Tariff Increase, CAFTA-DR Suspension Among Possible Actions Against Nicaragua

After a 10-month Section 301 investigation, the Office of the U.S. Trade Representative announced Oct. 20 its determination that Nicaragua’s acts, policies, and practices related to abuses of labor rights, abuses of human rights and fundamental freedoms, and dismantling of the rule of law are unreasonable and burden or restrict U.S. commerce. USTR’s final report in this investigation is available here.

USTR is considering taking the following actions in response to this finding and is accepting public comments on them through Nov. 19.

– suspending the application of some or all CAFTA-DR benefits to Nicaragua, including tariff concessions and cumulation of Nicaraguan content for other CAFTA-DR partners, immediately or phased in over a period of up to 12 months

– applying tariffs of up to 100 percent on some or all Nicaraguan imports, immediately or phased in over a period of up to 12 months