Nicaragua Signs Free Trade Agreement With Iran To Bolster South-South Commerce
Both countries share core values and principles of building a multipolar world where through South-South partnerships it is possible to break the hegemony of the US-led West.
Since the mid-2000s, several Latin American nations, Nicaragua among them have significantly strengthened their ties with Iran. Now recently Nicaragua was visited by the Iranian president Ebrahim Raisi, as part of his work tour in Latin America for June, which also included Venezuela and Cuba. The article focuses on the recent economic agreement signed between the presidents of Nicaragua and Iran regarding Free Trade that will be of great importance for Nicaraguan exports and markets, according to regional observers.
In 2022 Nicaragua and Iran began to sign a comprehensive cooperation program and 14 instruments for strengthening bilateral meetings in different areas of mutual interest. Then in February 2023, both decided to boost bilateral cooperation, in essence, this meant laying out the diplomatic blueprints for a Bilateral joint commission to negotiate these agreements quickly. Managua and Tehran signed a Memorandum of Understanding to enable a mechanism of coordination and regular consultations, including working meetings on issues of mutual interest and support in the international arena.
In May 2023 a multisectoral delegation from Iran headed by the Minister of Petroleum, Javab Owji, held talks with senior officials of the Nicaraguan government to strengthen cooperation and economic links. Now in June 2023 as part of the series of work being carried out in Nicaragua, the President of the Islamic Republic of Iran, the First Lady, and a delegation from the Middle Eastern country will sign cooperation agreements and trade opportunities between both nations.
Escape From The Monroe Doctrine
The Sandinista government of Nicaragua has long had good relations with Iran but it was not until the Hybrid War coup attempt coupled with systemic US economic sanctions that Nicaragua understood how imperative it is to solidify and expand its relations with Iran and other giants of the multipolar world to get out of the US economic snare.
These relations are based on a shared historical crisis, as both Iran and Nicaragua face similar obstacles having experienced bellicose U.S. imperialism in various forms. Both countries know that the US style of hybrid warfare includes info-war and economic sabotage which is why these sanctions that are continuous and systemic so as to emulate a siege but with postmodern characteristics.
While the US continues to fund a variety of proxies to remove the Sandinista party from power ironically Nicaragua is still tied to their nemesis at the hip, as the central American country still depends heavily on the US way too much economically and commercially. The sanctions along with the lack of a deep sea port are major obstacles to the growth of the Nicaraguan trade. In 2021 Nicaragua exported a total of $6.95B. During the last five reported years, the exports of Nicaragua have changed by $2.02B from $4.93B in 2016 to $6.95B in 2021. The most common destinations for the exports of Nicaragua are the United States ($3.9B), Mexico ($771M), El Salvador ($390M), Honduras ($332M), and Costa Rica ($190M).
The agreements signed between Nicaragua and Iran will increase and expand Nicaraguan exports of the products that the Iran would be interested in such as coffee and fishery products, while Nicaragua is interested in oil, technology, and medicine. There is no doubt that the agreements signed with Iran will contribute to the plan for the diversification of the export basket and export destinations. The more countries Nicaragua has to trade and exchange with the better, because so far its export destination is quite limited to a single export destination, the United States being its largest export destination.
As the multipolar age becomes more complex and can assert and materialize states as nodes all over, it will surely enhance Nicaragua's capabilities on a global scale. And Nicaragua as a brave, freedom-loving nation is quite aware of this for it has survived the onslaught of US imperialism and neocolonialism with a debilitating dirty war (1979 - 1990) followed by continuous Hybrid War pressure which peaked 5 years ago in a coup attempt against the Sandinista government of the Central American country back in 2018.
As the systemic transition towards multiplexity rages on the Managua and Tehran governments will be meeting with each other to expedite these agreements because both parties are interested in moving from the Memorandum of Intent to concrete agreements. The two countries are determined to work together to defend each other from external aggressions better known as sanctions to protect each other as a common defense against those aggressions. These relations have the common goal of developing a mutually beneficial bilateral relationship and above all in the creation of a multipolar world that rejects the hegemonism of the United States and its European vassals who always seek to subjugate countries of the Global South.
This will establish the basis for a Free Trade Agreement with this Middle Eastern nation since there are instruments of promotion and reciprocal protection between the two nations. One of the main elements is that Nicaragua will be allowed to export at preferential rates to this very important market such as the Iranian market. This is an agreement with a powerful nation with great economic potential, oil resources, industry, technology, and medical products, which will benefit Nicaragua. Both countries share core values and principles of building a multipolar world where through South-South partnerships it is possible to break the hegemony of the US-led West.
A multipolar commercial exchange would take place under the mutual respect of each other's independence and sovereignty while effectively creating a new Free Trade Agreement between these states granting them additional venues to sell their products. This is a great opportunity for Nicaragua to diversify its partners and expand its exports, taking advantage of the fact that they produce more. The Iranian market is a huge nation that has great economic potential with for Nicaragua to trade with them, which is significant given that Iran is an oil-producing country. Nicaragua has expressed that it is very eager to insert itself in the multipolar trade with countries of the Global South such as the People's Republic of China, the Russian Federation and the Islamic Republic of Iran.
The visit of the Iranian president and the signing of these treaties took place just as Nicaragua sent a delegation to the St. Petersburg International Economic Forum to meet with other high-level delegations traveling to St. Petersburg. Nicaragua has been placing more products in distant countries than has ever been possible before, as Nicaragua is betting on ending the Monroe Doctrine with a little help from its BRICS friends, opening strategic markets with Russia, China as well as Iran, all of which are important partners in the multipolar era.