 1.0 0.9 
21 -  Works of art, collectors' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 
Source : WTO Secretariat calculations  based on data from the UNSD Comtrade database and the Nicaraguan 
authorities . 
  WT/TPR/S/404 • Nicaragua  
- 84 - 
  Table  A1.3 Merchandise exports by trading partner , 2012 -19 
(USD million and  %) 
Descrip tion 2012  2013  2014  2015  2016  2017  2018  2019   
(USD million ) 
Total exports  4,551 4,594 4,974 4,667 4,592 4,926 5,014 5,273  
(% of export s) 
Americ a 88.3 88.5 88.7 89.1 89.0 85.5 85.8 86.7 
United States  46.2 45.3 48.4 53.7 55.1 58.6 61.1 61.7 
Other America  42.2 43.3 40.3 35.3 33.9 26.8 24.7 25.0 
El Salvador  5.5 4.8 4.6 5.6 5.7 5.6 5.7 5.6 
Mexico 10.6 13.2 12.4 11.1 13.7 6.6 5.6 5.6 
Honduras  2.5 2.9 3.1 3.7 3.3 3.5 4.4 4.7 
Costa Rica  2.8 2.8 3.1 2.8 3.2 3.1 3.1 3.0 
Guatemala  1.8 1.9 1.9 2.4 2.1 2.2 2.6 2.4 
Canad a 7.1 7.1 5.0 1.3 0.9 1.1 0.8 0.9 
Panam a 0.4 0.7 0.8 0.8 0.9 0.8 0.8 0.8 
Venezuela, Bolivarian 
Republic of  9.8 8.4 7.8 6.2 2.5 2.4 0.4 0.3 
Dominican  Republic 0.7 0.7 0.6 0.8 0.6 0.3 0.4 0.3 
Europ e 7.7 7.3 6.7 6.7 6.7 8.5 8.0 7.8 
EU (28) 7.5 7.1 6.5 6.5 6.6 8.4 7.9 7.6 
Spain  1.3 1.8 1.9 1.2 1.2 1.1 1.1 1.3 
Germany  0.7 0.8 0.6 0.8 0.8 1.5 1.4 1.2 
United Kingdom  1.1 1.0 0.9 1.2 1.2 1.6 1.4 1.1 
Belgium  1.5 0.6 0.5 0.7 0.7 1.1 1.1 1.0 
Franc e 0.7 1.1 0.9 0.9 1.0 0.8 0.9 0.9 
EFTA 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.2 
Other  Europ e 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Commonwealth of 
Independent States (CIS)  0.4 0.4 0.4 0.1 0.2 0.2 0.3 0.2 
Russian Federation  0.4 0.4 0.4 0.1 0.2 0.2 0.3 0.2 
Africa 0.4 0.3 0.7 0.6 0.6 0.7 0.5 0.5 
Ghana  0.0 0.3 0.4 0.0 0.2 0.0 0.0 0.4 
Mauritania  0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 
Côte d'Ivoire  0.0 0.0 0.1 0.6 0.3 0.6 0.3 0.0 
South Africa  0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 
Middle East  0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 
United Arab Emirates  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Jordan  0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 
Asia 3.1 3.3 3.5 3.4 3.4 5.0 5.3 4.6 
China  0.2 0.5 0.6 0.5 0.3 0.4 1.4 0.5 
Japan 0.6 0.5 0.5 0.4 0.5 0.6 0.4 0.3 
Other Asia 2.3 2.4 2.4 2.6 2.6 4.0 3.5 3.8 
Chinese Taipei  1.0 1.5 1.5 1.8 1.6 2.5 1.9 2.2 
Korea, Republic of  0.6 0.3 0.2 0.2 0.2 0.2 0.3 0.4 
Hong Kong , China  0.1 0.1 0.2 0.2 0.3 0.5 0.6 0.3 
Australia  0.3 0.2 0.2 0.2 0.3 0.3 0.2 0.2 
New Zealand 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.2 
Malaysia 0.0 0.0 0.0 0.0 0.0 0.2 0.1 0.1 
Viet Nam  0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 
India 0.0 0.1 0.0 0.0 0.0 0.1 0.1 0.1 
Thailand  0.0 0.0 0.1 0.0 0.0 0.1 0.1 0.0 
Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source : WTO Secretariat calculations  based on data from the UNSD Comtrade database and the Nicaraguan 
authorities . 
