The United States-Nicaragua Relations

8/12/2019 The United States-Nicaragua Relations

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THE UNITED STATES NICARAGUA RELATIONS

The Paper Assignment for the Subject of International Relation in America

By:

FIKRI FAHRUL FAIZ

1110114000029

DEPARTMENT OF INTERNATIONAL RELATIONS

FACULTY OF SOCIAL AND POLITICAL SCIENCE

SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY

JAKARTA


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INTRODUCTION

The United States, as the sole hegemonic country after Cold War, tries to spread its influence

into worldwide, including in the America contingent. It is very important for the United States to

have influence in the region in order to maintain its national interest. For that reason, the United

States developed bilateral relations with other countries in America contingent, including

Nicaragua. The Republic of Nicaragua is the largest country in the Central America which has

more than 6 million people live in this country. Nicaragua becomes the 2nd poorest country in

the western hemisphere with about 48% of the population live below poverty. For the United

States, it is essential to spread democratic values toward Nicaragua.

This paper will focus on explaining the relation between the United States of America with

Nicaragua currently, while also discussing both countries relation historically. This paper also

will try to explain the position of the United States and Nicaragua in the political and economic

field, and the United States foreign aid toward Nicaragua.


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UNITED STATES-NICARAGUA RELATION

The relationship between the United States of America and Nicaragua has begun from years ago.

In 1849, the United States established diplomatic relation with Nicaragua after its independence

from Spain and later dissolution of a federation of Central American states. After its

independent, Nicaragua experienced several events in its domestic, such as armed conflict, the

United States military intervention and occupation, rebellion, assassination and dictatorship. As

the impact of these experiences, the diplomatic relations between the two countries were

interrupted a number of times.1

In 1990s, the relation between the United States and Nicaragua improved in 1990 following by

the president elections in 1996, 2001, and 2006. The United States supported the consolidation of

the democratic process in Nicaragua with the 1990 of President Chamorro. The United States has

aimed to promote national reconciliation, encouraging Nicaraguan people to resolve their

problems through dialogue and compromise. It recognizes as legitimate all political forces that

practice the diplomatic values.2

However, the diplomatic relations between the two countries experienced an initial concern as

the impact of Daniel Ortega's regime as Nicaragua's leader. President Ortega is well known as

anti-U.S. which then leads to the bilateral relations with the United States. In September 2007,

Ortega made a statement that denouncing the United States as "the imperialist global empire" in

a speech before the United Nation. Although there are some issues that interrupt U.S.-Nicaragua

relations, the regime of Ortega still continued to make several cooperation with the United States

program and institution. In October 2007, Nicaragua approved a new three year poverty

reduction for Nicaragua with IMF. His government was also implementing the U.S.-Central

America-Dominican Republic Free Trade Agreement (CAFTA-DF).3

The United States relation with Nicaragua also become worse when significant irregularities

spotted in the 2011 presidential and legislative elections and 2012 municipal elections and were

denounced by domestic and international observers as severely flawed. The U.S. Government

1U.S. Relations With Nicaragua,U.S. Department of State, available athttp://www.state.gov/r/pa/ei/bgn/1850.htm2Ibid.3 Ortegas Statements Put U.S. Ties to the Test, Miami Herald, September 15, 2007.


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has stated that these elections marked a setback to democracy in Nicaragua and weakened the

ability of Nicaraguans to hold their government accountable. The United States has called on the

Nicaraguan Government to establish democratic processes and protect universal human rights,

and has said that it will continue to support civil society and promote human rights in

Nicaragua.4

The United States gives some assistance to Nicaragua, which is focused on strengthening

democratic institutions, promoting human right, sustainable economic growth, and supporting

the health and education sectors. The United States also provides significant foreign assistance to

Nicaragua on counternarcotics, trade, and security matters.

U.S. AID TO NICARAGUA

The assistance given by the United States has been focused on strengthening Nicaraguas

democracy through training for emerging democratic leaders, increasing civil society

engagement, supporting an independent media, and improving local governance. The United

States assistance also has the purpose to promote economic growth and poverty reduction

through market-led food security programs in the highly-impoverished north-central region.

