US-El Salvador Agreement on Reciprocal Trade signed
US Trade Representative (USTR) Jamieson Greer and El Salvador’s Minister of Economy Maria Luisa Hayem signed the US-El Salvador Agreement on Reciprocal Trade yesterday.
The agreement will help US farmers, ranchers, fishers, small businesses and manufacturers raise exports and expand business opportunities with El Salvador.
USTR Jamieson Greer and El Salvador’s Minister of Economy Maria Luisa Hayem yesterday signed the US-El Salvador Agreement on Reciprocal Trade.
The key terms include breaking down non-tariff barriers for US industrial exports; advancing trade facilitation and sound regulatory practices; protecting and enforcing intellectual property; preventing barriers for digital trade; and improving labour standards.
US goods and services exports to El Salvador reached $6.7 billion in 2024, and the agreement will substantially facilitate increased opportunities for US exporters, a USTR fact sheet said.
The framework includes broad terms to solidify and streamline US preferential market access for America’s industrial and agricultural exporters by addressing a wide range of non-tariff barriers.
The key terms include advancing trade facilitation and sound regulatory practices; protecting and enforcing intellectual property; preventing barriers for digital trade; improving labour standards; and strengthening environmental enforcement and economic security alignment.
El Salvador will address potential distortionary actions that state-owned enterprises or industrial subsidies may have on the bilateral trading relationship.
The United States will also remove the reciprocal tariffs from and provide preferential treatment to certain products, such as textiles and apparel products, qualifying under the CAFTA-DR. This will be a boon for US textile production and El Salvador’s economic growth, and will strengthen the resilience of textile and apparel supply chains, the fact sheet noted.
Bilateral trade in goods and services between both countries amounted to over $10.7 billion in 2024. The United States currently runs a $2.2-billion goods trade surplus with El Salvador.
“President Trump’s vision is building a new trade order for partnership and prosperity in Latin America, further advancing the economic and national security interests of the American people,” said Greer.
“Today’s signing of the first Agreement on Reciprocal Trade in the Western Hemisphere will further strengthen markets for US exports and lower trade barriers facing American workers and producers,” he added in a statement.
Praising the agreement, the National Council of Textile Organisations (NCTO) president and chief executive officer Kim Glas said: “NCTO and our industry greatly appreciate the administration’s actions on qualified textile and apparel goods for El Salvador under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). These steps will help fortify a critical export market for the U.S. textile industry and our workforce.”
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