WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/274 
30 October 2012 
 
 (12-5842) 
Trade Policy Review Body Original:  Spanish 
  
 
   
 
TRADE POLICY REVIEW 
 
Report by 
 
NICARAGUA 
 
   
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Nicaragua is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Nicaragua. Nicaragua WT/TPR/G/274 
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  LIST OF ABBREVIATIONS  
 
ADA   Association Agreement 
ALBA   Bolivarian Alliance fo r the Peoples of Our America 
ALBA TCP  Bolivarian Alliance for the Peoples  of Our America - Peoples' Trade Agreement 
ASYCUDA  Automated System for Customs Data 
CACM   Central American Common Market 
CAFTA DR  Free Trade Agreemen t Between the Dominican Repub lic, Central America AND the 
United States 
CAUCA IV  Central American Un iform Customs Code Version IV 
CBN   Central Bank of Nicaragua CEI   Centre for Export and Investment 
CETREX  Centre for Export Formalities 
CIFCO   Interinstitutional Commission on Trade Facilitation CNPE   National Commission for the Promotion of Exports 
CPI    Consumer Price Index 
DDA   Doha Development Agenda DGA   Directorate General of Customs 
DGI   Directorate General of Revenue 
DGPSA   Directorate General of Agricultu ral and Livestock Protection and Health 
ECLAC   Economic Commission for Latin America and the Caribbean 
ECOALBA  Agreement establishing  the ALBA TCP Economic Area 
EMNV   Living Standards Measurement Survey 
FDI   Foreign direct investment 
GRUN   Government of National Reconciliation and Unity INE   Nicaraguan Energy Institute 
INPESCA  Nicaraguan Fishing and Aquaculture Institute 
LAIA   Latin American Integration Association MAGFOR   Ministry of Agriculture and Forestry 
MANA   Market access for non agricultural products 
MEM   Ministry of Energy and Mining MHCP   Ministry of Finance and Public Credit 
MIFIC   Ministry of Development, Industry and Trade 
PNDH   National Human Development Plan PROCOMPETENCIA National Institute for the Promotion of Competition 
RECAUCA IV  Implementing regulations for the Central American Uniform Customs Code,  
   V e r s i o n  I V  SAC   Central American Tariff System 
S&D   Special and differential treatment 
SIECA   Secretariat for Central American Economic Integration 
SISCAE   Electronic Govern ment Procurement System 
SVE   Small and Vulnerable Economies VUI   One stop investment facility 
 Nicaragua WT/TPR/G/274 
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  CONTENTS 
  Page 
 
I.  INTRODUCTION 7 
II.  ECONOMIC ENVIRONMENT 7  
 (1)   ECONOMIC GROWTH AND EMPLOYMENT  7  
 (2)   INFLATION AND PRICES  9  
 (3)   FISCAL SECTOR  9  
 (4)   PUBLIC DEBT 10  
 (5)   SOCIAL INTEGRATION  10  
III.  TRADE POLICY 10 
 (1)   QUOTAS  13 
 (2)   EXPORT PROMOTION  13  
 (3)   TRADE AGREEMENTS  14  
 (i)   Multilateral trading system 14  
 (ii)   Central American Integration 15  
 (iii)   Latin American Integration Association (LAIA) 16  
 (iv)   Bolivarian Alliance for the Peoples of Our America (ALBA) - the Peoples' 
Trade Agreement (ALBA-TCP) 16  
 (v)   Mexico 17  
 (vi)   Dominican Republic 17  
 (vii)  United States 18  
 (viii)  Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Taipei) 18  
 (ix) Panama 18 
 (x)   Chile 19  
 (xi)   European Union 19  
 (4)   FOREIGN DIRECT INVESTMENT  19  
 (5)   TRADE FACILITATION  20  
 (6)   TECHNICAL STANDARDS  21  
 (7)   SANITARY AND PHYTOSANITARY MEASURES  22  
 (8)   GOVERNMENT PROCUREMENT  22  
 (9)   INTELLECTUAL PROPERTY  22  
 (10)   COMPETITION AND CONSUMER PROTECTION POLICIES  23  
IV.  SECTORAL POLICIES AND ECONOMIC OUTLOOK 23  
 (1)   AGRICULTURE AND LIVESTOCK  23  
 (2)   AGRO-INDUSTRY AND FORESTRY  24  
 (3)   INDUSTRY  25 
 (4)   FISHING AND AQUACULTURE  25  WT/TPR/G/274 Trade Policy Review 
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    Page 
 (5)   ENERGY  26 
 (6)   TOURISM  26 
 (7)   MINING  27 
 (8)   BANKING  28 
 (9)   TELECOMMUNICATIONS  28  
V.  CONCLUSION 29 
ANNEXES 31 
 
 Nicaragua WT/TPR/G/274 
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  I. INTRODUCTION 
1. The main thrust of the efforts made by the Government of National Reconciliation and 
Unity (GRUN), as set out in the National Hu man Development Plan, is to maintain 
Nicaragua's macroeconomic stability so that the country can continue to attract investment and 
maintain the increase in production and trade that w ill enable its economy to grow considerably in 
years to come.  These efforts require a predictable, stable and ever more equitable multilateral trading 
system in which trade flows can increase in an environment that is free of unnecessary barriers, 
particularly non-tariff barriers, and the Nicaraguan pe ople can attain greater well-being.  Nicaragua is 
of the view that trade among nations is a key tool in sustainable development. 
2. Nicaragua has made notable economic progress during the review period, as shown by the 
record figures for attracting investment, rises in exports and progress in transforming the energy generation process. 
3. For Nicaragua, the trade policy review mechanism is  an exercise in transparency for its trade 
policies and practices and an opportunity for ot her Members to gain a better understanding of 
Nicaragua's individual features, its aspirations, its  needs and the challenges it faces.  Nicaragua would 
like this exercise to help improve the wo rking of the multilateral trading system. 
4. This report comprises five chapters;  the firs t explains the background to the country's 
socio-economic environment and contains a summary of data relating to economic growth, inflation, 
the budget, fiscal matters, aspects concerning public debt, the ongoing fight to eradicate poverty and 
the construction of a fairer, more integrated society.  The second ch apter concerns trade policy, its 
objectives, trends in foreign trade, changes in ta riffs, tariff quotas, export promotion and investment. 
5. Trade regulations (technical standards, sanitary  and phytosanitary measures), and the forums 
set up at the institutional level to host a public-p rivate dialogue with a view to furthering trade 
facilitation, are covered in Chapter III.  This chapte r also discusses trade-related intellectual property, 
competition policies and progress in and prospects for the various sectors of Nicaragua's economy. 
6. This report supplements the report by the WTO S ecretariat and aims to ensure that Members 
obtain a full picture of Nicaragua's trade policies and practices. 
II. ECONOMIC ENVIRONMENT 
(1) E
CONOMIC GROWTH AND EMPLOYMENT  
7. The average annual rate of growth in Ni caragua's economy over the period 2006-2011 
was 2.8 per cent.  When assessing economic performance over this period, it must be borne in mind 
that between 2007 and 2009 the national economy was a dversely affected by several external shocks 
that restricted opportunities for growth.  Those factors included the impact of high international oil and food prices, hurricane Felix in October 2007, and a series of exceptional winters caused by the 
El Niño and La Niña effects.  Most noteworthy of all, however, is the impact of the international 
recession of 2008-2009. 
8. After a 1.5 per cent contraction in 2009, Nicaragua's economy recovered and grew 
by 4.5 per cent in 2010 and 4.7 per cent in 2011, an annual average rate of 4.6 per cent for those two years, the highest in Central America.  In te rms of relative contribution to growth in GDP, the 
production sectors that contributed the most in 2011 were manufacturing, with 31 per cent;  
agriculture with 19.8 per cent;  and trade, hotels and restaurants with 14.2 per cent.  The relative WT/TPR/G/274 Trade Policy Review 
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  contribution of 5.5 per cent to growth in GDP by the transport and communications sector was a result 
of the flow of foreign direct investment (FDI) in communications. 
9.  The highlights in manufacturing are the strong rise in value added in the textiles and 
garments segment, whose output is intended primar ily for export, where the relative contribution to 
sectoral growth was 58.4 per cent;  followed by the food, beverages and tobacco segment, where a 
boom helped account for the 34.8 per cent growth in GDP in the sector.  Also of note was the contribution of agro-industrial output in meat, sugar and dairy products  intended chiefly for 
export markets. 
10. Agriculture was strongly influenced by the performance in the livestock subsector, which 
helped account for the 83.7 per cent growth in this sector as a whole, driven mainly by the slaughter 
of livestock. 
11. With regard to aggregate demand, domestic demand was the preponderant factor in the 
performance of the economy, with a relative cont ribution of 127.5 per cent to growth in GDP, 
whereas net external demand (exports less impor ts of non-factor goods and services) caused a 
contraction in aggregate demand, leading to a negative contribution of -27.5 per cent to 
the GDP's growth rate. 
12. In domestic demand, private and public consump tion made the biggest relative contribution to 
growth in GDP, 72.2 per cent, because of its ef fect on aggregate demand, although the performance 
and relative contribution of private investment, whic h grew at an average annual rate of 16.1 per cent 
and accounted for 52 per cent of growth in GDP, should be highlighted. 
13. Private investment was influenced by the growth in flows of FDI which stood at 
around 63 per cent of private investment in 2010, e quivalent to 13.7 per cent of GDP, the highest level 
for 40 years. 
14. The average share of investment in machinery an d equipment in total fixed private investment 
in 2010 and 2011 was 69 per cent, which led to demand for imported capital goods rather than 
demand for domestic goods and services.  A significant percentage of private or family consumption 
was imported, with the result that an increasingly la rge share of the demand for consumer goods is for 
imported goods that are not manufactured in Nicaragua. 
15. Factors contributing to the growth in GDP on th e aggregate demand side were (i) the share of 
household consumption of goods and services produced in  Nicaragua;  (ii) the share of fixed gross 
investment chiefly in the construction of struct ures, other buildings and infrastructure works;  
and (iii) demand from non-residents for goods and services produced in Nicaragua, such as products 
in the textiles-garments and food segments such  as meat, sugar, dairy products, coffee, other 
agricultural products, as well as minerals and tourism. 
16. The percentages of internal demand accounted for by factors (i) and (ii) have gradually 
decreased, in fact performance has become negative, and as a result GDP catering for domestic 
demand fell to an average annual rate of -0.7 per cent between 2006 and 2011, whereas external 
demand drove growth in GDP, catering for that demand at an average annual rate of 8.7 per cent.  The 
fall in GDP catering for domestic demand meant that  the strong performance in exports was translated 
into an overall annual average rate of growth in GDP of only 4.6 per cent. Nicaragua WT/TPR/G/274 
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  17. Rather than take protectionist measures to restrict imports, Nicaragua is seeking to establish a 
model that will enable it to make export perform ance and the benefits of international trade the 
catalysts for efforts to increase and diversify national output. 
(2) INFLATION AND PRICES  
18. The average annual inflation rate as measured by  the percentage variation in the Consumer 
Price Index (CPI)1 rose to 9.42 per cent during the period 2007-2011, as much a result of the policy 
of 5 per cent annual currency depreciation as of the im pact of rising international prices for food and 
hydrocarbons on Nicaragua's economy.  However, the inflationary effect of these price rises was 
mitigated by the policy subsidizing electricity for low-income consumers and public urban transport. 
19. The factor that most affected inflation w as the increase in the food and non-alcoholic 
beverages price index, which averaged 12.1 per cen t annually during the period;  its effect on the 
welfare of the poor was particularly marked as food is the main item in their shopping basket. 
20. When the current Government came to pow er in 2006 the average minimum wage was 
C$1,400 (US$60.00);  as a result of the wages policy formulated with the private sector and labour, 
the average minimum wage had risen to C$3,100 (US$132.00) in 2011, an increase of 120 per cent. 
(3) FISCAL SECTOR  
21. In the period under review, finances in the non-financial public sector improved as a result of 
a 15.1 per cent average annual increase in revenue - more than the average annual rise in total 
outgoings of only 13.4 per cent.  As  a result, the public sector deficit before external grants as a 
percentage of GDP fell by half from 3.8 per cent of GDP in 2006 to 1.7 per cent in 2011. 
22. Central Government tax revenue grew at an annual average rate of 14.5 per cent 
between 2006 and 2011, whereas GDP at current pri ces rose at a rate of 12.2 per cent, indicating 
that the elasticity of tax collection in rela tion to growth in GDP at current prices - tax buoyancy  - 
averaged 1.2 per cent.  As a result the tax take rose from 17.4 per cent of GDP in 2006 to 19.4 per 
cent of GDP in 2011. 
23. Generally, over the past five years, the country 's tax structure has changed:  the process of 
opening up to the outside has resulted in a reduced relative share of import tariffs in total revenue, 
from 6.3 per cent in 2006 to 4.6 per cent in 2011. 
24. On expenditure, social expenditure increased in absolute terms and its relative share of total 
expenditure rose sharply.  The share of expenditure  on social services rose from 43.2 per cent of total 
government expenditure in 2006 to 45.9 per cent in  2011, an increase of 2.7 percentage points.  
That increase was essentially attributable to the sharp fall in the share of expenditure on public 
government administration, which fell from 15.1 pe r cent of total expenditure in 2006 to 9.1 per cent 
in 2011, a fall of 6 percentage points. 
25. Expenditure on education rose markedly in  the period under review:  in 2007 it stood 
at C$5.2 billion, rising to C$8.5 billion in 2011 , and its share of GDP remained stable, rising 
from 5.1 per cent in 2007 to 5.2 per cent in 2011.  H ealth expenditure continued to account for 3.7 per 
cent of GDP:  in 2007 it amounted to C$3.8 billion and in 2011, C$6.0 billion. 
                                                      
1 CPI:  Indicator published by the Central Bank of Nicaragua measuring the trend in prices of a basket 
of goods and services that are representative of final consumption expenditure by households. WT/TPR/G/274 Trade Policy Review 
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  (4) PUBLIC DEBT 
26. Total public debt fell from US$5,862.7 million in  2006 to US$5,242.5 million in 2011, a fall 
in absolute terms of US$620.2 million.  Total debt  also fell significantly as a percentage of GDP, 
from 112.1 per cent in 2006 to 71.8 per cent in 2011, a fall of 40.2 percentage points. 
27. In absolute terms, external public debt fell from US$4,526.7 million to US$4,072.6 million 
in 2011, a fall of US$454.1 million, and in term s of share of GDP it fell from 86.5 per cent in 2006 
to 55.8 per cent in 2011.  Domestic public  debt fell from US$1,336 million in 2006 to 
US$1,169.9 million in 2011, a dr op of US$166.1 million, and fell as a percentage of GDP 
from 25.5 per cent in 2006 to 16 per cent in 2011. 
(5) SOCIAL INTEGRATION  
28. A comparison of the findings of the Li ving Standards Measurement Survey (EMNV)2 
for 2005 and 2009 shows that in 2009 the percentage  of the population living below the poverty line 
and the extreme poverty line3 had fallen substantially in both urban and rural areas. 
29. According to the results of both surveys, the population living in poverty fell from 48.3 per 
cent in 2005 to 42.5 per cent in 2009, a reduction of 5.8 percentage points.  The population living in 
extreme poverty fell from 17.2 per cent of the entire population in 2005 to 14.6 per cent in 2009.  
It should be noted that the data from the survey s under way this year will show further progress in 
reducing poverty. 
30. Various factors explain the reductions in povert y and extreme poverty.  Economic growth 
was reflected in annual average growth of 3.2 per cent in average per capita consumption.  
Labour participation has increased with the result th at the average number of people per household in 
the labour market, most of whom are in work, has ri sen and this has helped increase per capita income 
and household consumption.  There was a significant im provement in the distribution of consumption:  
the Gini consumption coefficient fell from 0.41 in 2005 to 0.37 in 2009.  In conclusion, the reduction in poverty was the result not only of economic growth and greater labour participation but also of the 
improvement in the distribution of income and consumption. 
III. TRADE POLICY 
31. The PNDH states that one of the principal target s of international trade policy is to regulate 
Nicaragua's trade relations with the rest of the world by way of fair, competitive trade.  Under that 
premise, Nicaragua emphasizes the need for the wo rld market to incorporate the concept of "fair 
                                                      
