On December 10, 2024, the Office of the U.S. Trade Representative (USTR) announced it was initiating an investigation into Nicaragua’s acts, policies, and practices related to labor rights, human rights, and the rule of law. The investigation will be conducted under Section 301 of the Trade Act of 1974 and is the first under Section 301 to investigate such matters. The USTR press release states that the United States is concerned that the Ortega-Murillo regime in Nicaragua is engaging in repressive and persistent attacks on labor rights, human rights, and the rule of law. The USTR will seek to determine whether these acts, policies, or practices are actionable under Section 301 and, if so, determine what action to take.

Ambassador Katherine Tai stated: “Unfortunately, numerous reports suggest the Government of Nicaragua is engaging in repressive acts that harm Nicaragua’s own workers and people, undermine fair competition, and destabilize our region. USTR will thoroughly investigate the alleged violations of labor rights and human rights, and dismantling of the rule of law.” The announcement notes credible reports by the U.S. government and United Nations that document persistent attacks on labor rights, human rights, and the rule of law. These actions include politically-motivated arrests and imprisonments, repression of members of religious groups and non-governmental organizations, extrajudicial killings, cruel, inhuman or degrading treatment, restrictions on freedom of expression and movement, violence against members of marginalized groups, repression of freedom of association and collective bargaining, forced labor, human trafficking, the elimination of legislative and judicial independence, spurious seizures of property, arbitrary fines and rulings, and other harmful acts. The USTR notes that such actions may impact U.S. workers and companies, harming both Nicaraguans directly and U.S. workers and businesses indirectly through unfair competition by (1) negatively impacting the Nicaraguan economy and market, (2) causing lost sales and exports for U.S. enterprises, and (3) reducing investment and business opportunities for U.S. workers and companies.

The USTR will now seek consultations with Nicaragua in connection with the investigation. In addition, the USTR is seeking public comments on:

  • 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 related to labor rights, human rights, and the rule of law burden or restrict U.S. commerce, and if so, the nature and level of the burden or restriction. Such comments may include economic assessments of the burden or restriction on any sector or industry and assessments of the burden or restriction on labor in the United States related to the acts, policies, and practices under investigation.
  • The determinations required under Section 304 of the Trade Act on whether actionable conduct exists under Section 301(b) and what action, if any, should be taken.

Any written comments must be filed no later than January 8, 2025. Comments must be filed on the USTR portal at https://comments.ustr.gov/s/. Submissions should be placed on the docket entitled “Request for Comments on the Section 301 Investigation of Nicaragua’s Acts, Policies, and Practices Related to Labor Rights, Human Rights, and Rule of Law,” docket number USTR-2024-0021. 

On January 16, 2025, the USTR Section 301 Committee will hold a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington DC 20436, beginning at 10:00 a.m. EST. Requests to appear at the hearing and a summary of testimony must be filed by January 8, 2025; and any post-hearing comments must be filed by January 23, 2025. Notice of intent and summary of testimony must be filed on the USTR portal under the docket entitled “Request to Appear at the Hearing on the Section 301 Investigation of Nicaragua’s Acts, Policies, and Practices Related to Labor Rights, Human Rights, and Rule of Law,” docket number USTR-2024-0022.