The Renacer Law is already in force. The president of the United States, Joe Biden, signed this Wednesday the text of the legislative initiative, with which the US Administration adds one more tool to toughen sanctions against officials of the Daniel Ortega and Rosario Murillo regime. In addition, you will be able to review Nicaragua’s participation in the Free Trade Agreement between the United States, the Dominican Republic and Central America (DR-Cafta).
In a press release, the White House details that the Renacer Law “imposes sanctions on the Government of Nicaraguan President Daniel Ortega” and will serve “to restrict multilateral bank loans and attack regime corruption.”
The legislation – Law to Strengthen Nicaragua’s Adherence to the Conditions for Electoral Reform (Renacer) – was approved last week in the United States Congress, with the support of Democrats and Republicans, obtaining 387 votes in favor, 35 against. and four abstentions. The text already had the endorsement of the US Senate, where it was accepted by a majority last August.
The initiative was presented at the end of March last in a bipartisan manner in the Senate. The project was led in the Upper House by Democratic Senator Bob Menéndez, President of the Foreign Relations Committee. In the Lower House, the proposal has been promoted by the Democratic congressman Albio Sires.
After electoral “pantomime”
Biden’s signature comes three days after the Nicaraguan elections, in which Ortega and Murillo secured a term of more than five years as president and vice president, respectively. The re-election of both has been rejected by a majority of the international community.
The president of the United States classified the votes as “A pantomime that was neither free nor fair”, while he announced that his government will use all economic and diplomatic tools, in coordination with other members of the international community, to hold the regime accountable for its abuses.
In a statement about “Mock elections” of the Central American country, Biden denounced Ortega and Murillo as autocrats who rule the country with a style not unlike the one used by the Somoza family, which the same Sandinista ruler helped overthrow 40 years ago, when he was a guerrilla.
“The arbitrary imprisonment of nearly 40 opposition figures since May, including seven possible presidential candidates, and the blocking of political party participation manipulated the outcome long before election day. They shut down independent media, locked up journalists and members of the private sector, and intimidated civil society organizations into closing their doors, ”Biden lamented.
Renacer Law expands reasons for sanctions
The Renacer Law specifically states that will be subject to economic sanctions “foreign persons who directly or indirectly obstruct the establishment of the necessary conditions for the holding of free, fair and transparent elections in Nicaragua ”.
The text details that The possible sanctions include government officials and Ortega’s relatives; members of the National Police, the National Army, and the Supreme Electoral Council (CSE). As well as “party members and elected officials of the Sandinista National Liberation Front and their families.”
It also mentions “persons or entities affiliated with companies involved in corrupt financial transactions with officials of the Government of President Daniel Ortega, his party or his family.”
In addition, it orders the Biden Administration to make “diplomatic negotiations” with the Governments of Canada, the European Union (EU) and Latin American and Caribbean countries “to impose selective sanctions” against citizens who obstruct Nicaraguan elections.
Between 2019 and 2021, Canada, the European Union, the United Kingdom and Switzerland have followed in the footsteps of the United States, sanctioning some regime officials accused of corruption and human rights violations.
Financial institutions and Russia
The Renacer Law also extends the supervision of loans and assistance granted by international financial institutions — the World Bank, the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF) —to Nicaragua. This aspect is already contemplated in the Nica Act, signed in December 2018 by then-President Donald Trump.
The legislation mandates “that all possible measures be taken to increase scrutiny of any loan or financial or technical assistance provided for a project in Nicaragua, to ensure that the loan or assistance is being used for its intended purpose.”
The text clarifies that any suspension should not impact projects related to the “basic human needs of the people of Nicaragua.”
The law also requires the State Department to prepare intelligence reports on the influence and activities of the Russian Government in Nicaragua.
These reports should contain details on the cooperation of military personnel between Russia and Nicaragua; Russian intelligence services, security forces and private security contractors; telecommunications and satellite navigation. As well as “the threats and risks that such activities pose to the national interests of the United States and its security,” according to the approved text.
DR-Cafta review
The Renacer Law also recommends that the Biden government “review Nicaragua’s continued participation” in the DR-Cafta trade agreement.
Exiting the trade agreement would cost Nicaragua about $ 1.5 billion in exports, only from the textile sector. Entrepreneurs and economists consulted by CONFIDENTIAL They assure that it will also affect employment, tax collection and contributions to the Nicaraguan Social Security Institute (INSS).
The DR-Cafta —which entered into force for Nicaragua on April 1, 2006— represented a great opportunity for the country. Nicaragua went from exporting to the United States, 228.4 million dollars, in 2006, to 1402.1 million dollars, in 2020.
