WT/TPR/M/344  
7 November 2016  
(16-6079) Page: 1/38 
Trade Policy Review Body   
14 and 16 September 2016  
  TRADE POLICY REVIEW  
EL SALVADOR  
MINUTES  OF THE MEETING  
Chairperson: Ms Irene Young (Hong Kong, China)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F EL SALVADOR  .............................  3 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  6 
4  STATEMENT S BY MEMBERS  ................................ ................................ ........................  13 
5  REPLIES BY THE REPRE SENTATIVE OF EL SALVADOR  AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  32 
6  CONCLUDING REMARKS B Y THE CHAIRPER SON ................................ .........................  37 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by El Salvador  are reproduced in document WT/TPR/M/ 344/Add.1  and will be available 
online at http ://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/3 44 • El Salvador  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The fourth  Trade Policy Review of El Salvador  was held on 14 and 16 September 2016. The 
Chairperson, Ms. Irene Young (Hong Kong, China), welcomed the delegation of  El Salvador headed 
by H.E. Mr. Tharsis Salomón López, Minister of Economy; the delegation from El Salvador; and the 
discussant, H.E. Ambassador Héctor Casanueva  (Chile) .  
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elemen ts of 
the procedures for the meeting. The report by El Salvador  was co ntained in document 
WT/TPR/G/344  and that of the  WTO Secretariat in WT/TPR/S/344 . 
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
Mexico; United  States; Canada; Chile; Colombia; European Union; Guatemala; Dominican 
Republic; and Peru. The following delegations submitted written questions after the deadline: 
Singapore ; Argentina; Australia; and Thailand.  
1.4.  At the previous TPR  in 2010 , El Salvador had been  commended for the continued 
liberalization of its trade regime and its steady economic growth, notwithstanding the adverse 
effects of the global financial crisis. Members had remarked, however, that further liberalization 
and structural reform, incl uding through increased export market diversification, reduced 
dependence on remittances, and higher levels of savings and investment were important for the 
country to continue on its path of growth. Six years on, these remain ed pending objectives for El 
Salvador. For instance, with real GDP growing at an average annual rate of barely 1% between 
2009 and 2015, it was unclear whether the 2.5% peak last year mark ed the beginning of a rising 
trend. Meanwhile, remittances had remained equivalent to 16% of GDP, and as much as 90% of 
the country's exports had gone  to the same traditional markets.  In their advance  written 
questions, Members asked about El  Salvador’s trade pol icy strategies and priorities. The y were 
interested in  knowing how El  Salvador intended  to address these pressing challenges, and how it 
would promote  trade and regional integration as a main driver of economic growth.  
1.5.  Back in 2010, Members had welcomed El Salvador's efforts to facilitate trade through the 
implementation of customs modernizatio n, but had urged it to further reduce and simplify import 
licensing requirements. El Salvador’s trade facilitation efforts during the review period had been  
commendable. These include d implementation of a single window for imports; strengthening of 
risk ma nagement; migration to ASYCUDA World; and ratification of the WTO Trade Facilitation 
Agreement. However, Members still had many questions about customs valuation and procedures 
on the ground, and more than 1,000 tariff lines remain ed subject to various typ es of import 
approvals. The Chairperson believed Members might  be keen to know whether the authorities 
intend ed to further streamline import measures.  
1.6.  At the last TPR, Members had urged El Salvador to align its export incentive programmes 
with int ernationa l commitments. Members were  pleased to note that since the previous review, 
El Salvador had indeed  substantially modified its export incentive regime by repealing the Export 
Recovery Law and eliminating all export performance and local content requirements  from its 
Industrial and M arketing free zones Programme. It might  be useful, as suggested by some 
Members, that the delegation elaborate d on the changes and the implementation  plan. 
1.7.  In their questions, Members also showed  interest in other areas, such as c ompetition policy, 
government procurement and intellectual property protection.  
1.8.  This meeting would  provide a useful opportunity for Members to discuss in greater detail 
these issues, as well as other issues of interest to them and of systemic importance to  the 
multilateral trading system.  WT/T PR/M/3 44 • El Salvador  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F EL SALVADOR  (H.E. MR. THARSIS 
SALOMÓN LÓPEZ ) 
2.1.  It is an honour for El Salvador to take part, for the fourth time, in this exercise in 
transparency, which is of great value for the  multilateral trading system, and we are sure that it 
will provide an opportunity for WTO Members to acquaint themselves with the significant advances 
the country has made in the economic and trade spheres over the past six years.  
2.2.  I thank you for your valu able comments and the distinguished Ambassador of Chile to the 
WTO, His Excellency Mr Héctor Casanueva, for his views, which I am convinced are an important 
contribution that enhances this exercise and will guide the discussions as we proceed with our 
review. 
2.3.  Despite the consequences of the 2008 global economic and financial crisis, El Salvador clearly 
succeeded in maintaining macroeconomic stability and sustained growth over the review period.  
2.4.  In 2015, GDP at constant prices rose by 2.5%, the highest rate over the past decade. 
Inflation fell significantly and was down to 1.0% in 2015, making El Salvador the country with the 
second lowest rate in the Central American region.  
2.5.  It is also important to emphasize that Salvadoran exports posted the highest rate of  growth 
in the region last year, according to ECLAC, with net flows of foreign direct investment increasing 
by 38% over 2014.  
2.6.  Moreover, major strides have been made in the social sphere. As stated by the President of 
the Republic, Professor Salvador Sánche z Cerén, at the post 2015 Sustainable Development 
Summit, El Salvador has met most of the Millennium Development Goal indicators and has 
"exceeded the targets of reducing maternal mortality, providing household access to drinking 
water, achieving gender eq uality and empowering women".  
2.7.  According to World Bank figures, extreme poverty levels also declined sharply from 7.2% in 
2010 to 4.2% in 2012. Poverty indicators in general have been on a downward trend.  
2.8.  These favourable developments notwithstanding, the S alvadoran Government continue to 
combat economic inequality, promote social inclusion in all spheres and pursue its efforts in areas 
such as agriculture, food security and public safety, as described in the Five Year Plan aimed at 
building a productive, ed ucated and secure country.  
2.9.  One of the major challenges we are facing is to promote effective leverage of the benefits 
derived from free trade, as a tool for achieving sustainable development.  
2.10.   To this end, our endeavours include working on the implementatio n of the National Policy to 
Promote, Diversify and Transform Patterns of Production, which was developed following a broad 
process of consultation with the key stakeholders in the production sector.  
2.11.   The main objective of this long term policy is to strengt hen production sectors with high 
global competition potential and the capacity to drive economic growth based on innovation, 
integration in international markets and the creation of decent, quality jobs.  
2.12.   El Salvador has also made significant headway in mod ernizing its Customs. On 4 February 
2016, the Legislative Assembly ratified the WTO Trade Facilitation Agreement (TFA). This marked 
the completion of legal formalities at national level, and El Salvador deposited its instrument of 
acceptance of the TFA wit h the WTO in July of this year, in the conviction that this Agreement will 
bring gains in terms of reducing trade costs, especially for small exporters.  
2.13.   The Central American Strategy for Trade Facilitation and Competitiveness with Emphasis on 
Coordinated B order Management was adopted on 22 October 2015 under El Salvador's pro 
tempore Presidency of the Economic Integration Subsystem.  
2.14.   The purpose of this strategy is to promote coordination between public and private sector 
agencies in order to improve revenue  collection procedures, controls and border security, and to WT/TPR/M/3 44 • El Salvador  
 
