On August 5, 2004, the United States signed the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) with five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and the Dominican Republic (the Parties). Under the Agreement, the Parties significantly liberalized trade in goods and services.
The CAFTA-DR also includes important disciplines relating to: customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, electronic commerce, intellectual property rights, transparency and labor and environmental protection.
The Agreement entered into force for the United States and El Salvador on March 1, 2006; for Honduras and Nicaragua on Aril 1 2006; and for Guatemala on July 1, 2006. The CAFTA-DR entered into force for the Dominican Republic on March 1, 2007, and for Costa Rica on January 1, 2009.
Nicaragua Trade & Investment Summary
U.S. goods and services trade with Nicaragua totaled an estimated $9.2 billion in 2022. Exports were $3.1 billion; imports were $6.1 billion. The U.S. goods and services trade deficit with Nicaragua was $3.0 billion in 2022.
U.S. goods exports to Nicaragua in 2022 were $2.7 billion, up 23.0 percent ($497 million) from 2021 and up 135 percent from 2012. U.S. goods imports from Nicaragua totaled $5.7 billion in 2022, up 23.3 percent ($1.1 billion) from 2021, and up 108 percent from 2012. The U.S. goods trade deficit with Nicaragua was $3.1 billion in 2022, a 23.6 percent increase ($586 million) over 2021.
U.S. exports of services to Nicaragua were an estimated $448 million in 2022, 26.6 percent ($94 million) more than 2021, and 9 percent greater than 2012 levels. U.S. imports of services from Nicaragua were an estimated $377 million in 2022, 23.2 percent ($71 million) more than 2021, and 30 percent less than 2012 levels. Leading services exports from the U.S. to Nicaragua were in the transportation, travel, and financial services sectors. The United States had a services trade surplus of an estimated $71 million with Nicaragua in 2022, up 47.9 percent from 2021.
U.S. foreign direct investment (FDI) in Nicaragua (stock) was $334 million in 2022, a 16.4 percent increase from 2021.
Nicaragua's FDI in the United States (stock) was $3 million in 2022, up 50.0 percent from 2021.
