RESTRICTED  
  
WT/TPR/G/440  
21 February  2023 
(23-1049) Page: 1/13 
Trade Policy Review Body  Original:  Spanish  
 
  
TRADE POLICY REVIEW  
REPORT BY  
EL SALVADOR  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex  3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
El Salvador  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
______________________________________________________________________________  
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on El Salvador .  WT/TPR/G/440 • El Salvador  
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  CONTENTS  
1  INTRODUCTION  ................................ ................................ ................................ ...........  3 
2  ECONOMIC AND TRADE POLICY ENVIRONMENT  ................................ ...........................  4 
3  RESPONSE TO THE COVID -19 PANDEMIC CRISIS: MEASURES IMPLEMENTED BY THE 
GOVERNMENT OF EL  SALVADOR TO ADDRESS GLOBAL CRISES SINCE  2019  ....................  6 
4  THE PATH TO TRANSFORMATION OF EL  SALVADOR'S ECONOMY  ................................ .. 7 
4.1  Trade facilitation  ................................ ................................ ................................ ........  7 
4.2  Investment facilitation  ................................ ................................ ................................  9 
4.3  Driving innovation and competitiveness  ................................ ................................ .........  9 
5  OVERVIEW OF TRADE POLICY  ................................ ................................ ....................  10 
5.1  Overall aim of trade policy  ................................ ................................ ..........................  10 
5.2  Bilateral trade  ................................ ................................ ................................ ...........  11 
5.3  Regional integration  ................................ ................................ ................................ ... 11 
5.4  Multilateral trading system  ................................ ................................ ..........................  12 
6  TRADE AND GENDER  ................................ ................................ ................................ .. 12 
7  CONCLUSION AND FUTURE OUTLOOK  ................................ ................................ ........  13 
 
  WT/TPR/G/440 • El Salvador  
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  1  INTRODUCTION  
1.1.  This is El Salvador 's fifth Trade Policy Review at the World Trade Organization (WTO) . Since its 
last review in  2016, El Salvador  has made significant progress in economic and trade matters 
through the implementation of measures to increase productivity, facilitate trade and promote 
leveraging of the opportunities that free trade  offers . Steps have also been taken to create a busine ss 
climate favourable  to foreign direct investment (FDI) and local investment, including measures to 
simplif y and speed up  procedures facilitating  the establishment, operation and growth of 
investments . All these actions come under  the Sustainable and Incl usive Economic Growth 
Ecosystem of El Salvador  (2020 -24), and are consistent  with the Cuscatlán Plan (Government  Plan) 
and the country's Trade and Investment Policy.  
1.2.  Much of the review period (2017 -21) was marked by the globally unprecedented health and 
economic crisis triggered by the COVID -19 pandemic, which was  overlap ped by the supply chain 
crisis, rising fuel and input prices  and a global scenario of inflation and climate change . Nevertheless, 
El Salvador  has addressed these challenges decisively , supporting various sectors  – primarily the 
most vulnerable, and implementing measures to ensure the well -being of its population . As a result, 
El Salvador  is currently very well placed in  terms of economic performance.  
1.3.  El Salvador  stands out as  one of the countries that best managed the pandemic worldwide . 
Together with the economic measures  it took  (including the provision of  funding  to businesses 
affected by the pandemic, and economic  compensation vouchers fo r the general public ), its handling  
of the pandemic  contributed to the rapid renewed upturn in  economic growth, reach ing 10.3% 
in 2021.1 
1.4.  El Salvador  is confident that the opportunities afforded by international trade , together with 
domestic policies that promote the exploitation of such opportunities, will continue to foster  trade, 
FDI and local investment . They will thus generate new sources of employment and improvements in 
the population 's standard of living . 
1.5.  El Salvador 's trade policy will continue to focus on expanding access to external markets for 
Salvadoran products and services by deepening relations with our main trading partners and 
developing closer ties with new strategic partners.  
1.6.  In line with its comm itment  to the multilateral trading system, El Salvador  will also continue to 
participate actively in the negotiations, the work of the Regular Committees and the cutting -edge 
issues that are important to WTO Members . Similarly, El Salvador  will continue to  contribute 
constructively to discussions on WTO reform to ensure that the Organization maintains its relevance 
and responds effectively to present and future international challenges .   
 
1 Source:  Central Reserve Bank of El  Salvador (BCR). Viewed online at: 
https://www.bcr.gob.sv/2022/03/31/la -economia -salvadorena -crecio -10-3-en-2021. WT/TPR/G/440 • El Salvador  
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  2  ECONOMIC AND TRADE POLICY ENVIRONMENT  
Despite the significant global challenges faced during the review period, El Salvador  has 
reached a historic point in its economic performance, and has unprecedented levels of 
investment and trade in goods and services.  
