First Round of FTA talks with Nicaragua finalized
Officials from Taiwan and Nicaragua yesterday wrapped up the first round of negotiations about a free trade agreement (FTA), saying they expect the talks can be completed in six to eight months.

"We are pleased to have made so much progress in such a short time ... we expect a very satisfactory growth of trade and investment between the two countries," Vice Minister of Economic Affairs Steve Chen told a press conference yesterday.

Chen, who led the Taiwanese delegation to the five-day talks, yesterday also signed a memorandum with Nicaraguan Vice Minister of Development, Industry and Commerce Alejandro Arguello.

The trade talks were divided into five categories, including market access; rules and procedures; investment and services; labor and environment; and cooperation on trade-related issues. In addition to common issues such as the elimination of tariffs and opening markets, the two sides also agreed to include e-commerce, environmental protection and labor rights in the talks, Chen said.

Experience gained from free trade negotiations with Panama enabled the talks with Nicaragua to proceed smoothly, making it possible that the FTA could be completed within five rounds, which would take about eight months, Chen said.

Taiwan and Panama, the nation's first free trade partner, inked an FTA in August last year.

However, Chen said, Taiwan and Nicaragua still have different views on dispute settlement, the origin of goods and market access, which will be the focus of the second round of talks scheduled for the end of November in Miami, Florida.

Chen said he hopes an FTA with Nicaragua will encourage agreements with other Central American countries such as Honduras and Guatemala, which expressed their willingness to sign FTAs with Taiwan when Premier Yu Shyi-kun visited there last month.

The deal with Nicaragua will also help facilitate investment by Taiwanese companies in the region, he said, adding that local investment seemed to concentrate too much on certain countries, which results in fierce competition and diluted margins.

Furthermore, companies investing in Nicaragua will be able to take advantage of the economic integration of the six Central American countries, which is 93 percent complete, Chen said.

Arguello said that Nicaragua also looks forward to increasing its exports of agricultural products to Asia via the FTA with Taiwan.

Nicaragua is Taiwan's 96th-largest trading partner, with a bilateral trade volume of US$24 million for the first seven months of the year.

Nicaragua has signed FTAs with the US, Mexico and some Central American countries, and is engaged in negotiations with Canada and Panama.

The next major FTA target for Nicaragua is the EU, which Arguello said would hopefully ink a pact in 2006.

Radius welcomes Meridian to Nicaragua
Vancouver-based Radius Gold has attracted a major joint venture partner in its exploration of Nicaragua.

Radius announced Thursday that it signed an agreement with Reno-based Meridian Gold (MDG) to explore and develop the El Pavon-La Patriota property in north-central Nicaragua, west of the town of Waslala. Radius has previously worked with Gold Fields Ltd. in a joint venture on the Tambor project in Guatemala.

The junior exploration company discovered a low sulfidation epithermal vein system in 2003 at El Pavon. La Patriota is some 25 kilometers southeast of the El Pavon.

The agreement gives Meridian the exclusive option to acquire a 60% interest in El Pavon. Meridian has agreed to spend at least US$3.5 million for exploration, including at least 15,000 meters of drilling. The gold miner must also complete a feasibility study within four years.

If Meridian exercises its option, the two companies will establish a joint venture on a 60.40 basis. Meridian would be the operator of the joint venture. In a statement issued Wednesday, Edward Colt, Meridian Executive Vice President said, "We believe this is a new low sulfidation district with multiple vein targets, local bonanza grades, and multi-million ounce potential.

Nicaragua has a rich mining history with the largest historic gold endowment in Central America and is under-explored with modern exploration methods."

Radius' Nicaraguan projects cover 460,000 hectares in several blocks of 100% Radius-owned exploration licenses and applications. Radius recently merged with PilaGold Resources, fully endowing the company with exploration projects in Guatemala.

Gold Fields Exploration has the right to make the first offer on these projects. A number of these properties are located on the Motagua Gold Belt in Guatemala. However, the company is currently emphasizing its Nicaraguan exploration program because it is yielding more results.

Radius President Simon Ridgeway said in a news release that Meridian's "experience of exploring for and mining epithermal gold vein systems in Latin America will ensure that the full potential of El Pavon will be tested. This agreement also allows Radius geological staff to focus on what we are good at-finding more undiscovered gold systems in Nicaragua."

Toronto-based Glencairn Gold owns the Limon gold mine in northwestern Nicaragua. RNC Gold and First Point Minerals are also conducting exploration programs in the country.

Nicaragua is considered the poorest nation in Central America. However, it enacted a new mining law and is considered a strong pro-business democracy.

Glencairn President and CEO Kerry Knoll told Mineweb several months ago that the new mining law offers "a fantastic climate" for foreign mining and exploration activities. Nicaragua also lacks the anti-mining activist NGOs found in other Central American nations.

Ex-Nicaraguan president launders 54 million dollars in Panama
Former Nicaraguan President Arnoldo Aleman and his partners laundered about 54 million US dollars in Panamanian banks, Attorney General of Nicaragua Alberto Novoa said Thursday.

He said the Panamanian Attorney General's office has sufficient evidence to indict Aleman, several former officials working in his administration and Panamanian lawyers who were involved in the money laundering.

Novoa arrived in Panama on Wednesday night, where he met with his Panamanian counterpart Jose Soza to analyze the judicial proceedings against Aleman.

He said there is sufficient evidence that Aleman transferred millions of dollars from Nicaragua to Panama.

According to Novoa, the money, once transferred to Panama, returned to Nicaragua again and then was deposited in the banks onVirgin Islands.

The Panamanian authorities have retained some 10.5 million dollars deposited in Panamanian banks in the names of Aleman and his relatives, said the attorney general.

The Panamanian authorities have also confiscated several real estates of Aleman and his family.

Aleman was sentenced to 20 years in jail on the money-laundering charge.

Novoa said the Nicaraguan authorities will demand Panama return the money Aleman deposited in Panamanian banks.