RESTRICTED L/4377/Add.1 GENERAL AGREEMENT ON 5 October 1976 TARIFFS AND TRADE Limited Distribution

Original: Spanish

CENTRAL AMERICAN COMMON MARKET addendum Communication from

The following communication dated 16 August 1976 has been received from the .

I have the honour to transmit to you, in accordance with our GATT undertakings, the following report concerning the economic activities of Nicaragua within the framework of the Central American Economic Integration Progrmme during the year 1975 and the first half of 1976, which I would request you to communicate to the CONTRACTING PARTIES. L/4377/Add .1 Page 2

MINISTRY FOR ENCONOMIC AFFAIRS,INDUSTRY AND TRADE DEPARTMENT OF ECONOMIC STUDIES ECONOMICINTEGRATION SECTOR

SITUATION OF TRADE BETWEEN NICARAGUA AND GENTRAL AMERICA IN 1975 AND THE FIRST HALF OF 1976

TRADE BETWEEN NICARA.GUA AND IN 1975

A. General analysis The 1975 figures relating to trade between Nicaragua and the Central American countries show a deficit of $20.1million which is the net balance resulting from and imports amounting to $92.6 million and $112.7 million respectively. However, this figure is $19.1 million (48.8 per cent) less than the 1974 deficit which amounted to $39.2 million. This represents an improvement in our chronic deficit with Central American Common Market countries, although the 1975 figure is still high compared with levels existing before the 1972 earthquake. The reduction in our deficit is due basically to a fall in imports, which declined by 13.8 per cent while exports remained practicallyy unchanged at their 1974 level. Among the factors responsible for the decline in imports the following can be mentioned: (a) The excessivelevel of inventories accumulated in 1974 by business undertakings in anticipation of price increases or supply difficulties; (b) The influence of the world depression on the of Nicaragua; (c) The recession in the sector and the sluggishness of the domestic economy; (d) A weakening in consumer's purchasing power. The statistical annex brings out the decrease in the value of imports of consumer goods, building materials, and industrial raw materials and intermediate products. The world depression and its repercussion on the Central American economy is largely responsible for the relative slackness in our exports. The major part of these consists of manufactures, shipments of which declined by $1.5 million. L/4377/Add.1 Page 3

However, this decline in exports of manufactures was offset by the performance of the agricultural sector,whose recovery within the framework of our trade with Central America was significant, as the value of these exports rose from $8.3 to $11.0 million between 1974 and 1975. In 1975, the Central American Common Market accounted for one quarter of our total exports and more than one fifth of our total imports. However, the share of imports from Central American countries which, over a number of years, had accounted for more than 25 per cent of the total, fell to 23 per cent in 1974 and to 21 per cent in 1975 (see Table 3). The sharp fall in purchases from Central American countries was the most significant trade event in 1975 and brought on a reduction by nearly 50 per cent in our trade deficit with the countries of the, area. B. Exports sales by Nicaragua to Central America rose by $1.1 million to $92.6 million in 1975. These exports had already increased by $32 million in 1974. Given that 1974 was an abnormal year when a combination of very special factors generated particularly buoyant exports from Nicaragua to the Central American Common Market, the levels recorded in 1975 can be regarded as acceptable, in particular, considering that the stimulating factors had ceased to exist and in their place the repercussions of the world recession were being felt. Sales of chemical products (the main export item in the area) which had increased by $13 million in 1974 showed a $3 million decline in 1975. Exports of these products originate in our soda ash integration complex and consist of articles like caustic soda, chlorine, chlorinated camphene, chlorinated insecticides and articles derived from P.V.C. In contrast, exports of foodstuffs and, to a lesser extent, agricultural products and basic metal articles recorded a significant increase in 1975. This increase offset the fall in exports of chemical products with the result that our total exports to the area rose to the above-mentioned levels. In this connexion, special mention should be made of products like powdered milk, cottonseed oil, biscuits and some agricultural products. As regards our exports of foodstuffs mention should be made of the fact that negotiations conducted by our Governments in the various regional fora contributed to an increase in our sales of powdered milk and to the elimination of the difficulties encountered as regards placement of biscuits in certain markets. Mention should also be made of efforts undertaken by our industries in order to maintain and increase their export Ievels. L/4377/Add.1 Page 4

