Notice2025-19635
Notice of Determination and Request for Comments Concerning Action Pursuant to Section 301: Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law
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Published
October 23, 2025
Issuing agencies
Trade Representative, Office of United States
Abstract
The United States Trade Representative (U.S. Trade Representative) 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 are therefore actionable under Section 301 of the Trade Act of 1974. The U.S. Trade Representative is proposing a range of actions, including but not limited to suspension, withdrawal, or prevention of application of benefits of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) to Nicaragua, and additional duties of up to 100 percent on some or all products of Nicaragua. The Office of the U.S. Trade Representative (USTR) seeks public comments on these proposed actions.
Full Text
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<title>Federal Register, Volume 90 Issue 203 (Thursday, October 23, 2025)</title>
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[Federal Register Volume 90, Number 203 (Thursday, October 23, 2025)]
[Notices]
[Pages 48511-48514]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19635]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. USTR-2025-0006]
Notice of Determination and Request for Comments Concerning
Action Pursuant to Section 301: Nicaragua's Acts, Policies, and
Practices Related to Labor Rights, Human Rights and Fundamental
Freedoms, and the Rule of Law
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of determination and request for comments.
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SUMMARY: The United States Trade Representative (U.S. Trade
Representative) 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 are therefore actionable under Section 301 of the
Trade Act of 1974. The U.S. Trade Representative is proposing a range
of actions, including but not limited to suspension, withdrawal, or
prevention of application of benefits of the Dominican Republic-Central
America-United States Free Trade Agreement (CAFTA-DR) to Nicaragua, and
additional duties of up to 100 percent on some or all products of
Nicaragua. The Office of the U.S. Trade Representative (USTR) seeks
public comments on these proposed actions.
DATES: To be assured of consideration, the following schedule applies:
November 19, 2025: Due date for written comments.
ADDRESSES: Submit documents in response to this notice, including
written comments, through the online USTR portal at: <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>. The docket number for comments is USTR-2025-0006.
FOR FURTHER INFORMATION CONTACT: For procedural questions concerning
comments, contact the USTR Section 301 support line at (202) 395-5725.
Direct all other questions regarding this notice to Philip Butler,
Chair of the Section 301 Committee, Leigh Bacon, Chief Counsel for
Negotiations, Legislation, and Administrative Law, or
[[Page 48512]]
Nathaniel Halvorson, Deputy Assistant U.S. Trade Representative for
Monitoring & Enforcement, at (202) 395-5725.
SUPPLEMENTARY INFORMATION:
I. Proceedings in the Investigation
On December 10, 2024, the U.S. Trade Representative initiated an
investigation regarding Nicaragua's acts, policies, and practices
related to labor rights, human rights, and the rule of law pursuant to
302(b)(1) of the Trade Act of 1974, as amended (Trade Act) (19 U.S.C.
2412(b)(1)). See 89 FR 101088 (December 13, 2024). The notice of
initiation solicited written comments on, inter alia: Nicaragua's acts,
policies, and practices related to labor rights, human rights, and the
rule of law; whether Nicaragua's acts, policies, and practices related
to labor rights, human rights, and the rule of law are unreasonable or
discriminatory; whether Nicaragua's acts, policies, and practices
burden or restrict U.S. commerce, and if so, the nature and level of
the burden or restriction; and what action, if any, should be taken.
Interested persons filed over 160 written comments. In addition,
USTR and the Section 301 Committee convened a public hearing on January
16, 2025, during which witnesses provided testimony and responded to
questions. The public submissions are available at: <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a> in docket number USTR-2024-0021, and a transcript
of the hearing is available on USTR's website.
On December 10, 2024, the U.S. Trade Representative requested
consultations with the Government of Nicaragua pursuant to Section
303(a) of the Trade Act (19 U.S.C. 2413(a)). The Government of
Nicaragua has declined to hold consultations regarding the
investigation under the statutory framework.
Based on information obtained during the investigation, including
the public submissions and the public hearing, USTR and the Section 301
Committee have prepared a comprehensive report on the acts, policies,
and practices under investigation. The report supports a determination
that Nicaragua's acts, policies, and practices with respect to labor
rights, human rights and fundamental freedoms, and the rule of law are
unreasonable and burden or restrict U.S. commerce. The report is
available on USTR's website.
II. Nicaragua's Abuses of Labor Rights, Human Rights and Fundamental
Freedoms, and the Dismantling of Rule of Law Protections Against
Arbitrary Actions
As detailed in the Section 301 report, Nicaragua has engaged in
increasingly pervasive abuses of labor rights, as well as human rights
and fundamental freedoms, and has systematically dismantled rule of law
protections against arbitrary government action.
First, the Ortega-Murillo regime has committed or allowed a number
of abuses of internationally recognized labor rights. These include
repression of freedom of association and collective bargaining;
interference in worker and employer organizations; seizure of assets
and removal of citizenship of members of worker and employer
organizations; arbitrary dismissals and arrests; child and forced
labor; human trafficking; and workplace abuses, including wage
deductions and theft, and retaliation for claiming rights violations.