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  further facilitate the movement of goods and persons under a mechanism of effective control and 
efficient use of resources.  
2.15.   The period under review saw the promotion of new legal frameworks that will help to 
enhance the conditions under which international trade is conducted. Special mention should be 
made of the Law creating the Salvadoran Quality System, the Law on digital signature, which 
serves as a basis for regulating electronic commerce, an d the Law on trade defence, which sets 
out the instruments needed to counter unfair trade practices.  
2.16.   The legal framework for intellectual property protection and investment promotion was also 
updated, and the government procurement system was extensively o verhauled.  
2.17.   As regards intellectual property, our country is continuing to take significant steps forward, 
one point worthy of mention being the adoption of a national policy to promote the building of 
knowledge, innovation and competitiveness in order to b oost the economic and social development 
of the Salvadoran population.  
2.18.   Another strategic objective of the Government's Five Year Plan is to develop the production 
capacity and competitiveness of micro, small and medium sized enterprises and put them in tun e 
with the dynamics of the local, national and international economy.  
2.19.   In that connection, I would highlight the strengthening of the Production Development Fund 
(FONDEPRO), whose aim is to help small and medium sized enterprises and implement a new 
busines s support model, which offers, among other things, advisory services to secure financing as 
well as technical assistance for exports and streamlines procedures.  
2.20.   The Law on secured transactions was enacted in 2013, providing a flexible, modern and 
secure to ol to facilitate access to loans for micro and small enterprises. The review period also saw 
the adoption of the Law on the promotion, protection and development of micro and small 
enterprises, which created a financial, legal and institutional support str ucture for this important 
sector of national production.  
2.21.   As regards investment, El Salvador has a system that gives investors economic stability and 
legal certainty, and it is continuing to implement numerous initiatives designed to make it easier 
for inve stors to establish themselves in the country.  
2.22.   As indicated in our Government report, the Law on industrial and marketing free zones was 
overhauled during the review period in order to bring it into line with El Salvador's international 
commitments under th e WTO Agreements, in a move to provide stability and predictability to 
investors.  
2.23.   The main objective of El Salvador's trade policy is to promote, facilitate and consolidate the 
country's integration in the global economy by intensifying trade and investmen t flows between El 
Salvador and the rest of the world, in line with the objectives of the Government's Five Year Plan.  
2.24.   At regional level, El Salvador is banking on the Central American integration process 
becoming one of the means of promoting economic gro wth and sustainable development for our 
countries.  
2.25.   The integration process is by no means simple, and it comes with its own dynamics and 
challenges. Nonetheless, we are aware of its potential and recognize that the major challenges 
facing our region, such as climate change, security, drug trafficking and migration, can only be 
overcome by adopting a regional perspective.  
2.26.   El Salvador and the other countries of the Central American region worked together to 
deepen the economic integration process during the p eriod under review. The most recent 
developments included the incorporation of Panama in the Central American Economic Integration 
Subsystem as of 6 May 2013, and, as I mentioned before, the adoption of the Central American 
Strategy for Trade Facilitation and Competitiveness with Emphasis on Coordinated Border 
Management.  WT/T PR/M/3 44 • El Salvador  
 
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  2.27.   El Salvador remains committed to firmly moving ahead with the next stages of the regional 
integration process, on the basis of the major gains made so far.  
2.28.   El Salvador has also signed and is currently negotiating bilateral agreements with a number 
of trading partners. These agreements are aimed at liberalizing flows of trade in goods, services 
and investment, all in strict compliance with the parameters laid down in this Organization.  
2.29.   Since  its previous trade policy review, El Salvador has thus signed the Association 
Agreement with the European Union and a Partial Scope Agreement with Cuba, and is in the 
process of negotiating a free trade agreement with South Korea and partial scope agreeme nts with 
Ecuador and Bolivia.  
2.30.   That being said, El Salvador reiterates the importance of the Agreements administered by 
the WTO for the multilateral trading system and as a cornerstone of the trade policies of its 
Members.  
2.31.   Recognizing the gains and opportun ities that world trade offers El Salvador and the other 
WTO Members as a means of achieving their development objectives, we reaffirm our commitment 
to finalizing the outstanding issues on the negotiating agenda in order to reach a balanced 
outcome that ad dresses the needs of the developing countries.  
2.32.   We shall accordingly continue to advance our interests, both individually and through groups 
of Members with which we share similar goals, such as the Group of Small, Vulnerable Economies 
and the G 33.  
2.33.   We are firmly convinced that the development dimension must lie at the heart of the work 
of this Organization, and we are striving to promote the incorporation of this principle in all areas 
of the multilateral trading system.  
2.34.   As stated during the 10th WTO Minist erial Conference, El Salvador remains strongly 
committed to implementing the agreements reached at ministerial meetings.  
2.35.   We repeat that El Salvador is open to initiating a dialogue on current WTO related issues, 
which will have a major impact on the realit ies of trade for our countries as they deal with the new 
challenges facing them. Nonetheless, we are of the view that discussions of that kind should not 
undermine the chief objective of concluding the outstanding items on our negotiating agenda, 
taking in to account the interests and positions of all WTO Members.  
2.36.   It merely remains for me to thank the WTO Secretariat for its valuable support in preparing 
this exercise and all Members for the interest they have shown in the advances in our trade and 
economic policies over the past six years.  
2.37.   I would like to conclude my statement with a phrase coined by the President of the Republic 
of El Salvador, Professor Salvador Sánchez Cerén, summing up in a single sentence the work ethic 
of our Government and extending a n invitation to Members of this Organization: "Together we can 
grow". Thank you.  WT/TPR/M/3 44 • El Salvador  
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  It is an honour for me to participate as discussant in this fourth Trade Policy Review of the 
Republic of El Salvador  and, as stated by the Chairp erson, I do so in my personal capacity.  
3.2.  My analysis will focus on three areas: economic and institutional environment; trade policy 
and commitment to the multilateral trading system; and conclusions and recommendations.  
3.3.  To use time wisely, I will try to hi ghlight the features of the respective reports drawn up by 
the Secretariat and El Salvador that stand out for me. More information can be gleaned from a 
detailed reading of these documents.  
3.4.  Before starting my statement, it should be pointed out that El Sal vador is a Member that is 
committed to the multilateral trading system. In this regard, it belongs to the following groups: 
Small and Vulnerable Economies (SVEs), the G -33 and the Joint Proposal Group, as well as 
participating in consensus -building towards  achieving the Organization's objectives.  
3.5.  El Salvador is a Central American country located on the Pacific Ocean coast with a surface 
area of 21,041  km2 (almost half that of Switzerland). It has a population of nearly 
7 million  inhabitants, making it one o f the most densely populated countries on the 
American  continent. It has a nominal GDP of over US$ 25,000  million and a per capita income of 
US$4,220 in nominal  terms, or US$8,600 in PPP terms.  
3.6.  The country is situated in the so -called Pacific Ring of Fire,  and is a very active volcanic area. 
There are no fewer than 23 volcanoes on its territory, although only four of them (Santa  Ana, San 
Salvador, San Miguel and Izalco) have been in continuous activity. Furthermore, El Salvador is the 
only Central American country whose territory drains its waters entirely from the Pacific Ocean 
side of the mountain range.  
3.7.  In the process of the Conquest of America which began in 1492, the first Spanish expeditions 
to the current territory of El Salvador took place in 1524. T hey encountered strong resistance, a 
sign that the land would prove difficult to conquer. Ultimately, it took until 1528, when what was 
then known as Villa de San Salvador was finally refounded in the valley of La  Bermuda. By 1540, 
the Alcadía Mayor de San  Salvador was established, and then, after almost 300 years of colonial 
domination, in 1821 the union of the Alcadía Mayor de Sonsonate and what was the Intendencia 
de San Salvador resulted in what today corresponds to the main part of the country's territ ory. 
3.8.  Please allow me a moment to quote the Salvadoran author, Julio Enrique Ávila, who in 1938 
referred to his native land in the following terms:  
3.9.  I quote: " This tiny land and this collection of people form a country, a homeland. A  homeland 
which, from its  first breath of life, from its first cry of independence, has been defined by two 
virtues: first, an indomitable love for its freedom; and second, strong and eternal protest in favour 
of oppressed peoples. Its entire history, from the conquest to the mode rn day, is encapsulated in 
these two traits. During the conquest of the old kingdom of Cuscatlán – today El  Salvador – the 
valiant Captain Don Pedro de Alvarado was wounded and met defeat for the first time; its 
emblematic ruler Atlacatl died of heartbreak  in its mountains, without surrendering to the 
conqueror; and it was a noble Salvadoran gentleman, José Simeón Cañas, who secured the 
emancipation of slaves in Central America. And so it is still today ." 
3.10.   As in a large part of our continent, the country's p ursuit of its own path to development has 
given rise to political and social struggles which have defined its modern history. For instance, for 
12 years between 1980 and 1992, El Salvador had to suffer the pain of a lengthy and harrowing 
Civil War, which f ortunately ended on 16  January  1992, when the Government and the guerrilla 
movement signed the peace agreements that paved the way for military, social and 
political  reforms.  
Economic and institutional environment  
3.11.   As in many countries of the region, El Sal vador's economy suffered considerably from the 
global financial crisis. For small, middle -income economies like El Salvador's, this situation is not WT/T PR/M/3 44 • El Salvador  
 