As regards the classification of goods according to their economic use or purpose, it is interesting to note that Nicaragua's exports to the Central American Common Market area mainly comprise goods classified as raw materials and intermediate products and non-durable consumer goods, together accounting for 93 per cent of our total sales to Central America. The above analysis shows that, among non--durable consumer goods, food products are the most important item, whereas in the other group chemical and pharmaceutical products represent more than half of the export figure. C. Imports As regards the analysis by category of products, it should be emphasized that on the import side chemicals and food products are important items, both because a considerable volume is involved and because these items have a decisive influence on the import level. In addition to purchases of chemicals and food products, the share of textile articles has risen over the five-year period to the point of ranking first in importance, although Nicaragua has negotiated with and the institution of a mechanism regulating the increase in trade of textile articles. The three above-mentioned categories, although imports are more diversified than exports thereof, account for half of total purchases from the Common Market and therefore their movements were a determining factor in the import performance. The factors which account for the considerable reduction of our purchases of goods from Central American countries are closely related to the excessive level of inventories accumulated by Nicaraguan business in 1974, the influence of the world depression on the national economy, the recession in the construction sector and the sluggishness of the national economy due to a weakening in consumers' purchasing power. It should be stressed that on the basis of the economic use or purpose of imports from Central America, industrial raw materials and intermediate products declined appreciably by close to $9 million in 1975 as against a $20 million increase in 1974; non-durable consumer goods performed in the same way, falling by $4 million after a $14 million increase in 1974 (see Table 8). D. Nicaragua's trade balance with Central America Nicaragua's, trade balance with Central America was in deficit during the whole of the 1960-1975 period, which can be divided into three different stages characterized by different trends. From 1960 to 1967, the deficit increased from $0.3 to $24.1 million. From 1968 to 1972, when the industrial sector became more competitive, the deficit was gradually reduced to $4.6 million. Lastly, L/4377/Add.1 Page 5 in 1973 and 1974, after the earthquake, the deficit rocketed to $39.2 million. During these two years, the factors accounting for the very abnormal nature of our trade with Central America were difficulties linked to the domestic marketing of our products, the impact.: of the earthquake on our competitiveness and world . (See chart No. 1.) In the light of earlier movements, it is interesting to note that during the year under consideration the deficit was reduced by $19 million, the most abrupt change over the past fifteen years. This phenomenon, which reflected a decline in our purchases and an increase in our sales, interrupted the upward trend recorded after the earthquake and could forecast the nornalization of. our relations with Central America. The reduction of our deficit seems to be linked to demand disincentives rather than to improvements in the country's export capacity; this is why particular attention should be given to our policy of supporting our exports to this area. The most important surpluses in our trade with Contral America were in respect of foodstuffs and agricultural products, which contributed a net foreign exchange inflow of $10 and $6 million respectively. On the other hand, the most significant deficit was concentrated on textile products and paper,representing a net foreign exchange outflow of $14 and $6 million respectively. Country analysis It is interesting to examine the composition of our trade with Central American countries on an individual basis in order to have an idea of the geographical composition of our trade flows and their structural changes. In 1975, displaced Guatemala as Nicaragua's main supplier and has become our main customer and supplier, i.c., the country with which we conduct the largest volume of trade within the area. It is encouraging to note that our trade balance was again positive with Costa Rica in 1975, after having shown a deficit for two successive years, 1973 and 1974. With Guatemala and El Salvador we are reducing our exports and to a greater extent our imports, thereby improving the chronic deficit that we have had with those two countries since the beginning of the integration process in 1960. Our trade with Honduras showed a $2 million surplus as a result of an increase in our exports to this market and a decline in our purchases. L/4377/Add.1 Page 6

The structural evolution of our trade on a country basis is influenced by domestic policy measures, by the recovery of our industrial sector from the effects of the earthquake, and by bilateral and multilateral negotiations between countries. Synthesis One can say that the performance of our trade with Central America in 1975 has been favourable. The reduction of our trade deficit to one half has ended the uptrend that developed in our trade deficit after the earthquake and indicates that it may be possible to slow down the abnormal rate of increase. Although the decline was attributable to sluggishness of domestic demand rather than to an increase in export capacity, mention should be made of the fact that our sales increased although the negative effects of the recession were being felt in all the countries within the area. A policy of incentives and support for our domestic industry with a view to increasing its competitive capacity with Central America, would find a favourable short-term economic situation in 1976.

