China and Nicaragua Delegations Meet to Explore and Enhance Bilateral Trade

The Official Business Delegation from the People's Republic of China, led by Li Xinqiang, Director General of the Department of International Trade at the Ministry of Industry and Commerce, met on Monday with the Nicaraguan delegation headed by Laureano Ortega Murillo, Presidential Advisor for Investments, Trade, and International Cooperation, with the aim of continuing to strengthen bilateral trade relations.

Laureano Ortega Murillo, Presidential Advisor for Investments, Trade, and International Cooperation, delivered a welcoming message to this important delegation visiting Nicaragua to explore and enhance bilateral trade.

“We want to reiterate our gratitude for this delegation, composed of 8 colleagues from the Ministry of Industry and Commerce and 24 businesspeople, who are here to promote trade, encourage investments, create jobs, and improve the living conditions of Nicaraguans, as well as to strengthen the bond between our peoples” he pointed out.

It is important to highlight that in August 2023, the bilateral Free Trade Agreement between Nicaragua and the People's Republic of China was signed, which will come into effect on January 1, 2024.

Laureano Ortega, on behalf of the President of Nicaragua and Vice President Rosario Murillo, extended a warm welcome to the important delegation from China’s Ministry of Commerce and Chinese businesspeople.

“We want to express our gratitude to President Xi Jinping, the Communist Party of China, and the Government and people of China for the high level of attention and priority they give to the bilateral relationship with Nicaragua” he said.

He also thanked Chinese Minister of Commerce Wang Wentao and Vice Minister of Commerce Wang Shouwen for delegating Li Xinqiang, Director General of Foreign Trade at the Ministry of Commerce of China, for this bilateral commercial exchange.

He shared that in December 2023, President Xi and President Ortega elevated the relations between the two countries to a China-Nicaragua Strategic Partnership, “so we have all the foundations to promote and advance trade and investments.”

The Presidential Advisor for Investments of Nicaragua recalled that the country has officially signed up for the Belt and Road Initiative promoted by President Xi Jinping. Recently, a direct maritime route between the port of Tianjin and the port of Corinto in Nicaragua was launched.

“Businesspeople, importers, and exporters interested in bringing products to the Chinese market, we have the possibilities and the foundation to develop this work. We are confident that with this visit, the meetings, and the exchanges we will carry out, we will be able to foster, promote, and strengthen this exchange” he assured.

He told the important delegation that Nicaragua should be seen as a platform for commercial operations towards the entire Central American market and “we want to reiterate that we will always provide special attention to the companies and businesspeople of the People's Republic of China, to promote and facilitate their investments and business projects.”

Nicaragua with a Growing Economy
The President of the Central Bank of Nicaragua (BCN), Ovidio Reyes, mentioned that Nicaragua has experienced significant economic recovery in recent years following the pandemic.

“Our economy is growing at a rate of 4.5% per year, and it is quite integrated into international trade. Essentially, it is an export-oriented economy, with both exports and imports representing nearly the equivalent size of the Nicaraguan economy” he said.

He noted that while there is a significant agricultural base, there is also room for the trade, services, and tourism sectors.

"We believe that this foundation constitutes the offer Nicaragua can provide for commercial exchange with China, in addition to the opportunities that can also be opened in the service sector" added the President of the BCN.

At the same time, he mentioned that “the basis of free trade with which Nicaragua participates in international markets is established in our country, where there is free circulation of goods as well as capital. In other words, there are no controls on foreign exchange in Nicaragua.”

Ovidio Reyes shared that Nicaragua has all the necessary elements for you to confidently conduct business and establish commercial, economic, and even personal relationships with our country.

Broad Commercial Platform with Free Trade Agreement
Jesús Bermúdez, Minister of Promotion, Industry, and Commerce, shared that the Free Trade Agreement negotiated provides tariff preferences for exports and imports.

“We have a very comprehensive Free Trade Agreement that includes many products produced by China and Nicaragua, which can be exchanged freely. More than 78% of all goods covered by the treaty enjoy free trade, which represents a significant number of products and opportunities that we hope you can take advantage of” he commented.

The Minister of MIFIC also highlighted that Nicaragua has a broad commercial platform with Free Trade Agreements.

“Nicaragua has over 13 Free Trade Agreements with more than 50 countries around the world,” including the United States, the 6 Central American countries, 27 European Union countries, Mexico, Cuba, South Korea, among others” he mentioned.

On the other hand, there are opportunities on the import side, meaning what the country purchases. “Nicaragua imports a little over 11 billion dollars annually. Fifty percent of these products are raw materials, intermediate goods, capital goods, and consumer goods that we do not produce.”

Exploring Bilateral Opportunities
Zhou Yi, in charge of the Chinese Embassy in Nicaragua, thanked the Government of Nicaragua for its firm support and warm welcome.

“Now China and Nicaragua are Strategic Partners and the Free Trade Agreement has already come into effect. Last month, the third Plenary Session of the XX Central Committee of the Communist Party of China (CPC) was successfully held in Beijing. The meeting proposed continuing the basic national practice of openness and building a high-level open economic system. For this reason, the Ministry of Commerce planned this trip for Nicaraguan and Chinese businesspeople to explore good opportunities between the two countries” he emphasized.

Li Xinqiang, Director General of Foreign Trade at the Ministry of Commerce of the People's Republic of China, reaffirmed that with the close relationship between President Xi and President Ortega, they are confident in making significant progress according to the established trust and work guidelines.

“The Ministry of Commerce and Chinese businesspeople are here to promote and foster the economic relationship. The Ministry of Commerce, along with the international trade department, is setting and analyzing how we can strengthen and increase import opportunities for Nicaragua. The second part involves experts encouraging and improving business opportunities with Nicaragua,” he added.

Li Xinqiang reminded that the businesspeople present on this visit are from some of the most important companies in China.

Source: 19 Digital