RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/NIC 
8 August 2005 
 
 (05-3552) 
Council for Trade in Services 
Special Session Original:   Spanish 
 
 
 
NICARAGUA 
 
Initial Offer  
 
 
 The following initial offer was received from the delegation of Nicaragua on 16 June 2005 
with the request that it be circulated to th e Members of the Council for Trade in Services.  
 
_______________ 
 
 
1. The Republic of Nicaragua hereby submits this  initial offer for the purposes of negotiation in 
the context of paragraphs 47 and 49 of the Doha Ministerial Declaration.  This is not a legal text. This 
initial offer is conditional and Nicaragua may theref ore modify or withdraw it at any time during the 
course of the negotiations, depending on the overall outcome of all the WTO negotiations and having 
due regard to Articles IV and XIX:2 of the GATS. 
2. This offer has been drawn up in conformity  with the Guidelines and Procedures for the 
Negotiations on Trade in Services, adopted by  the WTO Council for Trade in Services on 
28 March 2001 (document S/L/93), in particular with  respect to paragraphs 10, 12, 14, 15 and 17. 
3. The contents of this initial offer should be unde rstood as subject to any horizontal disciplines 
agreed upon in the framework of the ongoing nego tiations of the Working Party on GATS Rules and 
the Working Party on Domestic Regulation. This offe r may be revised on the basis of the outcome of 
these negotiations.  
4. Nicaragua is submitting this offer as proof of its commitment to making a major contribution, 
in line with its economic development, to the progressi ve liberalization of trade in services, with the 
aim of meeting its development objectives and achievi ng increasing participation in trade in services. 
_______________ 
 
  
 TN/S/O/NIC 
Page 2 NICARAGUA – INITIAL OFFER OF SPECIFIC COMMITMENTS 
Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
I. HORIZONTAL COMMITMENTS  
 
 (3) Foreign companies the main commercial 
activity of which is carried out from Nicaragua, 
and which have the majority of their capital, their board of directors and their shareholders' 
meeting in Nicaragua, shall be considered 
Nicaraguan companies.  Approval of foreign investment is subject to justification of 
economic necessity according to the following 
criteria: 
 
(a) It corresponds to the objectives of stability and 
economic development; 
 
(b) It respects Nicara gua's moral and cultural 
values; 
 (
1) (2) (3) (4) The tax reform of 7 January 1992 
provides that payment of dividends to foreign 
shareholders is subject to a tax of 5 per cent 
and the tax withheld on royalties and 
payment of interest abroad is 30 per cent.  
These taxes are imposed on the income 
received by foreigners in  addition to the 
income tax paid by both nationals and 
foreigners.   
 (c) It is consistent with environmental conservation 
and protection.    
  
 Authorization of foreign investment is 
formalised in an investment contract concluded 
between the Foreign Inves tment Committee 
and the foreign investor.  
   
 ( 4) The supply of services by suppliers not resident 
in Nicaragua is limited to senior and specialized 
personnel in connection with a commercial 
presence and must contribute to the training of 
Nicaraguan perso nnel in the specialized field of 
activity concerned.   
This measure applies to all sectors unless 
otherwise provided.  
 (4) Unbound, except for the categories of 
persons indicated in the market access 
column.    
  TN/S/O/NIC
 Page 3Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 (4) Quantitative horizo ntal limitation 
 
 Employers are required to employ a minimum 
of 75 per cent of Nicaraguan employees.  In special circumstances, the Ministry of Labour 
may authorize the employment of a larger 
number of foreigners where it is difficult or impossible to replace them by nationals, in 
which case the employers must train 
Nicaraguan personnel under the supervision and control of the Ministry for a period of not 
more than five years. 
  Intra-corporate transferees
 
 
 Within the prescribed limit, temporary 
employment is permitted for a maximum 
period of three years for personnel 
transferred from the parent company in the country of origin to subsidiaries or branches 
established in Nicaragua.  Staff must have 
worked in the parent company for at least two years prior to the time of the transfer.  
The commitment is limited to senior 
managerial personnel or specialized personnel with professional qualifications, 
with knowledge of and recognized 
experience in the corresponding service area.
 
 Business visitors
 
 
 Persons entering Nicaragua for business 
meetings, investment or the promotion and 
sale of services, provided that they do not receive remuneration in Nicaragua and are 
not directly involved in the provision of the 
service.  Such visitors may remain in the country for up to 90 days in any 12-month 
period.
 
