China and Nicaragua have initiated trading under a newly established free trade agreement, which formally started on Monday.
According to Reuters, this allowed the Central American country to export about 71% of its products into the largest Asian market without tariffs.
Products Eligible for Export Under China-Nicaragua Agreement
The products eligible for export include a diverse range, encompassing meat and seafood (such as fish, shrimp, lobsters, and sea cucumber), as well as sugar, peanuts, rum, leather, charcoal, wood, and automobile parts, according to state media reports.
The deal reportedly excludes Chinese products that could be problematic for the key industries in Nicaragua, like meat and its offal, coffee, sugar, and rice.
Nicaragua President Daniel Ortega: 'The Best Christmas Present'
During his speech on December 22, President Daniel Ortega, who has led Nicaragua for the past 17 years, hailed the trade agreement as "the best Christmas present." Ortega expressed optimism, emphasizing cooperation rather than confrontation.
"Our brothers are here to shake hands, not to attack us... Let the imperialists of the land learn how to govern, how to work for peace," he said.
The diplomatic shift toward China gained momentum after Nicaragua severed ties with Taiwan at the end of 2021. Since then, the Central American nation has increasingly turned to China for economic partnerships and collaborations.
The free trade agreement, formally signed on October 31 in a virtual meeting, has been shrouded in relative secrecy, with limited details disclosed to the public.
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