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  easy to overcome. For this reason, the economy only grew at an average annual rate of 1% 
between 2009 and 2 015. Nevertheless, it is positive and encouraging that GDP growth accelerated 
to 2.5% last year, thanks to a growth in exports and stronger domestic demand.  
3.12.   These figures have had a direct impact on the Government's efforts to further its plans to 
overcome  poverty and generally improve its population's living conditions. At the same time, 
El Salvador understands that progress in these crucial domestic areas depends on a suitable global 
environment conducive to the development of trade governed by fair and t ransparent rules 
between nations.  
3.13.   We have noticed that El Salvador grasps the importance of being an active and transparent 
player in global trade channels, as a fundamental tool for pursuing its development.  
3.14.   In this regard, in the latest Human Development  Report (2015), El Salvador is categorized 
as a medium human development country, ranked 116th out of 188 countries, a position which 
reveals the enormous task facing the country.  
3.15.   Recently, its development indicators have improved. According to World Bank figures, 
El Salvador has reduced its poverty levels by some 8 points, from 37.8% in 2008 to 29.6% in 
2013. It has also seen a significant decline in extreme poverty, which fell from 6.3% in 2008 
to 3.1% in 2013. We must thus encourage El Salvador to contin ue on this path to overcoming 
poverty, on the basis, among other variables, of sound and vigorous economic growth.  
3.16.   In this respect, mention should be made of the FOMILENIO II project, whose goal is to 
reduce poverty through economic growth by raising produ ctivity and competitiveness in 
international markets. In addition, the country is currently working on a human capital 
development project to establish a National Technical and Vocational Training System (SNFTP) 
whose aim is to narrow the gap between labou r supply and demand that is occurring as a result of 
the disruption of production systems due to the arrival of new technologies and changing demand 
and consumption patterns.  
3.17.   In structural economic terms, it should be mentioned that the services sector is driving 
El Salvador's economy, accounting for 60% of GDP. This situation is probably influenced by the 
implementation of the Law on international services (LSI), which grants fiscal incentives to 
domestic or foreign businesses exporting services and locate d in "parks" and/or "service centres" 
deemed to be outside national customs territory.  
3.18.   El Salvador has made tangible efforts to integrate into the global economy, as demonstrated 
by the various reforms implemented during the review period, which indeed tar get modernization, 
improved efficiency and administrative quality of management, combating corruption, increasing 
transparency and, above all, enforcing the Rule of Law.  
3.19.   I emphasize in respect of El Salvador's economy that the unemployment rate stood at 5. 5% 
in 2014, although attention must also be drawn to the large share of the informal sector, which 
occupies 60% of the workforce, as well as to underemployment.  
3.20.   According to the document entitled "Socioeconomic analysis of El Salvador", drawn up in the 
second half of 2015 by the Economics Department of the José Simeón Cañas Central American 
University, real minimum wages have suffered a longstanding deterioration since the end of the 
1970s, although improvements have been seen in recent years in some sector s such as the 
secondary and tertiary sectors.  
3.21.   Real wages rose by 7.2% in the 12 months to August  2015, compared with a 2.7% increase 
in the 12 months to August  2014. The report also notes that in 2015 real wages (in constant 2009 
dollars) grew in relation to 1994 in the mining and quarrying, construction, and community, social 
and personal services sectors, and in the public sector.  
3.22.   In addition, inflation is under control, averaging less than 1% during the period 2012 -2014 
and 1% in 2015. This indicates con siderable stability and preserves the population's purchasing 
power, which helps especially the neediest sectors.  WT/TPR/M/3 44 • El Salvador  
 
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  3.23.   During the review period 2009 -2015, El Salvador has also brought in significant reforms to 
the institutional environment and legal framework f or foreign investment. This has prompted a 
sustained annual increase in Foreign Direct Investment (FDI), which rose from US$7,696  million in 
2009 to US$9,158  million by end -2015. This represents an average annual growth rate during this 
period of 3.1%, whi ch needs to be increased. It is anticipated that the trend will be towards 
greater growth during the coming years, considering that last year's FDI growth rate was 7.7%.  
3.24.   An amendment to the Investment Law was also adopted in relation to disputes between 
private Salvadoran or foreign investors and the State. In addition, the Law establishing the Export 
and Investment Promotion Agency of El Salvador (PROESA), which is tasked with promoting and 
attracting domestic and foreign private investment and promoting e xports of goods and services, 
was enacted.  
3.25.   Foreign investors, once they have registered, have the same rights and obligations as 
domestic investors.  
3.26.   The investment rate was 17.7% of GDP in 2015; private investment represented 15.6% 
of GDP. 
3.27.   El Salvador regi sters average current savings from 2011 to 2015 of US$210  million; the 
highest figure was achieved in 2015, namely US$345  million, which is only 1.3% of GDP. The 
Central Government has increased its primary savings, thanks mainly to greater tax revenue.  
3.28.   To put this in context, the advanced economies displayed an investment rate of 20.3% 
in 2014 and savings of 20.4% of GDP. In Latin America and the Caribbean, investment stood 
at 20% in 2014 and the savings rate came to 17.3% of GDP.  
3.29.   In the light of these dat a, it is a legitimate concern that the national savings rate should be 
so low and that expenditure goes primarily on consumption.  
3.30.   El Salvador needs to step up efforts to increase its savings and investment ratios and 
thereby free itself from the burden of being a net importer of capital, which is imposed because its 
capital formation needs cannot be covered by domestic resources and it has to have recourse to 
financing from the rest of the world.  
3.31.   In terms of its macroeconomic performance, El Salvador ranks 63rd out of 178 economies on 
the Heritage Foundation's "2016 Index of Economic Freedom". Its score lies above the regional 
average for Central America, the Caribbean and South America.  
3.32.   Similarly, in the 13th edition of the World Bank's "Doing Business 2016 ", El Salvador 
occupies 86th place out of 189 economies.  
3.33.   Noteworthy are the strides which the country has made in respect of getting credit; on this 
specific indicator in the aforementioned report, it almost always scores higher than Latin America 
and the Caribbean, and even outperforms OECD on the indicators related to strength of legal 
rights, sharing of credit information, coverage of private entities and coverage of public registers.  
3.34.   The reforms undertaken have contributed to an almost 50% increase in e xports of goods 
during the review period. Exports totalled US$4,381  million in 2015, while imports grew by 
some  45% to US$9,321  million in the same year. These figures are indicative, however, of a 
significant trade deficit, which has of course to be recti fied by increasing volumes of exports.  
3.35.   The Salvadoran economy offers potential to expand. El Salvador should be able to exploit 
the reforms it has made in the field of investment and to leverage greater private investment. To 
this end, however, it neverthe less requires the support and cooperation that relatively more highly 
developed countries can provide in this area.  
3.36.   Similarly, fiscal policy and annual budgets have gradually corrected the structural factors 
responsible for the imbalance in public finances . WT/T PR/M/3 44 • El Salvador  
 
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  3.37.   In order to understand the formulation and application of various policies implemented by 
El Salvador, such as its fiscal policy and annual budgets, I feel it is necessary to refer to the 
Five-Year Development Plan 2014 -2019.  
3.38.   The main objectives of this Plan are to:  
(a) Gradually correct the structural factors responsible for the imbalance in the 
public  finances.  
 
