Foreign relations of Nicaragua

Nicaragua
This article is part of a series on the
politics and government of
Nicaragua

Nicaragua pursues an independent foreign policy. A participant of the Central American Security Commission (CSC), Nicaragua also has taken a leading role in pressing for regional demilitarization and peaceful settlement of disputes within states in the region.

Nicaragua has submitted three territorial disputes, one with Honduras, another with Colombia, and the third with Costa Rica to the International Court of Justice for resolution.

International membership

At the 1994 Summit of the Americas, Nicaragua joined six Central American neighbors in signing the Alliance for Sustainable Development, known as the Conjunta Centroamerica-USA or CONCAUSA, to promote sustainable economic development in the region.

Nicaragua belongs to the United Nations and several specialized and related agencies, including:

International disputes

Illicit drugs

Alleged trans-shipment point for cocaine destined for the US and trans-shipment point for arms-for-drugs dealing.

International relations with IGOs and countries

Nicaragua signed a 3-year Poverty Reduction and Growth Facility (PRGF) with the International Monetary Fund (IMF) in October 2007. As part of the IMF program, the Government of Nicaragua agreed to implement free market policies linked to targets on fiscal discipline, poverty spending, and energy regulation. The lack of transparency surrounding Venezuelan bilateral assistance, channeled through state-run enterprises rather than the official budget, has become a serious issue for the IMF and international donors. On September 10, 2008, with misgivings about fiscal transparency, the IMF released an additional $30 million to Nicaragua, the second tranche of its $110 million PRGF.[1]

The flawed municipal elections of November 2008 prompted a number of European donors to suspend direct budget support to Nicaragua, a move that created a severe budget shortfall for the government. This shortfall, in turn, caused the Government of Nicaragua to fall out of compliance with its PRGF obligations and led to a suspension of PRGF disbursements. The IMF is currently in negotiations with the Government of Nicaragua to reinstate disbursements.[1]

Under current president Daniel Ortega, Nicaragua has stayed current with the Central American-Dominican Republic Free Trade Agreement, which entered into force for Nicaragua on April 1, 2006. Nicaraguan exports to the United States, which account for 59% of Nicaragua’s total exports, were $1.7 billion in 2008, up 45% from 2005. Textiles and apparel account for 55% of exports to the United States, while automobile wiring harnesses add another 11%.[1]

Other leading export products are coffee, meat, cigars, sugar, ethanol, and fresh fruit and vegetables, all of which have seen remarkable growth since CAFTA-DR went into effect. Leading Nicaraguan exports also demonstrated increased diversity, with 274 new products shipped to the United States in the first year. U.S. exports to Nicaragua, meanwhile, were $1.1 billion in 2008, up 23% from 2005. Other important trading partners for Nicaragua are its Central American neighbors, Mexico, and the European Union. Nicaragua is negotiating a trade agreement with the European Union as part of a Central American bloc.[1]

Despite important protections for investment included in CAFTA-DR, the investment climate has become relatively insecure since Ortega took office. President Ortega's decision to support radical regimes such as Iran and Cuba, his harsh rhetoric against the United States and capitalism, and his use of government institutions to persecute political enemies and their businesses, has had a negative effect on perceptions of country risk, which by some accounts has quadrupled since he assumed office. The government reports foreign investment inflows totaled $506 million in 2008, including $123 million in telecommunications infrastructure and $120 million in energy generation.[1]

There are over 100 companies operating in Nicaragua with some relation to a U.S. company, either as wholly or partly owned subsidiaries, franchisees, or exclusive distributors of U.S. products. The largest are in energy, financial services, textiles/apparel, manufacturing, and fisheries. However, many companies in the textile/apparel sector, including a $100 million U.S.-owned denim mill, have shuttered during the past 12 months due to falling demand for these goods in the United States.[1]

Poor enforcement of property rights deters both foreign and domestic investment, especially in real estate development and tourism. Conflicting claims and weak enforcement of property rights has invited property disputes and litigation. Establishing verifiable title history is often entangled in legalities relating to the expropriation of 28,000 properties by the revolutionary government that Ortega led in the 1980s. The situation is not helped by a court system that is widely believed to be corrupt and subject to political influence.[1]