NICARAGUA'S TRADE WITH CENTRAL AMERICA IN THE PERIOD JANUARY-JUNE 1976 During the first six months of the current year, Nicaragua's trade with Central America continued to reflect the favourable trends noted during the _1~~~~- Ieedr & ; rf lCrr, -, tic' -eu MaT r. L/4377/Add.1 Page 7

Guatemala and El Salvador for their part imported $35.2 million worth of Nicaraguan products as against $33.2 million in 1975. Nicaragua's exports to these two markets during the period January-June 1975 amounted to $24.8 million as against $17.1 million for the corresponding period of 1974. During the period considered, Nicaragua's exports to Honduras amounted to $7.4 million as against $5.4 million for the corresponding period of 1975. Imports amounted to $5.8 million in 1976 compared with $5.1 million in 1975, so that our positive balance increased from $306 million to $1,596 million from January-June 1975 to the corresponding period of 1976. (See Table No. 10.) TABLE1NICARAGUA: TRADE BAL.AMCE WITH CENTRAL AMERICA L/4377/Add.1Page8

Year T 0 T A L Exports Imports Trade F.0. B. C.I..F. Balance ($'000) 1960 2.526.6 2.776.5 -249.9 1961 1.803.0 2.880.3 -1.077.3 1962 3.531.3 5.342.9 -1.811.6 1963 4.759.0 7.353.6 -2.594.6 1964 7.124.3 14.307.8 -7.183.5 1965 12.399.7 21.394.9 -8.995.2 1966 16.174.9 31.568.0 - 15.393.1 1967 18.244.2 42.373.2 -24.129.0 1968 24.635.6 46.171.6 -21.536.0 1969 31.684.2 42.218.8 -10.534.6 1970 46.055.9 50.014.9 -3.959.0 1971 47.351.2 53.589.4 -6.238.2 1972 56.215.5 60.817.8 -4.602.3 1973 60.265.9 89.908.3 -29.642.4 1974 91.518.9 130.678.8 -39.159.9 1975 92,574.0 112.673.0 -20.104.0 1976 1, 115.800.0 132.300.0 -16.500.0 1/:Estimated Source:- Department of Economic Studies, Ministry for Economic Affairs, Industry and Trade, on the basis of the economic indicators of the Central Bank of Micaragua. 5 August 1976 TABLE 2 NICARAGUA: TRADE BALANCE WITH CENTRAL AMERICA

Year G U A TE MA L A E LS A L V A D O R Exports Imports Trade Exports Imports Trade F.O.B. C.I.F. Balance F.O.B. C.I.F. Balance ($'000) 1960 16.0 489.1 -473.1 1.254.9 1.737.4 -482. 5 110.8 922.1 -311.6 704.7 1.408.7 -704.0 423.0 1.600.0 -1.177.0 1.924.4 3.095.2 -1.170.8 1963 623.1 2.943.9 -2.320.8 2.103.2 2.415.7 -312.5 1964 737.8 5.105.9 -4. 363.1 2. 307 .1 4.198.4 -1.891. 3 1.724.3 6.486.6 - 4.762.3 3.851.9 6.679.5 -2.827.6 1965 2.274.9 8.931.7 - 6.656.8 5.302.0 9.873.6 -4.571.6 1967 2.352.4 12.647.2 -10. 294.8 4.938.9 13.625.6 8.686.7 1968 3.523.4 12.964.8 - 9.436.4 5.692.5 14.869.1 -9.176.6 -5.332.1 1959 5.083.4 12.883.3 - 7.799.9 6.523.6 11.855.7 1970 7.250.2 15.729.4 - 8.479.2 7.811.6 15.426.2 -7. 614.6 1971 9.168.5 18.866.8 - 9.698.3 9.149.8 16.060.7 -6.910.9 10.646.7 20.956.0 - 10.309.3 11.110.4 16.612.3 -5.501.9 1972 L/4377/Add.1 1973 12. 310.8 29.282.8 - 16.972.0 13.400.2 25.809.7 -12.409.5 1974 I2 .597 .2 41.560.2 - 18.963.0 23.959.8 36.631.6 -12.671.3 Page9 1975 21.521.0 36.494.0 - 14.973.0 21.286.0 29.115.0 - 7.829.0 . TABLE 2 (cont'd)

H 0 N U A O S C S T A R C Year - I A Exports DImports Trade Exports Imports Trade F.O.B. C.I.F. Balance F.O.B. C.I.F. Balance