(b) Generate  confidence and predictability concerning the public finances through the 
implementation of fiscal responsibility rules, ensuring a  gradual process of fiscal 
consolidation and sustainability in the medium and long term.  
 
(c) Develop  an honest, effective and transparent administrative culture in the 
management of State resources.  
 
3.39.   Through a policy of "Public Sector Savings and Austerit y", the aim is to redirect savings 
made in this sector towards strengthening programmes and meeting unforeseen needs in the 
social area.  
3.40.   Furthermore, El Salvador, even though it has already implemented some tax reforms in 
order to generate greater tax inco me, must nevertheless deploy greater efforts to achieve 
sustainability and stability at the macro level. According to IMF, a fiscal adjustment of the order 
of 3.5% of GDP is needed between 2015 and 2017, considering that the public debt amounts 
to 64.2% of  GDP. I hope that the authorities in El Salvador will continue to focus on the 
"fiscal  agenda" so as to gradually reduce the debt and cut the deficit.  
3.41.   El Salvador must, moreover, boost and add value to its productive structure, by stimulating 
new investmen t in order, for example, to reduce the cost of energy, given the latter's importance 
for the population and for the production sector, and to expand the road infrastructure.  
3.42.   Similarly, there is a need to diversify markets and products in order to reduce it s reliance on 
its export base; in the case of the maquila (in -bond assembly) industry, for example, textiles and 
made -up textile articles accounted for 80.2% of total exports in 2015. Nearly 90% of Salvadoran 
exports go to the United States and other membe rs of the Central American Common Market 
(CACM).  
3.43.   El Salvador traditionally runs a current account deficit on its balance of payments. Indeed, 
the deficit swelled between 2009 and 2013, rising from US$312  million to US$1,574  million. It 
should be noted, tho ugh, that during the review period, the deficit was reduced, in both monetary 
and percentage of GDP terms. In 2015, the deficit fell to US$920  million, representing 3.6% 
of GDP. 
3.44.   The deficit has been cushioned by remittances from abroad, an important driver  of fresh 
income for the country. This source of funding represented as much as 16% of GDP in 2015. 
According to chancellery estimates, around 3  million Salvadorans live abroad, a figure equivalent 
to 45% of the total population.  
3.45.   Notwithstanding the comple xities which a loss of a significant proportion of its workforce 
entails for a country, the remittances from Salvadorans abroad has turned into a significant asset 
for the growth of the economy.  
3.46.   El Salvador's trade balance on services showed a surplus duri ng the review period and has 
increased since 2009; in 2015, the surplus came to US$785.3  million, equivalent to 3% of GDP. 
The surplus is attributable, inter alia , to the item "travel" and the inclusion of the value added from 
maquila activities in the sta tistics, in the category "Manufacturing services on physical inputs 
owned by others", as well "Telecommunications, computer and information services".  
3.47.   The Central Government deficit shrank substantially during the review period, from 3.7% of 
GDP in 2009 to  1.1% in 2015.  WT/TPR/M/3 44 • El Salvador  
 
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  Trade policy and commitment to the multilateral trading system  
3.48.   Regional trade agreements (RTAs) continue to play an important role in El Salvador's 
international integration strategy. Central American integration is one of El Salvador's fund amental 
foreign policy and trade policy goals.  
3.49.   Goal No.  10 of the Five -Year Plan refers to trade policy, and states that El Salvador must be 
a country that is integrated in the region and the world.  
3.50.   El Salvador participates in the regional economic integra tion process within the framework 
of the Central American Common Market (CACM), an integration process which began in the 
1960s. It has signed ten RTAs, on its own or together with other CACM countries. Consequently, 
almost 95% of El Salvador's exports go to preferential trading partners. The review period saw the 
entry into force of the RTAs negotiated by El Salvador with the European Union, Mexico, Cuba 
and Colombia.  
3.51.   It will be useful in this review to know El Salvador's overall strategy in relation to RT As so as 
to dovetail bilateral and multilateral interests.  
3.52.   El Salvador should, moreover, continue promoting consultations between the public and 
private sectors in formulating its trade policy. It is no doubt this fruitful dialogue, political will and 
comm itment to the multilateral trading system which led to the country depositing with the WTO, 
on 4 July last, its instrument of ratification of the Trade Facilitation Agreement.  
3.53.   According to an OECD report, El Salvador's performance is below par on the major ity of 
trade facilitation indicators evaluated for the region.  
3.54.   Therefore, I underline the importance of ratification of this Agreement, which it is hoped will 
contribute to reducing costs and time -frames for the operation of its external trade.  
3.55.   This state of affairs remains particularly important, given that, according to information from 
the World Bank, the time needed to import goods into El Salvador rose from ten days in 2009 to 
13 days in 2015. Of these 13 days, three are taken up by customs clearance a lone. Another cause 
for concern is that, over the same period, El Salvador fell from 57th to 73rd place (out of a total of 
189 economies) as regards the ease and cost of completing import and export formalities.  
3.56.   It is very important to highlight this issue  and alert the authorities to it, since the country 
has consciously continued its efforts to modernize its customs regime, through the adoption of 
various tools to facilitate trade and to effectively sequence the logistics chain.  
3.57.   For example, it launched t he project for migration to a computerized customs system. 
Progress has also been made on the electronic exchange of information among 
customs  authorities.  
3.58.   With regard to tariffs and opening up foreign trade, El Salvador applies 11 types of tariffs 
ranging  between 0% and 164%. All are ad valorem  and it does not apply seasonal or variable 
tariffs. It grants MFN treatment to all its trading partners. Thus, the simple average of MFN tariffs 
applied by the country remained at 6.3% in 2015.  
3.59.   Despite its policy of  liberalization, El Salvador continues to restrict many products, for 
reasons of national security, public health, animal or plant health, or environmental protection. 
There are over a  thousand tariff lines in this category, covering products such as, inter alia, food 
preparations, raw materials and food additives, and chemicals. It would accordingly be interesting 
to know how frequently these lines are reviewed and whether national production is subject to the 
same restrictions.  
3.60.   Likewise, in the review per iod, exports were also restricted, as in the case of red beans, 
which were affected by the El Niño phenomenon, invoking the need to meet national 
consumption  needs.  WT/T PR/M/3 44 • El Salvador  
 