2.1.  Although  the Salvadoran economy  contracted in 2020 , like the vast m ajority of the world's 
economies, 2021 saw  improvements in economic indicators such as double -digit growth in gross 
domestic product (GDP) and a rebound in exports and investment . The response measures taken by 
the Government to mitigate the impact of the various crises faced since 2019 have provided relief 
to those  most in need  while contributing to the rapid recovery in the economy and employment.  
2.2.  Other elements that contributed to this rapid recovery were : (a) continued demand for services 
and goods produced in El Salvador , (b) the capacity for rapid restructuring in the producti on sectors 
and (c) highly productive Salvadoran human talent . As a result, the Salvadoran economy grew 
by 10.3% in 2021 (Chart 2.1) , providing confirm ation of a full, rapid and robust economic recovery 
that year . Moreover, the growth outlook for 2022 is 2.8%, according to projections by the 
Central  Reserve Bank of El  Salvador ( BCR). 
Chart  2.1 Change in GDP weighted by chain volume index (2017 -21) 
 
Source : Central Reserve Bank of El Salvador . 
2.3.  Formal employment has grown steadily since July 2020. According to the records of the 
Salvadoran Social Security Institute (I SSS), all jobs affected by the pandemic had been fully 
recovered by July 2021 and  employment  had even grown again by a further 46.4% by December of 
that year .2 The positive trend in accelerated growth of employment continued in 2022, bringing the 
country close to one  million  formal jobs for the first time in its history.  
2.4.  Trade in goods and services continues to be one of the main drivers of the Salvadoran economy . 
In 2021 the country experienced the highe st level of exports in its history, equivalent to 
USD 6,628.8  million , an increase of 31.8 % compared to 2020 . This is one of the highest recorded 
levels of growth in exports .3 The positive trend continued in 2022, with growth of around 12 %, 
 
2 Salvadoran Social Security Institute (ISSS) (2022). Employers and workers repor ted to and listed with 
the ISSS (number and average monthly wage). Transparency portal, viewed at: 
https://www.transparencia.gob.sv/institutions/isss/documents/estadisticas . 
3 According to the BCR, total exports of goods produced by El  Salvador amounted to  
USD 6,628.8  million at end -2021, representing growth of 31.8% (USD 1,600.4 million more) compared to 
WT/TPR/G/440 • El Salvador  
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  compared to 20 21, expected for sectors with high export levels, including textile and clothing 
manufactures , food products and rubber and plastic products.  
2.5.  The tremendous efforts made by the export sector to increase sales are bearing fruit, and this  
is reflected in the  fact that 84.4 % of the producti on sectors have improved their export performance . 
Moreover, t hese sectors account for 99.9 % of the country's total exports, according to data from 
the BCR . The World Bank 's projections are  also favourable in terms of expect ations of new export 
opportunities for Central America owing to  the accelerated regionalization of global value chains in 
the direction of  North  America.4 
2.6.  El Salvador 's global exports show clear signs of diversification . The country exported 
2,321 products with a monetary value of USD 5,000 or more, in addition to recording 72  more new 
export products that were not exported prior to the COVID -19 pandemic . Between 2017 and 2021, 
there wa s a record number of export businesses  active in the country , averaging 2,500 . El Salvador  
will draw on these major accomplishments as it continues its efforts to diversify its exportable supply 
and its destination markets.  
2.7.  The buoyan cy of Salvadoran export s in the post-pandemic period was accompanied by a 47.1 % 
leap in imports in 2021 . Surging  imports are associated with  greater availability of the goods required 
for domestic production ; more specifically , 44% of imports comprise intermediate goods, and 18 % 
capital goods.  
2.8.  Services sector e xports amounted to  USD 2,019  million in the first half of 2022, representing 
record growth  of 32 % compared to the first half of 2021 . The leading exports in this sector  were 
(a) travel, at USD  287 million, an increase of 52 %, and (b ) transport, at USD  100 million, an 
increase of 53 %. Moreover, in the first half of 2022 the balance of trade in services showed a record  
surplus of USD 698 million , a rise of 24 % on 2021 . Broadly speaking , trade in both goods and 
services recovered in 2021 (Chart  2.2). 
 
2020, and 12.3% compared to 2019. The final figure at December was 6.8 percentage points higher than the 
growth projected by ECLAC for Latin America and t he Caribbean (estimated at 25% for 2021), reflecting the 
strong and rapid recovery of the country's export sector.  