1960 20.1 111.1 -91.0 438.9 796.7 1961 48.1 92.1 -44.0 939.4 457.1 432.3 1962 164.5 179.0 -14.5 1.019.4 468.7 550.7 1963 597.1 353.3 243.8 1.435.6 1.640.7 -205.1 1964 1.215.8 950.8 265.0 2.863.6 4.052.7 -1.189.1 1965 2.610.8 1.326.6 1.234.2 4.212.7 6.902.2 -2.689.5 1966 2.986.2 2.166.4 819.8 5.611.8 10.596.3 -4.984.5 1967 3.719.2 2.544.4 1.174.8 7.233.7 13.556.0 -.6.322.3 1968 4.373.7 4.108.8 264.9 11.041.0 14.228.9 -3.187.9 1969 6.402.4 4.737.7 1.664.7 13.674.8 12.742.1 932.7 1970 12.612.3 4.926.1 7.868.2 18.381.8 13.933.2 4.448.6 1971 3.806.0 2.081.2 1.814.8 25.136.9 16.580.7 8.556.2 1972 7.934.9 4.017.6 3.917.3 26.523.5 19.231.9 7.291.6 1973 11.360.0 7.116.9 4.743.1 22.694.9 27.698.9 -5.004.0 1974 10.996. 3 11.091.6 -95.3 33.965.6 41.395.4 -7.429.8 1975 12.492.0 10.551.0 1.941.0 37.275.0 36.518.0 757.0

Source: Department of Economic Studies, Ministry for Economic Affairs, Industry and Trade, on the basis of the economic indicators of the Central Bank of Nicaragua.

5 August 1976 NICARAGUA: SHARE OF TRADE WITH CENTRAL AMERICA IN TOTAL TRADE

1971 1972 1973 1974 1975 (Percentage) Exports to Central America/ Total Exports 25.8 25.3 22.5 21.7 24.0 24.7 Imports from Central America/ Total Imports 25.2 25.5 27.8 27.5 23.3 21.8 Exports of agricultural products to Central America/Total exports of agricultural products 7.5 9.4 8.6 3.6 4.1 6.6 Imports of agricultural products from Central America/Total imports of agricultural products 36.9 37.2 43.4 22.4 28.4 22.7 Exports of industrial products to Central America/Total exports of industrial products 42.8 39.3 35.5 38.5 50.6 40.7 Imports of industrial products from Central America/Total imports of industrial products 25.7 26.5 28.7 29.6 25.6 25.0 Page11 5 August 1976 L/4377/Add.1 TABLE 4 L/4377/Add.1 NICARAGUA: EXPORTS F.O.B.TO CENTRAL AMERICA BY ECOKOMIC SECTORS OF ORIGIN Page12 Difference Difference ISIC description 1974 1975 1974/73 1975/74 ($ '000)

8,34 Agriculture and livestock 4,319 10,962 3,823 2,61

Mining and quarrying 809 -659 Manufacturing 80,854 28,070 Food 14,184. 17,521 21,620 3,337 Beverages 107 177 42 73 32 86 Textiles 6,799 1,243 Footwear and wearing apparel 2,033 718 . Wood and cork 1,377 2,115 2,149 Furniture and fixtures 628 385 Paper and paper products 1,002 1,316 445 314 Printing, publishing and allied industries 51 54 88 Leather and leather products 774 720 183 Rubber products 539 648 109109 Chemicals and chemical products 17, 317 31,327

1,078 1,392 and coal products 3,107 Non-metallic minerals 2,897 967. Basic metal industries 11,591a, . 1,738 3,350 147 Metal products 7,865 4,974 4,253 Non-electrical machinery 380 395 533 15 139 Electrical machinery and apparatus 629 1,089 1,366 460 277 Transport equipment 6 10 5 Miscellaneous 1,234 2,694 1,730 1,460 -964 .

