The Office of the United States Trade Representative (USTR) has determined that Nicaragua's actions and policies regarding labor rights, human rights, and the rule of law are unreasonable and place burdens or restrictions on U.S. commerce. This determination was made under Section 301 of the Trade Act of 1974.
According to the USTR, "Nicaragua’s acts, policies, and practices related to abuses of labor rights, abuses of human rights and fundamental freedoms, and dismantling of the rule of law are unreasonable and burden or restrict U.S. commerce."
As a result, the USTR has proposed a range of responsive actions. The office released a report detailing the evidence and findings that support this determination. The investigation began on December 10, 2024, after the USTR received advice from the Section 301 Committee and other advisory groups. The public was invited to participate through a comment process and a public hearing. The investigation collected witness testimony and over 160 comments and rebuttal comments. Testimony also included evidence of gross violations of human rights, which the USTR has referred to the U.S. Department of State for further action.
The USTR stated, "The U.S. Trade Representative today has determined that Nicaragua’s acts, policies, and practices related to labor rights, human rights and fundamental freedoms, and the rule of law are unreasonable and burden or restrict U.S. commerce, and thus are actionable under Section 301(b)(1) of the Trade Act."
In addition to proposing responsive actions, the Federal Register notice invites the public to submit written comments on the proposed measures by November 19, 2025.
Section 301 of the Trade Act allows the United States to address foreign practices considered unjustifiable, unreasonable, or discriminatory if they affect U.S. commerce. Section 301(b) investigations specifically examine whether such practices exist and their impact on American trade.
The public can access further information, including the Federal Register notice and full report, as well as submit comments through official government channels.