Taking Additional Steps To Address the National Emergency With Respect to the Situation in Nicaragua
Executive Order 14088, issued by President Biden in October 2022, builds on the 2018 national emergency and corresponding sanctions regime against Nicaragua (as set out in EO 13851). Its purpose is to tighten and expand U.S. tools to pressure the Nicaraguan government in response to ongoing political and human rights concerns. The order broadens who and what can be sanctioned, adds new prohibitions on trade and investment, and empowers U.S. agencies to implement and enforce these measures. It also clarifies that the prohibitions apply even if there are existing contracts, unless licenses or exemptions apply. In short, it escalates economic pressure on Nicaragua and expands the set of activities that could trigger sanctions or offline those involved with the regime.
Key Points
- 1Expands sanctions grounds to include arrests or prosecutions of people—including journalists or media outlets—for exercising freedom of expression or assembly, linking human rights actions directly to sanctionable activity.
- 2Reframes and broadens the scope of blocked persons to cover individuals or entities owned or controlled by blocked persons, and adds a prohibition related to participating in or benefiting from the Nicaraguan gold sector.
- 3Introduces new prohibitions for U.S. persons and their transplants: (i) import of Nicaraguan-origin products; (ii) export, reexport, sale, or supply of items to Nicaragua; (iii) new U.S. investment in any sector of the Nicaraguan economy; (iv) any U.S. financing or guarantees for a foreign transaction that would be prohibited if performed by a U.S. person.
- 4Adds a strong license-and-exemption framework: prohibitions apply only to the extent provided by law, or via regulations, orders, licenses, or directives issued under the order, and notwithstanding preexisting contracts unless licenses allow otherwise.
- 5Grants broad implementation authority to Treasury and Commerce (in consultation with State) to issue rules and regulations, and requires ongoing reporting to Congress on the status and effects of the emergency.