The two countries are negotiating a special arrangement in which tariffs will be reduced.
That is reflected in the cooperation agreement signed between the World Business Council for Promoting Economic and Trade Relations with China (CEFECH) and the Association of Friends with the Peoples Republic of China (Pro-NicaChina).
"Although Nicaragua's ambition is to obtain a free trade agreement (FTA) with China, Bayardo Arce, coordinator of Pro-NicaChina, acknowledged that it won’t be easy, so an alternative agreement is been negotiated providing preferential tariffs for Nicaraguan exports,” reports Laprensa.com.ni.
The country awaits response from the Chinese Government to the proposal of signing a Free Trade Agreement.
Economic affairs adviser to the president, Bayardo Arce, speaking to media said they hope by the end of the year to receive the response.
In an article, El Nuevo Diario reports, “I think (the proposal for a trade agreement) we received a positive feedbak and we hope to get an answer this year," said Arce, who recently visited China, a country which Nicaragua has no diplomatic ties with because it has them with Taiwan."