Business in Nicaragua, Managua

The objectives of the subject “Foreign Trade and Business in the Republic of Nicaragua” are the following:

1. To analyse the Nicaraguan Economy and Foreign Trade (Import, Export, FDI)
2. To know the business opportunities in the Republic of Nicaragua
3. To explore the Nicaraguan trade relations with the country of the student
4. To know the Nicaraguan Free Trade Agreements
5. To examine the profile of Nicaraguan Companies
6. To develop a business plan for the Nicaraguan Market

Nicaraguan Free Trade Agreements and Market Access

1. Nicaragua and the Latin American area
2. Central American Integration System (SICA)
   1. Central American Common Market - Integrated with the SICA -
3. Association of Caribbean States (ACS)
4. Bolivarian Alliance for the Peoples of Our America (ALBA)
5. Latin American and Caribbean Economic System (SELA)
6. The Republic of Nicaragua has Free Trade Agreements (FTA) in force with Mexico, Panama, Colombia, European Union, and Chile
7. Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR)
8. Dominican Republic-Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua) Free Trade Agreement (FTA)
9. Nicaragua-Taiwan Free Trade Agreement (FTA)
10. South Korea-Central America (Costa Rica, El Salvador, Honduras, Nicaragua, Panama) Free Trade Agreement (FTA)
11. United Kingdom-Central America Free Trade and Economic Integration Agreement
12. Panama-Nicaragua Free Trade Agreement (FTA)
13. Mesoamerica Project
14. Global System of Trade Preferences among Developing Countries (GSTP)
15. Latin American Integration Association (ALADI) (observer)

Trade Facilitation Programs

1. World Trade Organisation (WTO)
   1. WTO General Agreement on Trade in Services (GATS)
   2. WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
   3. WTO Agreement on Technical Barriers to Trade (TBT)
   4. WTO Agreement on Preshipment Inspection (PSI)
   5. WTO Agreement on Safeguards (SG)
   6. WTO Trade Facilitation Agreement (TFA)
2. World Customs Organisation (WCO)
   1. Revised Kyoto Convention (RKC)

American Trade and Economic Organisations

1. Inter-American Development Bank (IDB)
2. Organisation of American States (OAS)
3. Economic Commission for Latin America and the Caribbean (ECLAC)
4. Forum for East Asia-Latin America Cooperation (FEALAC)
5. Community of Latin American and Caribbean States (CELAC)
   1. European Union-CELAC Summit

Global Organisations

1. United Nations (UN)
   1. Conference on Trade and Development (UNCTAD)
   2. International Trade Centre (INTRACEN)
   3. World Intellectual Property Organisation (WIPO)
2. World Bank (WB)
3. World Trade Organisation (WTO)
4. International Monetary Fund (IMF)

The Republic of Nicaragua.

1. The population of the Republic of Nicaragua (6 million) is very young (80% under the age of 39)
2. Managua, the capital of the Republic of Nicaragua, has a total population of 1.3 million people; 27% of the population of Managua (350,000) are between 20-34 years
3. Nicaraguan official language: Spanish
4. Nicaragua has an advantaged location on the American continent (2'30 hours by Air, three days by sea from the United States)
5. Nicaragua shares borders with Honduras and Costa Rica
6. Nicaragua is the biggest nation in Central America (130,600 square kilometres)
7. Nicaragua gained the independence from Spain in 1811
8. Abolition of Slavery in Nicaragua: 1836
9. African Diaspora in Nicaragua: 0.5 million people (9% of the Nicaraguan population)
10. Political crisis

Religion in Nicaragua: Christianity (Catholicism: 2.6 million)

Nicaragua belongs to the Western Civilisation - Latin American area

Nicaraguan Economy

1. The Republic of Nicaragua is one of the top economies in the Central American region with the most favourable conditions for doing business (World Bank).
2. Nicaragua has a 22,000 kilometres of road network connecting Managua (the Capital of Nicaragua) to all the main cities
3. The Pan-American Highway (370 kilometres) connects Nicaragua with Honduras and Costa Rica
4. The telecommunication sector is completely privatised and is considered to be one of the most modern in Central America
5. On the Latin American Globalisation Index, Nicaragua was ranked as the third most globalised country in Latin America
6. The flight time from Managua to the United States is two hours by plane and three days by ship. This proximity of Nicaragua to North America, Central, and South America positions it as very interesting facilities for companies exporting to these markets
7. Nicaraguan Gross Domestic Product: 6,400 million
8. Agribusiness, fisheries, and forestry accounted for 19% of the GDP of Nicaragua
9. In the Republic of Nicaragua, there are thirty-eight industrial parks, mainly in the textile and clothing sector and manufacturing sector (especially medical devices)
10. Nicaraguan Currency: Córdoba

Foreign Trade of Nicaragua

1. Nicaraguan total exports: 2,700 million dollars
2. Nicaragua is an excellent export platform for access to regional markets (Mexico, Central and South America, and the Andean Countries)
3. Nicaragua is a member of the Central American Common Market
4. Nicaragua is the third most globalised nation in Latin America (Latin American Globalisation Index)
5. Main Export Markets of the Republic of Nicaragua are the United States, Central American Common Market, European Union (EU), Mexico, and Japan
6. The main import partners of Nicaragua are the United States, Mexico, Costa Rica, Venezuela, Guatemala, and El Salvador
7. The Inter-American Development Bank forgives 50% of Nicaraguan foreign debt

Foreign direct investment (FDI) in Nicaragua.

1. Total FDI: 434.2 million dollars
2. The main sectors receptors of foreign direct investment: energy, telecommunications, and Free Zones