    
 TN/S/O/NIC 
Page 4 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
  The supply of professional services involving 
the presence of natural persons for legal, 
accounting, auditing, engineering, architectural and medical services, inter alia , requires 
fulfilment of conditions and authorization for 
the exercise of that particular profession. 
   
II. SECTOR-SPECIFIC COMMITMENTS  
1. BUSINESS SERVICES 
 
A. Professional services  
 a. Legal services   Solely advisory 
services on the 
legislation of the country of origin  
  (CPC 86190) 
 
B. Computer and related 
services  
 
Consultancy services related 
to the installation of computer hardware 
(CPC 841) 
 
Software implementation 
services 
(CPC 842) 
  
 
 
 
(1) None 
(2) None 
(3)  Unbound (4) Unbound  
 
  
 
(1) Unbound 
(2) Unbound
  None  
(3) None (4) Unbound
   
 
 
(1) None 
(2) None 
(3) Unbound (4) Unbound  
 
  
 
(1) Unbound 
(2) Unbound
  None  
(3) Unbound   None  
(4) Unbound    
  TN/S/O/NIC
 Page 5Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Data-processing services 
(CPC 843) 
 
Database services  
(CPC 844) 
    
C. Research and development  
services  
 
Research and experimental 
development services on 
natural sciences 
 (CPC 851)  
Research and experimental 
development services on social sciences and 
humanities 
 (CPC 852)  
Interdisciplinary research 
and experimental development services 
(CPC 853) 
  
  
(1) None 
(2) Unbound 
(3) None 
(4) Unbound  
  
(1) None 
(2) Unbound 
(3) None 
(4) Unbound The Government of 
Nicaragua will administer these concessions in 
accordance with national 
plans for the protection of 
biodiversity, traditional 
knowledge and natural resources. 
 
F. Other business services  
 
Services incidental to agriculture, hunting and 
forestry 
(CPC 881) 
Services incidental to 
fishing (CPC 882) 
  
 
 (1) None 
(2) Unbound 
(3) None 
(4) Unbound  
 
 (1) None 
(2) Unbound 
(3) None 
(4) Unbound Service providers are 
required to comply with 
the regulations governing and principles of 
Nicaraguan development 
plans.
  
 TN/S/O/NIC 
Page 6 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Services incidental to 
mining 
(CPC 883 + 5115) Services incidental to 
manufacturing 
(CPC 884 + 885) 
    
Services incidental to the 
manufacture of metal 
products, machinery and 
equipment 
(CPC 885) 
    
Repair services incidental to 
metal products, machinery 
and equipment (CPC 886) 
    
Services incidental to energy 
distribution 
(CPC 887) 
     
  TN/S/O/NIC
 Page 7Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
2. COMMUNICATIONS 
SERVICES 
 
C. Telecommunications 
services 
 
Public telephone services 
(solely cellular telephony) 
(CPC 7521) 
 
Electronic mail 
(CPC 7523**) 
 
Online information and data 
base retrieval 
(CPC 7523**) 
  
     
(1) None (2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
section. 
  
 
 
   (1) None (2) Unbound (3) None 
(4) Unbound, except as indicated in the 
 horizontal section.  
Electronic data interchange 
(EDI) 
(CPC 7523**) 
 
Enhanced/value-added 
facsimile services including store and retrieve n.a. code 
and protocol conversion 
(CPC 7523**) 
 
Circuit-switched data 
transmission services (CPC 7523**) 
    
Private leased circuit 
services 
(CPC 7522 + 7523**) 
     
 TN/S/O/NIC 
Page 8 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Telex services 
(CPC 7523**)    
Telegraph services 
(CPC 7522)    
Facsimile services 
(CPC 7521** + 7529**)    
Voice mail 
(CPC 7523**)    
Online information and/or 
data processing (including 
transaction processing) 
(CPC 843**) 
    
D. Audiovisual services  
 
Motion picture and video 
tape production and 
distribution services 
(CPC 9611) 
 
Motion picture projection 
services 
(CPC 9612) 
  
 (1) None 
(2) None 
(3) None 
(4) Unbound, except as indicated in the horizontal 
section
  
 (1) Unbound 
(2) Unbound 
(3) None 
(4) Unbound, except as indicated in the 
horizontal section   
  TN/S/O/NIC
 Page 9Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
7. FINANCIAL SERVICES 
    
