Relations between the European Union (EU) and Nicaragua, as with other Central American countries, have evolved significantly since they started in the mid-1980s. 

Political Relations

The EU has committed itself to Nicaragua, by working to consolidate a sustainable development model based on peace, democracy, consolidation of the rule of law and deeper regional integration at the political level. 

Initially, the EU played a key role in strengthening peace processes in Central America, by promoting the inclusive spaces required to reach an early settlement of conflicts in the region at an international level.  The ‘San José Dialogue’, provided the structure for a prominent political dimension in relations between the Isthmus and Europe, which remains in place today. 

The next moment in the progress of political relations began in the 1990s and was characterized by the increase of development cooperation. Over the last decades, the EU cooperation towards the region and Nicaragua has evolved in the search for more effective tools for sustainable development. 

Relations between the EU and Nicaragua have increasingly been developed within a Central American regional integration approach. In fact, Nicaragua is part of important regional agreements between EU&CA: the Central America Cooperation Framework Agreement (1985), the Second Cooperation Framework Agreement (1993), the Political Dialogue and Cooperation Agreement (2003) and the Association Agreement between EU and Central America (2012).

Trade

The EU has become one of Central America's main trading partners and is its third most important export market, after the United States and the Central American Common Market. 

Although this arrangement has been increasingly successful, the maturity achieved in relations between CA and the EU has made it necessary to move to another type of link: an Association Agreement (AA) which, in trade terms, means the creation of a free trade area to open up new and better export possibilities for Central American products and to provide more favourable trade and investment conditions for European companies. 

In trade matters, the AA means abandoning the traditional approach of cooperation and the unilateral temporary granting of benefits in favour of a lasting link between partners committed to free trade and the sustainable development of both regions. 

The trade dimension of the AA came into force for Nicaragua on 1 August 2013. Since then the AA has been the legal framework of reference for trade between Nicaragua and the European Union. 

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Economic Relations

The economic relations with Nicaragua are based on the EU-CA Association Agreement. 

This Agreement, which covers Trade Relations, Political Dialogue and Cooperation, involves a change in the nature of the relationship between the two regions, from a reflection of traditional ‘donor-recipient’ approach to the expression of a lasting link between ‘partners’ with shared principles and values. 

Nicaragua's economic relations with the EU seek to provide robust support for trade ties and promote joint action at an international level. 

Cooperation

El Documento de Estrategia País para Nicaragua tiene como objetivo la reducción de la pobreza a través de la promoción de un modelo de desarrollo inclusivo más productivo, al mismo tiempo que se respeta el medioambiente.

A continuación sus dos áreas prioritarias:

Medio ambiente y adaptación al cambio climático y su mitigación

Esta prioridad busca abordar el cambio climático desde una perspectiva de mitigación y adaptación lo que es esencial para el desarrollo sostenible del país y la aplicación de sus políticas y objetivos de contribuciones determinadas a nivel nacional. La cooperación internacional de la UE apoya las medidas de mitigación y adaptación en consonancia con el Pacto Verde, el Acuerdo de París y el Marco de Sendai, haciendo hincapié en limitar las consecuencias climáticas adversas estrechamente vinculadas a los compromisos nacionales y regionales del país.

Crecimiento económico inclusivo y sostenible

Esta prioridad busca promover cadenas de valor que permitan hacer innovaciones tecnológicas y de procesos con énfasis en economía circular, inclusión de género y sostenibilidad ambiental.  Como parte de la inclusión social, se priorizaran acciones con pequeñas y medianas empresas, mejorando los procesos de calidad, inocuidad, trazabilidad. Este componente tiene un enfoque centrado en el empoderamiento económico de las mujeres, como eje de sostenibilidad y de desarrollo inclusivo. Actualmente, la UE promueve estos procesos en la cadena de valor del Cacao a través del programa NICACAO, con acciones en los departamentos de Jinotega, Matagalpa, Rio San Juan, así como en los municipios del triángulo minero  (Siuna, Bonanza y Rosita) y el eje Bilwi – Waspam, en donde se trabaja con tres territorios indígenas Tasba Pri, Twi Yabra, y Wanky Twi, en la RACCN.