• El salvador

    El Salvador

    Development Challenges 

    El Salvador is the third largest economy of the Central American region. As a result of steady growth, the country faces rapid industrialization. The services sector is the most important component of the country’s GDP, followed by the industrial sector, especially in textiles and apparel, and the agriculture sector, which is principally based on coffee exports. El Salvador has set limits on the implementation of open market monetary policies to influence short-term variables in the economy, after adopting the US dollar as its own currency in 2001. Despite being ranked in the top 10 among Latin American countries in terms of the Human Development Index, El Salvador still faces development challenges, including: 

    • Recovery from civil war
    • A succession of natural disasters
    • Gang crisis, crimes and juvenile delinquency
    • Inequality and poverty
    • Limited export strategies

     Key Trade Issues  

    • Negotiation of free trade agreements with the European Union, Canada, the United States, Mexico, the Dominican Republic, Cuba, Panama, Colombia and Chile
    • Pacific Arc Forum negotiations to reach a trade agreement aimed at creating a common production platform
    • Limited free market initiatives
    • Concentration of trading partners

     Government Priorities 

    • To open trade to generate an adequate investment environment
    • To improve the collection of current revenues with a focus on indirect taxes
    • To diversify the economy by promoting the country as a regional distribution and logistics hub, as well as promoting tourism investment through tax incentives
    • To extend privatization to telecommunications, electricity distribution, banking, and pension funds
    • To increase investments in education, public services, enterprise development, and transportation infrastructure
    • To continue economic integration with other Central American countries
    • To build trade capacity  
    • To develop new growth sectors for a more diversified economy

    Trade and Tariff Graphs

    Graphs of the country’s export markets, its export performance in a key sector and tariffs exporters of a sample product face.
    Trademap sample Trademap sample: The map uses color codes to illustrate the relative size of different markets in the overall exports of the country shown in pink.
    Trademap sample Trademap sample: The vertical axis shows import values by key importing countries, while the horizontal axis shows export values by the country for the same sector. I.e. the country has gained market share in the case of an importing country at the bottom right of chart and lost market share for countries top left. The size of circles is proportional to market size.
    Market access map sample Market access map sample: The world map shows trade values and tariff levels for a key export product by importing countries. Color codes indicate protection levels. Red circles denote trade volumes.

    Trade and Investment Data

    Detailed data on the country’s export performance, key imports and foreign investment, grouped by product and service categories (HS and BOP).

    Trade Information Sources

    A listing of country specific print and online publications on trade related topics. Includes information from both ITC and external sources.

    Trade Contacts

    The most important trade contacts, including importers’ and exporters’ associations, trade support institutions, trade promotion organizations and institutions providing business development assistance.