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  3.61.   In an area of major interest for WTO, it should be highlighted that El Salvador did not app ly 
any anti -dumping or countervailing measures over the period January  2010 to December  2015, 
and did not initiate any relevant investigations. Nor did it apply any safeguard measures or initiate 
any related investigations.  
3.62.   Moreover, although El Salvador s ubmitted 54 notifications to WTO's TBT Committee 
between January  2010 and August  2015, it has not notified any mutual recognition agreement on 
technical regulations, conformity assessment procedures or standards.  
3.63.   It is estimated that around 70% of El Salva dor's technical regulations and conformity 
assessment procedures are based on international standards, and it would therefore be interesting 
to know the reasons why they have not been notified.  
3.64.   Further evidence of El Salvador's interest in the multilateral  system was given in 2012, 
when it became a member of the International Organization for Standardization (ISO).  
3.65.   In regard to sanitary and phytosanitary measures (SPS), between January  2010 and 
August  2015 El Salvador notified 33 measures to the WTO Committ ee, of which four were 
emergency measures. However, it has not notified any agreement on recognition of the 
equivalence of sanitary and phytosanitary measures.  
3.66.   We were able to note a series of changes in legislation in El Salvador with a view to 
facilitati ng and boosting international trade. One example is the Law on the financial system for 
the promotion of development, whose objectives include granting support loans to exporters, 
including micro, small and medium -size enterprises.  
3.67.   In the same vein, variou s programmes exist to encourage and promote access to national 
and international markets for micro, small and medium -size enterprises. These types of 
enterprises are vital to economies such as El Salvador's, which is why the National MSME 
Committee needs t o start functioning as soon as possible. From a systemic perspective, it is 
important that these programmes should be compatible with WTO standards.  
3.68.   Given that El Salvador has made progress in terms of transparency and streamlining of 
time-frames for publi c procurement, it would be necessary to know the reasons why, within the 
reforms of the Law on government procurement and contracting (LACAP) that have been brought 
in, the possibilities for recourse to the direct procurement method have been expanded.  
3.69.   In the area of intellectual property, an amendment to the Law on trademarks and other 
distinctive signs (LMOSD) has been introduced, reinforcing the status of protection of geographical 
indications. In 2014, the Salvadoran government issued a new National Int ellectual Property 
Policy. In some instances, Salvadoran law goes beyond the requirements of the TRIPS Agreement, 
for example with respect to the protection of copyright in literary works, computer programs and 
audiovisual works. It would be important for the country to make known how this new 
National  Policy is applied and what are its effects.  
3.70.   As a matter of fact, it is noticeable that in the more than 140 questions formulated for this 
review by Members and answered by El Salvador, intellectual property r ights was one of the 
recurrent topics, although certainly not the only one.  
3.71.   Agricultural production in El Salvador, meanwhile, is partially diversified (maize, sorghum, 
beans, rice, coffee, sugar cane, among others) and contributed 24.2% of exports in 2014 . In 2014 
and 2015, the country was affected by the El Niño weather phenomenon, which had an impact on 
harvests and agricultural output.  
3.72.   The manufacturing sector grew by 2.3% between 2009 and 2014, and this in turn was 
reflected in exports, which increased  by 8% on average over that period.  
3.73.   This is a key figure on account of the direct link it has to the size of the workforce employed 
in this sector (397,000 people in 2014, which corresponds to some 15% of the labour force), 
which is why the Salvadoran Gove rnment has accorded it particular importance. This is reflected in 
the "Industrial Policy 2011 -2024", sponsored by the Government, which aims to increase industrial WT/TPR/M/3 44 • El Salvador  
 
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  and agro -industrial productivity by improving quality systems, promoting technological 
restructuring and encouraging innovation in production processes.  
Conclusions and some recommendations  
3.74.   El Salvador's geographical location in the Central American region should be an asset for 
leveraging its potential as a service provider. Likewise, ratificat ion of the Trade Facilitation 
Agreement and the legislative measures being pushed through should allow the so -called "country 
of short distances" to increase its competitiveness and exploit its comparative advantages for its 
regional and extra -regional exp orts. 
3.75.   Despite some obstacles to boosting its economy that remain, it seems to me that the 
reforms undertaken and intended to be expanded in the country, such as economic diversification, 
cutting red tape, better access to financing, improved access to chea per energy, modernization of 
physical infrastructure and legal security, constitute a good path to follow for achieving growth and 
to underpin social improvements that will have an impact on the well -being of its population, which 
is ultimately the end goa l of its public policy.  
3.76.   Indeed, it will be these structural reforms, coupled with measures to improve productivity 
and attract investment, that will enable the Salvadoran authorities to meet their target of around 
3% sustainable growth.  
3.77.   The Five -Year Plan 2014-2019 states very clearly that there is a need for a new model for 
the economy, giving greater emphasis to innovation and services, as well as diversifying exports 
and expanding the domestic market.  
3.78.   Madame Chairperson, Mr  Minister, distinguished collea gues, I hope that the observations 
and suggestions I have made will be useful in the present review.  
3.79.   Last but not least, I wish to take the opportunity to wish you, Mr  Minister, and your whole 
delegation, as well as our brothers from the Central American c ountries, a very happy patriotic 
anniversary, since tomorrow, the 15th, marks 195 years since the proclamation of independence. 
Many congratulations.  
3.80.   Madame Chairperson, this concludes my presentation. Thank you for your attention.  WT/T PR/M/3 44 • El Salvador  
 
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  4  STATEMENTS BY MEMBER S 
MEXICO 
4.1.  Our history lessons tell us that the ties that unite Mexico and El Salvador go back many 
centuries. For those who may not know, for a couple of years we were a single country, and we 
have always maintained extremely close relations, which have recent ly been further strengthened 
by a Free Trade Agreement between Mexico and Central America, signalling deep integration of 
our economies.  
Bilateral relations  
 
4.2.  Mexico and El Salvador have a close trading relationship: we are its fourth -largest supplier of 
goods and its fifth -biggest investor, and are constantly moving up the rankings in terms of our 
supply and purchase of goods. I shall not list them again, as they have already been mentioned by 
the Minister.  
Economic development  
 
4.3.  I should like to highlight t he low level of inflation that El Salvador has managed to achieve, as 
a result of which real wages are increasing and the Salvadoran economy, while growing only 
slowly, displays a stability such that many have good reason to seek to imitate it, and follow the 
same type of economy or economic management, even if being a dollarized economy it does not 
control monetary policy, which complicates matters at present. Accordingly, El Salvador deserves 
congratulations for having succeeded in maintaining a stable ec onomy.  
4.4.  The problem, admittedly, is the rapid increase in the external debt, which currently stands at 
60% of GDP and which IMF predicts will climb to 70% by 2021.  
Tariffs  
 
4.5.  As Héctor has already mentioned, where tariffs are concerned, there is a simple tari ff 
of 6.3%. What has been done is commendable; nevertheless, given the speed at which global 
value chains are moving, we would however encourage El Salvador to further reduce the tariffs on 
all products.  
Trade facilitation  
 
4.6.  On the subject of trade facilita tion, we congratulate El Salvador not only for having notified 
all the Category A commitments under the Agreement, but also for:  
 establishing a platform for electronic payment of import duties and taxes;  
 the SICEX computer system that makes available the n ecessary documents for exporting 
products;  
 making use of the services of a customs agent or special customs broker optional.  
Infrastructure  
 
4.7.  I should also like to refer to the problems of physical infrastructure in El Salvador and 
highlight the agreement r ecently reached between Mexico and El Salvador for the road 
infrastructure, which is going to have an extremely positive impact.  
Legal reforms  
 
4.8.  As regards legal reforms, many of which Héctor has already mentioned, I would emphasize:  
 the new Special Law on trade defence which combines the provisions on dumping, subsidies 
and safeguard measures, already mentioned;  WT/TPR/M/3 44 • El Salvador  
 
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   the amendment to the Law on trademarks and other distinctive signs, which is a major step 
forward, although it does not provide for penalties to pu nish infringements of rights;  
 revisions to the Law on government procurement and contracting, which streamlines 
procurement methods, modifies thresholds and creates an "integrated procurement 
system";  
 adoption of the Law creating the Salvadoran quality sys tem, which established the 
Salvadoran Technical Regulation Agency and the Salvadoran Standardization Agency;  
 amendments to the Law on industrial and marketing free zones, and many others which I 
shall not cite as they have already been mentioned.  
Conclusio n 
 