  WT/TPR/S/404 • Nicaragua  
- 85 - 
  Table  A1.4 Merchandise imports by trading partner , 2012 -19 
(USD million and  %) 
Descrip tion 2012  2013  2014  2015  2016  2017  2018  2019   
(USD million ) 
Total imports  6,030 5,499 5,746 5,866 7,476 7,704 7,351 6,985  
(% of imports)  
America 74.2 71.1 68.7 66.0 66.3 67.9 72.2 72.9 
United States  18.0 16.5 16.3 18.0 22.3 23.5 27.8 28.3 
Other America  56.2 54.7 52.4 48.0 44.0 44.4 44.4 44.6 
Mexico 7.4 8.4 9.5 10.4 11.2 11.0 10.1 10.0 
Honduras  2.6 2.8 2.8 3.0 6.2 6.7 7.7 8.7 
Guatemala  5.7 6.4 6.5 6.9 6.3 6.2 6.2 6.6 
Costa Rica  7.7 8.7 8.1 8.2 6.5 6.3 6.1 6.2 
El Salvador  4.5 5.1 4.9 5.2 4.4 4.5 4.3 4.4 
Ecuador  0.1 0.2 0.1 1.2 1.4 0.6 0.7 2.8 
Brazil 1.8 2.6 2.3 2.2 2.1 2.0 1.9 1.2 
Colombia  0.3 0.3 0.3 0.3 0.3 0.5 2.3 1.0 
Argentina  0.6 0.9 0.6 0.5 0.5 1.2 0.8 0.6 
Venezuela, Bolivarian 
Republic of  13.4 1.9 7.9 0.9 0.3 0.5 0.7 0.4 
Europ e 6.2 6.3 6.1 7.6 6.1 6.5 5.6 5.7 
EU (28) 5.8 5.7 5.7 7.2 5.7 5.9 5.1 5.1 
Germany  1.1 1.3 1.7 1.5 1.8 1.9 1.8 1.8 
Spain  1.8 1.5 1.2 1.1 0.9 1.1 0.9 1.0 
Italy 0.7 0.6 0.6 0.7 0.8 0.7 0.5 0.5 
Franc e 0.5 0.6 0.4 1.9 0.4 0.4 0.4 0.4 
Netherlands  0.2 0.2 0.2 0.4 0.3 0.3 0.3 0.3 
EFTA 0.3 0.4 0.2 0.3 0.3 0.4 0.3 0.2 
Switzerland  0.2 0.3 0.2 0.3 0.3 0.3 0.3 0.2 
Other  Europ e 0.2 0.2 0.1 0.1 0.1 0.2 0.2 0.3 
Turkey 0.2 0.2 0.1 0.1 0.1 0.2 0.2 0.1 
Commonwealth of 
Independent States (CIS)  1.4 1.8 0.7 1.1 0.7 0.7 0.9 0.9 
Russian Federation  1.3 1.7 0.7 1.1 0.6 0.6 0.9 0.9 
Belarus 0.1 0.0 0.0 0.1 0.0 0.1 0.1 0.0 
Africa 0.1 0.1 0.3 0.2 0.1 0.1 0.1 0.1 
Middle East  0.3 0.2 0.2 0.3 0.3 0.2 0.2 0.2 
Israel  0.1 0.1 0.2 0.2 0.2 0.1 0.1 0.1 
Saudi Arabia,  
Kingdom of  0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.1 
Asia 17.7 20.4 24.0 24.8 26.6 24.7 21.1 20.2 
China  9.6 11.5 14.9 14.4 15.4 15.2 13.2 12.8 
Japan 2.9 2.7 2.5 2.5 1.9 2.1 1.6 1.4 
Other  Asia 5.2 6.3 6.6 7.8 9.4 7.4 6.2 6.0 
India 1.2 1.6 1.6 2.0 2.4 2.0 1.6 1.7 
Korea, Republic of  1.4 1.5 1.4 1.5 2.3 1.9 1.8 1.5 
Chinese Taipei  0.4 0.5 0.5 0.6 0.7 0.7 0.6 0.6 
Viet Nam  0.1 0.2 0.2 0.4 0.5 0.5 0.5 0.6 
Thailand  1.2 1.6 1.8 2.3 1.9 1.0 0.5 0.5 
Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source : WTO Secretariat calculations  based on data from the UNSD Comtrade database and the Nicaraguan 
authorities . 
