Political relations between the EU and Nicaragua have been shaped by the San José Dialogue, launched in 1984. The EU also supported the Esquipulas Process aimed to restore peace to the region and Nicaragua by means of a negotiated solution to the armed conflicts prevailing at that time.

Nicaragua is a signatory to the 1993 EU-Central America Framework Cooperation Agreement and to the Political Dialogue and Cooperation Agreement [105 KB] signed in 2003. It is also participating in the ongoing EU-Central America negotiations with a view to an Association Agreement, including a free trade area, while being a beneficiary of the “GSP plus” regime of access to EU markets.

Nicaragua is the biggest country in Central America but its GDP per capita is the second lowest in the Americas. At least 46% of its 5, 5 M inhabitants are living in poverty condition and 15% in extreme poverty. Persistent economic structural problems and recurrent natural disasters make for a vulnerable economy, dependent on external aid and remittances from migrants(see the Country Strategy Paper 2007-2013 [2 MB] ).

For the programming period 2007/2013 bilateral EU aid would amount 214 € (about 7.5$ per capita and year, the highest rate in LA) mainly through budget support in the areas of Good Governance and Democracy, Education and Macro Economic balance and business climate.

• Mid-Term Review of the Country Strategy Paper 2007-2013 for Nicaragua [21 KB] and the National Indicative Programme for 2011-2013 for Nicaragua [82 KB]