On December 13, 2024, the U.S. Trade Representative initiated a Section 301 investigation into Nicaragua's acts, policies, and practices related to labor rights, human rights and fundamental freedoms, and the rule of law.
On October 20, 2025, USTR announced 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 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.
Official Documents
- Federal Register: Determination and Request for Comments: Action Pursuant to Section 301; Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law (October 23, 2025)
- USTR: Section 301 Investigation Report on Nicaragua's Acts, Policies and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law (October 20, 2025)
- Federal Register: Initiation of Section 301 Investigation, Hearing, and Request for Public Comments: Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights, and Rule of Law (December 13, 2024)