4 World Bank (2021). Unleashing Central America’s Growth Potential , viewed at: 
https://openknowledge.worldbank.org/bitstream/handle/10986/35503/Unleashing -Central -Americas -Growth -
Potential.pdf?sequence=7&isAllowed=y . WT/TPR/G/440 • El Salvador  
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  Chart  2.2 Change in trade in goods and services  
 
Source : Central Reserve Bank of El Salvador . 
2.9.  The net inflow of FDI at end -2021 totalled USD  314.2  million, an increase of USD  34.3 million 
or 12.2 % compared with  2020. The main countries of origin were the United States, Panama and 
Spain . The sectors receiving the most  FDI in 2021 were financial activities, wholesale and retail 
trade, and electricity supplies . Inflows of  FDI recovered well in 2022 and by the third quarter of the 
year were mor e than USD 242.23 million  higher than in 2021; the financial and trade sectors were 
the main recipients.  
2.10.  In 2021 private investor c onfidence was reflected in substantial new investment projects : the 
balance  in private investment announced in December that year was USD  10,378  million, a 2 % 
increase on 2020 . The sectors with the highest  investment were finance and insurance, wholesale 
and retail trade, and information and communications . According to the Natio nal Registry Centre 
(CNR), the year 2022 marked a historic peak of 4 ,011 new companies.  
2.11.  The upward trend in the flow of remittances was maintained during the pandemic , achieving 
a record figure  of USD 5,929.9  million at end -2020, followed by USD 7,517.7  million in 2021, 
equivalent to an increase of 26. 6% over the previous  year.5 Flows of remittances grew at an average 
annual rate of 10.8 % between 2017 and 2021. Remittance s contribute to the Salvadoran economy 
in several ways , including consum ption, payment for basic services, medical expenses and 
investment in real estate.  
3  RESPONSE TO THE COVID -19 PANDEMIC CRISIS : MEASURES IMPLEMENTED BY THE 
GOVERNMENT OF EL SALVADOR  TO ADDRESS GLOBAL CRISES SINCE 2019  
3.1.  As in other countries, El Salvador 's economy was adversely affected by  the various crises it 
faced from 2019 onwards . In order to reduce the impact on the public and ensure their well -being, 
the Government acted nimbly and effectively to implement a variety  of measures that have primarily 
 
5 Central Reserve Bank (21  January  2022). El  Salvador received USD  7, 517.1  million in family 
remittances in 2021. Noticias BCR . Viewed at: https://www.bcr.gob.sv/2022/01/21/el -salvador -recibio -
us7517 -1-millones -en-remesas -familiares -durante -2021. 
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  benefited the most vulnerable sectors . At the same time,  actions were taken to help increase 
competitiveness and promote productive activity in the medium and long term.  
3.2.  Action to overcome the COVID -19 pandemic crisis focus ed on three areas : availability o f funds 
to purchase essential goods and services, promotion of international trade and access to credit . The 
measures aimed at ensuring budgetary availability include the provision  of vouchers  in the amount 
of USD 300 to mo re than one  million  vulnerable Salvadoran households . Steps were also taken to 
temporarily defer bill payments for basic services (drinking water, electricity and 
telecommunications), and tax charge payment s were temporarily relaxed.  
3.3.  Furthermore, during th e emergency period, trade liberalization became an important tool in 
promot ing early economic recovery and ensuring the supply of basic products  to the population . 
Consequently , the payment of import tariffs (DAI) on major consumer products, and the property 
transfer and services tax (VAT) on purchase s of maize, beans and rice were temporarily waived  
under measures  to bolster the population's food security.  
3.4.  The measures taken duri ng the emergency period also included promoting access to credit and 
increasing the funds available to the financial system  so that productive loans could be prioritized 
for micro, small and medium -sized enterprises (M SMEs ). 
3.5.  With regard to the global infla tionary crisis, as of March  2022, the Government of El Salvador  
implemented a package of 11  measures to combat inflation and mitigate its impact on the 
population . The measures include the elimination of import duties on certain products,  thus 
sustaining t he economic buoyancy experienced previously.  
4  THE PATH TO TRANSFORMATION OF EL SALVADOR'S  ECONOMY  
4.1.  In parallel with the short -term measures implemented in response to  the various global crises  
faced by El Salvador , several  strategic programmes have been roll ed out with the  aim of achiev ing 
inclusive and sustainable economic growth in the medium and long term.  
