Last week, Chinese Commerce Minister Wang Wentao and Nicaraguan Foreign Minister Moncada, on behalf of the two governments, signed “the agreement between the Chinese government and the Nicaraguan government on the first crop of free-trade agreements”. exchange”, jointly announcing the launch of negotiations on the comprehensive China-Nicaragua FTA.
China and Nicaragua are moving towards a comprehensive free trade agreement (FTA) and have formally established a bilateral intergovernmental economic and trade cooperation mechanism. The two countries have started negotiations to achieve this goal, according to the Chinese Ministry of Commerce. This could boost textile trade between the two countries.
In addition, the two countries also signed the memorandum of understanding on the establishment of a joint economic, trade and investment cooperation committee, formally establishing the bilateral government economic and trade cooperation mechanism.
The latest measures taken by the two governments are expected to result in increased trade, including trade in clothing and home textiles, between the two nations. Although the current textile and clothing trade between China and Nicaragua is negligible, China has a trade surplus with the Central American country.
Nicaragua imported only 0.02% garments of China’s total exports in 2021. In terms of home textiles, Nicaragua has a 0.01% share in China’s total exports to the world, according TexPro, the Fibre2Fashion market analysis tool.
China exported $3.240 million worth of garments to Nicaragua in May 2022, which was over $2.361 million in April. Chinese exports fell to 0.555 million in February from $2.443 million in January. The export was 0.965 million in March 2022. China’s garment exports annually were $27.796 million in 2021, $20.015 million in 2020 and $22.558 million in 2019, according to TexPro.
China exported home textiles worth $0.127 million in May 2022, which was higher than $0.071 million in April. Every year, China exported home textiles worth $2.736 million in 2021, $6.988 million in 2020 and $2.040 million in 2019.
By contrast, Chinese imports of textile products from Nicaragua were meager in terms of value.
Fibre2Fashion Information Office (KUL)