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| Map: Nicaragua. Credit: CIA World Factbook. |
FROM: U.S. DEPARTMENT OF STATE
The United States established diplomatic relations with Nicaragua in 1849 following its independence from Spain and the later dissolution of a federation of Central American states. Post-independence, the country saw a mix of armed conflict, U.S. military intervention and occupation, rebellion, assassination, and dictatorships. Diplomatic relations between the two countries were severed or interrupted a number of times. Nicaragua's 1990 presidential elections marked an improvement in bilateral relations and were followed by elections in 1996, 2001, 2006.
The 2011 presidential and legislative elections and 2012 municipal elections were marred by significant irregularities and were denounced by domestic and international observers as severely flawed. The U.S. Government has clearly stated that these elections marked a setback to democracy in Nicaragua and undermined the ability of Nicaraguans to hold their government accountable. The United States has called on the Nicaraguan Government to uphold democratic processes and protect universal human rights, and has said that it will continue to support civil society and promote human rights in Nicaragua.
U.S. Assistance to Nicaragua
U.S. assistance aims to help strengthen Nicaragua’s democracy through training for emerging democratic leaders, increasing civil society engagement, supporting an independent media, and improving local governance. U.S. assistance also seeks to promote economic growth and poverty reduction in part through market-led food security programs in the highly-impoverished north-central region. In under-governed areas of the Caribbean coastal region where drug trafficking and related criminal activity is rising, military-to-military engagement and prevention programs focusing on education and skills development support citizen security. In response to the Nicaraguan government’s continuing failure to account fully for substantial resources made available to it by Venezuela, the State Department did not seek a waiver for Nicaragua in Fiscal Year 2012 of Congressionally mandated restrictions on assistance to the central governments of countries who do not maintain international standards of fiscal transparency. This curtailed FY 2012 security assistance and affected some counternarcotics and development programs that otherwise would have benefitted the central government.
Bilateral Economic Relations
The United States and Nicaragua are parties to the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), which aims to facilitate trade and investment and further regional integration by eliminating tariffs, opening markets, reducing barriers to services, and promoting transparency. CAFTA-DR contains a chapter on investment similar to a bilateral investment treaty with the United States. There are over 125 companies operating in Nicaragua with some relation to a U.S. company, either as wholly or partly-owned subsidiaries, franchisees, or exclusive distributors of U.S. products. The largest are in energy, financial services, textiles/apparel, manufacturing, and fisheries. U.S. exports to Nicaragua include agricultural products, donated relief articles, and machinery. U.S. imports from Nicaragua include apparel, agricultural products, and automobile wire harnesses. The United States works closely with the Nicaraguan government to seek resolution of several hundred claims against it by United States citizens to properties expropriated from them during the 1980s.
Nicaragua's Membership in International Organizations
Nicaragua and the United States belong to a number of the same international organizations, including the United Nations, Organization of American States, International Monetary Fund, World Bank, and World Trade Organization.
ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK
The Pacific coast of Nicaragua was settled as a Spanish colony from Panama in the early 16th century. Independence from Spain was declared in 1821 and the country became an independent republic in 1838. Britain occupied the Caribbean Coast in the first half of the 19th century, but gradually ceded control of the region in subsequent decades. Violent opposition to governmental manipulation and corruption spread to all classes by 1978 and resulted in a short-lived civil war that brought the Marxist Sandinista guerrillas to power in 1979. Nicaraguan aid to leftist rebels in El Salvador caused the US to sponsor anti-Sandinista contra guerrillas through much of the 1980s. After losing free and fair elections in 1990, 1996, and 2001, former Sandinista President Daniel ORTEGA Saavedra was elected president in 2006 and reelected in 2011. The 2008 municipal elections, 2010 regional elections, and November 2011 presidential elections were marred by widespread irregularities. Nicaragua's infrastructure and economy - hard hit by the earlier civil war and by Hurricane Mitch in 1998 - are slowly being rebuilt, but democratic institutions have been weakened under the ORTEGA administration.
