Due to the high demand for commodities, it is estimated that prices in the international market have increased on average between 30% and 40%, a situation that favors Nicaraguan exporters of raw materials.
According to local businessmen, the price of coffee has climbed to historic highs, since last week it was quoted at $170 per quintal, a price that has not been registered since years ago.
During the first two months of the year, the country's sales abroad amounted to $519 million, 15% more than the same period in 2019, a rise that is explained by the increase in international prices.
Figures from the Center for Export Procedures (Cetrex) detail that between the first two months of 2019 and the same period of 2020, exports increased by $68 million, from $450 million to $519 million.
The business sector in Nicaragua believes that the bill under discussion in the Assembly, which empowers the government to fine agricultural producers if they fail to comply with approved phytosanitary standards, has excessive discretion.
A few days ago, a bill called the "Plant Protection Law" was submitted to the National Assembly. This is a legal framework that empowers the Institute of Protection and Health (IPSA) to impose sanctions ranging from $100 to $700 on any producer that does not comply with the requirements at the time the government carries out an inspection.
For the local export sector, strategies focused on transforming the productive matrix are needed, so that in the next 20 years’ income from sales abroad will reach $18 billion annually.
According to figures revealed by Nicaraguan exporters, between 2018 and 2019 income from sales abroad increased 6%, growing from $2,617 million to $2,782 million. This increase occurred in a context of falling production.
During the first month of the year, Nicaraguan seafood exports totaled $16.7 million, 19% less than what was reported in the same month in 2019, a situation explained by the decline in demand from Asia and the U.S., important destinations for this sector.
According to data from the Center for Export Processing (Cetrex), between January 2019 and the same month of 2020 exports of seafood products recorded a fall of $ 4 million, from $ 16.7 million to $ 20.7 million.
In a context of economic recession, Nicaraguan exports have recorded good performance, as to November 2019 revenues totaled $2,536 million, 4% higher than reported in the same period of 2018.
Figures from the Centro de Tramites de Exportaciones (Cetrex) detail that between January and November 2018 and the same period in 2019, foreign sales increased by $89 million, going from $2,447 million to $2,536 million.
Although between January and September 2019, Nicaraguan exports grew 2% compared to the same period in 2018, businessmen say it is because of an atypical behavior of gold and fish sales, not a general improvement.
According to figures from the Center for Export Procedures (Cetrex), between January and September 2018 and the same period in 2019, sales of companies in Nicaragua abroad went from $2.075 million to $2.108 million.
During the first five months of the year, exports totaled $1.145 million, 10% less than in the same period in 2018, and export destinations also declined in the period concerned.
According to data from the Centro de Trámites de Exportaciones (Cetrex), between January and May 2018 and the same period in 2019, foreign sales decreased by $134 million, going from $1.279 million to $1.145 million.
In Nicaragua, authorities reported a decision to suspend collection of the additional fee of $0.05 for each kilogram exported or imported by air.
The extra charge came into effect last April 25, but from the beginning the private sector spoke out against it, because it was argued that the tariff that the Nicaraguan government would apply, would put some local companies on the border of closure and cause a decrease of about $50 million annually.
The plan to impose a 5% tariff on Mexican products entering the U.S. would open up opportunities for Central American countries to increase their sales to the U.S., but there are fears that similar measures could be taken against the region.
On May 30, President Trump announced on his Twitter account that he plans to impose a 5% tariff on Mexican products entering the U.S.
With the approval of the tax reform, in Nicaragua the period for exporting companies to transfer the tax credit to the producer or manufacturer was reduced from three to two months.
At the end of February, the National Assembly approved the amendment to the Tax Concertation Law, which increases from 1% to 3% the income tax of large taxpayers and also shortens the deadline for exporters to transfer the tax credit to producers, which is 1.5% on the value of FOB exports.
The European Parliament will evaluate Nicaragua's possible suspension of the Association Agreement, which allows 91% of products, mostly agricultural, to enter the 28 EU countries under preferential conditions.
The European Parliament plans to discuss Nicaragua's suspension of the Association Agreement (AA), an agreement that allows 91% of products, mostly agricultural, to enter the 28 EU countries under preferential conditions.
The year-on-year fall of 3.5% reported in exports up to January 2019, results from the contraction of coffee, sugar, peanut and fish sales.
Statistics from the Center for Export Procedures (Cetrex) indicate that between January 2018 and the same month in 2019, the country's foreign sales decreased by $8.5 million, going from $239.5 million to $231 million.
Even though in 2018 cocoa was better quoted internationally, the volume sold abroad fell 8% compared to 2017, going down from 4,238 to 3,886 tons.
In contrast to the negative variation in the volume traded, figures from the Export Processing Center (Cetrex) detail that between 2017 and 2018 the value of exports registered a 18.9% growth, increasing from $5.3 million to $6.3 million. This increase is explained by the behavior of the grain price.
The exporters' guild estimates that the new year will be difficult for the country's economy, since there are multiple factors that threaten the growth of foreign sales.
The Association of Producers and Exporters of Nicaragua (APEN) reported that the expectation of year-on-year increase in export revenue for 2018 ranged between 6% and 10%, however, there was a 1% decrease.
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