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Significance
The FTA is the latest sign of a burgeoning relationship between the two nations since Nicaragua broke relations with Taiwan in favour of China in December 2021. An authoritarian shift in Nicaragua has seen Managua become more isolated from the West, and closer to nations such as Russia and Iran.
Impacts
Nicaragua will become increasingly reliant on partners that are critical of or hostile towards Washington.
Nicaragua-US tensions will increase despite Washington’s status as Nicaragua’s largest trading partner.
Chinese influence in Central America, where only Guatemala and Belize maintain relations with Taiwan, will increase.
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2023
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