Military-to-military engagement and prevention programs which focusing on education and

skills development support citizen security has been held between the two countries in under-

governed areas of the Caribbean coastal region where drug trafficking and related criminal

activity is rising.5

Since 1990, the United States has provided over $1.2 billion in assistance to Nicaragua. About

$260 million of that was for debt relief, and another $450 million was for balance-of-payments

support. In 1998, The United States responded to Hurricane Mitch by granting Temporary

Protected Status (TPS) to eligible Nicaraguan migrants to live in the United States territory. InMay 2007, the U.S. government extended the TPS of an estimated 4,000 eligible Nicaraguans

through January 5, 2009. In response to Hurricane Felix, a category V hurricane that hit

4Matthew Lee, "US-Nicaragua Aid Cut Due To Concerns Over Democracy," The World Post, available athttp://www.huffingtonpost.com/2009/06/11/us-nicaragua-aid-cut-due_n_214212.html5U.S. Assistance to Nicragua,U.S. Department of State, available at http://www.state.gov/r/pa/ei/bgn/1850.htm


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As the matter of fact, the United States tries to maintaining its influence by spreading the

democratic values to worldwide that become the biggest interest. To get its interest, the United

States has the strategy by giving the foreign aid many countries. The United States democracy

programs has the purpose to reform government institutions to make them more transparent,

accountable and professional, combat corruption, and promote the rule of law. The United States

provided some $13 million to support the November 2006 elections in Nicaragua. In November

2008 municipal elections, USAID is expected to help increase the capacity and transparency of

local governments. Other programs that United States developed were to increase citizen

advocacy and the role of the media.9

U.S. officials also have expressed some concerns regarding respect for human rights in

Nicaragua. According to the State Departments human rights report on Nicaragua, civilian

authorities generally maintained effective control of security forces, but there were some reports

of unlawful killings involving the police. Some of the most significant human rights abuses

included harsh prison conditions, arbitrary arrests and detentions, and widespread corruption in

and politicization of government entities, including the judiciary and the Supreme Electoral

Council. Human rights problems related to labor issues include child labor and violation of

worker rights in some free trade zones. In October 2007, Human Rights Watch asserted that

Nicaraguas current ban on all abortions, which includes cases where the mothers life is at risk,

has put pregnant womens health at risk.10

Counternarcotics CooperationThe relation between the United States and Nicaragua also occurs in counternarcotics

cooperation. Narcotic trafficking has been a non-traditional threat for the United States. For that

reason, the United States feels it is important to have the cooperation to counter narcotic

trafficking with many countries, especially in American contingent. Based on the State

Departments International Narcotics Control Strategy Report (INCSR), Nicaragua is asignificant sea and land transshipment point for cocaine and heroin being shipped from South

America to the United States territory. The INCSR report informs that Nicaraguan law

enforcement were very successful in their counternarcotics efforts in 2007. Seizures and arrests

9Nicaagua, available at http://www.usaid.gov/where-we-work/latin-american-and-caribbean/nicaragua10Nicaragua: Over Their Dead Bodies,Human Rights Watch, October 2007.


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increased dramatically, with 153 kilograms of heroin and 13 metric tons of cocaine seized

(compared to 23.4 kilograms of heroin and 9.72 metric tons of cocaine in 2006) and 192

traffickers arrested (up from 67). It also asserts that corruption, particularly within the judiciary,

has been an obstacle to Nicaraguas counterdrug efforts. The Ortega Administration has asked

the United States for more assistance to deal with drug gangs. The 2009 budget request includes

an increase in U.S. counternarcotics aid to Nicaragua.11

TradeThe economic sector has been an important issue for any country to survive and develop their

nations. For that reason, every country in the world prefers to cooperate with other country in

field of economy, including the United States and Nicaragua. The United States and Nicaragua

are parties to the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-

DR), which has the purpose 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.12

Nicaraguas National Assembly approved the CAFTA-DR in October 2005 and passed related

intellectual property and other reforms in March 2006. Compared to other CAFTA-DR countries,

Nicaragua has attracted textile and apparel investors because of its relatively low wage costs. In

addition, Nicaragua is the only CAFTA-DR country allowed to export a certain amount of

apparel products composed of third country fabric to the United States duty free. Foreign Direct

Investment (FDI) in Nicaragua totaled roughly $282 million in 2006, which means that there was

an 18.5% increase from 2005. In 2007, FDI rose again to some $335 million.