Activities not defined 24 44 20

60,265 91,510 92,574 31,254

27 March 1976 TABLE 5

NICARAGUA: IMPORTS C. I.F. FROM CENTRAL AMRICA BY ECONOMIC SECTORS OF ORIGIN Difference Difference ISIC description 1973 l974 1975 1974/73 1975/74 ($'000) Agriculture and livestock 4,948 5,939 4,882 991 -1,057 Mining and quarrying 77 90 128 13 38 Manufacturing 84,867 124,647 107,665 39 ,780 -16,982 Food 10,480 14,321 11,431 3,841 -2,890 Beverages 118 129 122 11 -7 Tobacco 184 189 177 -15 -8 Textiles 17,500j 28,908 20,695 11,408 -8, 213 Footwear and wearing apparel 3,846, 4,926 5,331 1,080 405 Wood and cork 347 851 960 504 109 Furniture and fixtures 383 795 512588 -212 Paper and paper products 4,343 7,788 6,143 3,445 -1,645 Printing, publishing and allied industries 734 1,271 1,511 537 240 Leather and leather products 223 307 237 84 -70 Rubber products 1,819 2,976 3,351 1,157 375 Chemicals and chemical products 15 ,133 23,267 24,335 8,134 1,068 Petroleum and coal products 219 168 735 -51 567 Non-metallic minerals 3, 075 4,399 4,702 1,324 303 Basic metal industries 7,847 7,003 5,508 -844 -1,495 Metal products 5,689 7,831 5,885 2,142 -1,946 Non-electrical machinery 2,282 2,600 2,529 318 -71 Electrical machinery and apparatus 5,634 8,046 6,084 2,412 -1,962 Transport equipment 711 1,156 1,126 445 -30 Miscellaneous 4,400 7,735 6,220 3,335 1,515 Activities net defined 10 3 -13 -3

TOTAL 89 ,903 130,679 112,678 40,771 18, 001

27 March 1976L/4377/Add.1Page13 L/4377/Add.1 Page. 14 TABLE 6

NICARAGUA: TRADE BALANCE WITH CENTRAL AMERICA BY ECONOMIC SECTORS OF ORIGIN ISIC description 1973 1974 1975

($'000) Agriculture and livestock -429 2,403 6,080 Mining and quarrying 1,391 719 630

Manufacturing -30,643 -42,323 -26,811

Food 3,704 3,200 10, 89 Beverages -53 -22 55 Tobacco -25 -96 -145 Textiles -11,934 -22,109 -13, 616 Footwear and wearing apparel --2,528 -2,890 -2,629 Wood and cork 1,630 1,264 1,189 Furniture and fixtures -20 -167 -46 Paper and paper products -3,341 -6,472 -5,698 Printing publishing and allied -683 -1,134 -1,457 Leather and leather products 368 467 483 Rubber products -1,280 -2,328 -2,,742 Chemicals and chemical products 2,184 8,060 3,954

Petroleum and coal products 859 1,224 527 Non-metallic minerals -378 -735 -1,595 Basic metal industries -6,256 -5,265 -2,149 Metal products -2,077 34 -911 Non-electrical machinery -1,902 -2,205 -1,996 Electrical machinery and apparatus 5,005 -6,957 -4,718 Transport equipment -710 -1,150 -1,116 Miscellaneous -3,166 -5,041 -4,490

