Known around the globe as the “land of fire and water,” Nicaragua has more recently become known as a rapidly growing destination for U.S. pork.
Duty-free access through Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR has helped Nicaragua move up to 13th among all export markets this year. Exports will approach 20,000 metric tons (mt) in 2025, more than doubling over the past five years and up from less than 1,500 mt a decade ago. Export value is estimated at $68.5 million – up 180% since 2020, the U.S. Meat Export Federation (USMEF) said in its latest report.
The United States Trade Representative (USTR) recently announced that the U.S. will impose tariffs on all imported Nicaraguan goods that are not originating under the CAFTA-DR. The tariff will initially be set at zero, but is set to increase to 10% in 2027 and to 15% in 2028.
“This announcement represents a much more measured approach than some of the potential actions USTR proposed in October, which included possible suspension of Nicaragua’s CAFTA-DR benefits and tariffs of up to 100%,” USMEF reports. “This is great news for the U.S. pork industry.”
The U.S. holds about 95% of Nicaragua’s imported pork market, points out Lucia Ruano, USMEF Central America representative.
“Demand for U.S. pork in Nicaragua is being driven right now by a combination of improved market access, changing consumption habits and strong market development efforts,” Ruano says. “And a key factor was the full tariff phase out under the free trade agreement in 2020 which allows U.S. pork to enter the market at zero duty. That made U.S. pork more competitive and more accessible to importers and retailers.”
From the importer and consumer perspective, Ruano says what’s most appealing about U.S. pork is its consistency, quality and reliability of supply.
“Importers know exactly what they’re getting in terms of cut specification, yields and performance,” she adds.
Pork is becoming a center of the plate feature in Nicaragua. Popular cuts are the pork loin, the tenderloin, and all the ribs (baby backs, spare ribs, riblets).
“These cuts fit very well with local cooking styles, with family meals and restaurant menus, and they allow pork to compete directly with other proteins as the center of the plate,” Ruano says.
CAFTA has been absolutely critical in developing the Nicaragua market of U.S. pork, she says.
“Maintaining duty-free access is essential right now,” Ruano says. “Any disruption would immediately affect pricing, volumes and confidence in the supply chain.”