2 Published by the National Developm ent Information In stitute (INIDE). 
3 The extreme poverty line was defined as the total annual per capita consumption of food necessary to 
satisfy the minimum daily calorific requirement, estimated at an average 2,268 calories a day.  According to the 
final data from EMNV 2009, the cost of that requirement was C$6,903.08 (equivalent to US$334.79) per person 
per year (or US$27.90 per person per month, or US$0.917 per day).  Households with a per capita annual 
consumption lower than that figure  were classified as living in extreme poverty .  The poverty line was defined as 
the total annual per capita consumption of food necessary to satisfy the minimum daily calorific requirement 
(extreme poverty line ) plus an additional amount to cover consumption of non-food essential goods and services 
such as housing, transport, education, health, clothi ng and daily household expenses.  The poverty line was 
estimated at C$11,725.09 (equivalent to US$568.65) per person per year (or US$47.39 per person per month or 
US$1.56 per day).  Households where per capita annual consumption falls below that line are classified 
as poor . Nicaragua WT/TPR/G/274 
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  trade", meaning genuine recognition of imbalances between countri es' economies, and correction of 
the distortions in world markets. 
32. Nicaragua's trade policy aims to seek out new international markets, consolidate traditional 
markets and diversify exportable s upply by boosting growth in exports of non-tr aditional products and 
promoting FDI to support production;  this will en courage job-creation and squares well with the 
development of vital technology transfer. 
33. Trade policy is formulated within the frame work laid down in the Constitution of the 
Republic of Nicaragua, the WTO Agreements, th e Tegucigalpa Protocol, the General Treaty on 
Central American Economic Integra tion and the Protocols thereto, free trade agreements in force, 
international treaties and agreements on specific trade topics, and domestic trade law.  Its main 
objective is to ensure that Nicaragua's trade relati ons with the rest of the world are conducted within 
the framework of fair, competitive trade, mean ing genuine recognition of imbalances between 
countries' economies, and correction of the distorti ons in world markets.  The Government wants 
Nicaragua's integration into international trade to o ccur in fair, equitable conditions that pave the way 
for new and better opportunities for all sectors of society, especially micro, small and medium-sized 
businesses. 
34. The objectives of external trade policy focu s on diversifying production and exportable 
supply, finding new markets for Nicaraguan goods and services, improving competitiveness, making greater use of existing trade agreements, a ttracting investment and safeguarding Nicaragua's 
trade interests. 
35. This policy has clearly vitalized exports during the period under review as they have 
almost doubled in terms of value and are growing f aster than imports.  The trade balance is still 
in deficit, however. 
36. Nicaragua's exportable supply chiefly compris es goods from the agricultural, agro-industrial 
and fisheries sectors.  New trade agreements ha ve been negotiated as part of the strategy to 
encourage increased exports and greater diversif ication of markets and products.  Access to 
new markets, together with high international prices for certain agricultural products, have boosted 
export performance. 
37. The principal goods exported by Nicaragua include coffee, beef, gold, sugar, groundnuts, 
cheese, shrimps, lobster, crude oil, powdered mi lk, instant coffee, bread, biscuits, fish, beans, 
edible oils, cattle, bovine skins and hides, scrap iron or steel, rum, liquid milk, molasses, mineral 
solvents, cattle offal, cigars and sawn timber. 
38. The principal goods imported into Nicaragua ha ve been products such as hydrocarbons, 
medicines, vehicles, crude oil, zinc sheets, edible oils, mineral fertilizers, propane gas, tyres, radios, 
televisions, cell phones, computers, computer part s, bread, biscuits, electricity generators and 
electrical converters, electrical c onductors, and iron rods and bars. WT/TPR/G/274 Trade Policy Review 
Page 12 
  
  Trade between Nicaragua and the world 
US$ million 
Heading  2007 2008 2009 2010  2011
Exports  2,305.66 2,599.49 2,490.95 3,255.71 4,369.15
 Definitive  1,235.70 1,503. 20 1,397.40 1,846. 20 2,277.20
 Free zone  1,054.02 1,088.02 1,090.14 1,403.05 1,851.64
 Temporary admission  15.94 8.27 3.42 6.46 240.31 
Imports  3,794.07 4,540.35 3,605.07 4,418.13 5,277.49
 Definitive  3,625.50 4,345. 30 3,425.30 4,190. 30 5,048.60
 Free zone  1.86 2.42 8.36 9.77 6.45
 Temporary admission  166.71 192.62 171.41 218.06 222.44
Balance  (1,488.41) (1,940.85) (1,114.11) (1,162.42) (908.34)
 Definitive  (2,389.80) 2,842.10) (2,027.90) (2,344. 10) (2,771.40)
 Free zone  1,052.16 1,085.60 1,081.78 1,393.28 1,845.19
 Temporary admission  (150.78) (184.35) (167.99) (211.60) 17.87
Trade  6,099.73 7,139.84 6,096.02 7,673.84 9,646.64
 Definitive  4,861.20 5,848. 50 4,822.70 6,036. 50 7,325.80
 Free zone  1,055.88 1,090.45 1,098.50 1,412.82 1,858.09
 Temporary admission  182.65 200.89 174.82 224.52 462.75
Growth rates (%) 
Exports  20.8 12.7 (4.2) 30.7 34.2
Imports  20.8 21.6 (7.0) 32.1 23.3
Balance  20.8 3.2 0.2 28.7 32.0
Trade  20.8 (48.1) (58.7) 89.1 3,619.4
Source : Directorate-General of Customs. 
39. The Economic Commission for Latin America and the Caribbean (ECLAC)4 forecasts that 
the value of Latin America's exports will clim b by around 4 per cent in 2012, with Nicaragua's 
exports growing at the second highest rate (13. 5 per cent) after the Plurinational State of 
Bolivia (16.2 per cent). 
40. Tariff policy is drawn up within the combined  framework of Central American Economic 
Integration and the international trade agreements in force.  The Central American Import Tariff, 
comprising the Central American Tariff System (SAC) and the corresponding import tariff duties (DAI), is in force.  The tariff applied by Ni caragua covers 7,359 lines and all tariff rates are 
ad valorem . 
41. The Central American Uniform Custom s Code (CAUCA) has been in force 
since 25 August 2008, as have its implementing Re gulations (RECAUCA IV), and they form part 
of Nicaraguan law.  The aim of the Code is to  provide for the basic customs legislation of 
the States party in accordance with Central Ameri can Common Market (CACM) requirements and the 
requirements of other regional integration instruments. 
42. Nicaragua has adopted the Automated Sy stem for Customs Data (ASYCUDA), 
World version, developed by UNCTAD, for the com puterization of customs clearance procedures.  
Nicaragua supports the implementation of mechanis ms for the electronic transmission of data at 
regional level, which will fac ilitate and streamline procedures for customs clearance of goods. 
                                                      
4 ECLAC, Annual Report on Latin America and the Caribbean in the World Economy 2011-2012, 
published on 13 September 2012. Nicaragua WT/TPR/G/274 
 Page 13 
 
 
  43. Nicaragua has 13 bound tariff rates of 0 to 200 per cent, with 89 per cent of lines bound 
at 0 to 40 per cent.  There was a proportionately larger number of lines with a zero tariff in 2007 
and 2012, however amendments to the SAC opene d up additional tariff lines, meaning that the 
proportion of zero-rated lines has fallen as a shar e of all tariff lines.  Whereas in 2005 this 
was 46.8 per cent (3,053 lines), in 2012 it was 3,415 lines, or 46.4 per cent. 
44. The increase in the number of tariff lines subject to a tariff of over 15 per cent is a 
consequence of opening up the SAC following the im plementation of the fourth and fifth amendments 
to the Harmonized System.  The number of these tariff lines has gradually grown during the period under review:  in 2005 there were 61 lines,  accounting for 0.93 per cent, and in 2012 there 
were 93 lines (1.26 per cent). 
Tariff lines subject to an ad valorem  tariff of over 15% 
 2005  2006  2007  2008  2009  2010  2011  2012  
Lines over 15% 61 71 88 90 91 91 91 93 
Per cent 0.93% 1.07% 1.27% 1.30% 1.31% 1.31% 1.31% 1.26% 
Source:  Ministry of Development.  Industry and Trade (MIFIC). 
45. Trade between the members of the CACM attract s a zero-rate tariff, except for those goods 
that appear in Annex "A" to the General Treaty on Central American Integration.  The average tariff 
applied under other preferential agreements varies between 0 per cent under the trade agreement with 
Mexico to 2.8 per cent under the trade agreement with Chinese Taipei.  Under its trade agreements, 
Nicaragua currently grants a zero tariff to Chinese Ta ipei on 62.6 per cent of tariff lines;  to Mexico 
on 100 per cent;  to the United States on 79 per cent;  to Panama on 89 per cent;  and to the Dominican Republic on 92 per cent. 
(1) Q
UOTAS  
46. Under the rules and disciplines of the World Trade Organization and the trade agreements 
in force, Nicaragua has import quotas for the produc ts listed hereafter:  under the WTO, rice in the 
husk and powdered milk.  Shortages led to quotas for the following products:  corn syrup, rice in 
the husk, rice ( arroz oro ), yellow maize, white maize, butter, powdered milk, cheese, pig meat, 
soya bean flour, wheat flour, chicken thighs a nd chicken legs;  under the free trade agreement 
between the Dominican Republic, Central Ameri ca and the United States (CAFTA-DR), products 
such as rice ( arroz oro ), rice in the husk, yellow maize, wh ite maize, pig meat, cheese, powdered 
milk, butter, ice cream, chicken thighs and chicken legs;  unde r the trade agreement with the 
Dominican Republic, chicken breasts, onions, christo phine (chayote) and beans (red, black, white and 
others);  finally, under the trade agreement with  Panama, bovine meat, pig meat, onions and shallots, 
instant coffee and tomato sauce. 
(2) EXPORT PROMOTION  
47. In seeking to increase exports further, Nicara gua plans to promote and diversify exports, 
find new markets and support new exporters and products, especially  for small and medium-sized 
businesses.  The public sector has helped to improve  the business climate so that there is greater 
predictability, certainty and competitiveness for busi ness.  As a result of efforts in this field, 
Nicaragua rose seven places in th e Global Competitiveness Index in 2012.5 
                                                      
5 Global Competitiveness Index 2012-2013, World Economic Forum , 5 September 2012. WT/TPR/G/274 Trade Policy Review 
Page 14 
  
  48. Other measures to promote exports include improvements to streamline processes and 
formalities for the operations performed by economic ag ents working in foreign trade and at maritime, 
land and air border posts.  To promote an export culture, Nicaragua awards a National Prize for 
Exports annually, holds training seminars on export activities, organizes business conferences, 
and takes part in international fairs. 
49. In recent years Nicaragua has been strengthening institutional forums among public sector 
bodies and between these and the private sector to  promote exports, attract investment, and make 
headway in trade facilitation.  One of these prog rammes is the brainchild of the Presidential 
Delegation for Promoting Investment and Facilitating Foreign Trade6, a body with Ministerial status, 
whose purpose is to establish a national system to promote exports and attract investment.  Through 
its Foreign Trade Facilitation Office7, the Delegation provides investors and exporters with 
operational support. 
50. Nicaragua continues to apply Law No. 3828, Law on Temporary Admission for Inward 
Processing and Export Facilitation, which determin es the customs regime on temporary admission, 
the aim of which is to allow entry of goods withou t payment of duties, import taxes or other charges 
provided that they have been processed, under go a further operation and are then exported. 
51. The National Commission for the Promotion of Exports (CNPE), established under Decree 
No. 37-91, published in Official Journal No. 158 of 26 August 1991, is the highest policy-making and 
administrative body for the regime governing temporary admission for inward processing;  the Commission has a Technical Secretariat and a Ce ntre for Export Formalities (CETREX) to help it 
to perform its duties. 
(3) T
RADE AGREEMENTS  
(i) Multilateral trading system 
52. Nicaragua is firmly committed to a fair and equitable multilateral trading system that 
promotes Nicaragua's further integration into inte rnational trade, is of benefit to its economic 
development, and helps to eliminate poverty and achie ve a better standard of living for the population. 
53. Nicaragua is in favour of enhancing the WTO's monitoring and supervisory role to eliminate 
existing protectionist measures and prevent the emer gence of new ones in order to ensure openness 
to trade, transparency, predictability, growth pr omotion and full and equi table participation of 
developing and least developed countries. 
54. The Doha Round is an opportunity to enhance th e system;  we have stressed the importance 
of moving the negotiations to implement the D oha Development Agenda (DDA) forward and of 
taking political decisions to achieve that objective.  Nicaragua considers that achieving substantial 
improvements in market access will require open ing up of markets to agricultural trade, 
the elimination of non-tariff barriers and all forms of export subsidies, and a substantial reduction in 
trade-distorting domestic support in the agricultural sector. 
                                                      
6 Established by Decree No. 75-2002, adopted on 13 August 2002, published in Official Journal 
No. 154 of 16 August 2002, subsequently amended by Decree No. 12-2011, adopted on 16 March 2011 and 
published in Official Journal No. 70 of 12 April 2011. 
7 Established under Article 10 of Amending Decree No. 12-2011. 
8 Law No. 382, Law on Temporary Admission for Inwa rd Processing and Export Facilitation, adopted 
on 20 February 2001 and published in Official Journal No. 70 of 16 April 2001. Nicaragua WT/TPR/G/274 
 Page 15 
 
 
  55. Nicaragua endorses the negotiating proposals put forward by the Small and Vulnerable 
Economies (SVE) grouping;  these proposals reflect its na tional interests, especially in the fields of 
agriculture, non-agricultural market access (NAMA) , services and fisheries subsidies, which seek 
effective special and differential treatment, along wi th other flexibilities, enabling SVEs to protect 
sensitive sectors of their economies.  Nicaragua is  also a co-sponsor of the proposals submitted by 
the G-33. 
56. Nicaragua welcomes the progress achieved in the field of trade facilitation and has taken an 
active role in negotiations seeking a consensus on the specific interests of small economies in the 
future agreement.  It is counting on further pr ogress being made in the current negotiations on 
trade facilitation as this will make it possible to  streamline commercial dealings effectively, 
remove obstacles that increase the cost of tr ade, and achieve the smooth transit of goods. 
57. Nicaragua has notified the following trade agre ements pursuant to its WTO commitments:  
free trade agreement (FTA) between the Govern ment of Nicaragua and the Government of 
the United Mexican States (1998);  FTA between  Central America and the Dominican Republic 
(2002);  FTA Dominican Republic - Central Am erica – the United States (CAFTA-DR 2006);  
FTA between the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Taipei) and the Republic of Nicaragua ( 2008);  and the FTA betwee n Central America and 
Panama (2009).  Trade agreements have been signed with Chile and the European Union but have not 
yet entered into force.  The fo llowing trade agreements are pending notification:  FTA between 
Central America and Chile, which will enter into force for Nicaragua and Chile on 19 October 2012;  
and the FTA between the United Mexican States and the Republics of Costa Rica, El Salvador, 
Guatemala, Honduras and Nicaragua, which entere d into force between Nicaragua and Mexico 
on 1 September 2012.  The legislative approval procedure is under way for the Association 
Agreement between Central America and the Europ ean Union, with 2013 as the expected date of 
entry into force. 
58. Nicaragua has signed unilateral Partial Sc ope Agreements with Colombia and the 
Bolivarian Republic of Venezuela that do not grant pr eferences;  they were notified in the context 
of the Latin American Integration Association (L AIA).  The Central American countries are in the 
process of preparing to notify the Framework Agreement Establishing the Central American 
Customs Union. 
59. Under regional trade agreements, Nicaragua presen ted the factual examinations of the trade 
agreements signed with the Govern ment of the United Mexican States, and with the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) to the WTO in September and 
November 2010.  The factual examination of tho se with the Dominican Republic, Panama and the 
United States is scheduled for 2013. 
60. The "Aid for Trade" initiative adopted at the Ministerial Conference in Hong Kong, China, 
and ratified by the 8th Ministerial Conference in December 2011, is particularly important for 
Nicaragua because it will open the way for build ing the supply capacity and the infrastructure 
needed to implement the commitments under th e WTO Agreements, draw benefit from them, 
and expand trade. 
(ii) Central American Integration 
61. Nicaragua is a firm believer in Central Ameri can integration and continues to support efforts 
to embed it further.  It is convinced that the re gion's potential for greater development can be fulfilled WT/TPR/G/274 Trade Policy Review 
Page 16 
  
  by working together.  For that reason, it su pports all initiatives aimed at strengthening the 
institutional, legal and regulatory framework th at underpins the foundations of the process of 
integration in the medium and long term. 
62. Central American integration has become stronge r in the period under review and its principal 
achievements include the signature of the Framew ork Agreement Establishing the Central American 
Customs Union in December 2007, the entry into force of the CAUCA in August 2008 and its implementing Regulations (RECAUCA), the ame ndment of the Central American Treaty on 
Investment and Trade in Services in February  2007, the signature of the Agreement on the 
Harmonization of Domestic Taxes applicable to Trade between the States Party to the 
Central American Customs Union in June 2006, and the signature of the Agreement on Mutual 
Assistance and Technical Cooperation between Tax and Customs Administrations in April 2006. 
63. In the Central American common external ta riff, 95.7 per cent of tariff lines have been 
harmonized;  the remaining 4.3 per cent, covering sensitive goods such as medicines, metals, oil, 
agricultural products, vehicles and others, is pending harmonization. 
64. Intraregional trade in Central America measured in terms of exports rose from 
US$4,450.67 million in 2006 to  US$5,902.39 million in 2010.
9  At April 2012, shares of exports by 
country were as follows:  Guatemala 35.3 per cent;  El Salvador 26.2 per cent;  Costa Rica 19.8 per 
cent;  Honduras 10.9 per cent and Nicaragua 7.9 per cent.10 
(iii) Latin American Integration Association (LAIA) 
65. The Sixteenth Meeting of the LAIA Council of Ministers, held in Montevideo, 
Uruguay, on 11 August 2011 approved the access ion of the Republic of Nicaragua to the 
1980 Montevideo Treaty (TM-80).  The accession w as subsequently approved by Nicaragua's 
National Assembly under Decree A.N. No. 6758, ad opted on 20 March 2012, published in Official 
Journal  No. 57 of 23 March 2012. 
66. Nicaragua is in the process of complying w ith the requirements for accession to the LAIA, 
as set out in LAIA Committee of Representa tives Resolution "ALADI/CR/Resolución 370-21 
of 21 July 2010", which include:  drawing up th e list of exemptions from the Regional Tariff 
Preference (PAR) and the Market Opening Lists (NAM);  communicating its list of exemptions from the PAR to the General Secretariat, which may include a number of items expressed using the CCCN/NALADI nomenclature, not exceeding the number provided for in respect of Relatively Less Economically Developed Countries (PMDERs) (1,920 items);  drawing up the corresponding NAM in 
NALADISA 2012 and signing the Protocols to Regional Agreements (PAR, NAM, Cooperation, etc.).  
The process of Nicaragua's accession to LAIA will proba bly be completed within the next six months. 
(iv) Bolivarian Alliance for the Peoples of Our America (ALBA) - the Peoples' Trade 
Agreement (ALBA-TCP) 
67. On 4 February 2012, Nicaragua signed the Agreement establishing the ALBA-TCP Economic 
Area (ECOALBA);  the objective is to establish an economic area of shared development that seeks to 
consolidate and expand an alternative model of economic relationships in order to strengthen and 
diversify production mechanisms and trade, and to lay the foundations for any bilateral or multilateral 
instruments as may be signed on those subjects by its members. 
                                                      
