Welcome to El Salvador! Global Markets San Salvador can provide your company with relevant and current information about this country.
The bilateral commercial relationship between the United States and El Salvador is strong in both trade and investment. El Salvador uses the U.S. dollar as its official currency. The United States is El Salvador’s number one investor and leading trade partner. The majority of El Salvador’s imports come from the United States, and nearly 50% of El Salvador’s exports go to the U.S.
El Salvador is a member of the World Trade Organization (WTO), and has free trade agreements with the United States, Central America, Chile, Mexico, Panama, Colombia, Dominican Republic, and Taiwan. Recently it signed a free trade agreement with the European Union.
The U.S.-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) entered its 8th year of implementation in El Salvador on March 1st, 2014. Like the rest of Central America, El Salvador offers an open market for U.S. goods and services. Tariffs are relatively low, and were reduced further with the implementation of CAFTA-DR. El Salvador’s Value Added Tax is a 13% rate.
El Salvador is a steady and growing market for U.S. goods and services. U.S. companies can take advantage of the CAFTA-DR free trade agreement to increase exports not only to El Salvador but to the rest of Central America.
Among the top sectors for U.S. exporters in the Salvadoran market are: Automotive Parts and Service Equipments, Dental Equipment, Travel and Tourism, and Food Processing and Packaging Equipment.
The Salvadoran government is also developing several major infrastructure projects such as: La Union Port; Renewable Energy Generation; Regional Telecommunications Interconnection; Regional Highway Interconnections; and Regional Electric Grid Interconnection.
U.S. Commercial Service El Salvador encourages U.S. companies interested in the Salvadoran Market to be aware of certain challenges, and is ready to provide assistance to U.S. companies on how to address them. For more detail on market challenges, please see our: Country Commercial Guide 2014.
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