Zero tariffs! The agreement goes into effect today


Published:

2024-01-02

On January 1, 2024, the China-Nicaragua Free Trade Agreement came into effect. According to the arrangement, the two sides will achieve a high level of mutual opening-up in such areas as trade in goods, trade in services and investment market access.

On January 1, 2024, the China-Nicaragua Free Trade Agreement came into effect. According to the arrangement, the two sides will achieve a high level of mutual opening-up in such areas as trade in goods, trade in services and investment market access.

Starting from January 1, 2024, enterprises can enjoy corresponding tariff concessions in China-Nicaragua trade by virtue of the certificate of origin of the China-Nicaragua Free Trade Agreement. In the first year of the agreement's entry into force, 60% of products will be immediately reduced to zero tariff, and with continued tax cuts in the later period, the proportion of zero-tariff products between China and Nepal will exceed 95%.

It is understood that after the agreement comes into force, the main products to enjoy the benefits are beef, shrimp, coffee, cocoa and so on imported from Nicaragua; And Nicaragua imported from our country cars, motorcycles, batteries, photovoltaic modules, clothing and textiles, shoes, etc.

Bi Haijun, director of the customs department of Qingdao Customs, said the major industries benefiting Shandong are agricultural products, textiles and automobiles, including tires. It is estimated that in the first year after the agreement comes into effect, Shandong enterprises can save about 20 million yuan in tariff costs.

It is worth noting that the China-Nepal Free Trade Agreement is the 21st free trade agreement signed by China, and the first free trade agreement in China to open cross-border service trade and investment in a negative list way. Industry insiders said that from the "positive list" to the "negative list", it also means that the level of openness is further improved.

Cui Fan, a professor at the School of International Business and Economics at the University of International Business and Economics, said: "We generally regard the negative list as a tool for high-level opening-up, and China has now entered the stage of full implementation of the negative list in free trade agreements."

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