9 Secretariat for Central American Economic In tegration (SIECA), Eco nomic Statistics Unit. 
10 SIECA, External Trade Bulletin, January-April 2012, published on 13 September 2012. Nicaragua WT/TPR/G/274 
 Page 17 
 
 
  68. In terms of implications, what ECOALBA means for the parties includes:  the planning and 
revitalization of economic relati ons, movement of goods and coordi nation of methods of production 
and economic policies among the parties. 
69. The Agreement is a framework for the member countries and Ar ticle 3 thereof provides that 
during the period of formation of ECOALBA, namely within two years of its entry into force, the 
parties are to adopt a regulatory and programmed re gime that is to govern the shared area for 
economic development. 
(v) Mexico 
70. The 14th anniversary of the agreement occurred in July 2012.11  All tariff lines are now 
zero-rated, except for exemptions.  On 1 Sept ember this year, the trade agreement between 
Central America and Mexico entered into force, un ifying the three bilateral agreements Mexico had 
with the Central American countries.  The new agreement promotes integration of production and 
the economy between Central America and Mexico by making regional accumulation possible, thereby facilitating use of materials originating in the treaty signatory countries in order to produce 
finished goods. 
71. Exports from Nicaragua to Mexico rose during the period 2006-2011.  Sales on the 
Mexican market grew from US$44.1 million in 2 005 to US$88.7 million in 2011, an increase 
of 101.1 per cent. reflecting an annual average in crease of 12.3 per cent over the period.  Nicaragua's 
exportable supply to Mexico is focused on a fe w goods;  in some years, groundnuts accounted for 
over 50.0 per cent of exports.  Also exported to Mexico are cane sugar;  bovine meat;  unrefined 
edible oil;  shrimps;  raw and semi-finished bovine skins and hides;  whole and filleted fish;  rum;  
bovine intestines, stomachs and offal;  sesame;  and books. 
72. Imports from Mexico grew at an annual averag e rate of 11.1 per cen t between 2005 and 2011;  
most worthy of note were purchases of infant food preparations, medicines for human use, passenger 
and goods transport vehicles, hair preparati ons, perfumes, toilet wa ters and televisions. 
73. The share of exports in global trade averaged 15 per cent;  the trade deficit has been widening 
and was at its greatest in 2007 at US$406.7 million. 
74. In the period 2006-2011, Nicaragua received US$602.2 million by way of FDI from Mexico;  
the amount grew in the first two years of that peri od and reached a peak of US$164.3 million in 2008.  
Since 2009, flows have been uneven and totalled US $115.1 million in 2011, giving an annual average 
increase of 16.2 per cent over the period;  the FD I went to sectors such as telecommunications, 
free zones, industry, mining, trade and services, construction, finance, agriculture and energy. 
(vi) Dominican Republic 
75. Trade between Nicaragua and the Dominican Republic under the FTA between 
Central America and the Dominican Republic ro se from US$10.3 million in 2005 to US$23.8 million 
at the end of 2011, an increase of 131.1 per cent, with an average annual increase of 23.3 per cent 
over the period 2005-2011.  Exports grew from US $7.0 million in 2005 to US$16.1 million in 2011, 
while imports rose from US$3.3 million to US$10.0 million over the same period. 
                                                      
11 The Nicaragua-Mexico FTA was signed at the end of 1997 and entered into force on 1 July 1998 
following six years of negotiations during which the two countries signed three Amending Protocols to the 
Partial Scope Agreement that had been  in place between them since 1985. WT/TPR/G/274 Trade Policy Review 
Page 18 
  
  76. Foreign investment from the Dominican Republic has been low at only US$420,900 over 
the period 2006-2011, and has targeted the construc tion and the trade and services sectors.  In 2010 
and 2011 there were no reports of investment of Dominican capital. 
(vii) United States 
77. Trade in goods from Nicaragua with the United St ates has risen during the past seven years;  
the annual average variation in trade and its cons tituent parts was positive and rose, except in 2009:  
despite falls in certain areas becau se of the international financial crisis, total trade doubled in value 
over the period from US$1,707 million in 2005 to US$3,556 million in 2011 as a result of a strong 
performance in both exports and imports, which also doubled in value. 
78. Exports from Nicaragua to the United States market in 2011 totalled US$2,607 million, 
an average annual growth rate of 14.1 per cen t between 2005 and 2011.  Exports from free zones 
account for an average of 73 per cent annually of to tal exports, the remaining 27 per cent covers the 
national exportable supply of goods outside the textiles and garments segment. 
79.  FDI from the United States rose between 2005 and 2011 to US$671.7 million, an average 
annual growth rate of 28.1 per cent. 
(viii) Separate Customs Territory of Taiwan, Pe nghu, Kinmen and Matsu (Chinese Taipei) 
80. Exports to the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Taipei) increased from US$10.1 million in 2007 to US$38.4 million in 2011, an average annual growth rate over the period of 39.5 per cen t.  Imports grew from US$15.4 million in 2007 to 
US$18.4 million in 2011, an average growth rate of 4.6 per cent over that period. 
81. Since the entry into force of the trade agreem ent in 2008, the structure of trade between the 
two countries has changed:  in 2007 exports from Ni caragua to Chinese Taipei had a 39.7 per cent 
share of bilateral trade and by 2011 this had risen  to 67.6 per cent;  for imports, the situation was 
reversed, and the share of bilateral trad e fell from 60.3 per cent to 32.4 per cent. 
82. FDI from Chinese Taipei over the period 2007-2011 totalled US$8.5 million, of which the 
vast majority, 92.0 per cent (US$7.8 million), was reco rded in 2010 and 2011.  Of the total amount of 
FDI recorded between 2007 and 2011, 80.3 per cent (U S$6.8 million) was in free zones;  the rest was 
in trade, fisheries, industry and tourism. 
(ix) Panama 
83. December 2008 saw the culmination of the negotia tions on the bilateral protocol to the FTA 
between Central America and Panama , which entered into force on 21 November 2009.  The Customs 
Tariff Elimination Schedule began on 1 January 2010. 
84. Before the agreement entered into force, e xports had grown from US$6.1 million in 2005 to 
US$14.5 million in 2011, an increase of 137.7 per cent, giving an annual average growth rate 
of 15.6 per cent over the period 2005-2011.  In 2011, exports amounted to US$14.5 million, 
a 31.0 per cent increase on 2010 (when they were  US$11.0 million).  Imports showed average 
growth of 6.1 per cent between 2005 and 2011, and rose by 40.2 per cent in 2011 compared to the 
figure for 2010.  Nicaragua recorded a US$3.2 milli on trade deficit with Panama in 2011.  Total FDI 
over the period 2006-2011 was US$145.6 milli on and the greatest inflow was in 2006 
with US$100.6 million. Nicaragua WT/TPR/G/274 
 Page 19 
 
 
  (x) Chile 
85. The FTA between Central America and Chile a nd the bilateral protocol thereto between 
Nicaragua and Chile entered into force on 19 Octobe r 2012;  the domestic procedural formalities have 
been completed in both countries and the exchange  of notes of ratification took place in Managua 
on 20 September 2012.  The agreement provides that, upon its entry into force, 97.62 per cent of 
Nicaraguan products have immediate access to th e Chilean market;  moreover, some 133 tariff 
headings will qualify for free trade within five  years.  For Nicaragua, only 66 per cent of 
Chilean products are eligible for tariff-free ac cess upon entry into force of the agreement. 
(xi) European Union 
86. The Association Agreement between Central America and the European Union was signed 
on 29 June 2012 and is currently in the process of  being approved and ratified.  The Generalized 
System of Preferences (GSP +) will remain in pl ace until the new agreement enters into force. 
87. The trade pillar of the Association Agreemen t is likely to enter into force between 
Nicaragua and the European Union in January 2 013 once the associated domestic procedures have 
been completed. 
88. Between 2007 and 2011, Nicara gua received a total of US$270.8 million in FDI from the 
European Union, but the pattern of investment was uneven:  over the four years from 2007 to 2010, 
annual growth in FDI was 9.6 per cent and reached its peak in 2009 with US$68.7 million.  There was 
a slight fall of 0.2 per cent in that figure in 2010, followed in 2011 by a 59.0 per cent drop on the amount for 2010 when only US$28.1 million in FDI was received. 
(4) F
OREIGN DIRECT INVESTMENT  
89. The PNDH states that attracting foreign investment  is one of the principal tools for promoting 
Nicaragua's sustainable social and economic deve lopment.  Over the period 2006-2011, average 
annual growth in FDI was 28 per cent.  In 2011, a growth rate of 90.55 per cent was recorded, 
equivalent to 13.3 per cent of GDP, the highest in the Central American region. 
Foreign direct investment 
Year US$ million  % growth  % of GDP  
2006  287 18.49 5.48 
2007  382 35.46 6.74 
2008  626 63.87 9.83 
2009  434 -30.67 6.99 
2010  508 17.05 7.71 
2011  968 90.55 13.26 
Source : ProNicaragua. 
90. This performance was achieved through closer  coordination between the Government of 
Nicaragua and the private sector, and by improving the business climate, as evidenced 
in Doing Business 2012,  published by the World Bank, whic h assesses a country's facilities and 
legislation in terms of doing business;  the global ass essment of Nicaragua shows that it has moved up 
four places in the rankings. 
91. The levels of public safety in the country and an appropriate legal framework for investment 
are among the factors that attract investment.  Ni caragua has achieved international recognition by 
becoming one of the safest countries in the west ern hemisphere and the safest in the region.  WT/TPR/G/274 Trade Policy Review 
Page 20 
  
  CID Gallup Latinoamérica conducted a survey of  public safety in Central America spanning 
a 15-year period, measuring levels of crime and the people threatened by criminal acts in the region, 
taking account of factors such as the risk inherent in leaving the home and the supply of drugs at educational establishments.  The resulting classificat ion ranked Nicaragua as the safest country in the 
region over the past 15 years, and it maintained that position in the survey for 2010. 
92. During the period 2007-2011, FDI mainly went to the energy, telecommunications and 
mining sectors, and free zones, which accounted fo r around 78 per cent of all investment over that 
period.  In 2011, the trade and services sector accounted for 12 per cent of all FDI;  the five sectors combined accounted for 76 per cent of FDI.  Othe r important sectors were industry, agroindustry, 
aquaculture and tourism, which together repr esented 21 per cent of all investment in 2011. 
Foreign direct investment 
(US$ million) 
Sectors 2007 2008 2009 2010 2011 Total Growth 
Energy 73.1 214.6 222.4 158.9 217.1 886.1 31.3% 
Telecommunications 145.1 196.7 61.6 118.7 160.3 682.5 2.5% 
Free zones 120.4 88.9 60.8 96.6 130.2 497.1 2.0% 
Industry 0.1 32.6 9.0 11.3 96.2 149.2 456.9% 
Tourism 21.7 5.0 29.3 51.2 26.5 133.8 5.1% 
Agroindustry 0.1 8.1 31.1 36.9 47.7 124.0 455.9% 
Aquaculture 0.0 0.0 0.0 0.9 28.2 29.2 n.a. 
Mining 11.3 39.1 11.9 25.3 114.3 202.0 78.2% 
Trade and services 9.8 41.1 2.7 7.6 118.4 179.6 86.4% 
Other 0.0 0.0 5.2 0.5 28.9 34.5  
 
Source : Interinstitutional Working Group of the Cent ral Bank of Nicaragua.  MIFIC and PRONicaragua. 
93. In terms of the origins of FDI during the period 2007-2011, the main investing countries 
were Canada, the United States, Spain, Mexico  and the Bolivarian Republic of Venezuela, 
which together accounted for around 77 per cent of  all FDI over that period.  FDI from those 
countries grew at a compound annual growth rate  of 20 per cent, from US$335.7 million in 2007 
to US$690.1 million in 2011.  Trade Regulations and Policies. 
(5) TRADE FACILITATION  
94. The Government of Nicaragua has been resolute  in driving trade facilitation forward so that 
individuals and businesses involved in foreign tr ade can conduct the procedures required for exports 
and imports in a streamlined, rapid and effici ent manner.  The aim of the Law on Streamlining 
Formalities and Services within Gove rnment Bodies, adopted in 200912, was to streamline and 
rationalize formalities and services to ensure that State institutions act in compliance with the 
standards of economy, transparency, promptness, effici ency and in a spirit of se rvice to resolve issues 
raised by users promptly and effectively. 
95. The External Trade Facilitation Office, wh ich provides operational support to investors 
and exporters, was established through the Preside ntial Delegation for Promoting Investment and 
Facilitating Foreign Trade. 
                                                      
12 Law No. 691, Law on Streamlining Formalities and Services within Government Bodies, 
adopted on 16 June 2009 and published in Official Journal No. 144 of 3 August 2009. Nicaragua WT/TPR/G/274 
 Page 21 
 
 
  96. The duties of the Interinstitutional Commission on Trade Facilitation (CIFCO)13 are to 
develop and promote trade, and to establish a ch annel between the private sector and public bodies 
involved in foreign trade. 
97. The Law on Electronic Signatures14 permits commercial and governmental transactions using 
digital communications.  The eRegulation project15, which is backed by ProNicaragua, will give 
access to countless electronic government formaliti es associated with trade facilitation through a 
single portal. 
98. The National Trade Facilitation Group has be en set up in Nicaragua as part of 
the Doha Round negotiations;  it is  a public-private body whose aim is to agree a position on trade 
facilitation for Nicaragua at the Round. 
(6) TECHNICAL STANDARDS  
99. The PNDH states that products or services for public consumption must be of high quality;  
it is the Government's duty to establish the requi red level of quality because quality standards are a 
means of improving people's standard of living;  technical standards are one  way of attaining that 
objective. 
100. Between 2006 and 2011, the Government made it a priority to develop a system to 
promote quality.  Substantial resources were provided to  bolster the system.  The thrust of efforts has 
been in formulating new standards, international accreditation, metrology, publicizing the system, and 
training business people and univers ities to achieve greater sensitivity  and make better contributions. 
101. There are currently 250 standards in force in  Nicaragua and all the requirements laid down 
in the Agreement on Technical Barriers to Trade we re complied with during the drafting process.  
Of these, 122 have been notified to the WTO, the remainder are national competition standards 
wholly unrelated to export or import trade. 
102. The private sector and research bodies, especia lly those linked to the university sector, have 
taken a much more active role in formulating th e standards.  There is greater responsiveness and 
greater involvement, meaning that the principal ec onomic stakeholders are now more sensitive to the 
importance of the standards, as is clear from the f act that the average number of annual approvals has 
risen to 40 compared to the figure of 10 for the immediately preceding period. 
103. Efforts have been directed at improving in frastructure to certify and analyse quality.  
Five laboratories are being built for agricultural and food products and there are already 52 assessment bodies. 
                                                      
13 Established under Presidential Agreement No.102-2001, approved on 19 March 2001 and published 
in Official Journal No. 72 of 18 April 2001, as subsequently amended by Presidential Agreement No. 80-2008, approved on 22 February 2008, published in Official Journal No. 44 of 3 March 2008. 
14 Law No. 729, Law on Electronic Signatures, approved on 1 July 2010 and published 
in Official Journal No. 165 of 30 August 2010. 
15 eRegulation is the Nicaraguan equivalent of the Trade Facilitation Programme promoted 
by UNCTAD.  To facilitate trade, formalities can be conducted electronically through the portal 
http://www.nicaragua.eregulations.org.  The portal curre ntly holds information on each of the formalities. WT/TPR/G/274 Trade Policy Review 
Page 22 
  
