USTR Seeking Comments on CAFTA-DR Nicaragua Expulsion, Higher Tariffs
The Office of the U.S. Trade Representative is seeking comments on what remedy should be used to react to Nicaragua's human rights and labor rights violations, and the country's "dismantling of the rule of law."
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In a Federal Register notice published Oct. 23, the administration asked for comments on suspending Dominican Republic-Central America-United States Free Trade Agreement, or CAFTA-DR, benefits for Nicaragua, including U.S. tariff concessions and the cumulation of Nicaraguan content in products made in other CAFTA-DR countries. It is asking when those changes should be made. It is also asking how high it should hike tariffs on Nicaraguan goods, from which sectors, and on what date.
"In commenting on the timing of increased duties for specific sectors, USTR requests that commenters specifically address whether imposing increased duties on particular sectors or suspending or withdrawing concessions on a particular sector, would be practicable or effective to obtain the elimination of Nicaragua's acts, policies, and practices or would cause disproportionate economic harm to U.S. interests, including small- or medium-size businesses and consumers," the notice says.
The report's remedy options included a whole or partial revocation of CAFTA-DR, as well as imposing tariffs of up to 100% on all or some Nicaraguan goods. Those changes could be immediate, or could be phased in, the report said, but the phase-in should be within one year.
Comments, which can be submitted at https://comments.ustr.gov/s/, docket USTR-2025-0006, are due by Nov. 19.
In the process of investigating the violations, USTR heard from more than 160 commenters.