Daniel Ortega’s dictatorship did not want to leave traces of its relationship with Taipei, which is why it introduced on Tuesday the mandate to rescind all agreements signed between Nicaragua and Taiwan, including the existing free trade agreement. Since 2006 Nicaragua has allowed exports to the area to increase and with this the products entered with tariff options.
The request was urgently implemented and has already been approved by the National Assembly. The dictatorship is being suspended just days after it severed diplomatic ties with the island in order to pursue a one-China policy of treating the island as a rebel territory.
Despite the breakdown of diplomatic relations between Nicaragua and Taiwan, various analysts believe that trade relations will remain the same as they have been with the Central American countries that have trade relations to date.
In 2007, total export earnings for Taiwan were $ 10.1 million, but by 2020 these had risen to $ 82.8 million, a year after Ortega came to power as a result of the FTA launched in January 2008. If the revenue from exports of companies operating in the free zone is combined, the amount for 2020 will rise to $ 143.5 million.
Nicaragua mainly exports seafood, beef and coffee to Taiwan.
read more: What do Ortega and Nicaragua now lose without Taiwan in economic terms and why the breakdown is immediate
Other contracts were canceled
But Ortega ordered the cancellation of a number of agreements, including amendments to the Free Trade Agreement with the island that had been in use for many years.
It also ordered the revocation of the visa exemption order for ambassadors, officials and services of the Taiwanese government, which has been in effect since January 30, 2012.
In parallel, loan agreements with Taiwan’s Development Bank were canceled, as well as the need to double legalize foreign public documents.
80 votes in favor of the legal decree “Cancellation of agreements and documents signed between the Republic of Nicaragua and Taiwan”, zero against, 4 abstentions and 7 abstentions. The National Assembly of Nicaragua has a total of 91 delegates, 70 of whom are official, loyal to Ortega.
“The purpose of this document is to provide for the termination of agreements or other documents signed between the Republic of Nicaragua and Taiwan prior to December 9, 2021, without any legal value or legal effect,” the order said.
The cancellation concludes and confirms the severance of ties with Taiwan following Nicaragua’s declaration that the people of Nicaragua recognize the Republic of China as “the only legitimate government representing the whole of China and Taiwan is an inseparable part of Chinese territory”, according to the official statement. Read by Foreign Minister Denis Moncata on December 9th.