This country has completed important negotiations with China and reached an agreement with Taiwan after severing diplomatic ties | Nicaragua | China
According to a report by Effe on July 26th, China and Nicaragua completed negotiations on a free trade agreement on the 25th, which aims to promote bilateral exchanges and economic cooperation between the two countries.
On the 25th, Chinese Minister of Commerce Wang Wentao met with Nicaraguan Minister of Development, Industry and Trade Bemudes via video in Beijing, jointly announcing the substantive completion of negotiations on the China Nepal Free Trade Agreement.
The Chinese Ministry of Commerce released a statement on its website on the evening of the 25th, stating that both sides have agreed to intensify technical preparations and fulfill domestic approval procedures, striving to sign and implement the agreement as soon as possible.
The statement emphasizes that the signing of a free trade agreement between China and Nepal is an important measure to implement the consensus of the leaders of the two countries. It will provide institutional guarantees for economic and trade exchanges between the two countries, further enhance the level of bilateral economic and trade cooperation, and promote greater development of China Nepal bilateral relations in the new era.
The comprehensive negotiations on the China Nepal Free Trade Agreement were launched in July 2022. On May 1st this year, the early harvest of the China Nepal Free Trade Agreement officially came into effect, and Nicaragua's exports of beef and seafood to China are exempt from tariffs.
On December 31, 2021, the reopening ceremony of the Chinese Embassy in Nicaragua was held in the capital city of Nicaragua.
According to official data, the bilateral trade volume between China and Nicaragua in 2022 was 760 million US dollars.
China mainly exports textiles, computers, and communication equipment to Nicaragua, and imports agricultural products, sugar, leather, and wood from Nicaragua.
![This country has completed important negotiations with China and reached an agreement with Taiwan after severing diplomatic ties | Nicaragua | China](https://a5qu.com/upload/images/23b94716a4913ba505e3c93315f9496e.jpg)
According to Agence France Presse on July 25th, Nicaraguan officials stated that Nicaragua has ended negotiations on a free trade agreement with China. The agreement is expected to be signed in August this year and will come into effect early next year.
"We have substantially concluded the negotiations," said President's Trade and Investment Advisor Laureano Ortega Murillo to the media
Finance Minister Ivan Acosta stated that the agreement may increase Nicaragua's gross domestic product by at least two percentage points.
The details of the agreement have not been disclosed yet, and it is expected to come into effect in January 2024.
Nicaragua and China established diplomatic relations in 2021, after severing ties with Taiwan.
Since then, both sides have signed multiple agreements to promote China's investment in this Central American country. In April of this year, with the assistance of the Chinese side, Nicaragua began building thousands of affordable housing.
China has made diplomatic progress in Central America, with the most recent being in March this year when Honduras abandoned diplomatic recognition of Taiwan and turned to establishing diplomatic relations with Beijing.