For example, the Government of Nicaragua controls all major unions,
effectively nullifying the right of workers to join independent unions
of their choosing, and has arrested and harassed union members to
prevent them from organizing freely. The most recent data shows that 47
percent of Nicaraguan children between 10 and 14 years of age are
working, including in gold mining operations, production of gravel and
crushed stones, and quarrying of pumice.
Second, the Ortega-Murillo regime engages in abuses of human rights
and fundamental freedoms, including against U.S. persons and property.
The regime has repressed religious organizations through the forced
closure and seizures of institutions and properties, including, for
example, in August 2023, when Nicaragua closed--and seized--the Jesuit-
run University of Central America and, in 2024, when Nicaragua arrested
and tried the leaders of, and expropriated the property interests of,
Nicaragua's largest U.S.-based evangelical church.
Third, the Ortega-Murillo regime has engaged in the dismantling of
the rule of law in Nicaragua. This includes imposing arbitrary or
incorrect fines, taxes, customs inspections, and rulings; revoking the
legal status of prominent business organizations; and seizing property
interests without legal recourse.
III. Determination on the Acts, Policies, and Practices Under
Investigation
Based on the information obtained during the investigation,
reflected in the public report on the findings in the investigation,
and taking account of public comments and the advice of the Section 301
Committee and advisory committees, the U.S. Trade Representative has
made the following determination under sections 301(b) and 304(a) of
the Trade Act (19 U.S.C. 2411(b) and 2414(a)): the acts, policies, and
practices covered in the investigation are unreasonable and burden or
restrict U.S. commerce, and are thus actionable under section 301(b) of
the Trade Act.
A. Nicaragua's Acts, Policies, and Practices Related to Labor Rights,
Human Rights and Fundamental Freedoms, and Rule of Law Are Unreasonable
The acts, policies, and practices of Nicaragua related to abuses of
labor rights, human rights and fundamental freedoms, and dismantling
the rule of law are unreasonable within the meaning of the Section 301
statute for several reasons.
First, Nicaragua's acts, policies, and practices are fundamentally
unfair and incompatible with norms against abuses of labor rights,
human rights and fundamental freedoms, and the rule of law. These acts,
policies, and practices run counter to basic norms and principles of
fairness, human rights (including security of persons and property, and
freedom of association and religion) and the rule of law. Second,
Nicaragua's acts, policies, and practices are contrary to the norms,
rules, and rights reflected in Nicaragua's own laws and constitution.
Third, they are unreasonable in light of regional and international
labor and human rights conventions, instruments, agreements, or
treaties to which Nicaragua itself is party and that establish norms
against the kind of acts, policies, and practices undertaken by
Nicaragua's government.
B. Nicaragua's Acts, Policies, and Practices Related to Labor Rights,
Human Rights and Fundamental Freedoms, and the Rule of Law Burden or
Restrict U.S. Commerce
Nicaragua's acts, policies, and practices related to labor rights,
human rights and fundamental freedoms, and the rule of law burden or
restrict U.S. commerce. Through these acts, policies, and practices,
Nicaragua has exploited its own workers resulting in unfair conditions
of competition, confiscated the property interests of domestic and
foreign religious institutions and U.S. persons or businesses, and
created a high-risk environment for U.S. companies investing and
conducting business in the country.
[[Page 48513]]
First, Nicaragua's acts, policies, and practices harm both
Nicaraguans directly and U.S. workers and businesses indirectly through
exploitation of workers resulting in unfair competition. For example,
Nicaragua's exploitation of workers by denying basic labor rights
suppresses Nicaraguan workers' wages and results in artificially low-
cost Nicaraguan products, to the detriment of U.S. workers and
businesses.
Second, Nicaragua's acts, policies, and practices negatively impact
the Nicaraguan economy and market, with lost sales and exports for U.S.
enterprises seeking to access or operate in Nicaragua's market. For
example, Nicaragua's labor rights violations exploit workers, lowering
worker wages and promoting unfair competition, which leads to lost
sales by U.S. companies, weakens Nicaragua's economy by diminishing
worker participation and productivity, and disincentivizes companies
from investing and doing business in Nicaragua.
Third, Nicaragua's acts, policies, and practices lead to lost
investment and commercial opportunities for U.S. workers and companies,
including through the creation of a high-risk environment to invest or
conduct business. For example, Nicaragua's attacks on religious freedom
have led to unlawful closure and seizure of religious institutions and
properties, including of U.S. churches. Likewise, Nicaragua's
dismantling of rule of law protections against arbitrary government
action has led to diminished investment, exports, and business activity
by U.S. companies, higher costs through unjust fines, taxes, or
corruption, and lost revenues (or increased costs) through lack of
enforcement of court rulings.