4.2.  These programmes seek t o create an attractive business environment that facilitates trade, 
establishment, operation and expansion of investments ; to generate new and improved employment 
opportunities , using new tools in the form of managerial and digital skills ; to promote the production 
of high -quality, competitively costed goods and services in order to increase participation in local 
and international markets through greater  innovation and business competitiveness ; and to have 
the security afforded by  a modern regulatory framework that inspires confidence , provides  legal 
certainty and encourages investment to the benefit of economic d evelopment and Salvadorans' 
well-being.  
4.3.  An overview of the strategic programmes is presented below,  together with the main outcomes 
to date.  
4.1  Trade facilitation  
El Salvador  sees trade facilitation as the ultimate tool for reducing the time -scales and 
costs associated with international trade . Progress in this area is evident locally and 
recognized internationally . 
4.4.  The consolidated governance of the National Trade Facilitation Committee (NTF C) and the 
creation of Annual Work Plans6, devised  jointly by the business sector and more than 13  government 
bodies to speed up  the movement of goods and reduce the costs involved, were determining factors 
in achieving the rapid progress perceived and recognized by the domestic business sector , as 
reflec ted in El Salvador's positive figures for growth in foreign  trade.  
4.5.  This public -private link -up in the period 2020 -22 resulted  in three  of the Committee's Annual  
Work Plans becoming operational and the implementation of more than 100  strategic measures that  
 
6 Trade Facilitation Action Plan, Work Plan 2022 and the Annex thereto, viewed at: 
http://infotrade.minec .gob.sv/wp -content/uploads/Plan -de-Facilitacion -del-Comercio -2022.pdf . WT/TPR/G/440 • El Salvador  
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  go beyond even  the Trade Facilitation Agreement (TFA) to include modernizing physical and 
technological infrastructure at border points, ports and airports.  
4.6.  Thus El Salvador  is now  one of the WTO Members that has progress ed furthest towards  TFA 
compliance . At the same time, the United Nations Conference on Trade and Development (UNCTAD) 
awarded the Committee of El Salvador  a Sustainability S core of 73 points out of  1007, the highest 
score in Central America and one of the highest in Latin America.  
4.7.   Specific  achievements to date under the Annual Work Plans include the following:  
4.8.  Simplification and digitization of procedures . Work to speed up trade -related operations 
has simplified and digitized procedures, making it possible to submit  digital rather th an physical 
documents for the reception of air cargo  and the import ation and sanitary registration of medicines, 
medical inputs, cosmetics, hygiene products and alcohol . Electronic signature is part of the 
simplification and digitization process  and the el ectronic apostille is now available to companies . The 
Single Window for Foreign Trade also incorporates new formalities for electronic authorization of 
phytosanitary and zoosanitary certificates, authorization to import chemical substances and 
authorizatio n of electronic visas for pharmaceuticals, cosmetics, hygiene  products , medical devices 
and chemicals ; in all, the single window provides 196 business services.  
4.9.  Improved physical and technological infrastructure . In order to expedite border  crossing 
procedures , the facilities at the El Amatillo border post (border with Honduras) have been 
modernized with an investment of USD 26 million , as have the facilities at the Angüiatú  border post 
(border with Guatemala) with an investment of USD  15 million . A customs risk system incorporating 
the use of artificial intelligence has also been introduced at the borders and a self -management 
system known as MIRANDA has been made available to businesses  24/7 to carry out  customs -related 
formalities . 
4.10.  Physical  upgrades  have been made at airports and ports through a public -private partnership 
and equipment has been procured for the air cargo terminal at Monseñor Óscar Arzero Romero 
International Airport, making export and import operations more efficient . Moreover, the w ork to 
expand the container yard at the port of Acajutla  is 65% complete ; the port is our main trade 
connection point to the world  and the work has expanded its  current storage capacity by 36 %. 
4.11.  In the round , all this work has resulted in  improvements such as the reduction from five hours 
to one hour in the time spent on formalities for goods arriving at the air cargo terminal at the 
International Airport ; similarly, the average customs clearance time at the border for exports has 
fallen from hours in previo us years to an average of 5.3 minutes for final exports and 9.6 minutes 
for final imports.8 
4.12.  Modernization of the legal framework related to foreign trade . A process is under way 
to update the regulations on plant and animal health and safety and the regulations on food 
supplements , and to draft a customs code that modernizes and consolidates all the customs 
regulations in force.  
4.13.  One of the National Trade Facilitation Com mittee 's most significant achievements in 2022 is 
the National Trade Facilitation Strategy 2023 -27. This Strategy was adopted in December  2022, 
following extensive consultations with the domestic production sector , and included large and small 
businesses, the public sector and international cooperation . The objective of th e Strategy is to reduce  
both the time taken to move goods and the cost of foreign trade transaction s in order to increase 
business competitiveness, investment, employment, and ultimately t o improve the quality of life of 
the Salvadoran population.  
