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Nicaragua could triple its exportable volume of traditional products to China in the next ten years if a large-scale investment project is established, said the president of the Nicaraguan Council of Micro, Small and Medium Enterprises (Conimipyme), Leonardo Torres.
"We have enough land, we have no land limit and we have no water limit, which is key for productivity. What Nicaragua needs are irrigation systems to be able to increase its productive cycle. Nicaragua bases its productive cycle in winter and summer, but we do not have massive irrigation systems and China has those massive irrigation systems, which means a great opportunity for Nicaragua," Torres explained.
After his arrival from the People's Republic of China on Sunday December 12, the Minister of Finance and Public Credit, Ivan Acosta, said that the restoration of relations between the governments of Beijing and Managua opens "space for greater investment" and an expansion of the market for Nicaraguan exports, estimated at more than 3.5 billion dollars in 2021.
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"The aspiration is to double that amount in the next 10 years and this is only possible with a large market that demands our product and we can establish all the necessary mechanisms to attract more investments, higher quality investments that energize our country's exports to the world and to the People's Republic of China," Acosta said.
The opportunity for the economic development of the Central American nation could reach US$20 billion in the next decade if one considers Chinese investment in Nicaragua with planting and harvesting technology and communication technology in the existing free trade zone, where annual exports are around US$3 billion.
"Nicaragua could easily become an assembler of communication technology, cell phones, home appliances, we can perfectly assemble televisions, sound equipment and Chinese investment could come to settle in technological free trade zones, there is a great opportunity for us," he said.
The expectations with the new context of international trade development relations of Nicaragua "excite" the businessmen of this country, because according to the head of Conimipyme, it would allow them a sustained growth of up to 9% of the Gross Domestic Product (GDP).
#Nicaragua and #China resumed diplomatic relations on Dec 10 with the two sides agreeing to advance bilateral trade cooperation. Yu Jianhua, China international trade representative and vice minister of @MOFCOM_China welcomed Nicaragua to attend the 5th #CIIE. #CIIE2022 pic.twitter.com/I2OzhdXrZo
— China International Import Expo (@ciieonline) December 14, 2021
"Here you have another potential for these zones, say $2 billion more in free trade zones tripled for the next 10 years, we would be talking about an exportable development with a jump of the Gross Domestic Product of Nicaragua to 8 to 9% and we would no longer be talking about 4%, for that you have to have the infrastructure of Nicaragua to work on this," detailed Torres.
The businessman considered that the Government of Nicaragua should rethink the National Plan for the Fight against Poverty and Human Development 2022-2027 to redirect the approaches and development goals for the next five years.
The Nicaraguan government on December 9 recognized China as a single territory and broke off relations with Taiwan, which had been in place since 1990.
The new ties with China enable the Central American nation new prospects for trade and foreign direct investment advanced in conservations between the Government of Nicaragua, the China International Development Cooperation Agency and China Council for the Promotion of International Trade and Investment.
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