USTR Concludes Nicaragua Violating Labor and Human Rights
The Office of the U.S. Trade Representative says that Nicaragua's leaders are repressing labor rights and human rights, and dismantling the rule of law, and that these authoritarian actions are directly and indirectly harming U.S. commercial interests.
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A Section 301 report, released Oct. 20, says that Nicaragua has created unfair competition with U.S. workers by exploiting its own workers, has confiscated property of Americans and U.S. businesses in Nicaragua, and "created a high-risk environment for U.S. companies investing and conducting business in the country."
The report said, "Nicaragua’s dismantling of rule of law has led to diminished investment, exports, and business activity by U.S. companies, higher costs through unjust fines, taxes, or corruption, and lost revenues (or increased costs) through lack of enforcement of court rulings."
USTR laid out four possible courses of action in response:
- Suspend Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) benefits, including Nicaraguan content incorporated in products made in other CAFTA countries, immediately or phased in, possibly over a year.
- Suspend some CAFTA-DR benefits, immediately or phased in.
- Apply 100% tariffs to Nicaraguan exports, immediately or phased in, possibly over a year.
- Apply 100% tariffs to some Nicaraguan benefits, immediately or phased in.