  (7) SANITARY AND PHYTOSANITARY MEASURES  
104. Nicaragua has enhanced its sanitary and phytosan itary (SPS) measures in an effort to protect 
human and animal health and life, a nd to conserve plants.  To that end, the authorities have designated 
the Directorate-General of Agricultural and Livestoc k Protection and Health ( DGPSA), which is part 
of the Ministry of Agriculture and Forestry (MAGFOR), as the national enquiry point. 
105. A larger role in drafting SPS measures has been accorded to private sector and 
research bodies.  Between July 2006 and August 20 12, 48 SPS measures were notified to the WTO.  
All of them complied with the drafting and notification process laid down by the WTO.  No Member has turned to the WTO's formal dispute settlement  procedure in relation to questions concerning 
the SPS measures applied by Nicaragua. 
(8) G
OVERNMENT PROCUREMENT  
106. Government procurement must be fully transpar ent to ensure that public money is managed 
efficiently and to best effect.  Given that La w No. 323, Law on Government Procurement, achieved 
its purpose of changing the culture for managing purchasing by the Government in Nicaragua, a new instrument governing government procurement, namely Law No. 737
16, Law on Public Sector 
Administrative Procurement (repealing Law No. 323) , was adopted in October 2010;  its principal 
objectives relate to modernizing the legal frame work regulating government procurement by 
introducing international standards and innovative practices to optimize the State resources allocated;  
they also relate to efficiency  and transparency in procurem ent processes through the use of 
information and communications technologies, bette r controls, ethical practices and due process. 
107. Law No. 737 provides for the legal regime, in  terms of both substance and procedure, 
that applies to the preparation, award, enforc ement and rescinding of government procurement 
contracts entered into by public sector bodies and entities. 
108. The main step forward was the establishment of the Electronic Government Procurement 
System (SISCAE), an information and management t ool for public sector procurement.  Its features 
include publication of the key stages in the procur ement process, registration of suppliers, publication 
of the penalties imposed on suppliers, and publicati on of the system of prohibitions.  The system 
currently covers all central government entities and th e municipalities are gradually signing up to it. 
(9) INTELLECTUAL PROPERTY  
109. Nicaragua is of the view that entrepreneur ship is the catalyst for economic growth;  
the private sector is the source of important innova tion that increases the value-added of products and 
services and results in a better quality of life for the population.  The authorities have striven to 
provide a sound intellectual property system that  encourages competitiveness, especially among micro 
and small businesses. 
110. Article 127 of Nicaragua's Constitution provides th at "Artistic and cultural creation shall be 
free and unrestricted.  Workers in culture shall have  complete freedom to choose forms and modes of 
expression.  The State will endeavour to provid e them with the means necessary to create and 
                                                      
16 Law No. 737, Law on Public Sector Administrative Procurement, adopted on 19 October 2010 and 
published in Official Journal Nos. 213 and 214 of 8 and 9 November 2010, respectively. Nicaragua WT/TPR/G/274 
 Page 23 
 
 
  disseminate their works and shall protect their co pyright."  The legal framework governing the matter 
(see Annex, Table 42) is available to all Members of the WTO.17 
111. During the review period, 300 patents, five utility models and 86 in dustrial designs were 
registered.  Additionally, 19,540 trademarks we re registered, of which 2,367 were national 
and 15,162 foreign.  Some 75 per cent of all trademar k applications were registered (44 per cent of 
national and 73 per cent of foreign applications), 633 copyrights and related rights were recorded.  
Registration of intellectual property has been growi ng, reflecting heightened public awareness of the 
matter and a better understanding of the va lue-added it brings to the economy. 
(10) COMPETITION AND CONSUMER PROTECTION POLICIES  
112. The PNDH is based on the premise that the free market is imperfect and that 
State intervention to create an appropriate regulat ory system is necessary to correct its failings.  
The premise underlying the plan is that the market  can produce socially undesirable results such as 
social inequality and that State intervention is requi red to correct them.  Accordingly, efforts have 
been made to strengthen the legal framework promoting free competition. 
113. The enactment of Law No. 60118, Law on Promotion of Competition, marked the State of 
Nicaragua's first steps to establish a competition polic y.  It is implemented through a decentralized 
body known as the National Institute for the Promotion of Competition, PROCOMPETENCIA, 
a technical body governed by public law with  legal personality, which has own resources and 
administrative and budgetary autonomy. 
114. The aim of Law No. 601 is to promote a nd safeguard free competition between economic 
agents to ensure market effici ency and consumer welfare by fostering a culture of competition and 
preventing, prohibiting and punishing anticompetitive pr actices.  The mere existence of a State entity 
entrusted with safeguarding free competition impr oves the business climate and legal certainty;  
it promotes fair practices in trade matters, the preven tion, investigation and punishment of unfair trade 
practices and conduct, thereby helping to improve Ni caragua's integration into the multilateral trading 
system and acting as an incentive to FDI.  In it s first three years, rulings were handed down 
in 20 cases of violations of the Law on Promotion of Competition. 
IV. SECTORAL POLICIES AND ECONOMIC OUTLOOK 
(1) AGRICULTURE AND LIVESTOCK  
115. The aim of public policy for the sector is to pr omote the generation of agricultural, forestry 
and agro-industrial wealth so as to raise incomes a nd distribute them more equitably;  it also seeks to 
achieve sustained and incremental improvements in the welfare of the rural and agricultural 
population, underpinned by demand, markets, profitability, competitiveness, value-added, 
job creation, local and regional development and the conservation of the environment and 
natural resources. 
                                                      
17 The laws of Nicaragua from 1821 to date can be viewed on the web page of the National Assembly 
of Nicaragua:  http://www.asamblea. gob.ni/Informacion% 20Legislativa. 
18 The law had a period of Vactio legis :  it was approved on 28 September 2006, entered into force 
on 24 June 2007 but the authorities comprising th e board of PROCOMPETENCIA were confirmed only 
on 1 April 2009 and appointments made on 11 May 2009. WT/TPR/G/274 Trade Policy Review 
Page 24 
  
  116. The reference points that underpinned the formula tion of public policy in this sector included:  
(a) energy and food prices, which it was assumed would rise in real terms in the long term;  (b) greater demand for food products;  (c) co mpetitive production of more high-quality foods;  
(d) food sovereignty;  and (e) enhanced research , innovation and information.  Where livestock are 
concerned, future efforts are described in the Competitive Reconversion Programme for Livestock, 
a 16-year programme that aims to transform the sector. 
117. The long-term trend towards rising prices for basic foods presents an opportunity 
for Nicaraguan agriculture:  the country has availa ble resources that can be incorporated into 
the production effort, and a relatively abundant  supply of water, biodiversity and human 
resources to invest.  A number of significant technological gaps, however, prevent Nicaragua from 
increasing output. 
118. At June 2012, exports of agricultural or igin generated overall f.o.b. values of 
US$1,011.9 million, a slight increase of 7.5 per cent compared to the same peri od in 2011.  Coffee is 
the most important product in the sector and continu es to be the biggest gene rator of foreign currency 
at US$310.6 million, followed by beef with US$201. 9 million, sugar at US$122.1 million, groundnuts 
at US$81.3 million, and cheese at US$47.2 million. 
119. The target of the National Production Plan 2012-2013
19 is for agricultural production to grow 
by 4.5 per cent compared to 2011/2012.  In a ll, 262,285 producers (23.2 per cent of whom are 
women) will contribute to that growth;  150, 858 of the producers (58 per cent) are smallholders20 
(9 per cent women);  103,392 (39 per cent) are medium-sized producers (16 per cent women);  
and 8,035 (3 per cent) large producers (3 per cent women). 
(2) AGRO-INDUSTRY AND FORESTRY  
120. Nicaragua is a country with a tradition of farm ing;  the current Government's efforts are 
geared to increasing value added by industrializing agriculture.  The legal framework is laid down 
in Law No. 462, Law on the Conservation, Prom otion and Sustainable Development of the 
Forestry Sector.21 
121. In 2011, the agroindustry sector contributed around 32 per cent of GDP, accounted for 54 per 
cent of total exports (excluding exports from free- trade zones), and employed around 10 per cent of 
the working population. 
122. Nicaragua has diversified its exportable supply in  recent years;  the proportion of products 
with greater value-added is rising, and in 2011 ag ricultural and forestry exports grew by 23 per cent 
compared to the previous year. 
                                                      
19 MAGFOR (2012), National Production Plan 2012-2013, http://www.magfor.gob.ni/ 
descargas/planes/PlanNacional2012-2013.pdf. 
20 "Smallholdings" means farms covering an area of less than 10 hectares;  "medium-sized farms" 
means farms covering an area of between 10 to 200 hect ares;  and "large farms" m eans farms covering an area 
of more than 200 hectares. 
21 Adopted on 26 June 2003 and published in Official Journal  No. 168 of 4 September 2003.  
Decree No 73-2003 (implementing regulations for Law No. 462), was adopted on 3 November 2003 and 
published in Official Journal No. 208 of 3 November 2003.  Law No. 487, Law amending Law No. 462, adopted 
on 29 April 2004 and published in Official Journal  No. 87 of 5 May 2004. Nicaragua WT/TPR/G/274 
 Page 25 
 
 
  (3) INDUSTRY  
123. The industrialization policy in the PNDH states that, in order to achieve industrialization, 
efforts will be made to establish an appropriate bus iness climate, invest in human capital, press ahead 
with innovation and technological development, esta blish a capital market, en sure access to loans, 
investment in infrastructure, busin ess services and a market for products. 
124. In 2011, industry accounted for 17.4 per cen t of GDP.  The sector is the second largest 
contributor to economic growth year on year a nd comprises 22,509 businesses.  There are 4,012 large- 
and medium-sized companies, the remainder are mi cro-businesses.  Companies in the industrial sector 
attract the most FDI and in 2011 received US$226.4 million. 
(4) FISHING AND AQUACULTURE  
125. Public policy for this sector seeks to make aqu aculture part of food security and to have an 
effect on the diet of rural populations.  It also seeks to promote small-scale fishing and to modify 
industrial fishing in line with new production processes that improve the economic profitability of the 
sector in strict compliance with environmental legislation. 
126. Law No. 489, Law on Fishing and Aquaculture22, lays down the legal regime governing 
fishing and aquaculture with the aim of ensuring the conservation and sustainable development of 
hydrobiological resources by optimizing the use of traditional fisheries and promoting diversification 
into non-traditional fisheries and aquaculture. 
127. The Nicaraguan Fishing and Aquaculture Institute INPESCA23 is the State body with 
competence for the responsible, transparent admini stration, development, promotion and control of 
fisheries and aquaculture-related resources and it en sures sustainability and environmental, economic 
and social fairness.  Since 2007, the aim of public policy in this sector has been to support small 
producers who engage in small-scale fishing and aquaculture. 
128. The plans and strategies for the development of the sector are set out in the Fishing and 
Aquaculture Plan , the Strategy for Small-Scale Fishing  and the Rural Aquaculture Plan .  Fisheries 
and aquaculture exports have gr own by 74 per cent in terms of volume, from 139,617 million pounds 
(2002/2006) to 243,505 million p ounds (2007/2011), and by 56 per cent in terms of value, from 
US$494,813 million (2002/2006) to  US$771,072 million (2007/2011).  They currently rank 
fourth among exports from Nicaragua.  In 2011, production was 65.3 million pounds, which equates 
to US$124.4 million.24  The destinations of the exports we re the United States (70 per cent) and 
Europe (30 per cent). 
                                                      
22 Adopted in November 2004, published in Official Journal No. 251 of 27 December 2004, 
it establishes the legal framework for the sector.  Presidential Decree No. 09-2005 sets out the implementing 
regulations for Law No. 489 and was subsequently amended by Presidential Decree No. 30-2008. 
23 Established in 2007 under Law No. 612, Law Amending and Supplementing Law No. 290, (Law on 
the Organization, Competence and Procedures of the Executive), as a decentralized autonomous body under the 
sectoral control of the Office of the President of the Republic.  The powers held by the National Fishing and 
Aquaculture Administration and the Directorate-General of  Natural Resources, both an swerable to the Ministry 
of Development, Industry and Trade, were transferred to INPESCA. 
24 Secretariat for Social Communication of the Gove rnment of the Republic of Nicaragua (2012), 
Boletín Unida Nicaragua Triunfa , No. 76, 21 August 2012. WT/TPR/G/274 Trade Policy Review 
Page 26 
  
  129. Nicaragua accords preference to small-scale fishing and this is reflected in the low cost of the 
operating licence.  The law provides for game, sci entific, small-scale and industrial fishing.  
In 2012, 21,000 small-scale fishermen25 and 13,000 fishing vessels were registered. 
130. High fuel costs appear to be boosting maricultu re and aquaculture.  The latter ties in with 
Nicaragua's efforts to attain food security;  indeed, as part of the country's work to combat poverty, 
Nicaragua is promoting the National Aquaculture  Plan to encourage small-scale aquaculture. 
(5) ENERGY  
131. Energy generation is an essential aspect of the PNDH;  Law No. 532, Law on the Promotion 
of Renewable Electricity Generati on, published in Official Journal  No. 102 of 27 May 2005, lays 
down incentives for generating projects that draw on  the country's renewable energies for the public 
electricity service. 
132. The sector attracted US$217.1 million by way of FDI in 2011. 
133. The main priorities of public policy in the sector are to broaden public access to energy, 
especially in rural areas, to generate electricity mainly from renewable sources, and to increase energy 
savings and efficiencies. 
134. The target is to increase coverage by 20 per cent, or around 1.2 million people, over the 
next five years.  The distribution network has grown, new circuits to supply rural areas have 
been built, as have small hydroelectric power st ations, and communal solar panels have been 
installed.  Currently 78 per cent of Nicaraguans ha ve access to electricity;  in 2006 that figure was 
only 56 per cent. 
135. Only 8 per cent of Nicaragua's potential rene wable energy is used (see Annex, Table 48), 
so changing the process of electricity generation is a priority.  In 2012, 45 per cent of the electricity generated will be from renewable sources;  in 2007, 80 per cent was from non-renewable sources 
(hydrocarbons).  In 2013, 50 per cent will be from renewable sources and in 2017 that figure will 
be 80 per cent.  Once the investments in transforming the electricity generation process have been amortized, energy prices will start to fall (from 2020), increasing the country's competitiveness, with 
knock-on effects for industrialization. 
(6) T
OURISM  
136. The Government of National Reconciliation and Unity has been aware of the benefits of 
tourism.  That is why tourism is such a notable part of the PNDH and forms part of the strategy for 
economic growth, poverty reduction,  and increased gender equality. 
137. The PNDH specifically states:  "… Nicaragua is making important changes to its 
infrastructure so that tourism-related development … can become a centre of opportunity for foreign 
and domestic direct investment, which in turn w ill help tourism to grow.  Additionally, the 
Government's policies of incentives, support for small tourism-related industries and a vigorous 
policy of positioning the country in the world econo my combine decisively to  help ensure that the 
                                                      
25 "Small-scale" fishermen means fishermen operating in vessels less than 15 m in length. Nicaragua WT/TPR/G/274 
 Page 27 
 
 
  promotion of tourism generates a multiplier eff ect on economic activities, creates employment and 
fosters consumption in line with the overarching ob jective of the PNDH, namely to combat poverty".26 
138. In 2007 the Nicaraguan Tourism Institute (INTUR)27 drew up the document "Strategic vision 
for the tourism sector in Nicaragua 2007-2011" setting out the main priorities of the country's tourism 
policy.  It seeks to improve tourism-related provision and to position the country as a tourist 
destination through a promotion and marketing strategy  to stimulate public and private investment in 
the tourism sector. 
139. Nicaragua welcomed 1,121,529 visitors in 2011 (49,869 more than in 2010), a 4.6 per cent 
rise on the previous year.  The main generating markets continued to be Central America and 
North America with 61.3 per cent and 28.2 per cent, respectively, followed by Europe (6.2 per cent), 
whose share of tourism from Nicaragua also increased, and other regions (4.1 per cent). 
140. In 2011, the sector received US$121 million in investment.  Income from tourism accounted 
for 25 per cent of exports in 2009;  in fact, sinc e 2001 at least, tourism has been the principal activity 
generating foreign currency (except in 2008 when it was just edged out by coffee exports).  
"Implementation of the Tourism Development Plan will end in 2020;  it anticipates an annual growth 
in tourist visits of between 10 to 12 per cent."28 
(7) MINING  
141. The Ministry of Energy and Mining, established in 2007, has responsibility for issuing 
operating permits for mining concessions.  The legal framework29 in force provides for clear, 
transparent concepts, specific time-periods, stable  fiscal taxes, straightforward requirements, 
and security for investment with capitalization fac ilities.  Furthermore, the legal framework provides 
comprehensive coverage of all types of mining, whether for metals or non-metals, in Nicaragua, 
a factor that was not taken into account in the La ws on Mining and Quarryin g that were repealed upon 
publication of Law No. 387.  The benefits also ex tend to the non-metals sector, opening the way for 
significant investment in the use of such minerals  in, for example, the cement and crushed stone, 
building stone, or sand exploitation industries. 
142. The projections given in the PNDH are aimed at  a development package with the construction 
of basic infrastructure services that create the cond itions needed to attract investment in various 
sectors.  Road construction, for example, requires the use of large quantities of materials produced by 
the mining industry.  Similarly, megaprojects such as the Tumarin hydroelectric project and the dry or inter-oceanic canal will require significant volumes of materials produced by the national mining 
industry when they are executed. 
                                                      