4.9.  I wish to conclude my intervention by encouraging El Salvador to continue implementing 
measures that will serve its economic development and by expressing my thanks for the answers 
to the questions previously submitted by my delegation.  
UNITED  STATES  
4.10.   Since El Salvador’s last review in 2010, El Salvador has continued on a path toward 
integration into the global economy with a focus on active participation in multilateral, regional and 
bilateral negotiations and implementing policy reforms to attract inves tment, promote and 
facilitate trade, public -privat e projects and job creation. We look fo rward to learning more about 
El Salvador’s trade policies and its engagement through various regional and bilateral trade 
agreements, du ring the course of this TPR.  We would also like to thank our discussant Ambassador 
Casanueva (Chile), for providing helpful and insightful contributions to this review.  
4.11.   The United States and El Salvador continue to enjoy a strong trade and economic 
relationship. The United States is El Salvador’s leading partner in both exports and imports. Our 
bilateral trade in goods was US$5.8 billion in total (two -way) goods trade in 2015.  
4.12.   The United S tates and El Salvador are partners under a regional free trade agreement , the 
Dominican Republic –Central America –United States Free Trade Agreement (CAFTA -DR), among 
the Dominican Republic, the United States, and five Central Ame rican countries (Costa Rica, 
El Salvador, Guate mala, Honduras, and Nicaragua).  Over the last ten years, since implementation 
of the CAFTA -DR, our trade relationship with El Salvador has transitioned to one based on 
reciprocal free trade.  
4.13.   Both the Secretariat’s and the G overnment’s reports indicate that El Salvador is pursuing a 
strategy of trade liberalization at the multilateral , regional, and bilateral levels. The United States 
commends El Salvador on the direction of its trade liberalization strategy, as it continues to pursue 
greater integration in the global economy by opening markets with partners around the globe, 
strengthe ning competitiveness and supply -chains, stimulating trade and investment, domestic 
innovation, production and job creation.  
4.14.   On the multilateral front, El Salvador continues to be an active participant in WTO work to 
monitor compliance with the agreements i n force various W TO fora, in agriculture and 
non-agricultural market access (NAMA), trade in services, intellectual property, WTO standards, 
trade facilitation and dispute settlement. The United States is very pleased that El Salvador’s 
Legislature ratifie d the Trade Facilitation Agreement and notified the WTO, joining Nicaragua and 
Honduras, now the third Central American country to do so.  
4.15.   The United States commends El Salvador for work to date and progress in customs 
modern ization and trade facilitation.  With technical assistance from the United States and other 
countries, El Salvador and its Central American neighbo urs have made advancements in trade 
facilitation and continue to focus on reform initiatives to promote free movement of goods and 
trade faci litation; regulatory modernization and convergence; and institutional development.   WT/T PR/M/3 44 • El Salvador  
 
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  4.16.   It is clear that economic integration through preferential trade agreements, with various 
partners, has been an increasingly important element of Salv adoran trade liberali zation. 
El Salvador has focused on improving and deepening economic integration with the other Central 
American countries and Mexico. El Salvador’s report recognizes the signing of the agreement 
between Central America and the European Union, noting that t his agreement strengthens the 
trading relatio nship between the two regions. The report indicates that the agreement addresses 
trade -related aspect s as well as “developing policy  and cooperation -related aspects”. The United 
States requests further elaborati on from El Salvador on the latter two aspects of the agreement 
that ha s not yet entered into force.  
4.17.   In intellectual property (IP) rights, the United States recognizes reforms during this review 
period in trademarks and geographical indications and commends  El Salvador’s recognition and 
focus on intellectual property as a key el ement of national development.  
4.18.   In closing, we would like to reiterate our appreciation for El Salvador’s active participation in 
the work of the WTO and its commitment to prioritizing  and meeting its commitments under the 
TFA. We would also like to emphasize that we continue to value our c lose work with the 
Salvadorian G overnment and our WTO partners to strengthen and build on the WTO’s rules -based 
and cooperative foundation.  As a dyna mic economy that sees the benefits that trade liberalization 
has brought, we look to El Salvador to support and promote ongoing WTO marke t liberalization 
opportunities.  
4.19.   We thank the delegation of El Salvador for its willingness to consider these points and  
welcome the opportunity to engage with El Salvador and other de legations in a discussion of 
El Salvador’s trade policy regime.   
CHILE  
4.20.   For this review, we submitted 13 questions, and are grateful for the replies provided.  
4.21.   Since 1860, El Salvador and Chile  have maintained fruitful diplomatic relations. We work 
together with El Salvador in various bodies, for example as an Observer State of the Pacific 
Alliance since May  2013 and a member of the Central American Integration System (SICA), with 
which Chile co ncluded a Memorandum of Understanding in 2015 setting up the SICA -Chile Forum.  
4.22.   The two countries maintain close ties, based on relations of friendship, cooperation and 
exchange. Evidence of this is the visit to San Salvador made only two days ago by Chile' s 
Under -Secretary for External Relations to participate in the IInd meeting of the Partnership Council 
of the Chile -El Salvador Integrated Partnership Agreement.  
4.23.   Likewise, in August  2015, H.E. the President of the Republic, Ms  Michelle  Bachelet, made an 
official visit to El Salvador. On that occasion, among other subjects, a Letter of Understanding was 
signed between Prochile and the Export and Investment Promotion Agency of El Salvador 
(PROESA), to strengthen collaboration between the two agencies for prom oting exports and 
investment. The primary objective of the agreement is to identify and share best practices for 
institutional capacity -building. Technical collaboration is also being instituted in order to implement 
joint activities and develop skills for  promoting exports.  
4.24.   The two countries have a Cooperation Programme for 2015 -2018, concluded in May of last 
year. This programme makes international cooperation for development a core component of 
relations between Chile and El Salvador, thereby complementi ng political, economic and cultural 
relations.  
4.25.   The Action Plan for Chile -El Salvador Cooperation in 2015 -2018 is being implemented 
through the execution of projects and activities in agreed subject areas: social development, food 
safety, economic cooperati on for development and institutional capacity building, in line with the 
"Five-Year Development Plan: A Productive, Educated and Safe El Salvador 2014 -2019", 
underscoring the importance of strengthening government policies and building up democracy, 
within  a framework of horizontal relations that promote honesty, the fight against corruption and 
governmental transparency.  WT/TPR/M/3 44 • El Salvador  
 
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  4.26.   With regard to the human capital development component, we may highlight the specialized 
training given to 140 professionals from El Salv ador between 1993 and 2015.  
4.27.   Increasing bilateral trade relations is fundamental to deepening the ties between our 
two countries. Economic and trade relations between Chile and El Salvador are governed by the 
Free Trade Agreement (FTA) with Central America and the bilateral protocols between Chile and 
each Central American country. The latest meeting of the Chile -Central American Free Trade 
Commission took place in Santiago in September  2015. On that occasion, Chile emphasized its 
commitment and keen desire to deepen the relationship with Central America and hence with 
El Salvador, by increasing trade relations between the countries, and to update our trade 
agreement and boost foreign direct investment to and from the region. To this end, Chile is 
seeking to include chapters on investments, environment and labour.  
4.28.   Both parties have started joint work for a study of productive linkages that will identify 
future business and alliances in order to generate more trade.  
4.29.   In 2015, Chile's trade with El Salvador came to only US$51  million, with a positive trade 
balance in Chile's favour of US$36  million. Exports to El Salvador were worth US$43  million, 
some  24% down on 2014. In the period 2010 -2015, exports grew on average by 1.2%. 
Imports  totalled US$8  million, some 8 % down on 2014.  
4.30.   These figures reveal that there is enormous scope for growing our reciprocal trade, which 
we hope to see increase gradually as the reforms and programmes being implemented in 
El Salvador take root.  
4.31.   In regard to the report submitted, we note  with great interest the enactment and revision of 
a number of relevant laws in order to improve levels of welfare and social inclusion, modernize 
State administration, foster competitiveness and effective use of the country's human and material 
resources,  promote investment and thereby stimulate foreign trade.  
4.32.   In particular, we appreciate the Salvadoran Government's efforts in regard to stability of 
macroeconomic indicators (inflation, employment, debt reduction, etc.). The adjustments and 
austerity measur es that have to be carried out are not easy, but we urge the government to press 
on with them. We anticipate that the positive economic outlook will contribute to progress in both 
poverty reduction and enhancing trade potential.  
4.33.   Moreover, from the report s ubmitted we also note with attention the legislative changes that 
El Salvador has introduced in regard to intellectual property.  
4.34.   We are grateful for the answers provided to us in regard to mechanisms regulating the 
maximum selling price to the public of ce rtain goods and services, such as electricity, some 
hydrocarbons, fixed and mobile telephony services, and the tariff for the supply of water.  
4.35.   Through the report, we note that El Salvador must continue working to strengthen its 
institutions, foster human c apital development, implement reforms that promote investment, and 
modernize and diversify production sectors so as to increase its international trade.  
4.36.   We feel it is important to state that, while El Salvador is a small economy, we attach great 
value to i ts participation in the multilateral trading system.  
COLOMBIA  
4.37.   During the review period, although the Salvadoran economy experienced the adverse effects 
of the global economic downturn, it improved its performance in 2015 thanks to stronger external 
demand,  increased remittances, expansion of personal credit and lower prices of imported raw 
materials, such as oil. Furthermore, despite facing a challenging economic environment, several 
development indicators continued to improve, as pointed out by the Ministe r. A significant 
reduction in the number of people living in poverty was achieved, thanks to the launch of a series 
of structural reforms to reduce poverty through economic growth.  WT/T PR/M/3 44 • El Salvador  
 