Illegal property seizures by private parties, occasionally in collaboration with corrupt municipal officials, often go unchallenged by the authorities, especially in the Atlantic regions and interior regions of the north, where property rights are poorly defined and rule of law is weak. Foreign investor interest along the Pacific Coast has motivated some unscrupulous people to challenge ownership rights in the Departments of Rivas and Chinandega, with the hope of achieving some sort of cash settlement.[1]

Bilateral relations

Country Formal Relations Began Notes
 AbkhaziaSee Abkhazia–Nicaragua relations

Nicaragua recognized Abkhazia[2] and South Ossetia[3] on September 5, 2008.

At a press conference in November 2008, Nicaraguan Foreign Minister Samuel Santos López said, "Certainly, we think that the decision [to recognize independent Abkhazia and South Ossetia] was fair and appropriate. They [the republics] must be given time for inner formalities. We will coordinate the possibility and terms of direct diplomatic relations at a convenient moment. Obviously and logically, we will be acting via our friends, probably Russia, to establish closer contacts and diplomatic relations [with the republics]."[4]

 Republic of China

Nicaragua maintains official diplomatic relations with the Republic of China (Taiwan) instead of the People's Republic of China. In 2007, President Daniel Ortega stated that Nicaragua will maintain its diplomatic ties with Republic of China (Taiwan). Ortega defended Nicaragua's right of having diplomatic relations with Taiwan and China at the same time and insisted that Nicaragua will not break its diplomatic relations with Taiwan and Vice-president Jaime Moralez Carazo (during Ortega's first tenure) criticized the People's Republic of China for conditioning Nicaragua's diplomatic relations. In 2013 Nicaragua announced that Nicaragua's Foreign Relations Minister announced that Nicaragua will continue its diplomatic relations with Taiwan.

 ColombiaSee Colombia–Nicaragua relations

The relationship between the two Latin American countries has evolved amid conflicts over the San Andrés y Providencia Islands located in the Caribbean close to the Nicaraguan shoreline and the maritime boundaries covering 150,000 km² that included the islands of San Andres, Providencia and Santa Catalina and the banks of Roncador, Serrana, Serranilla and Quitasueño as well as the arbitrarily designed 82nd meridian west which Colombia claims as a border but which the International Court has sided with Nicaragua in disavowing.[5] The archipelago has been under Colombian control since 1931 when a treaty was signed during US occupation of Nicaragua, giving Colombia control over the islands.

 Costa Rica
 DenmarkSee Denmark–Nicaragua relations
 FinlandSee Finland–Nicaragua relations

Finland is a significant donor of aid to Nicaragua. In 2007, total aid amounted to around EUR 14.5 million. The cooperation focused on rural development, health care and supporting local government.[7] In 1992, the Finnish government announced an aid program of USD27.4 million.[8]

In 2006, the Finnish government pledged 4.9 million euros to help the Nicaraguan government integrate the ICT systems of 20 town councils.[9] In 2008, the Finnish government revoked a 1.95 million euro aid package meant for Nicaragua in protest of what it alleged was a lack of transparency in Nicaragua's national budget and its municipal elections.[10]

In 2004, Finnish President Tarja Halonen visited Nicaragua [11] where she stated "The Finnish government and Parliament have decided that Nicaragua is one of the main targets of Finnish development aid. However, the visit has shown that Finland is not only giving money - it is also interested in what is happening here".[12] The Finnish President also made a speech to the National Assembly of Nicaragua on 31 May 2004.[13] In 2003, the two countries signed the Agreement for the Promotion and Reciprocal Protection of Investments [14]

 GreeceSee Greece–Nicaragua relations
  • Greece is accredited to Nicaragua through its embassy in Mexico City, Mexico.
  • Nicaragua is accredited to Greece through its embassy in Rome, Italy.
 IndiaSee India-Nicaragua relations
 Iran
  • Iran has an embassy in Managua.
  • Nicaragua has an embassy in Tehran
 Mexico1838See Mexico–Nicaragua relations
 Pakistan
  • Nicaragua maintains Honorary Consulate in Islamabad
 RussiaDecember 1944See Nicaragua–Russia relations

Both countries signed diplomatic missions on October 18, 1979, a few months after the Sandinista revolution.[20] President Vladimir Putin visited Nicaragua on July 12, 2014.

