, CAFTA, a Key Element of Growth in Nicaraguan Economy

CAFTA, a Key Element of Growth in Nicaraguan Economy

Exports from Nicaragua to the United States increased 70.5 percent from 2006 to 2010, from $1,179.8 million to $2,012 million, if free-trade zone exports are included. 

According to the statistics of Banco Central de Nicaragua, exports increased in 2014, showing a 9.6% growth. This growth was mainly driven by products such as: coffee, peanuts, beans, sugar and dairy. Free-trade zone exports recorded a 7.2% increase as a result of higher exports of textiles, fishing products and footwear.  

Although its main purpose is to govern trade of products and services among member countries, it also includes regulations supporting national legislation such as observance of labor, environmental and intellectual property laws. It also includes standards for improving transparency in case of resolution of conflicts that may arise from the commercial exchange. 

In terms of Intellectual Property, the inclusion of Nicaragua in various International Treaties administered by the WIPO has been promoted, particularly becoming a signatory party of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) regulated by the World Trade Organization (WTC).  Its main purpose is to implement the policy of awarding national treatment to foreigners and to improve the trademark registration culture for hundreds of national producers who did not previously consider their brands to be a very valuable asset. 

There is no doubt that the free market policy has motivated national producers and foreign investors to consider Nicaragua as a haven of opportunities committed to establishing solid commercial relations with neighboring countries in order to continue to grow.

Sayra Gabriela Fornos Ortiz