USTR’s Measured Approach on Nicaragua is Great News for U.S. Pork

Known around the globe as the “land of fire and water,” Nicaragua has more recently become known as a rapidly growing destination for U.S. pork.

Duty-free access through Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR has helped Nicaragua move up to 13th among all export markets this year. Exports will approach 20,000 metric tons (mt) in 2025, more than doubling over the past five years and up from less than 1,500 mt a decade ago. Export value is estimated at $68.5 million – up 180% since 2020, the U.S. Meat Export Federation (USMEF) said in its latest report.

The United States Trade Representative (USTR) recently announced that the U.S. will impose tariffs on all imported Nicaraguan goods that are not originating under the CAFTA-DR. The tariff will initially be set at zero, but is set to increase to 10% in 2027 and to 15% in 2028.

“This announcement represents a much more measured approach than some of the potential actions USTR proposed in October, which included possible suspension of Nicaragua’s CAFTA-DR benefits and tariffs of up to 100%,” USMEF reports. “This is great news for the U.S. pork industry.”

The U.S. holds about 95% of Nicaragua’s imported pork market, points out Lucia Ruano, USMEF Central America representative.

“Demand for U.S. pork in Nicaragua is being driven right now by a combination of improved market access, changing consumption habits and strong market development efforts,” Ruano says. “And a key factor was the full tariff phase out under the free trade agreement in 2020 which allows U.S. pork to enter the market at zero duty. That made U.S. pork more competitive and more accessible to importers and retailers.”