4.14.  The Strategy takes a comprehensive, multi-pronged approach to trade facilitation that 
address es the challenges of a constantly evolving economic environment and fully leverages the 
 
7 United Nations Conference on Trade and Development (UNCTAD), viewed  at: 
https://unctad.org/es/topic/transport -and-trade -logistics/trade -facilitation/national -trade -facilitation -
bodies/country -detail?country=SV . 
8 Regional Time Release Study (TRS). Viewed  at: 
http://www.oie.sieca.int/documentos/ver/20221201531537 _ETD_Completo_091221_compressed%20(1)%20E
1).pdf . WT/TPR/G/440 • El Salvador  
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  benefits of int ernational trade . The Strategy will contribute to the development of a streamlined, 
uncomplicated , modern business ecosystem that generates greater competitiveness for businesses . 
It has five priority areas and one cross -cutting priority : Priority area 1 : Streamlining  and 
digitization of procedures to create a competitive climate ; Priority area 2 : Modernization of logistics 
infrastructure to establish a new way of doing business ; Priority area 3 : Coordinated border 
management and the bid for a single border  check ; Priority area 4 : Modernization of the legal 
framework for foreign trade; Priority area 5 : Transparency and availability of foreign trade 
information ; and Cross -cutting priority : Human talent management.  
4.15.  In addition to establish ing the broad outlines of trade facilitation work in the medium term, 
the National Trade Facilitation Strategy 2023 -27 will determine the specific actions to be 
implemented year  on year, and identify the resources and partners  required . 
4.2  Investment facilitatio n 
El Salvador sees trade facilitation as the ultimate tool for reducing the time -scales and 
costs associated with international trade. Progress in this area is evident locally and 
recognized internationally.  
4.16.  Creating a business environment that contributes  to attracting and expanding investment is 
particularly  important to El Salvador . Accordingly,  the Government is coordinating efforts  to simplify 
and digitize investment -related procedures and make up -to-date information on investment 
processes and require ments available to businesses . At the same time, a bespoke service is provided 
to all businesses interested in establishing or expanding their operations in the country.  
4.17.  The project to simplify and digitize procedures, implemented jointly with 13 public en tities, 
identifies 685 procedures as priorities  for the first phase . Of these, 337  have been simplified , 
reducing  response times by an average of 60%, for example procedures for import visas and 
inspections of agricultural products, and the  authorization o f sanitary permits to establish and 
operate industries, agribusinesses and non -food factories . Additionally, at the time of writing, the 
period for completing  205 procedures is one working day or less, including procedures for the 
registration and formal  establishment  of new businesses and procedures related to the registration 
of intellectual property . Finally, 97 of the formalities on the priority list have already been digitized 
and are publicly available in full online . They include procedures related to feasibility  and construction 
and inspection permits in compliance with security measures, and procedures conce rned with the 
registration of intellectual property rights.  
4.18.  The Ministry of Economic Affairs has made the inter -institutional virtual window, 
MiEmpresa.gob.sv, available to domestic and foreign investors . The window can be used for the 
expeditious and simu ltaneous management  of business start-up procedures  It can also be used to 
handl e procedures related to business  operations, and to obtain information on the periodic 
obligations that must be met as well as other resources of interest to investors.  
4.19.  The Exp ort and Investment Promotion Agency (PROESA) provides technical advice and 
information to potential investors on laws, regulations and procedures . It also promotes investment 
in the following priority sectors : tourism, textiles and clothing, remote busines s services, digital 
services, agro -industry, light manufactures and medical and chemical -pharmaceutical devices.  
4.20.  One exercis e key to generating more investment has been that of  ongoing communication 
with the producti on and services sectors so as to gain aw areness of  their needs and opportunities . 
As a result of this dialogue, regulations have been amended, talent -creation projects implemented 
and businesses linked to sources of finance, thus removing barriers to growth.  
4.3  Driving innovation and competitivenes s 
4.21.  Another  strategic programme implemented by the Ministry of Economic Affairs is the 
Productive Innovation Ecosystem , which aims to strengthen  and increase business 
competitiveness . The programme  relies for its impetus inter alia on  a systemic approach to managing 
innovation in MSMEs, support for business restructuring and productive innovation, the promotion 
of cleaner production, and the protection and use of intellectual property.  WT/TPR/G/440 • El Salvador  
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  4.22.  These efforts include the Fund to promote i nnovati on and competitiveness, known as 
FONDEPRO, through which non -repayable co -financing is provided to businesses with the aim of 
increasing their competitiveness, and thus encouraging job creation in the country . Cumulatively to 
2022, 55 initiatives were supp orted to the tune of USD  1,297 ,934.47 disbursed to 12 undertakings , 
20 micro and small enterprises, and 23  medium -sized enterprises.  
