Land Invasion May Haunt the Ortega Government
Riverside Coffee Co. asks US government to impose tariffs on Nicaragua
The Riverside Co. has already sued Nicaragua’s Ministry of Commerce and Industry for US $689 million dollars; now, it’s asking the US Department of Commerce to sanction Nicaragua under the provisions of the Cafta Free Trade agreement.
By Ivan Olivares (Confidencial)
HAVANA TIMES – Appleton & Associates, the law firm representing Riverside Coffee LLC, presented a brief to US Trade Representative (USTR) Jamieson Greer, asking that his Office adopt measures against the State of Nicaragua. The request was based on Section 301 of the US Trade Act of 1974, which allows the USTR to pursue unilateral trade retaliation against countries that impose unfair trade barriers against the United States.
Riverside Coffee LLC is a US-owned private company that in 2021 filed a lawsuit for US $689 million dollars against Nicaragua’s Ministry of Industry and Commerce as representative of the Nicaraguan government, in compensation for the invasion of Riverside’s 1225 hectare property.
The accusation asserts that the Riverside Company was in the process of developing an avocado plantation for export on the land of the Santa Fe Hacienda, located in Jinotega. However, the entire project had to be scrapped in 2018, after groups of paramilitaries invaded the property while the Nicaraguan National Police did nothing to prevent it, according to the writ filed with the International Center for Settlement of Investment Disputes (ICSID), an entity of the World Bank.
On December 10, 2024, the USTR announced they were initiating an investigation into the policies and practices of the dictatorship of Daniel Ortega and Rosario Murillo, “related to labor rights, human rights and the rule of law” in Nicaragua. The investigation “will be conducted pursuant to Section 301 of the Trade Act of 1974, as amended.”
Riverside Coffee requests: “End Nicaragua’s access to US markets”
The document the Riverside Coffee company presented to the USTR on March 7th is unrelated to the investigation the US Trade Office is currently in the process of carrying out. Instead, it appeals to the Trump Administration’s “Reciprocal Tariff Initiative,” which could lead to the US government’s immediate decision to extend broad tariffs on Nicaraguan imports, beginning April 2nd.
Beyond what the US president may decide, the law firm is asking the USTR to levy tariffs on Nicaraguan imports. In addition, they urge the office to “suspend Nicaragua’s trade benefits under Cafta,” including the possibility of “suspending their access to US markets.”
Even though the United States’ relative importance as Nicaragua’s main export destination has been diminishing, it continues to absorb a large quantity of Nicaraguan products. According to the Nicaraguan Central Bank’s Foreign Trade Report for the third trimester of 2024, 38.7% of the country’s income from foreign sales came from the US.
In terms of sanctions, the lawyers for Riverside Coffee stated: “the US Treasury Department should broaden their global sanctions under the Magnitsky provisions, aiming them directly against those Nicaraguan officials who are responsible for orchestrating the land expropriations and the violation of trade agreements.”
Impose sanctions backed by Cafta
In their brief on behalf of Riverside Coffee LLC, the law firm Appleton & Associates not only describes at length the outrages suffered on its invaded property in 2018, but also notes: “the 2025 report of the UN Group of Experts also confirms the lack of an independent judiciary in Nicaragua, which fundamentally undermines the rule of law. This also significantly harms US trade in the region.”
That action [land invasion and expropriation] would have generated initial losses that the lawyers estimate at a little over 200 million dollars, as well as affecting the supply chain within that country. They further allege: “Nicaragua’s actions deterred new US investment in the region, resulting in billions of dollars in trade and potential business losses.”
“Nicaragua’s conduct erodes investor confidence, discouraging US companies from making future investments in the region,” they add, asserting that a ‘state policy of land invasion’ is in place in the country.
“Nicaragua has a long history of land invasions. In recent years, mainly since the socio-political crisis of 2018, the Sandinista National Liberation Front (FSLN) has supported or tolerated such land invasions. US investors such as Riverside have been victims of the Sandinista government’s sponsorship of land invasions which have caused great economic damages, and in some cases the loss of the entire investment,” the lawyers asserted to the USTR.
As part of the other major argument in its brief, the law firm affirms: “in light of the widespread erosion of the rule of law under Nicaragua’s current regime, any countermeasures undertaken by the United States should include robust mechanisms to continuously monitor Nicaragua’s compliance with its trade treaty obligations. Continued oversight is critical to deter the adoption of unreasonable or discriminatory acts, policies, and practices that unlawfully burden or restrict US commercial interests.”
Depending on its findings, the Office of the US Trade Representative has the option of imposing restrictions on Nicaraguan exports, suspending Cafta trade preferences, or extending sanctions against officials involved in the expropriation of US investments, among others.
First published in Spanish by Confidencial and translated and posted in English by Havana Times.