26 PNDH 2009-2011, point 97, page 3. 
27 The legal framework is set out in Law No. 298, Law Establishing the Nicaraguan Tourism Institute 
(INTUR), Law No. 306, Law on Incentives for the Tourism Industry, Law No. 495, General Tourism Law, 
which was adopted on 2 July 2004 and published in Official Journal No. 184 of 22 September 2004. 
28 Salinas, Mario (2011).  Diario La Prensa , Managua, 20 May 2011, page 10 A. 
29 Law No. 387, Special Law on Mining Exploration and Exploitation, was adopted on 26 June 2001, 
published in Official Journal  No. 151 of 13 August 2001 and amended in 2005 by Law No. 525, adopted on 
15 March 2005, published in Official Journal  No. 62 of 31 March 2005.  The legal framework is completed by 
Decree No. 119-2001 (implementing regulations for Law No. 387), and Law No. 730, Special Law on the Use 
in Infrastructure of Certain Naturally Occurring Deposits, published in Official Journal No. 152 
of 11 August 2010. WT/TPR/G/274 Trade Policy Review 
Page 28 
  
  143. There is huge potential in the mining industry, whether for metals or non-metals, and a total 
of 272 concessions have been awarded;  the area covered by the concessions is 1,990,420 hectares, 
or 16 per cent of the national territory.  Mining contributes 1.8 per cent of GDP.  The sector received US$226.4 million by way of FDI in 2011. 
144. The sector received US$114.3 million by way of FDI in 2011. 
(8) B
ANKING  
145. The figures for banking indicators during the period are such as to generate stability;  
the national bank, after proving efficient and pr udent in withstanding the international economic 
crisis, emerged from it all the stronger, helped by economic growth.  In 2011, the key banking 
activities indicators showed strong signs of improve ment (assets, profitability, risk portfolio, 
deposits), stimulated in part by the strong performance in almost all sectors of the economy and production, chiefly exports.  FDI and remittances from family members. 
146. The country is mounting an effort to in crease access to banking services in order to 
raise competitiveness;  the level of such access is  currently 29.9 per cen t (gross loans - GDP), 
while demographic penetration (branches per 100,0 00 inhabitants) is 4.5 per cent and geographic 
penetration is 1.9 per cent (branches per 1,000 km
2).30 
147. At June 2012, the total assets of the si x banks operating in the country were 
US$4,808.91 million, higher than the figure at June 201, when they were US$4,5 40.73 million.  In the 
first six months of 2012 the liabilities of the six banks were US$4,351.69 million. 
148. Also in the first six months of this year, the gross loans portfolio of the six banks stood 
at US$2,474.9 million.  At the end of 2011, the ba lance of the financial system's gross portfolio 
was US$2,310.2 million.  The risk portfolio within  the gross portfolio is between 3.14 per cent 
and 8.5 per cent. 
(9) TELECOMMUNICATIONS  
149. The National Development Plan sets out the need to support productive efforts to improve 
Nicaraguans' standard of living, and the provi sion of better communications for businesses and the 
general public is one of the current Government's targets.  The telecommunications sector is highly 
attractive to FDI and the country has huge potential. 
150. Telephone density in lines per 100 inhabita nts is 4.9 for traditional telephony;  
there are 287,000 fixed telephony lines, a figure th at has remained constant since 2006 when 
it was 247,000.  There were 4.8 million mobile  telephone numbers in 2011, so in a country 
whose population is 5.8 million there are 81.9 mobile phones per 100 inhabitants, whereas in 2006 
there were only 1.6 million numbers.  There were 143,000 internet connections in 2011, 
equivalent to 2.4 connections for every 100 inhab itants;  in 2006, there were 26,000 connections 
or 0.4 connections for every 100 inhabitants. 
151. Efforts in telecommunications have also focused  on areas of social interest;  as a result, 
investments have been made in rural areas of no co mmercial interest in order to expand the coverage 
of mobile telephony (37 base stations in remote municipalities), and the National School Connectivity 
                                                      
30 Fitch Ratings, Efficiency in Central American Banking Systems, 7 March 2012. Nicaragua WT/TPR/G/274 
 Page 29 
 
 
  Plan is being driven through - a US$90 million investment which will connect all schools in the 
country to the internet. 
V. CONCLUSION 
152. Despite global economic difficulties and the problems posed by the climate, 
Nicaragua's economy has performed positively in the period under review.  The country has 
demonstrated a firm commitment to uphold free trad e and not to adopt protectionist measures.  
Progress made in investment in infrastructure and human capital will help to stabilize the 
economy further. 
153. The Government of National Reconciliation and Un ity is strongly committed to building an 
integrated society that benefits all Nicaraguans, regardless of gender.  Freedom from social unrest 
must build upon the foundations of the significan t progress made in combating poverty;  it must 
promote productive investment in key sectors of the economy that raise the level of employment, incorporate new technologies into production processes, generate clean energy, and maintain a flow of 
dialogue with the private sector to increase the country's competitiveness. 
154. In the period under review there was a signi ficant drop in extreme poverty, however the 
growth rate must double if poverty is to  be eliminated in the medium term. 
155. Nicaragua has considerably increased its e xports, enhanced its openness to trade and 
conducted important negotiations on liberalizati on agreements with its principal partners.  
The increase in exports has been c onsiderable and sustained, however imports have increased as well, 
entailing a need to diversify export products, create new products and new businesses, especially 
small and micro businesses that can take advantage of  the opportunities offered by openness to trade. 
156. Changes in the electricity generation process are overcoming the country's dependence on 
hydrocarbons and giving Nicaragua viability.  Th e objective is not only to change the generation 
process but to increase renewable energy production so  that Nicaragua becomes an energy exporter in 
the short term.  The country must also cut energy prices to become more competitive. 
157. During the period under review, significant po litical, social and economic changes have 
occurred, promoting the construction of a new mode l of development in Nicaragua;  its goal is to 
eradicate poverty and lay the foundations for fair, e quitable economic growth.  The model views trade 
as an extremely good tool for furthering develo pment, for combating poverty and for reducing 
inequalities. 
158. Nicaragua regrets the impasse in multilateral nego tiations and reaffirms its determination and 
drive to continue to work to achieve the objec tives of the Doha Development Round and a successful 
outcome to the negotiations. 
159. Nicaragua underlines the need for technical coope ration and efforts by the system to prevent 
protectionist measures emerging in the guise of te chnical standards or sanitary and phytosanitary 
measures;  it restates its commitment not to resort to this practice and calls  upon the other Members to 
avoid it. 
160. The concept of fair trade involves the elimina tion of the subsidies and domestic support that 
occur in some industrialized countries and distort global trade. WT/TPR/G/274 Trade Policy Review 
Page 30 
  
  161. The system must strengthen the special and differential treatment afforded to 
developing countries, especially those with sm all and vulnerable economies such as Nicaragua, 
and increase Aid for Trade, technical assistance and capacity building. 
 Nicaragua WT/TPR/G/274 
 Page 31 
 
 
   ANNEXES 
Table 1:  General indicators 
km² 
Total area 130,373.40 
 Land1 120,339.20 
 Islands 517.4 
 Lakes and lagoons 10,407.60 
 Lake Cocibolca 8,138.10 
 Lake Xolotlán 1,052.90 
1 Including islands. 
Source : BCN. 
 
Table 2:  Economic indicators 
2009 2010 2011 
Gross domestic product (US$ m illion) 6,213.80 6, 590.60 7,297.50 
Gross domestic product per capita (US$) 1,082.10 1,133.30 1,239.20 
Real economic growth (%) -1.5 4.5 4.7 
Inflation (%) 0.9 9.2 8 
Industrial production (US$ milli on) 3,364.40 3, 655.90 4,198.60 
Agricultural production (US$ million)1 1,696.60 1,848.20 2,089.50 
Goods exports (US$ million)  2,390.50 3,157. 50 4,057.00 
Goods imports (US$ million) -3 ,929.10 -4,792. 20 -6,125.40 
Money supply (M1A) (US$ milli on) 1,046.10 1, 287.00 1,258.90 
Gross international reserves (US$ million) 1,573.10 1,799.00 1,892.30 
Domestic public debt (US$ million)2 1,318.30 1,264.00 1,169.90 
External public debt (US$ m illion) 3,660.90 3, 876.40 4,072.60 
1 Including livestock, forestry and fisheries. 
2 Including Government and BCN de bt with the private sector. 
Source : BCN. 
 
Table 3:  GDP growth rate 
2005 2006 2007 2008 2009 2010 2011
GDP (C$ million) 81,524.37 91, 897.0 104,456.4 123,44 2.5 126,386.2 140, 751.7 163,640.6
Growth 4.3 4.2 3.6 2.8 -1.5 4.5 4.7
Source : BCN. WT/TPR/G/274 Trade Policy Review 
Page 32 
  
   Table 4:  F.o.b. export s by region and country 
(US$ million) 
Country 2006 2007 2008 2009a 2010a 2011b 
Total 1,043.9 1,222.1 1,475.3 1,393.8 1,851.1 2,264.0 
I. America 853.6 1,005.5 1,193.6 1,162.0 1,540.2 1,855.0 
 North America 433.2 485.0 585.2 511.6 775.2 1,004.9 
  Canada 45.3 69.4 74.9 42.3 157.4 273.4 
  United States 340.1 352.9 437.7 412.5 566.2 648.8 
  Mexico 47.8 62.7 72.6 56.7 51.7 82.8 
 Central America 355.2 431.6 495.6 447.7 419.1 435.9 
  Costa Rica 59.6 86.4 102.0 86.0 82.9 98.8 
  El Salvador 149.3 168.4 217.2 199.4 206.3 206.6 
  Guatemala 48.2 65.7 74.9 61.7 68.3 71.0 
  Honduras 98.2 111.2 101.5 100.6 61.6 59.4 
 Rest of Latin America and the Caribbean 65,2 89.0 112.8 202.7 345.9 414.3 
  Argentina 0.0 0.0 0.0 0.0 0.0 0.1 
  Chile 1.2 3.5 4.6 5.9 5.3 8.3 
  Colombia 2.0 2.6 6.6 4.0 5.1 7.7 
  Cuba 0.4 0.7 2.1 1.6 1.0 2.1 
  Ecuador 0.3 0.5 0.4 0.9 3.5 5.0 
  Panama 8.5 9.6 10.8 11.3 10.6 14.5 
  Puerto Rico 28.0 43.8 41.6 40.7 40.1 45.3 
  Dominican Republic 8.6 4.8 6.4 9.5 12.5 13.8 
  Bolivarian Republic of Venezuela 2.1 6.3 30.2 119.2 248.6 302.6 
  Other  14.3 17.1 10.1 9.5 19.1 14.8 
II. Europe 165.5 178.1 221.2 184.6 216.2 274.4 
 European Union 156.5 167.5 212.6 178.5 192.6 245.0 
  Germany 30.5 24.0 26.8 14.8 22.2 32.9 
  Belgium 32.5 25.2 28.6 15.7 22.0 34.1 
  Spain 34.6 43.3 43.3 36.3 39.1 36.4 
  Finland 7.4 11.9 15.2 15.1 19.0 12.8 
  France 7.5 10.3 12.6 19.0 28.2 25.9 
  United Kingdom 5.4 14.0 27.7 40.3 4.7 38.5 
  Holland 9.7 11.3 14.6 7.4 19.3 11.1 
  Italy 22.1 17.6 31.4 18.3 24.5 33.4 
  Sweden 4.1 3.6 7.1 9.1 10.8 14.6 
  Other 2.5 6.2 5.2 2.4 2.8 5.2 
 Rest of Europe 9.0 10.6 8.6 6.1 23.6 29.4 
  Russian Federation 7.8 8.9 6.0 4.7 21.7 19.9 
  Norway 0.6 0.8 1.3 0.6 0.8 8.4 
  Switzerland 0.3 0.2 0.1 0.1 0.1 0.3 
  Other 0.2 0.7 1.2 0.8 0.9 0.9 
III. Asia 21.9 34.7 55.9 34.9 85.9 120.1 
 China (Taiwan) 5.4 10.1 21.2 16.8 29.2 38.4 
 Japan 9.3 12.8 19.1 9.1 15.5 23.3 
 Other 7.2 11.7 15.6 9.0 41.1 58.3 
IV. Rest of world 2.9 3.8 4.6 12.4 8.8 14.5 
Note: Not including free zone. 
a Preliminary. 
b Estimated. 
Source : DGA, CETREX. Nicaragua WT/TPR/G/274 
 Page 33 
 
 
   Table 5:  F.o.b. merchandise expo rts by main products (Part A) 
(US$ million) 
Product 2006 2007 2008 2009a 2010a 2011b
Total  (A+B+C+D)  1,043.9 1,222.1 1,475.3 1,393.8 1,851.1 2,264.0
A. Agriculture:  385.6 406.2 549.9 462.8 570.4 663.7
Coffee Value 207.1 188.1 278.3 236.8 341.6 429.3
 Volume (thousands of qq) 1,889.5 1,599.0 2,101.4 1,771.5 2,245.9 1,922.1
 Average price 109.6 117.7 132.4 133.6 152.1 223.3
Peanuts Value 43.0 56.0 90.2 65.9 61.8 96.1
 Volume (thousands of qq) 1,483.9 1,577.4 1,729.5 1,648.8 1,465.4 1,623.5
 Average price 29.0 35.5 52.2 40.0 42.2 59.2
Live cattle Value 39.3 42.2 26.8 17.8 21.5 18.6
 Volume (thousands of kg) 30,073.1 31,758.1 18,125.1 13,516.2 17,472.9 13,478.5
 Average price 1.3 1.3 1.5 1.3 1.2 1.4
Beans Value 37.0 39.9 79.8 61.5 59.4 30.2
 Volume (thousands of kg) 54,099.5 53,221.8 57,850.9 62,555.9 55,032.4 27,063.3
 Average price 0.7 0.8 1.4 1.0 1.1 1.1
Bananas Value 9.6 9.9 9.6 11.7 6.6 2.4
 Volume (thousands of boxes)1 1,796.3 1,839.2 1,641.8 1,648.6 946.6 386.0
 Average price 5.4 5.4 5.9 7.1 7.0 6.2
Unmanufactured 
tobacco Value 5.0 4.8 5.3 5.1 6.7 6.3
 Volume (thousands of kg) 859.9 755.4 757.6 666.5 767.6 635.2
 Average price 5.8 6.3 7.0 7.6 8.7 9.9
Mangoes Value 2.4 3.0 2.0 2.7 2.2 3.4
 Volume (thousands of kg) 5,426.9 5,659.2 4,120.7 5,638.6 4,263.2 5,510.1
 Average price 0.4 0.5 0.5 0.5 0.5 0.0
Quequisque Value 6.1 7.7 8.0 9.2 7.5 6.7
 Volume (thousands of kg) 11,647.0 14,380.8 16,199.7 17,562.2 13,311.9 13,901.8
 Average price 0.5 0.5 0.5 0.5 0.6 0.0
Watermelons 
and  melons Value 6.0 7.6 2.4 0.8 1.2 1.7
 Volume (thousands of kg) 9,310.0 12,503.4 6,834.0 4,187.4 5,596.2 9,018.7
 Average price 0.6 0.6 0.4 0.2 0.2 0.0
Sesame Value 4.4 6.9 6.6 6.5 7.4 6.3
 Volume (thousands of qq) 82.0 146.1 82.0 104.9 130.1 97.9
 Average price 53.4 47.1 80.9 61.8 57.0 63.8
Ferns Value 1.1 1.1 1.3 1.5 1.2 0.0
 Volume (thousands of kg) 669.3 630.1 651.2 749.6 552.3 21.3
 Average price 1.6 1.7 2.0 2.1 2.3 0.0
Other Value 24.6 39.1 39.4 43.3 53.3 62.6
a Preliminary. 
b Estimated. 
Source : BCN, DGA, CONICAFE. 
 WT/TPR/G/274 Trade Policy Review 
Page 34 
  
   Table 6:  F.o.b. merchandise expo rts by main products (Part B) 
(US$ million) 
Product 2006 2007 2008 2009a 2010a 2011b 
B. Fisheries: 101.8 107.0 99.2 88.9 115.4 124.4 
 Lobster Value 40.0 46.8 36.9 31.1 40.4 45.9 
  Volume 
(thousands of lb) 2,665.4 2,782.2 2,473.0 3,106.3 3,022.8 3,419.0 
  Average price 15.0 16.8 14.9 10.0 13.4 13.4 
 Shrimp Value  48.6 46.1 48.3 44.5 57.9 62.2 
  Volume 
(thousands of lb) 25,652.1 24,541.4 21,382.1 24,732.8 25,160.0 27,555.2 
  Average price 1.9 1.9 2.3 1.8 2.3 2.3 
 Fresh fish Value 13.2 14.1 14.0 13.4 17.1 16.3 
  Volume 
(thousands of lb) 8,311.6 8,074.3 7,650.5 7,502.8 8,899.4 8,047.7 
  Average price 1.6 1.7 1.8 1.8 1.9 2.0 
C. Mining: 59.8 66.1 83.4 86.3 215.7 364.7 
 Gold Value  55.3 61.4 78.2 81.2 208.3 352.3 
  Volume 
(thousands of oz/t) 99.4 91.7 93.5 88.0 179.0 229.7 
  Average price 556.9 669.0 835.8 922.6 1,163.5 1,533.9 
 Silver Value  1.3 1.6 1.7 2.0 4.5 9.4 
  Volume 
(thousands of oz/t) 108.3 123.3 116.3 134.9 222.7 268.5 
  Average price 11.7 13.4 15.0 14.7 20.3 35.1 
 Other Value  3.2 3.1 3.5 3.1 2.9 3.0 
D. Manufacturing: 496.8 642.7 742.9 755.8 949.6 1,111.2 
 1. Food products 340.0 435.0 490.5 532.1 716.3 879.0 
 Meat Value  148.1 179.5 210.7 230.6 307.6 427.0 
  Volume 
(thousands of lb) 107,585.8 130,630.7 139,492.7 156,755.0 185,480.5 230,443.2 
  Average price 1.4 1.4 1.5 1.5 1.7 1.9 
 Sugar Value  60.3 74.5 50.4 50.0 126.8 156.3 
  Volume 
(thousands of qq) 4,919.8 5,252.3 3,522.2 3,078.7 5,991.6 6,011.6 
  Average price 12.2 14.2 14.3 16.3 21.2 26.0 
 Other 131.7 180.9 229.4 251.5 281.9 295.6 
 Of which:       
  Cheese  34.5 49.6 66.2 76.9 68.7 81.4 
  Wheat flour 7.5 4.9 8.7 7.6 7.6 8.8 
  Instant coffee 13.8 16.6 22.4 22.0 21.2 24.4 
  Biscuits 7.8 6.9 9.3 13.0 15.9 22.7 
  Edible offal  8.1 9.5 10.8 8.6 10.7 12.9 
  Powdered milk 22.6 38.8 47.4 35.7 44.1 37.3 
  Ice cream (ice lollies, cones) 3.0 3.1 3.3 3.5 3.4 3.7 
  Yoghurt 1.5 0.9 0.1 0.0 0.0 0.0 
a Preliminary. 
b Estimated. 
Source : DGA, BCN. 
 Nicaragua WT/TPR/G/274 
 Page 35 
 
