By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

On October 20th the U.S. Trade Representative (USTR) published its Sec 301 investigation findings on Nicaragua’s acts, policies, and practices related to abuses of labor rights, human rights and fundamental freedoms, and dismantling of the rule of law. These findings are said to be unreasonable and are a burden or further restrict U.S. commerce.

As a result the USTR report details the findings and proposes actions to take. The range of actions include, but are not limited to:

• Suspension, withdrawal, or prevention of application of benefits under the Dominican Republic-Central America-U.S. Free Trade Agreement (CAFTADR), specific to Nicaragua.
• Additional duties of up to 100% on some or all products of Nicaragua.

The additional duties may be immediate or phased in over the course of a year, as the proposal details.

Official word from the White House on whether or not they will move forward with the recommendation actions has not been issued.

We will continue to monitor this situation and issue updates as needed. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.