President Joe Biden has initiated an investigation into Nicaragua's compliance with labor and human rights as a final effort to pressure Ortega's regime before leaving office.
The investigation's scope may allow for Nicaragua's suspension from CAFTA-DR, a crucial economic agreement that significantly impacts the country's trade with the U.S.
USTR Katherine Tai emphasized that the investigation is under Section 301, which permits measures against any foreign government actions that restrict U.S. commerce.
Historically, suspending Nicaragua from CAFTA-DR was debated among U.S. politicians, but reluctance arose due to potential economic repercussions for Nicaragua.
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