 
   Table 7:  C.i.f. imports by use or economic purpose 
(US$ million) 
 2006 2007 2008 2009a 2010a 2011b 
Total f.o.b. 2,777.6 3,311.3 3,995.4 3,229.1 3,872.5 4,863.5 
Total c.i.f. 3,014.8 3,610.6 4,316.7 3,489.0 4,173.2 5,203.7 
 Consumer goods 1,065.5 1,195.5 1,398.6 1,250.1 1,497.4 1,654.8 
  Non-durable 818.9 939.0 1,120.5 1,041.1 1,211.5 1,339.3 
  Durable 246.6 256.5 278.1 208.9 285.9 315.5 
 Oil, fuel and lubricants1 680.9 829.0 990.5 699.0 776.0 1,256.4 
  Crude oil 366.0 403.5 477.1 346.8 419.8 615.6 
  Fuel and lubricants 310.9 421.0 512.7 352.0 355.6 639.3 
  Electricity 4.0 4.5 0.8 0.2 0.6 1.4 
 Intermediate goods 729.1 899.8 1,091.0 870.1 1,122.4 1,337.4 
  For agriculture 122.0 155.8 225.6 182.4 222.4 271.9 
  For industry 449.0 545.9 649.4 525.4 681.2 799.7 
  Construction materials 158.1 198.1 216.1 162.3 218.8 265.8 
 Capital goods 533.3 678.4 826.5 658.1 768.6 947.2 
  For agriculture 33.7 40.1 49.0 32.7 58.6 64.7 
  For industry 273.1 370.8 497.2 403.6 440.7 532.1 
  Transport equipment 226.5 267.5 280.3 221.7 269.3 350.4 
 Miscellaneous 6.0 7.8 10.0 11.7 8.8 8.0 
Note: Does not include free-zone adjustment. 
1 Fuel and lubricants include elect ricity imports between 1960 and 1989. 
a Preliminary. 
b Estimated. 
Source : DGA, MEM. 
Table 8:  C.i.f. imports by  region and country (Part A) 
(US$ million) 
Country 2006 2007 2008 2009 2010 2011 
 Total 3,014.8 3,610.6 4,316.7 3,489.0 4,173.2 5,203.7 
I. America 2,310.8 2,769.7 3,242.5 2,618.0 3,147.6 3,943.6 
 North America 1,062.2 1,338.9 1,292.9 960.7 1,283.0 1,348.2 
  Canada 24.8 27.5 36.9 24.2 37.6 36.5 
  United States 631.7 824.2 896.3 692.9 908.6 905.4 
  Mexico 405.7 487.2 359.7 243.6 336.8 406.3 
 Central America 693.0 808.0 968.0 832.5 965.8 1,189.7 
  Costa Rica 261.1 308.0 344.9 319.7 350.2 438.2 
  El Salvador 157.6 172.6 223.6 170.0 197.5 234.0 
  Guatemala 198.3 222.8 261.9 217.4 280.3 347.8 
  Honduras 75.9 104.6 137.6 125.4 137.8 169.7 
 Rest of Latin America and the Caribbean 555.6 622.8 981.6 824.8 898.8 1,405.7 
  Argentina 69.4 66.6 26.6 24.4 22.0 46.2 
  Chile 38.9 36.0 55.3 12.6 21.1 20.0 
  Colombia 12.8 14.8 15.7 17.8 18.5 16.5 
  Cuba 1.0 6.3 1.6 3.0 3.6 1.3 
  Ecuador 75.6 135.1 107.5 41.4 31.2 10.0 WT/TPR/G/274 Trade Policy Review 
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   Country 2006 2007 2008 2009 2010 2011 
  Panama 24.4 13.8 16.5 11.9 13.6 16.9 
  Puerto Rico 5.0 3.3 0.6 0.6 2.3 2.0 
  Dominican Republic 5.4 4.5 5.1 4.0 5.7 7.1 
  Bolivarian Republic of Venezuela 212.9 208.7 622.7 601.6 669.4 1,139.8 
  Other 110.2 133.8 130.1 107.5 111.5 145.9 
 
Table 9:  C.i.f. imports by  region and country (Part B) 
(US$ million) 
Country 2006 2007 2008 2009a 2010a 2011a 
 Total  3,014.8 3,610.6 4,316.7 3,489.0 4,173.2 5,203.7 
II. Europe 215.2 265.7 268.7 254.5 279.5 347.1 
 European Union 169.1 224.4 211.2 202.2 233.3 261.5 
  Germany 41.4 83.7 50.1 42.4 51.6 65.0 
  Belgium 14.4 7.9 6.0 11.5 8.7 11.5 
  Spain 36.6 36.9 47.6 51.7 65.0 54.7 
  Finland 2.3 2.5 1.3 1.8 1.4 1.6 
  France 16.7 15.4 17.2 18.1 18.8 21.0 
  United Kingdom 8.7 16.2 10.3 9.8 12.7 15.9 
  Netherlands 10.6 12.5 20.0 9.5 12.1 13.3 
  Italy 12.8 13.2 17.7 24.2 25.6 32.6 
  Sweden  11.7 21.0 18.1 12.9 17.0 21.5 
  Other  13.9 15.0 22.9 20.4 20.3 24.3 
 Rest of Europe 46.1 41.3 57.5 52.2 46.2 85.7 
  Russian Federation 24.9 24.0 42.8 38.8 27.5 67.9 
  Norway 0.2 0.2 0.8 0.5 0.8 0.3 
  Switzerland  8.7 8.6 12.4 9.5 13.9 13.7 
  Other 12.3 8.5 1.5 3.4 4.0 3.7 
III Asia  478.6 565.4 796.8 609.2 735.0 900.1 
  South Korea 44.0 41.7 123.6 123.9 64.6 90.8 
  China (Taiwan) 16.6 15.4 21.0 13.6 16.9 18.4 
  Japan  113.2 121.5 122.8 80.2 120.8 145.0 
  Other  304.9 386.8 529.3 391.5 532.8 645.9 
IV Rest of world 10.1 9.7 8.7 7.2 11.0 12.8 
Note: Does not include free-zone adjustment. 
a Preliminary. 
Source : DGA, MEM. 
 Nicaragua WT/TPR/G/274 
 Page 37 
 
 
   Table 10:  Consolidated non-fi nancial public sector operations1, 2 
(C$ million) 
 2006 2007 2008 2009 2010 2011 Average 
annual 
rate 
1. Revenue  25,458.0 30,240.2 35,317.9 36,499.2 42,334.9 51,347.9 15.1 
 Taxes  17,056.9 19,975.7 22,818.3 23,240.1 26,789.4 33,258.9 14.3 
 Social contributions 4,148.7 4,920.9 6,023.2 6,804.1 8,090.2 9,432.9 17.9 
 Other revenue3 4,252.4 5,343.6 6,476.4 6,455.0 7,455.3 8,656.2 15.3 
2. Expenditure  24,178.3 27,720.6 34,782.8 36,555.2 40,367.0 46,739.9 14.1 
 Employee remuneration 7,235.1 8,447.1 10,600.2 11,993.1 12,638.7 14,257.1 14.5 
 Purchasing of goods and services 5,498.3 6,531.8 9,158.8 7,869.4 9,248.0 11,614.7 16.1 
 Interest 1,712.1 1,592.6 1,466.9 1,732.8 2,020.2 2,375.1 6.8 
  Domestic  1,132.8 1,123.0 941.5 1,162.9 1,399.7 1,636.0 7.6 
  External  579.4 469.5 525.4 569.9 620.5 739.1 5.0 
 Current and capital transfers 6,084.2 7,157.8 8,092.0 8,148.7 9,054.1 10,428.0 11.4 
 Social benefits 2,445.3 2,987.1 4,176.8 5,430.0 5,949.0 6,311.3 20.9 
 Other expenditure4 1,203.2 1,004.1 1,288.0 1,381.3 1,457.0 1,753.7 7.8 
3. Net operating profit (1-2) 1,279.7 2,519.7 535.2 (56.0) 1,967.9 4,608.0 29.2 
4. Net acquisition of non-financial assets 4,694.9 5,399.2 5,296.0 6,139.6 5,693.3 7,493.0 9.8 
5. Total expenditure (2+4) 28,873.2 33,119.7 40,078.8 42,694.7 46,060.4 54,232.9 13.4 
6. Cash surplus or benefit before grants (3-4) (3,415.2) (2,879.5) (4,760.9) (6,195.6) (3,725.5) (2,885.0) (3.3) 
7. External grants 4,042.8 4,216.8 3,847.4 4,380.8 3,010.5 3,695.5 (1.8) 
8. Cash surplus or benefit after grants (6+7) 627.6 1,337.3 (913.5) (1,814.8) (715.0) 810.6 5.2 
9. Financing (627.6) (1,337.3) 913.5 1,814.8 715.0 (810.6) 5.2 
 Internal, net (4,101.2) (4,613.8) (1,387.6) (3,060.9) (3,973.9) (4,880.9) 3.5  
  Of which:  BCN (1,354.5) (2,986.0) 257.7 (865.0) (1,098.0) (219.7) (30.5) 
 External, net 3,249.7 3,275.8 2,300.7 4,874.2 4,688.8 4,070.4 4.6 
 Privatization revenue 223.8 0.7 0.4 1.5 0.0 0.0   
Memorandum:    
 Current saving 4,576.9 5,894.6 4,288.7 2,970.2 5,569.2 8,499.0 13.2 
1 Methodology used in accordance with the Government Fina nce Statistics Manual (GFSM, analytical framework 2001). 
2 Includes Central Government, INSS, ALMA, ENATREL, ENACAL, ENEL, EPN and TELCOR. 
3 Includes revenue from ENATREL, ENAC AL, ENEL, EPN and TELCOR services. 
4 Includes transport operator and electricity subsidies. 
Source : MHCP, BCN, INSS, ALMA, ENATREL,  ENACAL, ENEL, EPN and TELCOR. 
 WT/TPR/G/274 Trade Policy Review 
Page 38 
  
   Table 11:  Central Government tax revenue 
(C$ million) 
2006 2007 2008 2009 2010 2011
Income tax (IR) 4,540.6 5,752.7 7,003.4 7,839.7 8,480.9 11,334.9
Value added tax (VAT) 6,708.9 8,024.9 9,008.8 8,870.7 10,352.5 12,876.0
Domestic VAT 2,631.8 3,102.5 3,138.7 3,831.9 4,028.3 4,605.3
VAT imports 4,077.1 4,922.5 5,870.1 5,038.8 6,324.2 8,270.6
Selective consumption tax (ISC) 3,747.0 4,098.9 4,518.3 4,391.6 5,541.3 6,069.9
ISC fiscal industry 887.0 928.6 1,120.7 1,062.4 1,135.4 1,312.6
ISC oil by-products 1,882.3 2,107.6 2,162.2 2,276.6 2,698.9 2,700.1
ISC imports 935.9 1,025.5 1,180.1 975.2 1,558.6 1,901.4
Other 41.8 37.2 55.4 77.4 148.5 155.8
Import duties (DAI) 1,003.0 1,029.6 1,122.8 907.9 1,135.1 1,448.9
Other taxes 21.1 20.3 21.3 24.0 20.3 22.0
Tax revenue 16,020.5 18,926.4 21,674.5 22,033.8 25,530.0 31,751.7
Source : MHCP budget outturn reports. 
Table 12:  Central Government tax revenue 
(Percentage of GDP) 
2006 2007 2008 2009 2010 2011
Income tax (IR) 4.9% 5.5% 5.7% 6.2% 6.0% 6.9%
Value added tax (VAT) 7.3% 7.7% 7.3% 7.0% 7.4% 7.9%
Domestic VAT 2.9% 3.0% 2.5% 3.0% 2.9% 2.8%
VAT imports 4.4% 4.7% 4.8% 4.0% 4.5% 5.1%
Selective consumption tax (ISC) 4.1% 3.9% 3.7% 3.5% 3.9% 3.7%
ISC fiscal industry 1.0% 0.9% 0.9% 0.8% 0.8% 0.8%
ISC oil by-products 2.1% 2.0% 1.8% 1.8% 1.9% 1.7%
ISC imports 1.0% 1.0% 1.0% 0.8% 1.1% 1.2%
Other 0.1% 0.0% 0.0% 0.1% 0.1% 0.1%
Import duties (DAI) 1.1% 1.0% 0.9% 0.7% 0.8% 0.9%
Other taxes 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Tax revenue 17.4% 18.1% 17.6% 17.4% 18.1% 19.4%
 
Source : MHCP budget outturn reports. 
 
Table 13:  Central Government tax revenue 
(Percentage of total) 
2006 2007 2008 2009 2010 2011
Income tax (IR) 28.3% 30.4% 32.3% 35.6% 33.2% 35.7%
Value added tax (VAT) 41.9% 42.4% 41.6% 40.3% 40.6% 40.6%
Domestic VAT 16.4% 16.4% 14.5% 17.4% 15.8% 14.5%
VAT imports 25.5% 26.0% 27.1% 22.9% 24.8% 26.1%
Selective consumption tax (ISC) 23.4% 21.7% 20.9% 19.9% 21.7% 19.1%
ISC fiscal industry 5.5% 4.9% 5.2% 4.8% 4.5% 4.1%
ISC oil by-products 11.8% 11.1% 10.0% 10.3% 10.6% 8.5%
ISC imports 5.8% 5.4% 5.4% 4.4% 6.1% 6.0%
Other 0.3% 0.2% 0.3% 0.4% 0.6% 0.5%
Import duties (DAI) 6.3% 5.4% 5.2% 4.1% 4.5% 4.6%
Other taxes 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Tax revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source : MHCP budget outturn reports. Nicaragua WT/TPR/G/274 
 Page 39 
 