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  4.38.   Among the reforms undertaken during the review period, we would highlight t hose made to 
the institutional and legal framework for foreign investment, namely laws such as the 
Law establishing the Export and Investment and Promotion Agency of El Salvador (PROESA); the 
Law on legal stability for investments; the Special Law on publi c-private partnerships; and the 
Law on tourism with its scheme of incentives for investment in the sector. These and other laws 
seek to meet the challenge facing El Salvador of securing higher growth through increased rates of 
investment, as highlighted by  the IMF during the Article  IV consultation carried out this year.  
4.39.   With regard to the tariff structure, the simple average MFN applied rate remained at the 
same level as in the previous review (6.3%). Tariffs for agricultural products declined slightly fro m 
12.9% in 2009 to 12.5% in 2015, but as in many other WTO Members the agricultural sector 
benefits from greater tariff protection than that accorded to manufactured products. 
Nevertheless,  the Secretariat did not identify any tariff line whose applied rat e exceeds the 
respective bound rate.  
4.40.   El Salvador remains very active in the realm of trade agreements, given their importance for 
its economy. As mentioned in the Secretariat's report, according to official figures for 2015, 94.4% 
of its total exports and 77.3% of its total imports were exchanged with trading partners with which 
it has Agreements. The review period saw the entry into force of those with the European Union, 
Mexico, Cuba and Colombia, and Panama joined the Central American Common Market (CACM ). In 
addition, El Salvador is negotiating trade agreements with Belize, Bolivia, Canada, Ecuador, Peru, 
the Republic of Korea and Trinidad and Tobago. Leveraging and expanding such agreements is a 
challenge already identified by the Government for diversi fying exports.  
4.41.   Trade relations with Colombia are conducted within the framework of the FTA with the 
Northern Triangle of Central America. Work is ongoing to expand this Agreement in areas such as 
access to markets for goods; financial and professional serv ices; and negotiation of a mutual 
assistance agreement in the area of customs to facilitate exchange of information with the aim of 
combating illicit trade and related phenomena such as smuggling, under -invoicing and infringing 
rules of origin, among other s. 
4.42.   In addition, both countries maintain important bilateral cooperation in regard to security and 
peace: as President Santos stated during the visit to El Salvador in April of this year, "El  Salvador's 
experience is and will continue to be key in pursuing and building peace for Colombia".  
4.43.   Let me close by wishing El Salvador a successful conclusion of its fourth trade policy review, 
and encouraging it to continue its active role within WTO in favour of a better multilateral trading 
system.  
CANADA  
4.44.   Canada and El Salvador enjoy a longstanding, positive relationship, and 2016 marks the 
55th anniversary of our diplomatic relations. Canada’s engagement with El Salvador is rooted in 
our support for human rights, democracy, socio -economic development and refugee assi stance 
throughout the country’s most difficult years. Trade relations are modest, with the value of 
bilateral merchandise trade between our two countries reaching a total of US$137.1 million in 
2015. This, however, is still a good news story, in that this figure represents an increase of more 
than 20% over the previous year, with both exports and imports on the rise. Also, El Salvador 
regularly enjoys a healthy surplus in the balance of our bilateral trade. Canada is also the seventh 
foreign investor in the  country with US$281.4 million in 2015.  
4.45.   As a friend and partner of El Salvador, therefore, Canada is concerned by the ongoing – and 
some would say, growing - economic and social challenges faced by El Salvador. Focusing on trade 
policies, I would like to u nderline a few areas highlighted in the Secretariat’s report and in our 
questions, where El Salvador must continue to build on the reform undertaken so far: firstly, fiscal 
and tax policy, including countermeasures to minimize the negative effects on inves tment of new 
taxes under the legislation such as the Law of Special Contribution of Great Contributors to the 
Citizens Security Plan and the Law of Special Contribution for Citizens Security and Coexistence; 
secondly, other measures affecting investment, i n particular the implementation of the Law on 
legal stability; thirdly, challenges associated to physical infrastructure which are still an issue for 
full customs modernization; and finally fully enforcing its intellectual property rights regulation. WT/TPR/M/3 44 • El Salvador  
 
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  How E l Salvador continues to address the remaining challenges will have tangible consequences 
not only for itself, but for all its trading partners.  
4.46.   In this regard , we also urge the Government of El Salvador to take on the recommendations 
made recently by seve ral reputable organizations - including the  IMF, the World Bank, the 
Inter-American Development Bank - to address these challenges in a focused  and concerted 
manner.  
4.47.   For example, the IMF, following its visit to El Salvador in May of this year, urged the 
Government of that country to make urgent fiscal adjustments equivalent to 3% of GDP for the 
period 2017 -2019. It further emphasized the need to implement wide -ranging structural 
adjustments to help the country avoid incurring an unsustainable level of natio nal debt and 
potential financial default, warning that, at the current rate of increase, debt would reach 70% of 
GDP by 2021. In particular, the IMF called for a series of  carefully targeted and calibra ted fiscal 
measures, including:  an increas e in the co untry’s value -added and i ncome taxes; implementing 
both property and wealth taxes; and reducing certain tax exemptions that have a neutral or 
negative impact on revenue.   
4.48.   Canada acknowledges that the Government of El Salvador must adopt those policies bes t 
suited to its own needs, but also believes that such measures are needed to counter potential 
economic dislocation, to alleviate poverty and income inequality, and to improve the country’s 
investment climate, which already suffers from inadequate public and personal safety, and a 
generally weak and unpredictable legal framework.  
4.49.   Canada continues to believe that the private sector, given the right conditions, is an 
indispensable engine of economic grow th, employment and innovation. We are,  therefore , 
heart ened by the re -launching of a national dialogue between the Government of El Salvador and 
the newly -elected Board of Directors of the National Association of Private Enterprises (ANEP). 
Their collaborative effort appears to be heading in the right directio n, with the establishment of 
technical committees, and are devoting particular attention on how to achieve sustainable fiscal 
management in the context of the country’s longstanding proposal to introduce a Fiscal 
Responsibility Law, currently under discuss ion at the National Congress.  
4.50.   Moreover, the Salvadoran Foundation for Social and Economic Development (FUSADES), a 
civil society organization that researches and develops programmes aimed at improving the quality 
of life for communities living in extreme p overty, also acknowledged that years of unbalanced 
budgets, based on unrealistic projections of  tax revenue and economic growth have forced the 
Government of El Salvador to depend on the emission of short term, high interest bonds – thus 
putting the count ry on a downward spiral to fiscal insolvency, particularly in the management of 
the former state pension system.    
4.51.   In conclusion, Canada hopes that the Government of El Salvador, the Salvadoran private 
sector and Salvadoran civil society will maintain the ir focus on undertaking non -partisan initiatives 
aimed at putting the country’s public finances in order and thus to avoid the spectre of financial 
default.  
4.52.   We also wish to express our continued commitment to working with El Salvador, both as a 
bilateral t rading partner and a partner in development, and to continue supporting the 
Government and people of El Salvador in laying the foundations for sustainable economic growth 
by combatting the challenges it faces domestically and regionally.  
EUROPEAN  UNION  
4.53.   El Salvador's economy has suffered longer than others in the region – the real GDP growth 
during the period reviewed has barely reached 1%, which, according to the WTO Secretariat 
report, is both below the potential of El Salvador and below the Latin American  average. Trade and 
investment do help in fostering growth and could help in improving the situation on unemployment 
and on the level of extreme poverty - which notwithstand ing the laudable effort of the G overnment 
- remain high.  WT/T PR/M/3 44 • El Salvador  
 
