The agreement was signed by the chief of the Nicaraguan Army and the Taiwanese Defense minister, Feng Shih-Kuan.
Shih-Kuan, as well as military delegations from El Salvador, Honduras, Guatemala, Mexico and Venezuela, was visiting Managua to attend celebrations marking the 38th anniversary of the Nicaraguan army, which were presided over by Nicaraguan president Daniel Ortega.
Taiwan is Nicaragua's most important economic partner in Asia.
The Central American country is one of just 21 in the world that maintains formal diplomatic relations with Taiwan rather than the People's Republic of China, which considers the island nation to be a breakaway province.