Activities not defined 120 41 -

Total -29,643 -39,160 -20,104

March 1976 L/4377/Add.1 Page 15

TABLE 7 NICARAGUA: EXPORTS F.0.B TO CENTRAL AMERICA BY ECONOMIC COMMODITY GROUPS Classified according to economic use or purpose 1973 1974 1975 Difference1974/73 Difference1975/74 ($,000) Non-durable consumer goods 17, 334 22,559 26,494 5,225 3,935 Foodstuffs 11, 422 15,776 19,322 4,354 3,544 Beverages 65 108 177 43 Tobacco 159 73 32 -86 -3 Pharmaceutical products and toilet articles 2 , 091 2,261 2,218 170 -43 Wearing apparel 1, 047 790 983 -256 193 Other non-durable consumer goods 2, 550 3,551 3,762 1, 001 210 Durable consumer goods 598 928 1,198 330 270 Household utensils 86 103 130 17 27 Personal ornaments, musical instruments etc. 23 28 67 5 39 Furniture and other household equipment 283 645 558 362 -87 Machinery and appliances for household use 205 140 443 -65 303 Private transport vehicles 1 12 3 11 -9 Military weapons and equipment Fuels, lubricants and allied products 550 493 300 -57 -193 Fuels 550 493 294 -57 -199 Lubricants 6 6 Raw materials and intermediate products for agriculture 4,727 9,706 9,827 4,979 121 Animal feeding stuffs 3,215 3,766 5,663 551 1,897 Other raw materials for agriculture 1,512 5,942 4,164 4,428 -1,776 Raw materials and intermediate products for industry except for construction 27,161 43,836 41,396 16,675 -2,440 Foodstuffs 3,545 3,666 121 517 Non-food agricultural and livestock products 6,974 11,168 10,356 4,194 -812 Mining products 1,640 3,909 3,111 2,269 -798 Chemical and pharmaceutical products 15, 002 25, 093 23,746 10, 001 -1,347 Construction materials 6,664 8,228 8,816 1,564 588 Construction materials of non-mineral origin 1,956 2,065 109 -59 Construction materials of non-metallic mineral origin 3,381 4,616 4, 034 1,235 -532 Metal construction materials 1,327 1,547 2,726 220 1,179 Capital goods for agriculture 1,319 2,348 1,863 1,029 -485 Machinery and tools 340 463 576 123 113 Other equipment for agriculture 969 1,783 1,024 814 -759 Transport and haulage equipment 8 1 8 -7 Pure-bred livestock 10 94 262 84 168 Capital goods for industry 1,904 3,417 2, 668 1,513 -749 Machinery and apparatus for office, service and scientific use 3 22 38 19 16 Tools 7 29 7 22 Parts and accessories for industrial machinery 9 50 8 41 -42 Industrial-machinery 663 1,088 1,147 425 59 Other fixed equipment 1,229 2,250 1,425 1,021 -825 Telecommunications equipment 20 20 Transport equipment 1 3 12 2 9 Parts and accessories for transport equipment 6 Rolling transport equipment 6 6 Fixed transport equipment 1 3 2 -3 Miscellaneous 7 1 -6 -1 TOTAL 60, 265 91, 519 92,574 31,254 1,055

23 March 1976 L/4377/Add.1 Page 16

TABLE 8 NICARAGUA: IMPORTS C.I.F. FROM CENTRAL AMERICA BY ECONOMIC COMMODITY GROUPS

Classified to economic use or Difference according purpose 1973 1974 1975 1974/73 1975/74 ($'000) Non-durable consumer goods 36,671 50,232 46,104 13,561 -4,128 Foodstuffs 12,988 16,318 13,625 3,330 -2,693 Beverages 118 129 122 11 -7 Tobacco 184 169 177 -15 8 Pharmaceutical products and toilet articles 7,125 10,293 11,508 3,168 1,215 Wearing apparel 6,802 8,491 6,528 1,689 -1,963 Other non-durable consumer goods 9,454 14,832 14,144 5,378 -688 Durable consumer goods 5,307 8,941 7,640 3,634 1,301 Household utensils 350 559 388 209 -171 Personal ornaments, musical instruments etc. 279 465 369 186 -96 Furniture and other household equipment 1,591 2,544 1,594 953 -950 Machinery and appliances for household use 1,195 2,017 1,607 822 -410 Private transport vehicles 1,892 3,356 3,682 1,464 326 Military weapons and equipment Fuels, lubricants and allied products 122 38 640 -84 602 Fuels 1 124 -1 124 Lubricants 121 38 516 -83 478 Raw materials and intermediate products for agriculture 4,664 7,952 7,181 3,288 -771 Animal feeding stuffs 460 864 281 404 -583 Other raw materials for agriculture 4,204 7, 088 6,900 2,884 -188 Raw materials and intermediate products for industry except for construction 28,778 48,511 39,548 19,733 -8,963 Foodstuffs 1,037 1,179 1,396 142 217 Non-food agricultural and livestock products 13,659 26,110 18,832 12,451 -7,278 Mining products 5,755 8,155 7,440 2,400 -715 Chemical and pharmaceutical products 8,327 13,067 11,880 4,74 -1,187 Construction materials 10,058 10, 091 7,429 33 -2,663 Construction materials of non-mineral origin 315 890 509 575 -381 Construction materials of non-metallic mineral origin 412 455 521 43 66 Metal construction materials 9,331 8,746 6,399 -585 -2,347 Capital goods for agriculture 1,695 1,934 1,484 239 -450 Machinery and tools 776 726 467 -50 -259 Other equipment for agriculture 448 763 801 315 38 Transport and haulage equipment 110 45 6 -65 -39 Pure-bred livestock 361 400 210 39 -190 Capital goods for industry 2,338 2,629 2,459 291 -170 Machinery and apparatus for office, service and scientific use 278 230 136 -48 -94 Tools 249 411 281 162 -130 Parts and accessories for industrial machinery 145 71 103 -74 32 Industrial machinery 1,411 1,487 1,486 76 -1 Other fixed equipment 254 409 451 155 42 Telecommunications equipment 1 21 -1 20 -20 Transport equipment 266 334 189 68 -145 Parts and accessories for transport equipment 180 283 182 103 -101 Rolling transport equipment 86 47 7 -39 -40 Fixed transport equipment 4 4 -4 Miscellaneous 9 17 4 8 -13 TOTAL 89,908 130,679 112,678 40,771 -18, 001

