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Trade and Development A View from Nicaragua

RICARDO ALVARADO, AMBASSADOR OF NICARAGUA 14 May 2013 Estonian Roundtable for Development Cooperation

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2013 Nicaragua Profile

Capital: Managua Languages: Spanish (Official) English, Miskito and Ethnic Languages - Caribbean Coast Population: 6.03 million 77% under the age of 39 Density: 50 people per Km2 Growth: 1.3% Workforce: 2.99 million, 49.1% underemployed Currency: Cordoba (C$24.73 x US$1 – 2013 average) Time Zone: UCT/GMT – 6 hours

Source: INIDE, Population Estimates and Projections, 2007 Revision. PRONicaragua EMBASSY OF NICARAGUA - FINLAND

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Macroeconomic indicators

2006

2011

2012

GDP (US$ millions)

6,786.3

9,317.3

-

GDP per capita (US$)

1,228.8

1,582.2

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Cumulative inflation (%)

9.4

8.0

3.39a)

Economic growth

4.2%

5.1%

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Exports of Goods and Services (US$ mill)

1,914.1

4,016.0

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Imports of Goods and Services (US$ mill)

3,404.3

6,125.4

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External Debt (US$ mill)

4,526.7

4,072.6

4,127.3

Internal Debt (US$ mill)

1,336.0

1,169.9

1,200.6

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Macroeconomic indicators 2006

2011

2012

Gross International Reserves (US$ mill)

924.2

1,892.3

Industrial Sector Production (US$ mill)

2,762.7

4,198.6

-

Agricultural Sector Production (US$ mill)

1,358.3

2,089.5

-

International Maritime Cargo

• • • •

(Thousands of Tons)

2,707.0b) 3,473.7b) -

Remittances (US$ mill)

697.5

911.6

657.6

c)

Direct Foreign Investment (US$ mills)

286.8

967.9

232.6

d)

Unemployment rate

5.6

6.3

-

Preliminary Data: a): As to September 2012. b): Data from de Central American Commission of Maritime Transport (COCATRAM). c): January-August 2012. d): January-March 2012.

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Fight against extreme poverty

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Food Security and Education 2007-2012

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1,050,567 children in primary education have access to a balanced diet

230,000 families benefited by the “Food for Work” Program”

123,438 women benefited by the “Zero Usury Program”

208,462 producers benefited by the “Improved Seeds Program”; 388,366 acres

100,000 women benefited by the “Zero Hunger Program”

Right to free education to children and young Nicaraguans

Reduced illiteracy rate from 22% in 2006 to 2.8% in 2011 (UNESCO)


FAO’s recognition to Nicaragua

23 April 2013, Rome •

great efforts in the fight against hunger

Between 1990 and 2010

Prevalence of undernourishment from 55.1% to 20.1%

Millennium Development Goal 1

FAO marking this accomplishment

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Energy, Tourism and Safety 2007-2012

•2007-2010: blackouts of up to 12 hours were eliminated •2012-2016: 532.97 MW (geothermal, wind power and hydroelectric projects) •2012-2016: expected the arrival of 6.7 million new tourists •Nicaragua one of the safest countries in the region

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Crime in Nicaragua A surprising safe haven How Central America’s poorest country became one of its safest Jan 28th 2012 http://www.economist.com/node/21543492

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Nicaragua and Human Development Index (UNDP) 1980 - 2012 •Nicaragua's HDI rose by 0.4%/ annually from 0.461 to 0.599 today •Today ranked 129th

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Thankful to development cooperation

Slowly but surely, Nicaragua is climbing out of the cellar of the UN’s Human Development Index

However, unexpectedly, some donors have decided to phase out development cooperation programs affecting the fight against extreme poverty

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Exports are growing

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EU & Central America Association agreement

Three pilars •

Political dialogue

Cooperation

Trade

First of its kind

EU Parliament: December 2012

Trade pillar expected in 2013

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The Association Agreement; trade pillar Evolution of Central America’s trade with the EU In billions of US$

Major business opportunities for both parties

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In 2010, bilateral trade: €12 billion


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EU a trading power

•15.5 % of world trade (in goods) in 2011

•Largest importer 16,1% (2011) •First exporter 14.9% (2011) •EU-27 received €241.7 bn in FDI 2011 (ranking 1st before US €226.9 bn) Agreements in force: Mexico, Chile, Cariforum Negotiations concluded: Central America, Colombia, Peru Negotiations ongoing: Canada, Mercosur Negotiations Under consideration: US

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EU & Central America Association agreement •

CA liberalizes 69%

Savings for EU exporters: € 87 millions/year in custom duties

Expected gains for CA: € 2.6 billions

Gains •

Fruits, vegetables, nuts: Panama and Costa Rica

More competitive textile sector: Guatemala and Nicaragua

Transport equipment: El Salvador and Honduras

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Protecting intellectual property rights Geographical Indications Examples of European GIs Champagne Cognac Polish Vodka Scotch whisky Cava Roquefort Parmiggiano Reggiano Feta Mozzarella di Bufala Campana Wines from the Bordeaux, Porto, Ribera del Duero… Examples of Central American GIs Café de Marcala from El Salvador Café Antigua from Guatemala Cheese from Nagarote and Chontales from Nicaragua...