A. Insurance and insurance-
related services    
 
  
a. Life insurance (excluding 
pension funds) 
 (CPC 8121)  
b. Non-life insurance  
 (CPC 8129) 
 
c. Reinsurance and 
retrocession services 
 (CPC 81299*) 
 d. Services auxiliary to 
insurance (including broking 
and agency services) 
 (CPC 81401)
 (1) Unbound 
(2) Unbound 
(3) None.   Insurance and reinsurance activities can 
only be carried out by legal persons established 
and domiciled in Nicaragua as public limited 
companies,  subject to the legal regime 
applicable to such companies and to the 
General Law on Insurance Institutions, and having obtained the required authorization from 
the Governing Council of the Office of the 
Supervisor of Banks. They are also subject to the Law Creating the Office of the Supervisor 
of Banks and to the Resolution authorizing their 
establishment and operation. 
 
 Foreign-owned companies are subject to the 
same obligations as domestic companies and may not resort to diplomatic channels in any 
matter relating to their operations in the 
country.
 
 (1) Unbound 
(2) Unbound 
(3) None (4) Unbound, except as indicated in the 
horizontal section. 
  
  In Nicaragua, insurance companies may engage 
only in the insurance a nd reinsurance activities 
specified in the Resolution authorizing their 
establishment and operation, and in the 
investment of their cap ital and reserves for 
purposes permitted under the Law.  
 
   
  Prior authorization from the Office of the 
Supervisor of Banks is required by insurance 
entities setting up operations or entering a new branch of insurance. 
    
 TN/S/O/NIC 
Page 10 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Insurance institutions must invest their capital, 
capital reserves and other reserves in assets laid 
down by  the Law.  
 
 The Governing Council of the Office of the 
Supervisor of Banks is responsible for determining the percentages of reserves that 
may be invested abroad. 
  Insurance institutions established in the 
country, whether domestic or foreign, must 
have m inimum capital holdings in the 
following amounts:  
 
(1) For causality insurance companies, 
US$1,200,000;  
(2) for life insurance companies, 
US$1,200,000;  
(3) for institutions operating in both branches, 
US$2,000,000.  
 
 The Governing Council has the legal authority 
to modify the minimum amounts required for insurance companies to operate, and the 
amounts may be expressed in national 
currency. 
  
  TN/S/O/NIC
 Page 11Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
  A natural or legal person may only issue 
insurance policies if authorization or a licence 
has been granted to do so and if the transaction is covered by a security or a guarantee in an 
amount set by the Office of the Supervisor of 
Banks. 
   
  Insurance brokers are en terprises established in 
Nicaragua and engaging either individually or 
as commercial companies, in their own name 
and for their own account, in requesting, 
negotiating and obtaining insurance in 
Nicaragua on behalf of insurants other than themselves and issued by any of the institutions 
referred to in the General Law on Insurance 
Institutions and the amended version thereof. They are subject to the provisions of the 
Commercial Code of Nicaragua in all matters 
applicable to them and not covered by the law. 
 
(4) Unbound, except as indicated in the horizontal 
section. 
    
 TN/S/O/NIC 
Page 12 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
B. Banking and other financial 
services (excluding 
insurance) 
 
a. Acceptance of deposits and 
other repayable funds from the public 
 (CPC 81115) 
  Other bank deposit services 
 (CPC 81116) 
  Other deposit services 
 (CPC 81119) 
  (1) Unbound 
(2) Unbound 
(3) None. Any private bank established in 
Nicaragua must be set up and operated as a 
public limited company in conformity with the 
General Law on Banks and Other Financial Institutions, and with the Law creating the 
Office of the Supervisor of Banks, the 
Commercial Code and the other laws applicable to such companies to the extent that they have 
not been modified by the General Law on 
Banks and Other Financial Institutions. 
 
 Banks that are legally constituted abroad may 
only operate in the country by setting up a branch office. 
 (1) Unbound 
(2) Unbound 
(3) None  
  
b. Lending of all types, 
including, inter alia  
consumer credit, mortgage 
credit, factoring and 
financing of commercial transactions  
 (CPC 8113) 
  The minimum share capital for a bank is 
US$2,000,000 or the equivalent thereof in 
national currency, wherever the bank is 
established within the country.  This amount 
may be modified by the Governing Council of 
the Office of the Supervisor of Banks.    
c. Financial leasing with 
option to purchase 
 (CPC 8112)  
d. All payment and money 
transmission services 
 (CPC 81339**) 
 e. Guarantees and 
commitments of a financial 
nature 
 (CPC 81199**) 
  The minimum share capital for a bank may 
be modified by the Governing Council of the 
Office of the Supervisor of Banks. 
 
