LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

August 4, 2023

What Will China & Nicaragua Get Out of a Trade Accord?

Nicaraguan Finance Minister Iván Acosta said a trade agreement with China could add two percentage points to the Central American country’s gross domestic product. // File Photo: Nicaraguan Government.

Q

A

Ryan C. Berg, director of the Americas Program at the Center for Strategic & International Studies: “The announcement of the trade deal follows the Ortega-Murillo regime’s diplomatic pivot at the end of 2021 to China, as well as accession to the Belt and Road Initiative in early 2022. The regime’s turn away from its traditional ally Taiwan has much to do with its efforts to insulate the dictatorship in Managua from U.S., European, and to a lesser extent, regional pressure. Until now, however, we have witnessed less Chinese engagement than expected with the regime. That could start to change with the conclusion of a trade agreement—although the details remain unknown given the opacity that is the familiar hallmark of both governments. From China’s perspective, it has an interest in keeping fellow authoritarian ilk in power. From Ortega’s perspective, a trade agreement with China is critical to offsetting Nicaragua’s traditional dependence on the U.S. market—a dynamic established over years of…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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