23 March 1976 L/4377/Add.1 Page 17 TABLE 9

NICARAGUA: PRINCIPAL PRODUCTS EXPORTED TO CENTRAL AMERICA

1 9 7 3 1 9 7 4 1 9 7 5 Economic Sectors and NAUCA Costa El C.A. Costa El C.A. Costa El C Rica Salvador Guatemala Honduras C.M. Rica Salvador Guatemala Honduras C.M. Rica Salvador Guatemala Honduras C.M.

AGRICULTURE AND LIVESTOCK ($'000) 001-03-02-00 Swine, common 1,370 15 _ 1,385 2,149 42 2,191 1,930 170 2,100 025-01-00-51 Chicken eggs 35 38 14 87 11 97 4 112 042-01-00 in the husk 64 7 72 143 991 35 23 1,192 10 30 207207 247 044-01-00 , unmilled 139 14 153 175 796 28 4 1,003 45 1 46 045-09-02 Millet 4 4 4 4 1,772 6 1,778 045-09-03 Cereals, unmilled n.e.s. 8 3 11 - 2 2 198 176 288 661 054-02-01 6 6 232 292 20 544 317 63 5 385 072-01-00 Cocoa Beans 61 61 231 - 231 149 149 121-01-00 Tobacco, unmanufactured 5 29 150150 184 4 - 186 190 2 212212 214 . 221-01-00 Groundnuts 50 2 6 2 60 122 9 131 195 3 7 205 221-06-00 Cottonseed 509 1 430430 940 815 55 870 566 503503 1,069 263-01-02 Raw , ginned 795 239 1 ,034 1,334 - 1,004 2, 338 895 967967 1,862 Other agricultural and livestock products 194 140 6 182182 521 227 192 45 34 498 102 51 128 104104 385 MANUFACTURING INDUSTRY 022-02-01-01 Whole milk 6 681 1,344 860 860 2,891 65 1,488 1,734 438 3,725 431 2,126 2,940 1,110 1,110 6,607 048-01-02-00 Cereal preparations, roasted or cooked 387 124 483 500 1,494 548 190 713 523 1,974 586 148 596 478478 1,808 048-04-02-00 Biscuits of all kinds 32 108 159 208208 507 234 210 324 308 1,076 218 150 610 315315 1,293 081-03-00-51 Oilcake and meal of cottonseed 2,592 26 16 2,634 3,610 - 3,610 3,176 9 41 17 17 3,243 412-03-00-00 Cottonseed oil 2,589 144 762 892892 4,387 3,065 57 692 766 4,580 4,718 5 205 902902 5,830 511-03-00-00 Sodium hydroxide (caustic soda) 260 446 329 14 1,049 422 563 675 76 1,736 531 699 753 226226 2,209 512-09-01-01 Chlorinated camphenes and prepared insecticides 9 1,683 2,214 254254 4,160 12 1,959 3,676 51 5,698 27 1,317 3,310 28 4,682 532-03-00-00 Synthetic tanning materials 115 121 244 4141 521 132 288 247 2 669 240 382 375 3 1,000 533-03-01 Prepared paints 94 296 73 79 542 155 521 25 29 730 11 571 747 188 541-09-04-09 Other antibiotics and sulfa 177 90 89 788188 544 87 49 46 243 425 48 73 48 3 139 308 599-01-04-01 Blocks, sheets, rods and tubes 22 14 33 56 125 125 69 61 94 349 147 79 188 7474 488 599-01-04-03 Hard blocks and sheets of PVC 732 237 295 61 1, 325 936 336 370 19 1,661 1,030 270 398 4444 1,742 599-01-04-04 Polyvinyl chloride and derivatives thereof 1,102 1,504 732 212212 3,500 3,079 2,887 1,712 15 7,693 2,601 1,802 1,184 309309 5,896 599-01-04-09 Other - of other plastic and synthetic materials 119 46 7 103103 275 103 112 8 153 376 87 97 59 7474 317 599-02-00-02 Chlorinated insecticides prepared for use 5 58 70 149 282 100 1,177 8 1,285 37 13 78 78 128 599-02-00-03 Other insecticides n.e.s. 40 31 21 488 580 135 110 778 501 1,524 123 88 474 222222 707 599-04-04 Glues and adhesives 272 179 173 74 74 698 447 391 283 24 1,145 470 518 160 3131 1,179 611-01-02-00 Bovine cattle hide leather and equine leather, dressed 149 126 72 223 570 154 195 135 231 715 112 161 162 263263 698 621-01-02-00 Rubber solutions, other varnishes 124 162 .147 15 448 95 163 194 2 454 60 226 192 478 631-02-00-01 Plywood faced with veneer sheets 548 533 179 184 1,444 355 637 151 123 1,266 116 492 118 196195 921 652-02-04-00 Cotton fabrics, bleached, dyed, etc. 360 344 317 335 1,256 382 202 431 50 1,065 471 361 575 279279 1,686 652-02-05-01 Cotton fabrics, weighing 150 to 400 grammes per square metre 158 62 256 452 928 471 189 438 965 2,063 161 63 921 240240 1,385 656-01-00-01 Of jute, henequen or other similar vegetable textile fibres 49 2 1 52 397 172 - 569 427 86 151 664 656-01-00-09 Other - bags and sacks for packing 48 209 173 73 503 175 710 250 69 1,204 250 753 313 134134 1,450 662-02-00-01 Wall tiles and mosaics 430 119 56 97 702 646 178 123 156 1,103 401 101 196 150 848 681-12-00-02 Wire with a diameter of 5 mm 126 71 61 38 296 5 2 7 157 88 206 451 681-13-00-01 Tubes and pipes of iron or steel 5 238 243 7 20 27 22 182 204 699-05-01-00 Barbed wire 487 191 255 6 939 775 348 620 1,747 450 162 406 1,018 699-12-01-01 Machetes 50 15 62 213 340 61 22 97 261 441 69 15 112 260 456 699-21-03-09 Other - tanks for the transport of milk 106 701 296 88 1,191 254 1,213 651 90 2,208 179 829 321 75 1,404 812-02-01-00 Sinks, wash basins and bidets, of faience or porcelain 37 483 626 350 1,496 7 815 915 451 2,188 741 937 314314 1,992 821-09-01-00 Mattresses stuffed with materials of any kind 94 11 114 219 166 162 129 457 116 68 158 342 851-02-02-02 Women's sports footwear 346 162 83 3 594 407 237 183 827 586 235 164 985 851-09-01-00 Footwear of plastic materials 269 120 99 1 489 317 160 246 723 311 90 176 577 899-11-01-00 Bags, sachets, flasks and other containers 414 9 9 432 1,467 31 75 1,513 1,119 3 2 1,203