  • Nicaragua has an embassy in Moscow.
  • Russia has an embassy in Managua.
 South OssetiaSee Nicaragua–South Ossetia relations

Nicaragua extended diplomatic recognition to South Ossetia[3] and Abkhazia[2] on 5 September 2008. After the recognition was announced, the Nicaraguan Foreign Ministry stated that they would immediately establish ties with Tskhinval and would eventually appoint an ambassador to the republic.[21] At a press conference in November 2008, Nicaraguan Foreign Minister Samuel Santos López said, "Certainly, we think that the decision [to recognize independent Abkhazia and South Ossetia] was fair and appropriate. They [the republics] must be given time for inner formalities. We will coordinate the possibility and terms of direct diplomatic relations at a convenient moment. Obviously and logically, we will be acting via our friends, probably Russia, to establish closer contacts and diplomatic relations [with the republics]."[4]

Whilst on a state visit to Russia in December 2008, Nicaraguan President Daniel Ortega expressed his desire to travel to Abkhazia and South Ossetia in the future, and stated that Nicaragua is in solidarity with the people of the two countries.[22]

The recognition of South Ossetia by Nicaragua triggered immediate reactions from other countries involved in the dispute over the status of South Ossetia. Georgia responded to Nicaragua's concurrent recognition of Abkhazia and South Ossetia by cutting diplomatic relations with the Central American state at the end of November 2008.[23] Russia offered to strengthen ties with Nicaragua and to provide aid to Nicaragua to help rebuild areas damaged by hurricanes.[24] The U.S. Secretary of Commerce canceled a planned trip to Nicaragua, with the U.S. Ambassador in Managua saying, "It isn't the appropriate moment for the visit."[25]

 South KoreaJanuary 1962[26]See Foreign relations of South Korea
 Spain1838
  Switzerland1956See Nicaragua–Switzerland relations
  • Switzerland has a Consulate-General in Managua, Nicaragua. The Swiss embassy in San José, Costa Rica, is responsible for diplomatic relations with Nicaragua.[29]
  • Nicaragua has a Consulate-General in Geneva, Switzerland only responsible for consular services. The Nicaraguan embassy in from its embassy in Vienna, Austria is responsible for diplomatic relations with Switzerland.
  • Relations with Nicaragua and Switzerland focus on development cooperation, humanitarian aid and trade.
 Venezuela1979
  • Nicaragua has an embassy in Caracas
  • Venezuela has an embassy in Managua

Venezuela and Nicaragua have had diplomatic relations since January 1979. During the Venezuelan government of Carlos Andrés Pérez, they helped FSLN to overthrow regime of longtime Nicaraguan dictator Anastasio Somoza Debayle.Relations between Nicaragua and Venezuela have significantly improved during the Presidency of Hugo Chávez.In 2007 Nicaragua became a formal member of the Bolivarian Alliance for the Americas (ALBA) international cooperation organization and the Caribbean oil alliance Petrocaribe. In the recent years Nicaragua has received discounted oil from Venezuela with low payments.The presidents of Venezuela and Nicaragua, President Hugo Chávez and President Daniel Ortega, respectively, both described themselves as good friends and have visited there both country's respectively.

