Taipei, Nicaragua's exemption of tariffs on three types of industrial products from Taiwan will go into effect on April 22, the Bureau of Foreign Trade (BOFT) said Friday.
In a statement, the bureau said the expansion of benefits under a decade-old bilateral free trade agreement (FTA) was processed administratively in both Taiwan and Nicaragua earlier this year and will be implemented from Sunday.
One of the key benefits is the removal of a 15 percent tariff on three types of Taiwan product exports--paper or paperboard labels of all kinds, printed, rubber or plastic footwear, and metal furniture.
The exemption could save Taiwanese businesses US$57,218 per year in tariffs, according to an estimate by the Customs Administration that was calculated based on the 2017 export value of US$381,454 of these three types of products.
Since the Taiwan-Nicaragua FTA came into effect in 2008, two-way trade between the two countries has increased from US$51.97 million in 2007 to US$146.71 million last year, marking a growth of 182 percent, according to BOFT.
Source: Focus Taiwan News Channel