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Closing the EU-CA Technology Gap

Patent applications to the EPO/ million habitants •Sweden (306.7) •Germany (265.6) •Denmark (241.7) •Finland (217.7) •Estonia (38.1) •Latvia (10.7) •Lithuania (6.5)

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Enhancing Scientific, Research and Innovation Cooperation

28. SANTIAGO DECLARATION CELAC-EU Dialogue Jan 2013

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Central America 28. SANTIAGO DECLARATION CELAC-EU Dialogue, Jan 2013

Geographical location

We stress the importance of triangular, south-south and other modalities and mechanisms of cooperation. We also stress the importance of cooperation for capacity-building and greater involvement of local and indigenous communities as well as corporations, higher education institutions and research institutes for development initiatives that support, among others, high quality knowledge, entrepreneurship and innovation in the pursuit of sustainable development.

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Advantage for trade

Nature’s violent phenomena • Preventive mechanisms


EU and Central America Association Agreement Some projected results

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Small GHG emissions

CO2 emissions (+0.0 %)

Wage increase

Poverty reduction

Increase in investments and FDI

Deeper integration & positive economic impact

Increased trade, more specialization

Long-run beneficial effects

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Central America is a great investment story – buy now

By James McKeigue Feb 18, 2013 www.moneyweek.com

Gran Canal de Nicaragua

Maersk Triple E

By James McKeigue Feb 18, 2013 www.moneyweek.com EMBASSY OF NICARAGUA - FINLAND

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China Invests in Central America

IPS: “From satellites to inter-oceanic canals, the most innovative or ambitious investments in Central America are coming from China” IPS: “…China’s presence is much more ambitious in Nicaragua, where President Daniel Ortega signed a memorandum of understanding in September with the recently created Hong Kong-based HK Nicaragua Canal Development Investment Co to finance and build a canal linking the Caribbean Sea and the Pacific Ocean…” http://www.ipsnews.net/

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KAUPPALEHTI/ TIISTAINA 25. SYYSKUUTA 2012

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Tourism

European visitors to Central America up by more than two per cent in 2012 www.traveldailynews.com

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Emerging Power Markets In South And Central America To 2020 Mar. 6, 2013 www.onlineresearchreports.com

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Estonia – Central America Trade

ESTONIA Exports - Imports Euros, 2012 Guatemala 59557 1874 El Salvador 1491 14297 Honduras 47617 12676 Nicaragua 34907 6459 Costa Rica 337224 562198 Panama 115681 12448 Source: Statistical Office of Estonia www.stat.ee

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Opportunities for Estonian companies

ESTCube-1, the first Estonian satellite, launched on 7 May 2013

A world leader in e-government

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Desde Estonia llegó Jüri Talvet

Saksamaa unenägu, aastal 1988

Inspiratsiooni eest tänades nikaraagua luuletajat Joaquín Pasost Sources: http://www.elnuevodiario.com.ni/festival-de-poesia/277913

http://talvet.edicypages.com/et

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How to achieve sustainable development?

Finland *second best country to be a woman Nicaragua *9 out of 135 worldwide in the Gender Gap index 2012 (Sources: Iltalehti, weforum, The Globe and Mail)

Estonia *best place to be a female engineer (Sources: Iltalehti, weforum, The Globe and Mail)

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Parhaat maat el채채 naisena: 1. Islanti (viime vuoden sija 1.) 2. Suomi (3.) 3. Norja (2.) 4. Ruotsi (4.) 5. Irlanti (5.) 6. Uusi-Seelanti (6.) 7. Tanska (7.) 8. Filippiinit (8.) 9. Nicaragua (27.) 10. Sveitsi (10.) 60. Estonia (52.)


Nicaragua fighting hunger

FAO: “Nicaragua has advanced most in overcoming hunger in Latin American countries”… “Extreme poverty and hunger are visibly decreased in the country” FAO G. Director Jose Graziano da Silva: "The progress is a clear proof that we can eradicate hunger if the countries have a purposeful action" “Nicaragua has been selected as one of the pilot countries for priority delivery on Strategic Objective MDG1 (contribute to the eradication of hunger, food insecurity and malnutrition) under the new FAO Strategic Framework”

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Nicaragua: Women On The Frontline In The Fight Against Hunger (WFP)

Sustainable development

Supporting small farms to end hunger

Agricultural research and development (R&D) ●

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Nicaragua offers access to a market of over 1,500 million consumers as a result of FTA agreements with several countries

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Nicaragua suursaadik - Maailmapäeva konverents 2013