The Office of the US Trade Representative (USTR) announced that it has determined Nicaragua’s acts, policies, and practices related to labor rights abuses, human rights violations, and the dismantling of the rule of law are unreasonable and burden or restrict US commerce. This determination was made under Section 301 of the Trade Act of 1974, which authorizes the US government to respond to unfair foreign trade practices.
Following this finding, the USTR has proposed a range of responsive actions and is seeking public input. Comments on the proposed actions are due by November 19, 2025.
The determination stems from an investigation initiated in December 2024, which examined whether Nicaragua’s practices were unjustifiable or discriminatory under Section 301(b). The investigation included public hearings, over 160 written comments, and testimony evidencing severe human rights abuses—some of which have been referred to the US Department of State for further review.
The USTR’s full report, outlining evidence and findings, as well as the Federal Register notice detailing the proposed actions and comment process, are now available.
Mohawk Global will continue to monitor developments related to this Section 301 action and any potential trade impacts that could affect US importers and exporters. If you have questions on how this impacts your business, reach out.