China-Nepal Free Trade Agreement Officially Takes Effect, Zero Tariffs Boost Bilateral Cooperation

The China-Nicaragua Free Trade Agreement officially took effect on January 1, 2023, a significant achievement two years after the resumption of diplomatic relations between the two countries and just two weeks after elevating bilateral relations to a strategic partnership. This historic agreement will enhance economic cooperation and trade between the two nations, with far-reaching impacts for both sides.

According to the agreement signed on August 31, 2023, China and Nicaragua will implement zero tariffs on over 95% of tariff lines in goods trade. Specifically, approximately 60% of tariff lines will immediately enjoy zero tariffs upon the agreements生效. This means that 60% of Nicaraguas current exports, including beef, sugar, seafood, honey, equestrian gear, textiles, and more, will enter the Chinese market under zero-tariff preferential conditions.

This agreement also holds significant importance in the service trade sector. It is Chinas first free trade agreement to open cross-border service trade and investment through a negative list approach. This opening method will provide broader cooperation opportunities for both parties, particularly in key areas such as agriculture, textiles, logistics, tourism, and economic-technical cooperation for small and medium-sized enterprises.

The implementation of the free trade agreement will significantly boost Nicaraguas export growth and enhance its competitiveness in the Chinese market. For China, this will not only diversify the range of products available in its market but also promote Chinese enterprises investments and business expansions in Nicaragua, further deepening economic ties between the two countries.