4.23.  In line with the vision of  a greener, more innovative country, the Sustainable Industries 
Programme has been promoted in pa rtnership with the World Bank Group International Finance 
Corporation . The programme 's objectives include : promoting business investment in sustainable 
energy and clean, environmentally friendly technologies ; promoting public -private cooperation to 
achieve  higher levels of productivity and sustainable competitiveness in business ; incentivizing the  
efficient use of resources ; and promoting the development of green financing tools and sources that 
are affordable to Salvadoran businesses.  
4.24.  Additionally , we have  begun to draft Salvadoran technical standards as a means of 
strengthening the Clean Production Agreements (APL) mechanism and thereby enabling businesses 
that support sustainability and sign up to these Agreements  to gain certification . 
4.25.  In order to promot e more innovative venture s nationally, alliances have been forged with 
50 partners, including academia, local and international enterprises , and other government 
institutions in order to support idea -stage, early -stage, and growth -stage ventures . Support consists 
of advice, training in entrepreneurship and innovation, mentoring, and linkages  with funding sources 
and with investors' networks at the national and global levels, among others . El Salvador 's 
participation in the Entrepreneurship World Cup9 allows it year on year to identify innovative 
venture s nationwide and then provide relevant support.  
4.26.  To boost innovation and improve the competitiveness of the business sector nationally, 
El Salvador  is designing a Business Innovation and Technology Development Centr e as a space for 
the provision of specialized services in digital transformation, innovation and technology adoption 
for businesses and entrepreneurs in El Salvador  and Central America . The Centre will focus on 
technological development, tech nological services and support for competitiveness, among other 
aspects . It will also focus on the following technologies : the internet of things, big data and cloud 
computing, augmented reality and virtual reality, artificial intelligence, cybersecurity a nd audiovisual 
technology.  
4.27.  In addition, the Government of El Salvador  is currently designing a National Intellectual 
Property Strategy  with the support of the World Intellectual Property Organization (WIPO) . The 
Strategy seeks to identify specific actions that promote the creation, development and protection of 
intellectual property effectively in order to contribute to business competitiveness and 
socio-economic development.  
5  OVERVIEW OF TRADE POLICY  
5.1  Overall  aim of trade policy  
5.1.  The Trade and Investment Poli cy of El Salvador  2020-5010 was launched publicly in 
January  2021. It outlines the strategy for addressing the structural challenges posed by the 
Salvadoran economy and seeks to establish equal opportunities for investors, simplify processes, 
open new businesses, leverage trade instruments, and achieve fuller integration an d benefits for the 
economy by establishing a culture of effective dialogue and a holistic vision for the country.  
5.2.  The main objectives of the Trade and Investment Policy are to increase exports, eliminate the 
balance of payments deficit and increase FDI.  
 
9 The Entrepreneurship World Cup is a programme that empowers entrepreneurs at various levels, with 
the participation of more than 150 countries worldwide. It runs in conjunction with the Global Entrepreneur ship 
Network (GEN); the Government of El  Salvador is the official national organizer.  
10 Trade and Investment Policy of El  Salvador 2020 -50. Viewed  at: 
https://www.transparencia.gob.sv/institutions/capres/documents/433788/download#:~:text=La%20construcci
%C3%B3n%20de%20esta%2 0pol%C3  per centADtica, de  % 20 vida  % 20 de  % 20 los  % 20 salvadore  % 
C3% B1os . WT/TPR/G/440 • El Salvador  
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  5.3.  The Government has made significant efforts to implement the lines of action set out in the 
policy by drawing up annual work plans that coordinate trade  and investment -related actions under  
the projects/programmes of key institutions, and are carried out  in cooperation with the Secretariat 
for Trade and Investment.  
5.2  Bilateral trade  
5.4.  El Salvador  currently has 12  bilateral trade agreements in force . Taken together , the country's 
trade under the se agreements accounts for approximately 95.3 % of total exports and 69.1 % of total 
imports . El Salvador  therefore considers that one of the important aspects of its trade policy must 
be to take the fullest possible advantage of  the opportunities provided by these agreement s in terms 
of boosting both the country's trade in  goods and services and its attractiveness to FDI . 
5.5.  Accordingly , the Government has designed plans for the optimal use of  existing trade 
agreements . The plans identify Salvadoran products with potential opportunities in destination 
countries and provide businesses with relevant information and tools to build their capacity to 
position new products and destinations . The underlying idea is  to convert trade agreements into 
catalysts for economic development.  