 
   Table 14:  Functional structure of central government expenditure 
(C$ million) 
2006 2007 2008 2009 2010 2011
Total expenditure 23,895.70 27,150.30 31,577.20 33,561.50 35,968.70 43,156.60
Social services 10,324.60 12,298.90 15,161.00 16,621.70 17,406.80 19,830.10
Education 4,409.80 5,276.70 6,580.90 7,408.90 7,562.00 8,231.50
Health 3,161.50 3,899.80 4,579.40 5,128.00 5,246.60 5,910.30
Other 2,753.30 3,122.40 4,000.70 3,894.20 4,598.20 5,773.10
Economic services 2,833.30 4,055.40 4,584.70 4,978.40 5,231.30 6,220.20
Defence and security 2,701.00 3,143.70 3,367.20 3,585.60 3,909.10 4,384.70
Government administration 3,599.70 2,692.80 3,352.00 3,166.90 3,216.90 3,911.80
Public debt servicing 4,437.06 4,959.45 5,112.26 5,208.82 6,204.53 8,809.72
Source : BCN. 
Table 15:  Functional structure of  Central Government expenditure 
(% of GDP) 
2006 2007 2008 2009 2010 2011
Total expenditure 26.0% 26.0% 25.6% 26.6% 25.6% 26.4%
Social services 11.2% 11.8% 12.3% 13.2% 12.4% 12.1%
Education 4.8% 5.1% 5.3% 5.9% 5.4% 5.0%
Health 3.4% 3.7% 3.7% 4.1% 3.7% 3.6%
Other 3.0% 3.0% 3.2% 3.1% 3.3% 3.5%
Economic services 3.1% 3.9% 3.7% 3.9% 3.7% 3.8%
Defence and security 2.9% 3.0% 2.7% 2.8% 2.8% 2.7%
Government administration 3.9% 2.6% 2.7% 2.5% 2.3% 2.4%
Public debt servicing 4.8% 4.7% 4.1% 4.1% 4.4% 5.4%
Source : BCN. 
Table 16:  Functional structure of  Central Government expenditure 
(% of total expenditure)  
2006 2007 2008 2009 2010 2011
Total expenditure 26.0% 26.0% 25.6% 26.6% 25.6% 26.4%
Social services 11.2% 11.8% 12.3% 13.2% 12.4% 12.1%
Education 4.8% 5.1% 5.3% 5.9% 5.4% 5.0%
Health 3.4% 3.7% 3.7% 4.1% 3.7% 3.6%
Other 3.0% 3.0% 3.2% 3.1% 3.3% 3.5%
Economic services 3.1% 3.9% 3.7% 3.9% 3.7% 3.8%
Defence and security 2.9% 3.0% 2.7% 2.8% 2.8% 2.7%
Government administration 3.9% 2.6% 2.7% 2.5% 2.3% 2.4%
Public debt servicing 4.8% 4.7% 4.1% 4.1% 4.4% 5.4%
Source : BCN. 
 WT/TPR/G/274 Trade Policy Review 
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   Table 17:  Evolution of the tax revenue structure  
 2006 2011 
Income tax (IR) 28.3% 35.7% 
Customs duties (DAI) 6.3% 4.6% 
Value added tax (VAT) 41.9% 40.6% 
Selective consumption tax (ISC) 23.4% 19.1% 
Source : MHCP budget outturn reports and BCN Statistical Yearbook. 
Table 18:  Public debt balance 
(US$ million) 
2006 2007 2008 2009 2010 2011
Total debt balance  5,862.7 4,652.4 4,765.4 4,979.2 5,140.4 5,242.5
External debt balance 4,526.7 3,384.6 3,511.5 3,660.9 3,876.4 4,072.6
Central Government 2,637.3 1,422.5 1,491.2 1,737.0 1,936.4 2,139.0
Rest of non-financial public sector 22.0 45.1 67.0 73.5 71.0 73.6
Central Bank 1,835.6 1,886.8 1,924.9 1,824.3 1,843.2 1,860.0
Rest of financial public s ector 31.8 30.3 28.4 26.1 25.9 0.0
Domestic debt balance 1,336.0 1,267.8 1,254.0 1,318.3 1,264.0 1,169.9
Central Government 1,000.3 934.7 884.2 909.3 910.3 899.8
Central Bank 335.7 333.1 369.8 409.0 668.4 600.6
Source : BCN. 
Table 19:  Public debt balance as a percentage of GDP 
(US$ million) 
2006 2007 2008 2009 2010 2011
Total debt balance 112.1% 82.2% 74.8% 80.1% 78.0% 71.8%
External debt balance 86.5% 59.8% 55.1% 58.9% 58.8% 55.8%
Central Government 50.4% 25.1% 23.4% 28.0% 29.4% 29.3%
Rest of non-financial public sect or 0.4% 0.8% 1.1% 1.2% 1.1% 1.0%
Central Bank 35.1% 33.3% 30.2% 29.4% 28.0% 25.5%
Rest of financial public sect or 0.6% 0.5% 0.4% 0.4% 0.4% 0.0%
Domestic debt balance 25.5% 22.4% 19.7% 21.2% 19.2% 16.0%
Central Government 19.1% 16.5% 13.9% 14.6% 13.8% 12.3%
Central Bank 6.4% 5.9% 5.8% 6.6% 10.1% 8.2%
Source : BCN. 
Table 20:  Comparison of general and extrem e poverty levels in urban and rural areas 
 2005 2009 
 Generally poor Extremely poor Generally poor Extremely poor 
Urban 30.9 6.7 26.8 5.6 
Rural 70.3 30.5 63.3 26.6 
Source : Living Standards Measurement Survey (EMNV) 2005 and 2009. 
 Nicaragua WT/TPR/G/274 
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   Table 21:  Export performance 
(US$ million) 
 2003 2004 2005 2006 2007 2008 2009 2010 2011 
Exports 1,044.6 1,359.8 1,590.2 1,945.8 2,467.9 2,736.3 2,624.6 3,425.3 4,292.8 
Source : DGA. 
Table 22:  Ten most exported products 
  Value of exports 2011 Percentage change Compound annual growth rate 
Product US$ million 2011 vs. 2010 2003-2011 
Beef 432 39% 22.00% 
Green coffee 426.4 25% 9.00% 
Cane sugar 157.7 19% 27.00% 
Dairy products 137.1 1% 17.00% 
Peanuts 96.3 55% 11.00% 
Farmed shrimp 85.9 16% 9.00% 
Manufactured tobacco 35.6 1% 9.00% 
Beans 30.4 -50% 14.00% 
Processed coffee 27.3 17% 13.00% 
Fish 23.8 1% 7.00% 
Source :  CETREX, April 2012. 
Table 23:  Tariff lines grouped by ad valorem  tariff 
MFN tariffs 2005 2006 2007 2008 2009 2010 2011 2012 
0 3,053 3,087 3,195 3,201 3,203 3,202 3,218 3,415 
5 1,227 920 993 995 997 998 990 1,000 
10 777 1,102 1,198 1,193 1,194 1,194 1,186 1,221 
15 1,410 1,446 1,468 1,468 1,468 1,468 1,471 1,630 
20 1 1 1 3 4 4 4 4 
30 18 26 20 20 20 20 20 20 
35 2 2 24 24 24 24 24 24 
40 22 22 23 23 23 23 23 24 
45 1 1 1 1 1 1 1 1 
55 5 5 5 5 5 5 5 6 
60 6 10 10 10 10 10 10 10 
61 4               
170 2 4             
164     4 4 4 4 4 4 
General total 6,528 6,626 6,942 6,947 6,953 6,953 6,956 7,359 
Source : MIFIC. 
Table 24:  Tariff lines grouped by ad valorem  tariff  
(Per cent) 
MFN tariffs 2005 2006 2007 2008 2009 2010 2011 2012 
0 46.8% 46.6% 46.0% 46.1% 46.1% 46.1% 46.3% 46.4% 
5 18.8% 13.9% 14.3% 14.3% 14.3% 14.4% 14.2% 13.6% 
10 11.9% 16.6% 17.3% 17.2% 17.2% 17.2% 17.1% 16.6% 
15 21.6% 21.8% 21.1% 21.1% 21.1% 21.1% 21.1% 22.1% 
20 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 
30 0.3% 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 
35 0.0% 0.0% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% WT/TPR/G/274 Trade Policy Review 
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   MFN tariffs 2005 2006 2007 2008 2009 2010 2011 2012 
40 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 
45 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 
55 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 
60 0.1% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 
61 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 
170 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 
164 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 
General total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 
Source : MIFIC. 
Table 25:  Import tariff quotas established in 2006-2011 - CAFTA-DR (United States) 
(Unit of measurement:  metric tonne) 
Tariff quota/ year  
Tariff  heading 
Tariff  
quota/MFN 2006 2007 2008 2009 2010 2011 Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported  
Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported 
Total volume  
of quota 
Total volume 
imported 
Rice  1006.20.00 0/60 13,650 13,650 14,300 14,194 14,950 13,526 15,600 7,482 16,250 15,410 16,900 13,860
1006.30.10 0/60 
1006.30.90 0/60 
1006.40.00 0/60 
Rice in the 
husk  1006.10.90 0/45 92,700 92,663 95,400 95,151 98,100 98,100 100,800 96,630 103,500 100,500 106,200 63,424
Yellow 
maize  1005.90.20 0/15 68,250 65,152 71,500 62,178 74,750 65,736 78,000 70,347 81,250 74,791 84,500 80,488
White maize  1005.90.30 0/15 5,100 4,697 5,200 2,777 5,300 0 5,400 4,301 5,500 0 5,600 0
Pork  0203.11.00 0/15 1,100 0 1,200 26 1,300 172 1,400 351 1,500 362 1,600 641
0203.12.00 0/15 
0203.19.00.10 0/15 
0203.19.00.90 0/15 
0203.21.00 0/15 
0203.22.00 0/15 
0203.29.00.10 0/15 
0203.29.00.90 0/15 
Cheese  0406.10.00 0/40 575 104 604 120 634 163 666 172 699 243 734 255
0406.20.90 0/35 
0406.30.00 0/40 
0406.40.00 0/15 
0406.90.10 0/40 
0406.90.20 0/5 
0406.90.90 0/40 
Powdered 
milk  0402.10.00 0/60 650 36 683 36 717 311 752 148 790 0 829 264
0402.21.11 0/60 
0402.21.12 0/60 
0402.21.21 0/60 
0402.21.22 0/60 
0402.29.00 0/60 
Butter  0405.10.00 0/40 150 109 158 35 165 35 174 105 182 110 191 169
0405.20.00 0/15 
Other dairy 
products  1901.90.90 0/15 50 0 52 0 55 0 58 0 61 0 64 0
2202.90.90 0/15 
Ice cream 
(litres) 2105.00.00 0/40 72,815 7,894 76,456 5,244 80,279 5,610 84,293 6,735 88,507 6,375 92,933 6,770
Chicken 
thighs and legs
* 0207.13.99.20 0/35  ---  ---  ---  --- 317 211 635 632 952 949 1,269 1,246
0207.14.99.20 0/35 
1602.3200A 0/40 
* Quota not applied in 2006 and 2007. 
 Nicaragua WT/TPR/G/274 
 Page 43 
 
 
   Table 26:  Import tariff quotas establishe d in 2006-2011 - CAFTA-DR (Dominican Republic)  
(Unit of measurement:  metric tonne) 
Tariff quota/year  
Tariff heading  
Tariff  
quota/MFN 2006 2007 2008 2009 2010 2011 Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported 
Total volume 
of quota 
Total volume 
imported  
Chicken 
breasts  0207.13.91 10/35 443 0 443 0 443 0 443 0 443 0 443 0 
0207.14.91 10/35 
Onion 
and shallots  0703.10 7.5/15 375 0 375 0 375 0 375 0 375 0 375 0 
Beans 
(red, black, white and others)  0713.31 0/15 1,800 0 1,800 0 1,800 0 1,800 0 1,800 0 1,800 0 
0713.33 0/30 
0713.32 0/30 
 
Table 27:  Import tariff quotas established in 2006-2011 - World Trade Organization (WTO) 
(Unit of measurement:  metric tonne) 
Tariff quota/year  Tariff heading  Tariff 
 quota / MFN 2006 2007 2008 
Total 
volume of 
quota Total volume 
imported Total 
volume of 
quota Total volume 
imported Total 
volume of 
quota Total 
volume 
imported 
Rice in the husk  1006.10.90 0/45 4,972 4,759.48 4,972.00 4,256.00 4,972 4,894 
Powdered milk      1,743.00 1,546.22 1,743.00 1,449.00 1,743 581 
Skimmed  0402.10.00 0/60 696 517.24 367.00 74.00 237 54 
Whole  0402.21.21 20/60 1,047 1,028.98 1,376.00 1,375.00 1,506 527 
0402.21.22 20/60 
Tariff quota/year Tariff heading Tariff 
 quota / MFN 2009 2010 2011 
Total 
volume of 
quota Total volume 
imported Total 
volume of 
quota Total volume 
imported Total 
volume of 
quota Total 
volume 
imported 
Rice in the husk  1006.10.90 0/45 4,972.00 4,861.10 4,972.00 4,833.20 4,972.00 4,650.00 
Powdered milk     1,742.60 1,008.92 1,743.00 1,323.20 1,743.00 1,183.70 
Skimmed  0402.10.00 0/60 348.60 37.98 523.00 128.25 265.00 24.00 
Whole  0402.21.21 20/60 1,394.00 970.94 1,220.00 1,194.95 1,478.00 1,159.70 
0402.21.22 20/60 
 
Table 28:  Import tariff quotas established in 2006-2011 - Lack of supply 
(Unit of measurement:  metric tonne) 
Tariff quota/year  Tariff heading  Tariff  
quota / MFN  2006 2007 2008 
Total volume 
of quota Total 
volume 
imported Total volume 
of quota Total 
volume 
imported Total 
volume of 
quota Total 
volume 
imported 
Maize syrup  1702.90.20 0/40 100 40 100 21 80 57 
Rice in the husk  1006.10.90 0/45 55,000 53,400 44,159 44,159 35,000 24,484 
Rice  1006.20.00 0/60 -- -- -- -- -- -- 
1006.30.10 0/60 
1006.30.90 0/60 
1006.40.00 0/60 
Yellow maize 1005.90.20 0/15 51,503 50,444 77,150 71,455 93,930 51,120 
White maize  1005.90.30 0/15 -- -- -- -- -- -- 
Butter  0405.20.00 15/40 241 194 114 114 300 193 
Powdered milk  0402.10.00 20/60 249 185 280 76 -- -- 
0402.21.22 20/60 949 802 
Cheese  0406.10.00 0/40 -- -- 12 10 -- -- 
0406.20.90 0/35 
0406.30.00 0/40 
0406.90.90 0/40 WT/TPR/G/274 Trade Policy Review 
Page 44 
  
   Tariff quota/year  Tariff heading  Tariff  
quota / MFN  2006 2007 2008 
Total volume 
of quota Total 
volume 
imported Total volume 
of quota Total 
volume 
imported Total 
volume of 
quota Total 
volume 
imported 
Pork  0203.11.00 0/15 238 74 -- -- - -- 
0203.12.00 0/15 
0203.19.00.10 0/15 
0203.19.00.90 0/15 
0203.21.00 0/15 
0203.22.00 0/15 
0203.29.00.10 0/15 
0203.29.00.90 0/15 
Soya bean flour  2304.00.10.10 0/5 16,096 15,133 -- -- -- -- 
Wheat or meslin flour 1101.00.00 0/10 -- -- -- -- 10,000 1,580 
Thighs and legs* 0207.13.99.20 0/35 -- -- -- -- 1,000 994 
0207.14.99.20 0/35 
1602.32.00A 0/40 
Tariff quota/year Tariff heading  Tariff  
quota / MFN 2009 2010 2011 
Total volume 
of quota Total 
volume 
imported Total volume 
of quota Total 
volume 
imported Total 
volume of 
quota Total 
volume 
imported 
Maize syrup  1702.90.20 0/40 100 82 100 99 100 58 
Rice in the husk  1006.10.90 0/45 -- -- -- -- 50,000.00 46,651.00 
Rice  1006.20.00 0/60 -- -- -- -- 12,000.00 1,061.00 
1006.30.10 0/60 
1006.30.90 0/60 
1006.40.00 0/60 
Yellow maize 1005.90.20 0/15 46,800 26,247 48,400 44,399 18,200.00 16,125.41 
White maize  1005.90.30 0/15 -- -- -- -- 20,000.00 2,365.00 
Butter 0405.20.00 15/40 -- -- -- -- -- -- 
Powdered milk  0402.1 0.00 20/60 -- -- -- -- -- -- 
0402.21.22 20/60 
Cheese  0406.10.00 0/40 -- -- -- -- -- -- 
0406.20.90 0/35 
0406.30.00 0/40 
0406.90.90 0/40 
Pork  0203.11.00 0/15 -- -- -- -- -- -- 
0203.12.00 0/15 
0203.19.00.10 0/15 
0203.19.00.90 0/15 
0203.21.00 0/15 
0203.22.00 0/15 
0203.29.00.10 0/15 
0203.29.00.90 0/15 
Soya bean flour  2304.0 0.10.10 0/5 -- -- -- -- -- -- 
Wheat or meslin flour 1101.00.00 0/10 -- -- -- -- -- -- 
Thighs and legs* 0207.13.99.20 0/35 -- -- -- -- 1,752.00 1,751.00 
0207.14.99.20 0/35 
1602.32.00A 0/40 
*The importation period for this  quota was August 2008-January 2009.  Nicaragua WT/TPR/G/274 
 Page 45 
 
 
   Table 29:  Import tariff quotas established in 2006, 2010 and 2011 - Panama 
(Unit of measurement:  metric tonne) 
Tariff 
quota/year Tariff heading  Tariff  
quota / 
MFN 2006 2010 2011 
Total 
volume of 
quota Total 
volume 
imported Total 
volume of 
quota Total 
volume 
imported Total 
volume of 
quota Total 
volume 
imported 
Beef 0201.10.00.00 0/30 -- -- 1,500 0 1,605 0 
0201.20.00.11 0/30 
0201.20.00.19 0/30 
0201.20.00.91 0/30 
0201.20.00.99 0/30 
0201.30.00.11 0/30 
0201.30.00.19 0/30 
0201.30.00.91 0/30 
0201.30.00.99 0/30 
0202.10.00.00 0/30 
0202.20.00.11 0/30 
0202.20.00.19 0/30 
0202.20.00.91 0/30 
0202.20.00.99 0/30 
0202.30.00.11 0/30 
0202.30.00.19 0/30 
0202.30.00.91 0/30 
0202.30.00.99 0/30 
Pork  0203.19.00.10 0/15 -- -- 15 0 15 0 
0203.19.00.90 0/15 
0203.29.00.10 0/15 
0203.29.00.90 0/15 
Onions and shallots 0703.10.11 0/15 -- -- 200 0 208 0 
0703.10.12 0/15 
0703.10.13 0/15 
0703.10.19 0/15 
0703.10.20 0/15 
Instant coffee 2101.11.00.10 0/15 -- -- 30 0 35 0 
2101.12.00.00 0/15 
Tomato sauce 2103.20.00 0/15 -- -- 450 0 450 0 
Ketchup 2103.20.00 0/15 -- -- 50 0 50 0 
Note:  Tariff quotas were first applied in 2010 under the FTA with Panama. 
 