23 March 1976 TABLE 10 NICARAGUA:JANUARY-JUNE TRADE BALANCE WITH CENTRAL. AMERICA EXPORTS F.O.B. IMPORTS C.I.F. BALANCE 1975 1976 1975 19761/ 1975 1976 ($'000)

Central American Common Market 41,498 52,263 57,359 60,020 15,861 -7,757 Costa Rica 18,916 20,078 19,011 19,078 95 1,000 El Salvador 1 ,106 15,214 16,505 -6,090 -4,399

Guatemala 8,043 12,697 18,025 18,650 _ 9,932 -5,953

Honduras 5,415 7,382 5,109 5,787 1,595

1/Based on real figures, January-May 1976.

Source: Department of Economic Studies, Ministry for Economic Affairs, Industry and Trade, based on data furnished by the Central Bank of Nicaragua.

5 August 1976

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TABLE 11 NICARAGUA: PROJECTION OF TRADE BALANCE WITH CENTRAL AMERICA FOR 1976

($ million)

Exports 115.8 Imports 132.3 Balance -16.5

Source: Department of Economic Studies, Ministry for Economic Affairs, Industry and Trade, based on data furnished by the Central Bank of Nicaragua. 7 August 1976 GRAPHNO.1 TRADE BALANCE WITHCENTRALAMERICA

$'000 180.000180.000

50.000

20.000 21 0 1960 61 62 63 64 55 66 67 68 69 70 71 72 73 74 1975