The Nicaraguan Government passed its competition law in September 2007.  PROCOMPETENCIA is the competition agency that is currently being implemented by the Government of Nicaragua. Findings of Phase I of the Programme showed that price-setting agreements operate in the flour, oil and sugar markets, with direct implications for the purchasing power of the poor.

Other sectors thought to be affected by cartels include milk and beverages. Vertical agreements are thought to be important influences in the prawn and crayfish processing sectors. The perceived degree of competition is very low in the transportation sector, which is particularly important for many exporters and the rural population. Government measures to tackle anti-competitive practices and to promote measures are seen as being fairly weak in Nicaragua.

The Government has the following objectives with respect to the development of a national competition policy:

• To pass the competition law during 2004;
• To develop a consultation process with stakeholders concerning the promotion of competition;
• To develop the institutional capacity to implement competition policy;
• To hold workshops and conferences on means to protect consumers;
• To train national officials in consumer protection policy and competition law.

The challenges faced by the country centre around the need to implement the law to be adopted soon and the subsequent establishment of the competition agency.