IV. Proposed Action To Be Taken in the Investigation
Section 301(b) provides that upon determining that the acts,
policies, and practices under investigation are actionable and that
action is appropriate, the U.S. Trade Representative shall take all
appropriate and feasible action authorized under section 301(c),
subject to the specific direction, if any, of the President regarding
such action, and all other appropriate and feasible action within the
power of the President that the President may direct the U.S. Trade
Representative to take under section 301(b), to obtain the elimination
of that act, policy, or practice.
Section 301(c) of the Trade Act authorizes the U.S. Trade
Representative to take certain actions for purposes of carrying out the
provisions of Section 301(b). For example, Section 301(c)(1)(A)
authorizes the U.S. Trade Representative to ``suspend, withdraw, or
prevent the application of, benefits of trade agreement concessions to
carry out a trade agreement with the foreign country referred to in
such subsection.'' Section 301(c)(1)(B) also authorizes the U.S. Trade
Representative to ``impose duties or other import restrictions'' on the
goods of the foreign country subject to the investigation.
Pursuant to Sections 301(b) and (c), the U.S. Trade Representative
proposes to determine that action is appropriate and that appropriate
action would include:
<bullet> suspending the application of all Dominican Republic-
Central America-United States Free Trade Agreement (CAFTA-DR) benefits
to Nicaragua, including tariff concessions and cumulation of Nicaraguan
content for other CAFTA-DR partners, immediately or phased in over a
period of time up to 12 months;
<bullet> suspending the application of some CAFTA-DR benefits to
Nicaragua, including tariff concessions and cumulation of Nicaraguan
content for other CAFTA-DR partners, immediately or phased in over a
period of time up to 12 months;
<bullet> applying tariffs of up to 100 percent on all Nicaraguan
imports, immediately or phased in over a period of time up to 12
months;
<bullet> applying tariffs of up to 100 percent on some Nicaraguan
imports immediately, with tariffs for selected sectors phased in over a
period of time up to 12 months.
V. Request for Public Comments
In accordance with section 304(b) of the Trade Act (19 U.S.C.
2414(b)), USTR invites comments from interested persons with respect to
the appropriate action to be taken. To be assured of consideration, you
must submit written comments on the proposed action by November 19,
2025, in accordance with the instructions in section VI below.
With respect to the proposed action, USTR invites comments
regarding:
<bullet> The suspension of the application of CAFTA-DR benefits to
Nicaragua, including tariff concessions and cumulation of Nicaraguan
content for other CAFTA-DR partners, and the effective date of such
suspension.
<bullet> The application of increased tariffs on Nicaraguan
imports, including the level of increase and the effective date of any
increase for specific sectors.
In commenting on the timing of increased duties for specific
sectors, USTR requests that commenters specifically address whether
imposing increased duties on particular sectors or suspending or
withdrawing concessions on a particular sector, would be practicable or
effective to obtain the elimination of Nicaragua's acts, policies, and
practices or would cause disproportionate economic harm to U.S.
interests, including small- or medium-size businesses and consumers.
Additional instructions on how to submit written comments are
provided in section VI below.
VI. Procedures for Written Submissions
You must submit written comments using the appropriate docket on
the portal at <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>. All submissions must be in
English. To submit written comments, use the docket on the portal
entitled ``Request for Comments Concerning Proposed Action Pursuant to
the Section 301 Investigation of Nicaragua's Acts, Policies, and
Practices Related to Labor Rights, Human Rights and Fundamental
Freedoms, and Rule of Law'', docket number USTR-2025-0006.
You do not need to establish an account to submit comments. The
first screen of each docket allows you to enter identification and
contact information. Third party organizations such as law firms, trade
associations, or customs brokers, should identify the full legal name
of the organization they represent, and identify the primary point of
contact for the submission. Information fields are optional; however,
your comment or request may not be considered if insufficient
information is provided.
Fields with a gray Business Confidential Information (BCI) notation
are for BCI information which will not be made publicly available.
Fields with a green (Public) notation will be viewable by the public.
After entering the identification and contact information, you can
complete the remainder of the comment, or any portion of it by clicking
``Next.'' You may upload documents at the end of the form and indicate
whether USTR should treat the documents as business confidential or
public information.
Any page containing BCI must be clearly marked `BUSINESS
CONFIDENTIAL' on the top of that page and the submission should clearly
indicate, via brackets, highlighting, or other means, the specific
information that is BCI. If you request business confidential
treatment, you must certify in writing that disclosure of the
information would endanger trade secrets or profitability, and that the
[[Page 48514]]
information would not customarily be released to the public.
Parties uploading attachments containing BCI also must submit a
public version of their comments. If these procedures are not
sufficient to protect BCI or otherwise protect business interests,
please contact the USTR Section 301 support line at (202) 395-5725 to
discuss whether alternative arrangements are possible.
USTR will post attachments uploaded to the docket for public
inspection, except for properly designated BCI. You can view
submissions on USTR's electronic portal at <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>.
Jennifer Thornton,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2025-19635 Filed 10-22-25; 8:45 am]
BILLING CODE 3390-F4-P
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</html>Indexed from Federal Register on October 23, 2025.
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