  WT/TPR/S/404 • Nicaragua  
- 86 - 
  Table A3. 1 Summary analysis of the MFN tariff , 2020  
 
MFN Bound   
Tariff  
No. of  Average  Range  Coefficient of 
variation  rangea 
Product description  lines  (%) (%) (CV) (%) 
Total  7,768  6.2 0 - 164 1.3 0 - 200 
SA 01 -24 1,505  12.4 0 - 164 1.0 40 - 200 
SA 25 -97 6,263  4.8 0 - 15 1.2 0 - 100 
By WTO category       
Agricultural products  1,248  11.8 0 - 164 1.1 40 - 200 
 - Animals and animal 
products  184 19.6 0 - 164 1.2 40 - 200 
 - Dairy products  46 25.0 0 - 60 0.7 40 - 70 
 - Fruit, vegetables and 
garden produce  350 11.8 0 - 30 0.5 40 - 60 
 - Coffee and tea  37 13.2 0 - 15 0.3 40 - 40 
 - Cereals and cereal 
preparations  151 10.1 0 - 60 1.2 40 - 60 
 - Oilseeds, fats and oils and 
their products  141 7.1 0 - 15 0.8 40 - 60 
 - Sugar and confectionery  25 31.6 0 - 55 0.7 40 - 100 
 - Beverages, alcohol and 
tobacco  96 12.2 0 - 40 0.8 40 - 75 
 - Cotton  5 0.0 0 - 0 n.a. 40 - 40 
 - Other agricultural 
products n.e.s.  213 4.3 0 - 15 1.2 40 - 40 
Non-agricultural products 
(including petroleum)  6,520  5.2 0 - 15 1.2 0 - 100 
 - Non-agricultural products 
(excluding petroleum)  6,485  5.2 0 - 15 1.2 0 - 100 
 - - Fish and fish products  350 11.7 0 - 15 0.4 40 - 40 
 - - Mineral products and 
metals  1,131  3.5 0 - 15 1.5 20 - 70 
 - - Chemicals and 
photographic products  1,419  2.5 0 - 15 1.8 0 - 40 
 - - Wood, wood pulp, paper 
and furniture  539 6.4 0 - 15 0.9 40 - 60 
 - - Textiles  718 8.1 0 - 15 0.6 40 - 100 
 - - Clothing  236 14.8 0 - 15 0.1 60 - 60 
 - - Leather, rubber, 
footwear and travel articles  229 7.4 0 - 15 0.7 40 - 60 
 - - Non-electrical machinery  634 1.6 0 - 15 2.7 0 - 40 
 - - Electrical machinery  352 2.7 0 - 15 2.0 0 - 40 
 - - Transport equipment  330 6.0 0 - 15 0.7 40 - 60 
 - - Non-agricultural 
products n.e.s.  547 6.7 0 - 15 1.0 0 - 60 
 - Petroleum  35 3.4 0 - 15 1.2 40 - 40 
By ISIC sectorb      
Agriculture and fishing  609 8.3 0 - 45 0.8 40 - 75 
Mining  114 1.8 0 - 15 1.9 40 - 40 
Manufacturing  7,044  6.1 0 - 164 1.3 0 - 200 
By HS section       
  01  Live animals; animal 
products  553 14.9 0 - 164 1.1 40 - 200 
  02  Vegetable products  490 9.6 0 - 60 0.9 40 - 60 
  03  Fats and oils  85 9.9 0 - 15 0.6 40 - 60 
  04  Prepared foodstuffs, 
etc. 377 12.9 0 - 55 0.8 40 - 100 
  05  Mineral products  199 2.6 0 - 15 1.5 40 - 70 
  06  Products of the 
chemical or allied industries  1,253  2.1 0 - 15 2.1 0 - 60 
  07  Plastics and rubber  371 4.5 0 - 15 1.1 40 - 40 
  08  Raw h ides and skins  112 8.2 0 - 15 0.7 40 - 40 WT/TPR/S/404 • Nicaragua  
- 87 - 
   
MFN Bound   
Tariff  
No. of  Average  Range  Coefficient of 
variation  rangea 
Product description  lines  (%) (%) (CV) (%) 
  09  Wood  and articles of 
wood 176 7.4 0 - 15 0.7 40 - 40 
  10  Pulp of wood, paper, 
etc. 318 5.0 0 - 15 1.1 40 - 40 
  11  Textiles and textile 
articles  936 9.6 0 - 15 0.5 40 - 100 
  12  Footwear and headgear  66 12.7 0 - 15 0.3 40 - 60 
  13  Articles  of stone  188 6.7 0 - 15 1.0 20 - 40 
  14  Precious stones, etc.  54 6.9 0 - 15 0.8 40 - 40 
  15  Base metals and 
articles of base metal  722 2.9 0 - 15 1.6 40 - 40 
  16  Machinery and 
mechanical appliances  1,033  2.2 0 - 15 2.2 0 - 40 
  17  Transport equipment  343 5.9 0 - 15 0.7 40 - 60 
  18  Precision instruments  244 3.7 0 - 15 1.5 0 - 40 
  19  Arms and ammunition  21 15.0 15 - 15 0.0 40 - 40 
  20  Miscellaneous 
manufacture d articles  218 10.1 0 - 15 0.6 40 - 60 
  21  Works  of art, etc.  9 7.8 5 - 10 0.3 40 - 40 
By stage of processing       
First stage of processing  1,041  7.3 0 - 60 1.1 40 - 75 
Semi-processed products  2,473  3.9 0 - 55 1.5 0 - 100 
Fully processed products  4,254  7.4 0 - 164 1.2 0 - 200 
n.a. No applicable.  
n.e.s.  Not elsewhere specified or included . 
a The bindings are shown according to the HS 2007 classification and the rates applied in HS 2017; 
there may, therefore, be differences between the number of lines included in this analysis.  
b ISIC (R ev.2), excluding electricity (one line).  
Source : WTO Secretariat estimates based on data provided by the authorities .