Table 30:  Nicaragua-Mexico trade performance 
(US$ million) 
 2005 2006 2007 2008 2009 2010 2011* AARC 
Trade 259.8 477.0 522.7 490.2 300.4 372.5 495.0 11.3% 
Exports 44.1 47.6 58.0 82.0 56.8 51.6 88.7 12.3% 
Imports 215.7 429.4 464.7 408.2 243.6 320.9 406.3 11.1% 
Balance -171.6 -381.8 -406.7 -326.2 -186.8 -269.3 -317.6 10.8% 
* Preliminary. 
AARC Average annual rate of change. 
Source:  MIFIC. 
 WT/TPR/G/274 Trade Policy Review 
Page 46 
  
   Table 31:  FDI from Mexico 
(US$ thousand) 
Economic sector 2006 2007 2008 2009 2010 2011* Total % 
Telecommunications 45,500.0 117,115.0 160,782.2 38,406.4 84,062.7 85,863.6 531,729.9 88.30% 
Free zones 6,290.0 7,900.0 3,100.0 12,683.2 4,475.3 1,990.7 36,439.2 6.05% 
Industry - - - - - 22,661.4 22,661.4 3.76% 
Mines - 3,392.3 456.7 - - 3,329.9 7,178.9 1.19% 
Trade and services 1,000.0 - 43.6 - - 657.2 1,700.9 0.28% 
Construction 1,600.0 - - - - - 1,600.0 0.27% 
Finance - - - - - 525.9 525.9 0.09% 
Agriculture - - - - 115.2 125.8 241.0 0.04% 
Energy - - - - 103.0 - 103.0 0.02% 
Total 54,390.0 128,407.3 164,382.5 51,089.6 88,756.2 115,154.5 602,180.2 100.00% 
* Preliminary. 
Source:  Investment Promotion Policy Directorate (DPFI), MIFIC. 
Table 32:  Trade balance and trade with the Dominican Republic  
(US$ million) 
 2006 2007 2008 2009 2010 2011* 
Exports 8.6 4.8 6.4 9.5 12.5 13.8 
Imports 5.4 4.5 11.6 9.8 5.6 10.0 
Trade balance 3.2 0.4 -5.2 -0.3 7.0 3.8 
Trade 14.0 9.3 17.9 19.3 18.1 23.8 
Source:  MIFIC. 
Table 33:  Nicaragua-United States trade performance 
(US$ million) 
2005 2006 2007 2008 2009 2010 2011* AARC 
Trade 1,707.0 2,153.0 2,423.0 2,611.0 2,314.0 2,881.0 3,556.0 13.0 
Exports 1,182.0 1,526.0 1,608.0 1,707.0 1,612.0 2,012.0 2,607.0 14.1 
Domestic 306.8 367.7 372.1 478.2 451.8 606.5 694.1 14.6 
Free zones 875.2 1,158.3 1,235.9 1,228.8 1,160.2 1,405.5 1,912.9 13.9 
Imports 525.4 626.7 814.7 904.2 701.7 868.6 949.3 10.4 
Balance 656.6 899.3 793.3 802.8 910.3 1,143.4 1,657.7 16.7 
* Preliminary. 
AARC Average annual rate of change. 
Source:  MIFIC. 
Table 4:  Inter-annual growth rates - Trade with the United States 
 2005 2006 2007 2008 2009 2010* 2011 
Trade - 26.1 12.5 7.8 -11.4 24.5 23.5 
Exports - 29.1 5.4 6.2 -5.6 24.8 29.6 
Domestic - 19.9 1.2 28.5 -5.5 34.2 14.4 
Free zones - 32.3 6.7 -0.6 -5.6 21.1 36.1 
Imports - 19.3 30.0 11.0 -22.4 23.8 9.3 
Balance - 36.9 -11.8 1.2 13.4 25.6 45.0 
* Preliminary. 
Source:  USITC, DGA. 
 Nicaragua WT/TPR/G/274 
 Page 47 
 
 
   Table 35:  FDI from the United States, 2005-2011 
(US$ thousand) 
Economic sector 2005 2006 2007 2008 2009 2010 2011 Total % 
Free zones 29,064.0 30,697.0 77,070.0 43,400.0 20,148.7 31,123.3 32,702.1 264,205.0 39.3% 
Energy - 4,417.0 1,154.3 59.7 1,149.9 133,748.2 26,963.7 167,492.9 24.9% 
Tourism 5,413.3 18,222.5 4,167.2 1,308.5 20,045.1 32,537.9 17,740.6 99,435.1 14.8% 
Trade and services - 10,283.3 1,180.0 868.2 1,466.3 3,565.4 61,309.7 78,672.9 11.7% 
Forestry - - - 6,222.0 13,300.2 9,749.8 - 29,272.0 4.4% 
Agriculture - - - - 87.3 48.4 12,894.5 13,030.1 1.9% 
Industry 1,500.0 7,140.0 - - 41.3 149.5 3,477.5 12,308.3 1.8% 
Aquaculture - - - - - - 2,814.5 2,814.5 0.4% 
Finance - - - - 2,213.1 - - 2,213.1 0.3% 
Mining - - - - 281.0 581.5 840.7 1,703.1 0.3% 
Construction - - - - 83.3 442.2 - 525.5 0.1% 
Fisheries - - - - - - 62.3 62.3 0.009% 
Telecommunications - - 15.0 - - - - 15.0 0.002% 
Total 35,977.3 70,759.7 83,586.5 51,858.4 58,816.2 211,946.2 158,805.6 671,750.0 100.0% 
% 5.4% 10.5% 12.4% 7.7% 8.8% 31.6% 23.6% 100.0%   
Source:  DPFI, MIFIC.  
Table 36: Trade and trade balance with the United States excluding free zones 
(US$ million) 
2005 2006 2007 2008 2009 2010 2011* 
Trade 832.1 994.5 1,186.8 1,382.4 1,153.5 1,475.0 1,643.4 
Exports 306.8 367.7 372.1 478.2 451.8 606.5 694.1 
Imports 525.4 626.7 814.7 904.2 701.7 868.6 949.3 
Balance -218.6 -259.0 -442.6 -426.0 -249.9 -262.1 -255.2 
* Preliminary. 
Source:   USITC, DGA. 
Table 37:  Trade and trade balance with the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) 
(US$ million) 
 Year AARC 2007 2008 2009 2010 2011* 
F.o.b. exports 10.1 21.2 16.8 29.3 38.4 39.5 
C.i.f. imports 15.4 21.0 13.6 16.3 18.4 4.6 
Trade balance -5.3 0.3 3.2 13.0 20.0 - 
Trade  25.5 42.2 30.4 45.5 56.9 22.1 
% Exports 39.7 50.3 55.2 64.3 67.6 - 
% Imports 60.3 49.7 44.8 35.7 32.4 - 
* Preliminary. 
AARC Average annual rate of change. 
Source:  MIFIC. WT/TPR/G/274 Trade Policy Review 
Page 48 
  
   Table 38:  Trade and trade balance with Panama 
(US$ million) 
2005 2006  2007  2008  2009  2010  2011*  AARC  
Trade 18.4 29.7 23.7 27.3 23.2 23.7 32.1 9.7 
Exports 6.1 8.5 9.6 10.8 11.3 11.0 14.5 15.6 
Imports 12.4 21.3 14.1 16.5 11.9 12.6 17.7 6.1 
Balance -6.3 -12.8 -4.6 -5.6 -0.7 -1.6 -3.2 -10.6 
* Preliminary. 
AARC Average annual rate of change. 
Source:  MIFIC. 
Table 39:  FDI received in 2011, by country of origin 
(US$ million) 
Country Amount 
Canada 255.52 
United States 158.81 
Spain 115.59 
Mexico 115.52 
Venezuela 45.01 
Korea 32.04 
Brazil 16.58 
Italy 10.07 
Russia 6.06 
Germany 4.9 
Other  208.16 
Total 968.26 
 
Table 40:  Companies created under the one-stop investment facility (VUI) 
Type of capital 2006 2007 2008 2009 2010 2011 Total 
Domestic 481 549 533 399 444 472 2,878 
Foreign 72 51 55 31 28 30 267 
Mixed 94 66 65 54 50 60 389 
TOTAL 647 666 653 484 522 562 3,534 
Source:  VUI, MIFIC. 
Table 41:  Size of companies created under the one-stop investment facility (VUI) 
Size/year 2006 2007 2008 2009 2010 2011 Total 
Micro 88 50 29 37 28 107 339 
Small 59 41 55 61 49 271 536 
Medium 462 572 568 384 441 184 2,611 
Large 12 3 1 2 4 0 22 
Not defined 26 0 0 0 0 0 26 
TOTAL 647 666 653 484 522 562 3,534 
Source:  VUI, MIFIC. Nicaragua WT/TPR/G/274 
 Page 49 
 
 
   Table 42:  Current legal framework governing tr ade-related aspects of intellectual property 
Area Amendments and additions 
Copyright and related rights Law No. 577, Law on Amendmen ts and Additions to Law No. 312, Law on Copyright 
and Related Rights.  Publis hed in Official Journal La Gaceta No. 60 of 24 March 2006.  
Decree No. 24-2006, Amendments to Decree  No. 22-2000, Regulations to the Law on 
Copyright and Related Rights.  Published in Official Journal La Gaceta No. 63 
of 29 March 2006. 
Programme-carrying satellite signals Law No. 578, Law on Am endments and Additions to Law No. 322, Law on the 
Protection of Programme-Carrying Satellite Si gnals.  Published in Official Journal 
La Gaceta  No. 60 of 24 March 2006. 
Trademarks and other distinctive signs  Law No. 580, Law on Am endments and Additions to Law No. 380, Law on Trademarks 
and Other Distinctive Signs.  Published in Official Journal La Gaceta No. 60 of 24 
March 2006. 
Patents, utility models and industrial desi gns  Law No. 579, Law on Amendments and Additions to Law No. 354, Law on Patents, 
Utility Models and Industrial Designs.  Published in Official Journal La Gaceta No. 60 
of 24 March 2006. Law No. 634, Law on Amendments and Additions to Law No. 354, Law on Patents, 
Utility Models and Industrial Designs.  Published in Official Journal La Gaceta No. 196 
of 12 October 2007. Decree No. 16-2006, Amendment to Decree  No. 88-2001, Regulations to the Law on 
Patents, Utility Models and Industrial De signs.  Published in Official Journal La Gaceta 
No. 57 of 21 March 2006. 
Test data or undisclo sed information on new 
pharmaceutical products Ministerial Decision (MINSA) No. 115-2006, Pr ocedure for the Protection of Test Data 
or Undisclosed Information on New Pharmace utical Products.  Published in Official 
Journal La Gaceta No. 58 of 22 March 2006. 
General procedures for the approval of 
the registration and marketing of new 
pharmaceutical products for veterinary use and agricultural chemical products Ministerial Decision (MAGFOR) No. 07-2006, General Procedures for the Approval 
of the Registration and Marketing of Ne w Pharmaceutical Products for Veterinary 
Use and Agricultural Chemical Products .  Published in Official Journal La Gaceta 
No. 58 of 22 March 2006.  
Penal Code Law No. 641, Penal Code.  Published in Official Journal La Gaceta Nos. 83, 84, 85, 86 
and 87 of 5, 6, 7, 8 and 9 May 2008.  
Ancestral traditional medicine Law No. 759, Law on Ancestral  Traditional Medicine.  Published in Official Journal 
La Gaceta No. 123 of 4 July 2011. 
Source:   MIFIC. 
Table 43:  Patents and industrial designs listed in the Intellectual Property Register 
Form of protection 2006 2007 2008 2009 2010 2011 
Invention 39 52 52 51 45 61 
Utility model 3 0 0 0 0 2 
Industrial design 13 2 20 17 21 13 
Total 55 52 72 68 66 76 
Source:  MIFIC. 
Table 44:  Trademarks and other distinctive si gns listed in the Intellectual Property Register 
Origin 2006 2007 2008 2009 2010 2011 
Domestic 547 579 466 278 97 400 
Foreign 2,669 2,981 2,502 1,795 2,136 3,079 
Total 3,216 3,560 2,968 2,073 2,233 5,490 
Source:   MIFIC. 
Table 45:  Copyright and related rights lis ted in the Intellectual Property Register 
Status 2006 2007 2008 2009 2010 2011 
Applied for 139 87 100 118 142 138 
Registered 113 66 87 111 121 133 
Source:  MIFIC. WT/TPR/G/274 Trade Policy Review 
Page 50 
  
    
Table 46:  Laws and regulations forming the current legal framework for the promotion of competition 
 Date of adoption Official Journal No. 
Laws   
Law No. 601 - Law on the Promotion 
of Competition Adopted on 28 September 2006 Published in Official Journal La Gaceta  
No. 206 of 24 October 2006 
Law No. 668 - Law on Amendments and 
Additions to Law No. 601, Law on the 
Promotion of Competition Adopted on 14 August 2008 Published in Official Journal La Gaceta  
No. 174 of 9 September 2008 
Law No. 773 - Law on Amendments to Law 
No. 601, Law on the Promotion of Competition Adopted on 21 September 2011 Published in Official Journal La Gaceta  
No. 200 of 24 October 2011 
Regulations   
Regulations to Law No. 601, Law on the 
Promotion of Competition Decree No. 79-2006, approved 
on 21 December 2006 Published in Official Journal La Gaceta  
No. 10 of 15 January 2007 
Source:  PROCOMPETENCIA. 
Table 47:  F.o.b. exports of fishery products 2006-2011 and estimate for 2012 
(US$ million) 
Year and 
month  Shrimp Total 
Total 
Farmed Marine Shrimp Lobster Fish Other 
2006 38.4 10.2 48.6 40.0 10.4 2.8 101.8 
2007 36.0 10.1 46.1 46.8 11.4 2.6 107.0 
2008 40.8 7.5 48.3 36.9 11.5 2.5 99.2 
2009 37.7 6.8 44.5 31.1 10.3 3.1 88.9 
2010 48.7 9.2 57.9 40.4 14.2 2.9 115.4 
2011 55.6 6.6 62.2 45.9 15.4 0.9 124.4 
2012* 76.4 8.0 84.4 40.1 15.3 0.8 140.7 
Growth         
2011/2006 44.5% -35.1% 27.9% 15.0% 48.3% -67.3% 22.3% 
2012/2011 37.6% 21.4% 35.9% -12.7% -0.8% -12.3% 13.0% 
Source:   INPESCA. 
Table 48:  Exploited energy potential 
GENERATION TYPE  POTENTIAL (MW)  EFFECTIVE INSTALLED 
CAPACITY (MW)  PERCENTAGE 
EXPLOITED (%)  
HYDROELECTRIC 2,000  98  5% 
GEOTHERMAL 1,500  63 4% 
WIND 800  63  8% 
BIOMASS 200  120  60% 
TOTAL  4,500  344 8% 
Source:  MEM, June 2012. Nicaragua WT/TPR/G/274 
 Page 51 
 
 
   Table 49:  Generation projects entering into operation in 2012-2016 
Project  Generation 
type Capacity 
(MW)  Investment (US$ million)  
Entry into operation  
Total  Unit  
1. Projects with a generation 
licence       
San Jacinto Tizate, Phases I and II Geot hermal 72.0 415.0 5,764 36 MW in Dec 2011, 
36 MW in Dec 2012 
Blue Power Wind 39.6 110.0 2,778 July 2012 
Eolo Wind 37.5 105.0 2,800 July 2013 
Larreynaga Hydroelectric 17.2 58.9 3,424 May 2013 
Hidropantasma Hydroelectric 12.0 43.3 3,608 July 2013 
Tumarín (governed by Special Law) Hy droelectric 253.0 1,126.0 4,451 January 2017 
Alba Rivas Wind 40.0 110.0 2,750 September 2014 
Subtotal   471.3  1,968.2  4,176   
2. Ongoing projects**       
Casita - San Cristóbal / Exploration 
contract Geothermal 35.0 140.0 4,000 January 2015 
El Hoyo - Monte Galán / Exploration 
contract Geothermal 35.0 140.0 4,000 January 2015 
Alba Geo / Exploration contract Ge othermal 35.0 140.0 4,000 January 2015 
Subtotal   105.0  420.0  4,000   
3. Projects with a high likelihood 
of implementation**       
Boboké Hydroelectric 70.0 252.6 3,609 September 2016 
Geotérmico Geothermal 35.0 140.0 4,000 June 2016 
Subtotal   105.0  392.6  3,739   
TOTAL   681.3  2,780.8  11,915.2   
4. Projects with a provisional 
licence that are under 
consideration*       
R.E. Wind Wind 63.0    
Blue Power Energy Oriente Wind 42.0    
La Campana Wind 39.1    
Vientos Alisios (generation 
licence pending)** Wind 40.0 108.0 2,700  
Subtotal   184.1  -   
* Cost and date of entry into  operation not yet established. 
** Estimated costs. 
Source:  MEM, June 2012. 
Table 50:  Number of tourists entering the country 
2006 2007 2008 2009 2010 2011 
Tourists 890,939 978,337 1,010,323 1,010,065 1,071,668 1,121,537 
% Growth 9.81% 3.27% -0.03% 6.10% 4.65% 
Source :  BCN. 
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