13

11Nicaragua Asks U.S. For Help in Drug War,El Pas, February 6, 2008; Data on seizure and arrests for 2007provided by the U.S. Department of State.12Bilateral Economic Relations,U.S. Department of State, available at http://www.state.gov/r/pa/ei/bgn/1850.htm13Nicaragua: Trade and Investment Impact of CAFTA-DR, U.S. Department of Commerce, February 2008;


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CAFTADR has also helped to accelerate U.S.-Nicaraguan trade. In 2006, Nicaraguan exports to

the United States totaled about $1.53 billion, which means that there was 29.2% increase from

2005. The total number rose again in 2007 to $1.6 billion, with particularly strong growth in

exports of apparel, sugar, coffee, cigars, cheese, and fruits and vegetables. Nicaraguan imports

from the United States rose 20.6% in 2006 to $752 million as compared to 2005, and by 18.5%

in 2007 to $890 million. Key Nicaragua imports from the United States include machinery,

grains, fuel oil, textile fabric, plastics, pharmaceuticals, and motor vehicles. Another than that,

the United States also imports the goods from Nicaragua such as apparel, agricultural products,

and automobile wire harnesses.14

Security CooperationIn 2008-2013, the United States gives the assistance to Nicaraguas army and police until US$

27,842,219, or 10.9 percent of the total security aid to Central America. This amount is higher

than that for Costa Rica; about half the amount given to Panama, El Salvador and Honduras. 15In

2001-2010 period, the United States trained 21,282 Central American police officers and military

personnel, which is 83.3 percent from the Northern Triangle and Panama, and 16.6 percent from

Nicaragua and Costa Rica.16Anti-drug trafficking cooperation accounts for 60.1 percent of total

assistance to Nicaragua.17

14Ibid.15Military and Police Aid, All Programs, Entire Region, 2008 -2013, available athttp://justf.org/Print_All_Grants_Country?country=&year1=&year2=&subregion=&funding=&x=296&y=12.16US Military and Police Trainees Listed By Country, All Programs, Central America, 1999 -2010, available athttp://justf.org/All_Trainees_Country?year1=1999&year2=2010&funding=All+Programs&subregion=Central+America&x=87&y=17.17US Aid to Nicaragua, All Programs, 2008-2013, available at http://justf.org/Country?country=Nicaragua


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CONCLUSION

For the United States, it is very important spreading influence in America contingent in order to

maintain its national interest. For that reason, the United States developed bilateral relations with

other countries in the region, including Nicaragua.

The relationship between the United States of America and Nicaragua has begun from years ago

and experiencing several changes in both countries relations. The domestic problem of

Nicaragua such as armed conflict, rebellion, and dictatorship, has interrupted its relation with the

United States. Under Daniel Ortega's regime, the diplomatic relation between the United States

and Nicaragua experienced an initial concern due to anti-U.S. ambition of Ortega.

However, the United States pursued to call on Nicaraguas government to establish democratic

processes and protect universal human rights. The United States also give some assistance to

Nicaragua, which is focused on strengthening democratic institutions, promoting human right,

sustainable economic growth, and supporting the health and education sectors. The United States

also provides significant foreign assistance to Nicaragua on counternarcotics, trade, and security

matters.


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BIBLIOGRAAPHY

Bilateral Economic Relations, U.S. Department of State, available at http://www.state.gov

/r/pa/ei/bgn/1850.htm

Military and Police Aid, All Programs, Entire Region, 2008-2013, available at http://justf.org/

Print_All_Grants_Country?country=&year1=&year2=&subregion=&funding=&x=296

&y=12.

Nicaagua, available at http://www.usaid.gov/where-we-work/latin-american-and-caribbean/

Nicaragua.

Nicaragua Asks U.S. For Help in Drug War, El Pas, February 6, 2008; Data on seizure and

arrests for 2007 provided by the U.S. Department of State.

Nicaragua: Over Their Dead Bodies,Human Rights Watch, October 2007.

Nicaragua: Trade and Investment Impact of CAFTA-DR, U.S. Department of Commerce,

February 2008.

Ortegas Statements Put U.S. Ties to the Test, Miami Herald, September 15, 2007.

U.S. Assistance to Nicragua, U.S. Department of State, available at http://www.state.gov/

r/pa/ei/bgn/1850.htm.

U.S. Official: Washington Can Work on Poverty With Nicaraguan President Ortega,

Associated Press, January 24, 2008.

U.S. Relations With Nicaragua,U.S. Department of State, available at http://www.state.gov/

r/pa/ei/bgn/1850.htm.

US Aid to Nicaragua, All Programs, 2008-2013, available at http://justf.org/Country?

country=Nicaragua.

US Military and Police Trainees Listed By Country, All Programs, Central America, 1999 -

2010, available at http://justf.org/All_Trainees_Country?year1=1999&year2=2010

&funding=All+Programs&subregion=Central+America&x=87&y=17.


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Lee, Matthew. "US-Nicaragua Aid Cut Due To Concerns Over Democracy," The World Post,

available at http://www.huffingtonpost.com/2009/06/11/us-nicaragua-aid-cut-due_

n_214212.html.

Documents

The United States-Nicaragua Relations