Nicaragua: Trade Measures Against Tobacco and Peanuts

A bill to subsidize the production of peanuts in the U.S. and an initiative that would restrict imports of machine-made tobacco has caused concern in the private sector.

Monday, May 12, 2014

The agricultural bill and the initiative sent to consultation by the FDA in the United States includes the establishment of $10 as the price parameter for classifying cigars as premium and in the case of peanuts, raising production of grain by 30% through the application of an agricultural subsidy.

The President of the Superior Council of Private Enterprise (COSEP), Jose Adam Aguerri said that "Nicaragua is the second largest supplier of cigars to the United States. Of the 135 million units shipped every year, 105 million are sold as premium cigars. The problem is that most of these prices fail to achieve ten dollars per unit. "

"In the case of peanuts, if the agricultural bill initiative is finally approved to subsidize this grain, damage would be felt in Nicaragua within two or three years. 'If there is overproduction in the United States, they are going to have to put peanuts in markets today where Nicaraguan peanuts go to, we will not be able to compete with subsidized peanuts,' he said. "

More on this topic

New Rules for Cigars in the US

July 2016

From August 8 premium handmade tobacco leaf cigars will be subject to the same regulation as cigarettes manufactured with additives.

A group of tobacco companies in Nicaragua will be holding meetings in the US with local companies who have invested in tobacco plantations and cigar factories in order to assess the impact of the entry into force of the new regulation. 

Dairy Conflict Between Nicaragua and Honduras

April 2016

The dairy sector in Nicaragua has denounced the imposition of non-tariff barriers by Honduras, whose health authorities have delayed the renewal of certificates for nicaraguan plants.

It has been estimated that 750,000 liters of milk per month have ceased to be exported to Honduras since November 2015, because the National Agricultural Health Service has not renewed certification of dairy plants in Nicaragua.

Brazil to Export Beef to United States

June 2014

A statutory amendment will allow Brazil to use a World Trade Organization quota to export beef to the United States.

Nicaraguan producers and exporters have raised concerns about the possible impact of changes in trade policies which are being discussed by the U.S. Congress, which directly affect the export of peanuts, tobacco and meat, the latter product due to possible entry of beef from Brazil.

U.S. May Not Renew TPL with Nicaragua

July 2013

The U.S. Undersecretary of Commerce stated that Nicaragua no longer needs tariff preferences for its textile industry.

Nicaragua's textile industry could lose tariff preferences in 2014, said an American official who believes that renewal is unnecessary .

"I think that this is an industry that could compete globally today and maintain its position in the market (...) with or without " those preferences, said Walter Bastian, U.S. Undersecretary of Commerce.

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