5.6.  In this regard, it should be noted that the  Free Trade Agreement with South Korea entered into 
force in 2020, together with the  action plan  for its optimal implementation . Under the plan, on the 
basis of inter -institutional coordination, training activities were undertake n, and market research 
and technical data sheets were published for products with export potential.  
5.7.  In 2021, the main destination for Salvadoran exports was the Central American region (47.4 % 
of the total), followed by the United States (39.4 %), and the Eu ropean Union (2.8 %). 
5.8.  The main source of imports in 2021 was the United States (27.1 %), followed by the Central 
American region (22.7 %) and China (16.8 %). The main import products were medicines for human 
use, handheld computers, mobile phones, cotton T -shirts, yellow maize, and vehicles.  
5.3  Regional  integration  
5.9.  The Central American region is now established as the main destination market for Salvadoran 
exports . In 2021, 47 % of El Salvador 's exports went to the regional market, while 23 % of its imports 
come fro m the same region.  
5.10.  The actions promoted  by El Salvador  and the other countries of the region within the 
framework of the Central American Customs Union process have contributed to record levels of 
growth in exports to Central American countries . Since 2019, average annual growth has been 
11.2%, and in 2021 exports totalled USD  3,130  million, an increase of 35.2 % over 2020 . Similarly, 
in 2021, imports from the region grew by 29.1 % compared to the previous year.  
5.11.  Worthy of note among the joint initiatives with countries in the bloc are the measures for 
greater trade facilitation set out in  the Central American Strategy for Trade Facilitation and 
Competitiveness that focus on coordinated border management . Also noteworthy are the efforts to 
digitize procedures using  tools such as the Central American Digital Trade Platform (PDCC) , along 
with the first regional study measuring the time required to clear and release goods (Regional Time 
Release Study), which was supported by the World Customs Organization.  
5.12.  Under the Central American Strategy for Trade Facilitation and Competitiveness, the first  
regional meeting of National Trade Facilitation Committees of Central American countries was held 
in August  2022, providing a forum for sharing good practice s and identifying 12 regional activities 
to further trade facilitation in the region.  
5.13.  During the r eview period El Salvador  continued to work with its Central American partners on 
the harmonization of regional technical regulations.  
5.14.  In 2021, Guatemala and Honduras were the destination markets for 71 % of El Salvador 's total 
exports to Central America, he nce the importance of deepening trade relations with both countries . 
El Salvador  is part of the "process of deep integration towards the free movement of goods and WT/TPR/G/440 • El Salvador  
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  natural persons ", promoting measures that help to speed up the passage of goods across land 
borders, mainly through the use of technology and coordination of management by the authorities.  
5.15.  Within the framework of the Central American Economic Integration Subsystem, El Salvador  
is a member of all technical groups, including the Central American Te chnical Group on Intellectual 
Property, which was established in 2022 with the aim of fostering a regional agenda of projects to 
be implement ed in order to strengthen and develop intellectual property.  
5.16.  In order to promote greater transparency in the Centra l American integration process, an 
ongoing dialogue with the business sector is under way to  ensure that the necessary feedback is 
obtained  from the various economic sector s and that the progress achieved is  reported . 
5.4  Multilateral  trading system  
5.17.  El Salvador  remains committed to the multilateral trading system and recognizes the role of 
the WTO in maintaining a transparent and open regulatory framework that ensures smooth trade 
flows for all Members.  
5.18.  El Salvador  recognizes the impor tance of having a strong multilateral system, especially in 
the current economic circumstances, to ensure the smooth functioning of international markets . It 
therefore considers that trade negotiations, full respect for rights and compliance with obligatio ns, 
transparency exercises and the efficient functioning of the dispute settlement mechanism must 
operate in unison  and in an effective manner.  
5.19.  El Salvador  is convinced of the importance of promoting inclusive trade , and together with 
Botswana and Iceland leads discussions on women's economic empowerment within the Informal 
Working Group on Trade and Gender . Similarly, it promotes the mainstreaming of gender in the 
work of the WTO.  
5.20.  Furthermore, it recognizes the importance of efforts to reform the WTO in or der to improve 
its effectiveness and to have a strong and relevant Organization that is in a position to respond to 
the challenges of the 21st century faced by its Members and partners, including in the context of 
future health or economic crises . In the v iew of El Salvador , the reform process must take into 
account the needs of developing countries, including the small, vulnerable economies . 
5.21.  In the context of transparency commitments, El Salvador  has made significant progress in 
submitting notifications in  various areas such as domestic support in agricultural trade and import 
licensing.  
