US Trade Office Launches Probe into Nicaragua’s Human Rights and Labor Abuses

On July 19, 2018, Nicaraguan President Daniel Ortega marked a significant anniversary of the Nicaraguan Revolution during a celebration in Managua, Nicaragua.

Trade Representative Katherine Tai condemned Daniel Ortega's government for its "repressive acts" against dissenters.

The United States Trade Representative (USTR), a federal agency responsible for shaping foreign trade policy, has announced an investigation into the Nicaraguan government over “persistent attacks on labor rights, human rights, and the rule of law.”

In a statement on Tuesday, the USTR revealed it had received “numerous credible reports” alleging repressive actions by Nicaragua’s government, including politically motivated arrests and extrajudicial killings. These actions, the agency said, undermine economic growth, trade opportunities, and exacerbate worker exploitation.

Katherine Tai, the U.S. Trade Representative since 2021 under President Joe Biden, emphasized the administration’s commitment to a “worker-centered trade policy” in the press release. She noted that Nicaragua’s alleged abuses harm its own people and destabilize the region. The investigation coincides with International Human Rights Day, observed annually to promote awareness of human rights issues globally.

Under the Trade Act of 1974, the USTR has the authority to investigate policies that could harm U.S. commerce. This action represents the latest in a series of measures taken by the U.S. against Nicaraguan President Daniel Ortega’s administration. These measures have included sanctions on Nicaraguan officials and judges for alleged human rights violations, such as stripping dissidents of their citizenship and property.

Ortega, a central figure in the 1979 Nicaraguan revolution, has a long history of contentious relations with the U.S. After leading efforts to overthrow a U.S.-backed dictator, his first presidency (1979–1990) faced armed opposition from U.S.-funded militias. Since his return to power in 2007, Ortega has consolidated control over much of the government.

Recently, the National Assembly, dominated by Ortega’s allies, approved a constitutional amendment expanding presidential powers. The amendment increases presidential terms to six years and grants control over regional and municipal government bodies, as well as the media and the Catholic Church, to curb perceived “foreign” influence. Ortega has frequently accused the U.S. and international organizations, including the Catholic Church, of inciting dissent.

Critics, however, have raised alarm over alleged violence and oppression under Ortega’s regime. This week, the Costa Rica-based Nicaragua Never Again Human Rights Collective released a report documenting torture against critics of the government. The report alleges that 229 political prisoners have endured “crimes against humanity” in government detention since 2018.

According to the report, detainees were subjected to beatings, rape, death threats, electric shocks, extended isolation, and the forced removal of teeth and fingernails. The findings follow protests that erupted in 2018 against a government proposal to increase taxes and reduce social security benefits. The government’s crackdown on dissent led to an estimated 2,090 detentions and 355 deaths over the following five years, according to the Inter-American Commission on Human Rights.

The USTR’s investigation marks another step in international efforts to hold Nicaragua accountable for its alleged abuses, as calls for justice and reform continue to mount.