Nicaragua and Chile sign free trade agreement

Feb. 23, 2011 - Nicaragua and Chile recently signed a bilateral protocol that ratifies the free trade agreement negotiated between both countries, which aims at boosting commercial exchange and fostering investments.

The protocol was signed by Samuel Santos, Minister of Foreign Affairs of Nicaragua, and Hernán Mena, Ambassador of Chile in Nicaragua, during a ceremony in the Central American nation. Orlando Solórzano, Nicaragua’s Minister of Development, Industry and Trade, and José Adán Aguerri, President of the Superior Council of the Private Enterprise of Nicaragua (COSEP, for its acronym in Spanish), also participated in the event as guests of honor.

The free trade agreement still needs to be ratified by the national assemblies of both nations in order for it to enter into force, however, this process should be concluded in upcoming months.

Roberto Brenes, General Manager of the Center for Exports and Investments of Nicaragua (CEI), commented that the agreement has generated high expectations in terms of investments. “We are betting on the agribusiness sector, for example in cassava and canned fruits and vegetables, where we are still incipient; we are looking for investors interested in producing value-added goods”, said Brenes.

Brenes and Solórzano also emphasized that the free trade agreement includes a legal framework that will offer investors plenty of security.

According to the Center for Export Procedures (CETREX, for its acronym in Spanish), Nicaraguan exports to Chile reached US$6.2 million during 2010; in turn, imported goods from Chile registered approximately US$13 million last year, demonstrating a commercial deficit for Nicaragua. Aguerri, President of COSEP, told local journalists that he expects the free trade agreement to boost commercial exchange between both countries in at least 20 percent.

The signing of this agreement with Chile is part of Nicaragua’s strategy to enhance international trade and foster economic relations with the world’s most important markets. Currently, through preferential access and free trade agreements, Nicaragua has an estimated market access of over 1.2 billion people in countries such as the United States, Mexico, Canada, Taiwan, the European Union, Colombia and the Central American region.

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