Panelists at House Subcommittee Hearing Argue for Stronger Sanctions on Nicaragua

The U.S. should impose harsher sanctions on the Nicaraguan government, the Daniel Ortega regime and the country’s business leaders or risk the country devolving into a similar situation the U.S. faces with Venezuela, panelists told the House Foreign Affairs Subcommittee on Western Hemisphere, Civilian Security and Trade on June 11.

The Treasury’s Office of Foreign Assets Control recently sanctioned a Nicaraguan bank and members of the Ortega regime, including Ortega’s son and Vice President Rosario Murillo (see 1904170054). But the panelists argued for “harsher sanctions,” including additional asset freezes, travel bans and sanctions on the country’s business community. “Sanctions are warranted against many of Nicaragua’s business leaders,” said Carlos Ponce, a senior fellow and director for Latin American programs for the Victims of Communism Memorial Foundation. “The Ortega regime would struggle to survive if the U.S. and the Nicaraguan business community withdrew its support.”

Ponce also advocated for stronger sanctions on “Daniel Ortega himself and his family members,” along with military officials or entities responsible for human rights violations. Felix Maradiaga, executive director of the Institute for Strategic Studies and Public Policies in Nicaragua, said the U.S. can “play a more active role” in stopping disbursements of certain loans to Nicaragua and “denying any future requests for access to international funds.” Sanctions should also include stronger export controls on “weapons or equipment” that may be used by Nicaraguan security forces, said Miguel Vivanco, executive director of the Americas Division of Human Rights Watch.

Without stronger measures by the U.S., Ponce said, Nicaragua will “fall into an even worse dictatorship and Cuban domination,” comparing the country to Venezuela. “Without substantial international support,” Maradiaga said, “Nicaragua is at the risk of becoming another Venezuela.”

But the three panelists argued that the only way sanctions will be effective is if they are imposed multilaterally. “It needs coordinated action by key actors of the free world,” Maradiaga said, calling for support from the Organization of American States and the European Union. Ponce said the EU “needs to review the bilateral agreement with Nicaragua” to address human rights violations and said “other Latin American countries need to join the U.S. applying sanctions to the regime.”

Rep. Gregory Meeks, D-N.Y., questioned the use of harsher sanctions -- specifically if they can only be used unilaterally -- saying they may unintentionally hurt the people of Nicaragua by cutting off aid. But Vivanco said the sanctions should be narrow enough to avoid hurting the Nicaraguan people. “I’m not advocating for some broad sanctions that might have an impact on the living conditions on Nicaraguans. What I’m advocating for are targeted sanctions,” Vivanco said, adding that “what usually works is engagement, not isolation.”