Trade Facilitation

Description

According to the World Bank’s Logistics Performance Index (LPI) (2010) which measures countries’ trade logistics efficiency, Nicaragua was ranked 107th out of 155 countries and all scores are below the regional average of Latin America and Caribbean countries. In 2011, Nicaragua conducted a reform to improve trade facilitation by launching an electronic data interchange system for customs, setting up a physical one-stop shop for exports and investing in new equipment at the port of Corinto. As a result, the OECD’s Trade Facilitation Indicators (2013) evaluates Colombian performance in information availability, involvement of the trade community, and automation better than the comparable region and income level averages. However, the timeliness of shipments remains problematic in Nicaragua. According to the World Bank Doing Business Report (2013), it takes longer to export and import a standard container of goods from/to Nicaragua (respectively, 21 days and 20 days) than the regional average (17 days and 19 days). A study conducted by the World Bank shows that Nicaragua’s logistics bottlenecks can increase up to 60 per cent the time it takes to go from a production centre to the closest Atlantic port. In addition, it takes several hours to go through customs for phytosanitary, and narcotics inspections at both sides of the border between Costa Rica and Nicaragua (World Bank 2013). Nicaragua’s poor trade facilitation, border crossing and related procedures affect the overall transit time as well as cost.

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: Source: World Bank, 2010