5.22.  El Salvador  recognizes the role of the WTO in the discussions on cutting -edge issues and is 
therefore constructively engaged in the Joint Initiatives on Investment Facilita tion for Development , 
E-Commerce and MSMEs, to achieve more inclusive and resilient trade.  
6  TRADE AND GENDER  
6.1.  El Salvador  promotes women's integration into world trade, as well as the mainstreaming of 
gender into the Organization's work . As a co-Chair of the Informal Group on Trade and Gender, it is 
committed to continuing to promote these objectives.  
6.2.  In El Salvador 's view, it is important for the WTO to acquire a better understanding of the 
relationship between trade and gender, and to identify specific actions that can be implemented to 
contribute to more inclusive and fair trade.  
6.3.  Domestically, El Salvador  is pursuing vario us gender policies and programmes . Since 
October  2020, work has been proceeding, in collaboration with the United Nations Development 
Programme (UNDP) and with representatives from the private sector and academia , on a Salvadoran 
Technical Standard ( NTS 03.116.01 :21) for a Gender Equality Management System in the 
Employment  Sphere . 
6.4.  It is expected that this technical standard , when implemented,  will support El Salvador 's efforts 
to achieve the Sustainable Development Goals o f Gender Equality ( Goal 5), Decent  Work and WT/TPR/G/440 • El Salvador  
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  Economic Growth ( Goal 8) and Reduc ed Inequalities ( Goal 10). The anticipated benefits of its 
implementation include productivity gains as a result of the improve ment of labou r conditions  and 
the work environment , and the promotion of teamwork.  
6.5.  The aspects of the gender equality gap that implementation of the technical standard seeks to 
address include the wage gap, asymmetrical  job requirements, inflexible working hours, unequal 
workload s, low promotion of women in leadership positions, and selection processes with no gender 
criteria. 
6.6.  With support  from the International Trade Centre (ITC), El Salvador is one of  the countries 
implementing the She Trades Outlook  project11, which collects data to assess the level of women 's 
empowerment in six areas : trade policy, legal and regulatory framework, business environment, 
access to skills, access to finance, and work and society . Data col lection is already at an advanced  
stage, and once complete will make it possible to produce  a country profile using the 
She Trades  Outlook  digital tool . The focus thereafter will be to work on the opportunities for 
improvement identified, for which support  from bilateral and multilateral partners will be sought.  
7  CONCLUSION AND FUTURE OUTLOOK  
7.1.  The COVID -19 pandemic and the other global crises confronting us  in the current economic 
climate  have changed the world irrevocably . However, El Salvador  will continue to harness  the 
opportunities emerging  from this new environment by promoting  cutting -edge measures and 
comprehensive economic and trade strategies to benefit our businesses and population . 
7.2.  El Salvador  is deeply engaged  in a process of compre hensive transformation , with a vision for 
the future . In a short time and against a complex international backdrop , El Salvador  has reversed 
the past trends in its economic variables, and has today achieved  historic levels of exports, imports, 
employment a nd investment . Significant progress has also been made in the area of public safety , 
making it possible to improve living conditions  for many Salvadorans and helping to boost productive  
sectors . 
7.3.  In order to ensure that today's economic growth is inclusive and sustainable, the Government 
of El Salvador  will continue to coordinate efforts  to provide a business climate where there is legal 
certainty  and businesses, whether domestic or foreign, can quickly become established and grow.  
7.4.  Moreover, the Government of El Salvador  will translate the recently adopted National Trade 
Facilitation Strategy 2023 -27 into specific actions that  will enable El Salvador  to become the country 
with the best logistics infr astructure and the most modern, efficient and expeditious  international 
trade procedures in Latin America  by 2027.  
7.5.  As El Salvador  is a small , open economy, trade is an important factor in its economic growth 
and prosperity . Therefore , El Salvador  will cont inue to participate actively in the work of the WTO 
and will support various initiatives in line with its trade interests to ensure that the Organization 
remains relevant and responsive to the needs of the economy of the future.  
7.6.  Similarly, as a developing country, it will continue to spearhead initiatives within the multilateral 
framework that enhance the  integration of these countries into international trade, including under  
the Work Programme on Small Economies . In this context, it will also promote tech nical assistance 
and capacity -building activities that help to increase the participation of developing countries in the 
discussions at multilateral  level.  
7.7.  At the same time, El Salvador  will foster further integration , both  regionally and into global 
value chains , through existing and future trade instruments, with the objective of achieving 
sustainable economic development and encouraging cooperation between countries.  
__________  
 
11 ITC SheTrades Outlook , viewed  at: https://www.shetrades.com/outlook/home .