Nicaragua and China Begin a New Phase of Economic and Trade Collaboration

With the signing of important agreements and the holding of the Business Forum, Nicaragua and China, through the official business delegation visiting the country, reaffirmed their close collaboration and economic and trade partnership for mutual benefit, putting the Free Trade Agreement (FTA) into practice.

The meeting is chaired by Comrade Li Xinqiang, Director General of the Department of International Trade of the Ministry of Commerce of the People's Republic of China; Comrade Laureano Ortega Murillo, Presidential Advisor for Investments, Trade, and International Cooperation; Ovidio Reyes, President of the Central Bank of Nicaragua (BCN); Comrade Jesús Bermúdez, Minister of Development, Industry, and Trade; Zhao Chunjiang, Director of the Economic and Commercial Office of the Chinese Embassy in Nicaragua, among others.

As part of the business partnership mechanisms, this forum features the participation of 24 Chinese entrepreneurs and 19 companies from Nicaragua, exchanging information, signing agreements, and putting the Free Trade Agreement (FTA) into practice.

China considers Nicaragua a priority partner in Central America  
Comrade Li Xinqiang, Director General of the Department of International Trade of the Ministry of Commerce of the People's Republic of China, stated that they view Nicaragua as the most important trade partner in Central America, with priority given to trade collaboration.

“Today, the visit of our delegation is a strong initiative to implement the important consensus between the Heads of State. China's trade departments and Chinese companies are willing to learn more about the Nicaraguan market and companies, and introduce more high-quality Nicaraguan products into the Chinese market", he added.

He mentioned that China is the world's second-largest economy and the largest trading nation, with a market of over 1.4 billion people that is fully open to Nicaragua.

He emphasized that this represents a historic market opportunity and reiterated China's commitment to supporting and assisting Nicaragua in enhancing its trade capacity.

Comrade Li Xinqiang shared that Nicaragua has been invited as the guest of honor at the 17th China International Import Expo (CIIE), which will take place in November of this year.

“We invite more Nicaraguan companies to exhibit in Shanghai, China, to showcase their special products and promote the entry of more Nicaraguan products into the Chinese market, to achieve mutual benefits and a win-win outcome”, he stressed.

He pointed out that since the re-establishment of diplomatic relations between China and Nicaragua in 2021, economic and trade relations between the two countries have developed rapidly, with trade exchanges becoming increasingly closer, making China Nicaragua's third-largest trading partner.

In the first half of 2022, bilateral trade volume reached $570 million, representing a year-on-year increase of 56%.

Last December, President Xi and President Ortega jointly announced the establishment of the China-Nicaragua Strategic Partnership, and on January 1 of this year, the Free Trade Agreement came into force, opening a new chapter and ushering in a new era of bilateral economic and trade collaboration.

The Presidential Advisor for Investments, Trade, and International Cooperation reiterated that the groundwork has been laid to promote, enhance, and strengthen trade exchanges between the peoples, entrepreneurs, producers, importers, and exporters of both nations.

“Now it is a matter of working to make the most of these opportunities that our governments are providing to the people of Nicaragua and China, to come closer, collaborate, cooperate, and work as brothers for mutual benefit, and to mutually consider each other as regional platforms: Nicaragua as the platform for Chinese products in the Central American region and China as our platform for the entire Asian market”, he emphasized.

Strengthening Cooperation and Partnerships
Comrade Laureano highlighted that this Business Forum is an activity that will enable the establishment of mechanisms for cooperation and business partnerships.

"These are precisely the types of activities that will allow us to get to know each other better, establish mechanisms for cooperation and business partnerships, and at this Business Forum, information will be exchanged, agreements will be signed, and the Free Trade Agreement and economic exchange will be put into practice", he said.

Facilitating Joint Work
He assured that China is a great market, which at the same time is a new market for Nicaragua.

"So, we need to work to better understand how to access that market, achieve greater penetration, find better logistical routes for shipping goods, establish better contacts between entrepreneurs, and facilitate everything within the government's reach to make this a reality as efficiently and effectively as possible so that you, the entrepreneurs, can carry out this work as easily as possible", he expressed.

The Advisor for Investments pointed out that this meeting is also an opportunity for exchanges with Chinese entrepreneurs, reiterating the great opportunity that exists for them to invest in Nicaragua.

He expressed gratitude for Brother Xinqiang's words, reiterating that China considers Nicaragua a priority partner in Central America. "These are words of great weight and relevance that we appreciate and thank, and rest assured that we will honor China's willingness to cooperate with Nicaragua in a special way, and on our part, we will put in all our efforts to promote exchanges with the brotherly Chinese people".

Both Countries with a Strong Economy
In his remarks, the President of the Central Bank of Nicaragua (BCN), Ovidio Reyes, highlighted Nicaragua's macroeconomic condition, which allows this bilateral and business trade relationship to be successful for both countries.

"Although we are at a distance, both countries share something in common: economic strength, economic drive, and financial solidity. Our economy is dynamic, strong, and has sufficient internal and fiscal savings, which has allowed us to operate with a current account surplus in the balance of payments", he explained.

He also noted that it is a fluid market economy, which integrates into the international market with ease, and that the Nicaraguan business sector has extensive experience.

Nicaragua Achieved $52 Million in Exports
Comrade Jesús Bermúdez, Minister of Development, Industry, and Trade, recalled that the challenge now is to make good use of this treaty to increase trade and investments between both countries.

"With this treaty, we have great advantages because it was negotiated on a solid political foundation and on a solid foundation of cooperation and trust, which has created flexible regulations within the treaty, allowing Nicaraguan and Chinese entrepreneurs to take advantage of this Free Trade Agreement", he assured.

He shared that Nicaragua, in the first half of this year, reached $52 million in exports in various products such as sugar, meat, textiles, seafood, oil, and others.

The Director of the Economic and Commercial Office of the Chinese Embassy in Nicaragua, Zhao Chunjiang, reiterated that Nicaragua is a very important partner for China in the economic and trade relationship, "and this collaboration further deepens mutual understanding and trust, marking the beginning of a new phase of bilateral economic and trade collaboration".

Signing Ceremony of the Letter of Intent
At this important business meeting for both countries, the signing ceremony took place.

China Postal Telecommunications and Central American Fisheries S.A.
signed a letter of intent for the purchase of frozen live lobsters, and China National Municipal and Camanica signed a letter of intent for the purchase of shrimp.

Comrade Li Jingyi, representative of China Postal Telecommunications, noted that with the Free Trade Agreement, import purchases from Nicaragua have increased.

"This time, we have come to sign the letter of intent, which we already have, and also to seek new developments and collaborations with more Nicaraguan companies", he mentioned.

Comrade Gou Xiaoawei of China National Municipal said that with this signing of the letter of intent for shrimp purchases, they will take advantage of the Free Trade Agreement.

"In China, we have a large shrimp consumption market, and Nicaraguan shrimp is very popular, and the Chinese people like it very much", he concluded.

Source: 19 Digital