 Branches of foreign banks must appoint a 
proxy, who submits the application to operate 
in Nicaragua to the Office of the Supervisor of 
Banks, together with the authentic documentation proving that the bank is 
authorized to operate in  its country of origin 
and that the laws of that country allow it to open branches in Nicaragua. 
    
  TN/S/O/NIC
 Page 13Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
f. Trading on own or 
customers' account  
- Money market 
instruments 
  (CPC 81339**). 
- Foreign exchange 
  CPC 81333) 
- Transferable 
securities 
  (CPC 81321*) 
  Branches of foreign banks are considered to be 
domiciled in Nicaragua for all legal purposes 
and are subject to the laws of the country, without recourse to diplomatic channels in any 
matter relating to their operations in the 
country. 
   
- Participation in issues 
of all kinds of securities, including 
underwriting and 
placement as agents (whether publicly or 
privately) and 
provision of services related to such issues  
  (CPC 8132)   Branches of foreign banks may not announce or 
indicate the amount of capital and reserves held by the parent bank without announcing or 
indicating, at the same time, the assigned 
capital and reserves of the branch in Nicaragua. 
 
 The capital of branches of foreign banks 
authorized to operate in the country may be 
registered in accordance with the Law on 
Foreign Capital Investment of Nicaragua.  
   
 (4) Unbound, except as indicated in the horizontal 
section. (4) Unbound, except as indicated in the 
horizontal section. 
  
9. TOURISM AND TRAVEL-
RELATED SERVICES 
     
A. Hotels and restaurants  
    
 (including external contract 
catering services) 
 (CPC 641 + 643)  (1) Unbound 
(2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
 section. (1) Unbound 
(2) None 
(3) None   
(4) Unbound, except as indicated in the 
horizontal section.  
   
 TN/S/O/NIC 
Page 14 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
B. Travel agency and tour 
operator services  
 (CPC 7471) (1) Unbound 
(2) Unbound 
(3) None (4) Unbound, except as indicated in the horizontal 
section. 
 (1) Unbound 
(2) Unbound 
(3) None (4) Unbound, except as indicated in the 
horizontal section. 
  
C. Tourist guide services  
  Tourist guide services 
 (CPC 7472) 
 (1) None 
(2) None (3) None 
(4) Unbound (1) None 
(2) None (3) None 
(4) Unbound  
11. TRANSPORT SERVICES 
 C. Air transport services
 
 
 Maintenance and repair of 
aircraft 
 (CPC 8868**) 
  Rental services  of aircraft 
with crew 
 (CPC 734)  
 Supporting services for air 
transport 
 (CPC 8868**)  
  
 
 (1) None 
(2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
 section.  
  
 
 (
1) Unbound   (1) None  
(2) Unbound   (2) None  
(3) None (4) Unbound, except as indicated in the 
horizontal section.  
  
  
  TN/S/O/NIC
 Page 15Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
E. Rail transport services  
 
 Passenger transportation  (CPC 7111) 
 
 Freight transportation  (CPC 7112) 
 
 Pushing or towing services  (CPC 7113) 
  
 
 (1) None 
(2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
section.  
 
 (1) Unbound 
(2) None 
(3) Unbound (4) Unbound, except as indicated in the 
horizontal section.  
 Maintenance and repair of 
rail transport equipment 
 (CPC 8868**) 
 
 Supporting services for 
railway transport  
 (CPC 743) 
 (1) None 
(2) None (3) None 
(4) Unbound, except as indicated in the horizontal 
 section. (1) Unbound 
(2) None (3) Unbound 
(4) Unbound, except as indicated in the 
 horizontal section.
  
 
* Indicates that the service specified is a component of a more aggregated CPC item specified elsewhere in  this classification  list. 
 ** Indicates that the service specified c onstitutes only a part of the total range of  activities covered by the CPC concordance . 
 
 
_______________ 
  
 TN/S/O/NIC 
Page 16 NICARAGUA - FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS  
 
Sector or subsector Descri ption of measure indicating 
its inconsistency with Article II  Countries to which the 
measure applies Intended duration Conditions creating the need for 
the exemption 
Financial services Monetary and financial integration, 
free transfer of capital Guatemala, El Salvador, 
Honduras, Costa Rica and 
Nicaragua 
 
 Indefinite The Treaty on Central American 
Integration and its related 
instruments provide for progressive 
integration in different economic areas, including services of various 
kinds. 
 
  
 
__________