 United States1824; 1849See Nicaragua–United States relations
Embassy of Nicaragua in Washington, DC
 Uruguay 1849See Nicaragua–Uruguay relations
Embassy of Nicaragua in Montevideo
  • Nicaragua has an embassy in Montevideo.
  • Uruguay has an embassy in Managua.[31]

States with limited recognition

The following table includes China, Georgia, and some of the states with limited recognition:

Name Recognized by Nicaragua Notes
 Abkhazia Yes Recognized by four UN member states.
 China No
 Kosovo No
 Nagorno-Karabakh Republic No
 Sahrawi Arab Democratic Republic Yes Recognized by 34 UN states, claimed by Morocco.
 Somaliland No
 South Ossetia Yes Recognized by four UN member states.
 Sovereign Military Order of Malta Yes[32] A sovereign entity without territory, established diplomatic relations with 104 states.
 Transnistria No
 Turkish Republic of Northern Cyprus No

See also

References

  1. 1 2 3 4 5 6 7 8 http://www.state.gov/r/pa/ei/bgn/1850.htm
  2. 1 2 "El Presidente de la República Nicaragua Decreto No. 47-2008" (PDF). Government of Nicaragua.
  3. 1 2 "El Presidente de la República Nicaragua Decreto No. 46-2008" (PDF). Government of Nicaragua.
  4. 1 2 "Nicaragua Considering Diplomatic Relations With Abkhazia, South Ossetia". iStockAnalyst. 2008-11-01. Retrieved 2009-03-04.
  5. ↑ LA Times: Border tensions rise in Central & South America
  6. ↑ Danish Ministry of Foreign Affairs (in Danish and English)
  7. ↑ http://formin.finland.fi/public/default.aspx?nodeid=15374&contentlan=2&culture=en-US
  8. ↑ http://www.highbeam.com/doc/1G1-42872882.html
  9. ↑ "Finland signs US$6.3mn e-govt ICT program - Nicaragua". The America's Intelligence Wire. 2006-08-21.
  10. ↑ http://www.ticotimes.net/dailyarchive/2008_11/1104083.htm
  11. ↑ http://www.hs.fi/english/article/President+Halonen+in+Nicaragua/1076152882383
  12. ↑ http://www.hs.fi/english/article/President+Halonen+concludes+visit+to+Nicaragua/1076152890893
  13. ↑ http://www.tpk.fi/netcomm/news/ShowArticle.asp?intNWSAID=24501&intSubArtID=12164&intToPrint=1&LAN=EN
  14. ↑ http://www.highbeam.com/doc/1P2-13439707.html
  15. ↑ Indian Honorary Consulate in Nicaragua
  16. ↑ Nicaragua Honorary Consulate in New Delhi
  17. ↑ Nicaragua Honorary Consulate in Mumbai
  18. ↑ Embassy of Mexico in Managua (in Spanish)
  19. ↑ Embassy of Nicaragua in Mexico City (in Spanish)
  20. ↑ David Ryan (2000). US foreign policy in world history. Routledge. p. 172ff. ISBN 0-415-12345-3.
  21. ↑ "Nicaragua salutes new states in Caucasus". Russia Today. 5 September 2008. Retrieved 2009-04-24.
  22. ↑ "Nicaraguan President committed to visiting South Ossetia & Abkhazia". Russia Today. 18 December 2008. Retrieved 2009-04-23.
  23. ↑ "Georgia severs diplomatic ties with Nicaragua". People's Daily. 30 November 2008. Retrieved 2009-04-23.
  24. ↑ "Russia seeks close ties with US ex-foe Nicaragua". Reuters. 2008-09-18. Retrieved 2009-04-24.
  25. ↑ "U.S.-Nicaraguan Relations Chill as Ortega Faces Domestic Tests". World Politics Review. 2008-09-19. Retrieved 2009-04-24.
  26. 1 2 http://www.mofa.go.kr/ENG/countries/latinamerica/countries/20070803/1_24575.jsp?menu=m_30_30
  27. ↑ Embassy of Nicaragua in Madrid (in Spanish)
  28. ↑ Embassy of Spain in Managua (in Spanish)
  29. ↑
  30. ↑ Embassy of the United States in Managua (in English and Spanish)
  31. ↑
  32. ↑ "中華民國外交部 – 國家與地區". Mofa.gov.tw. 2012-04-02. Retrieved 2013-04-25.

External links

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