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  4.54.   In order to address some o f these challenges, El Salvador has adopted a Five -Year Plan for 
2014-2019 that aims at promoting job creation, education and security. This plan identifies the 
need to change El Salvador's economic development model based on rising rates of private and 
public investment. The IMF has noted in this regard that lack of investment has negatively affected 
the total factor productivity. The EU welcomes the plan and is looking forward to hear more detail 
regarding its first results.  
4.55.   As a matter of fact, during i ts last TPR, we invited El Salvador to increase the predictability 
of its trade and investment regime. And we would wish to praise El Salvador for having adopted 
significant reforms to the institutional and the legal framework for foreign investment during  the 
review period, notably the enactment of the Law on legal stabilit y for investments on 
12 January  2015. This law is designed to attract and promote domestic and foreign investment 
through a legal framework that assures investors of legal certainty and aimed at putting foreign 
investors and domestic operators on the same level.  
4.56.   During the last TPR, the Chair underlined El Salvador's active engagement in preferential 
trade agreements and noted the priority attached to Central American integration. The EU  would 
be interested to know what El Salvador's intentions are regarding for example the Customs Union 
between Honduras and Guatemala, which has entered into force last May. We are also interested 
to know more about the functioning of the customs cooperati on between El Salvador and 
Guatemala, in particular regarding the project of a "single customs act".  
4.57.   Also, during the last TPR, Members commended El Salvador's efforts to facilitate trade 
through customs modernization, and urged El Salvador to continue it s efforts. In this context, the 
EU very much welcomes that El Salvador has recently deposited its instrument of ratification for 
the Trade Facilitation Agreement and has submitted its notification of category A commitments 
already 2 years ago.  
4.58.   Regarding o ur bilateral relations, the EU and El Salvador are provisionally applying the trade 
part of their association agreement since October 2013. This is good. Still, we regret to see that all 
the opportunities offered by this Agreement are not yet fully exploit ed. Even if the EU's imports 
from El Salvador increased by 8% in 2014, El Salvador was the country with least exports to the 
EU among the Central American countries in 2015. We are looking forward to seeing more.  
4.59.   The EU has developed a cooperation process  with El Salvador in order to help El Salvador in 
its reforms and economic development, in particular in attracting the much needed investments 
with, for example, the programme AL -INVEST that has been renewed several times. In total, the 
cooperation budget  amounted to €149 million for the period 2014 -20 with more than one third 
devoted to private sector development. This comes on top of the regional EU cooperation with 
Central America that aims at promoting further regional economic integration, among other  
priorities.  
4.60.   The EU has submitted several advance written questions to El Salvador - in the areas of 
competition policy, public procurement and intellectual property rights among others - and 
welcome s the replies received. As the EU is a strong supporter o f alternative timeframe, we wish 
that El Salvador had used it for this review, so would have had a better chance to interact on the 
replies.  
GUATEMALA  
4.61.   Guatemala has historically maintained a very close relationship of friendship with 
El Salvador, a brother  country and neighbour with which we share a vision of development, 
integration and regional strengthening. A testimony to this is the work we have been carrying out 
together for over 60  years with the aim of achieving full integration of Central America. To a large 
extent, these efforts have underpinned the gradual strengthening of the Central American 
Common Market (CACM) and the progress and harmonized development of our peoples and 
our economies.  
4.62.   Beyond the region, El Salvador and Guatemala have also jo ined forces to negotiate and 
implement important regional agreements, concluded jointly by Central America with major 
trading partners like the United States, the European Union and Mexico. With the intention of WT/TPR/M/3 44 • El Salvador  
 
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  forging even deeper and closer relations, fr om the beginning of 2016 Guatemala and El Salvador 
have stepped up their efforts in regard to the trade facilitation initiative between the two countries, 
which is designed to simplify and facilitate the application of trade standards. This effort 
constitu tes a significant step forward towards full economic integration of the Central American 
region and its integration in the globalized economy.  
4.63.   Within WTO, we have had the opportunity to work very closely with El Salvador on a large 
number of initiatives. A s w ell as being geographically close, as part of the Small and Vulnerable 
Economies group we have maintained a very close working relationship. In this connection, it is 
important to underscore El Salvador's proactive work and great support towards streng thening 
our group.  
4.64.   Bilateral trade between El Salvador and Guatemala exceeded US$2,143  million in 2015, 
covering a wide range of products, according to their tariff classification. In percentage terms, this 
figure means that trade flows of goods between ou r countries have tripled in comparison 
with 2000, when bilateral trade of goods amounted to US$655  million. Noteworthy products 
among those traded by our two countries include plastic products, textiles and textile products, 
edible fats and oils, preparati ons of cereals, beverages, alcoholic liquids and vinegars, 
iron and steel.  
4.65.   For the review we are addressing today, it is important to stress the efforts undertaken by 
the Salvadoran authorities in the fiscal domain, aimed at improving tax collection and gr adually 
reducing the fiscal deficit and the size of the public debt. Likewise, the legal reforms in relation to 
foreign investment and the establishment of PROESA, the agency responsible for promoting the 
attraction of foreign investment, are substantive m easures that help to strengthen the business 
climate in the country and demonstrate the Salvadoran authorities' commitment in this regard.  
4.66.   During the review period, El Salvador has also driven significant reforms in the area of trade 
facilitation, through,  inter alia , the implementation of a single window for imports and 
strengthening of its risk -management mechanisms. Similarly, El Salvador has provided major 
support in the implementation of the Central American Strategy for Trade Facilitation. This whole 
set of actions help to speed up flows of goods between our countries and are a major success 
factor for enhancing Central American integration and increasing our countries' participation in 
global value chains.  
4.67.   Another point which is worth emphasizing is t he constant policy of opening up trade that 
El Salvador has pursued throughout recent decades and again in the review period by subscribing 
to new trade agreements and implementing measures of the kind described above. As a 
consequence, Salvadoran exports (including maquila) rose by almost 50% between 2009 
and 2015.  
4.68.   As short - and medium -term challenges, we note the importance of continuing to diversify 
the range of exports, and to sustain efforts to reduce the public deficit and the 
balance -of-payments curr ent account deficit. These are general challenges we face in all the 
countries of the region, and we are fully confident that strengthening our integration and building 
our policies constitute key success factors for gradually resolving these issues.  
4.69.   We co ngratulate the Salvadoran authorities for the efforts and achievements made over the 
period covered by its trade policy review. We consider that the initiatives undertaken are helping 
to strengthen the country domestically as well as fostering consolidatio n of our region's position in 
the world. We also express thanks for the answers kindly provided in response to the questions we 
raised during the course of the review.  
DOMINICAN  REPUBLIC  
4.70.   From reading the Secretariat's report, we can see that El Salvador's economy, like virtually 
all economies worldwide, suffered from the global financial crisis that occurred in 2008, despite the 
considerable efforts deployed by the authorities to remedy the situation. This tough economic 
situation has been even more difficu lt to overcome insofar as El Salvador is a small, open, 
dollarized economy, which makes it more vulnerable to external shocks, and means that it has 
been losing competitiveness against other countries of the region. El Salvador's real GDP grew at WT/T PR/M/3 44 • El Salvador  
 
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  an averag e annual rate of barely 1% during the period 2009 -2015, well below its potential growth 
rate which is estimated at about 2%. This low growth was too slow to raise the levels of formal 
employment in any sustainable manner.  
4.71.   Nevertheless, in 2015, the situati on began to improve and GDP growth accelerated to  2.5% 
in 2015 thanks to stronger external demand coupled with solid domestic demand, from private 
consumption in particular. The latter benefited from an increase in real salaries and family 
remittances from  abroad, both important sources of financing of domestic demand. In 2015, 
foreign remittances totalled US$4,235  million, equivalent to about 16% of GDP. We congratulate 
you on these results.  
4.72.   We salute the efforts deployed by the authorities during the revi ew period to gradually 
correct the imbalance in public finances, through measures to improve tax collection which, 
coupled with a policy of holding down non -productive expenditure, were aimed at generating a 
primary surplus and setting the budget deficit a nd public debt (equivalent to 64% of GDP in 2015) 
on a downward trend. At the same time, a public sector austerity policy was adopted in order to 
reduce current expenditure with low social content.  
4.73.   We likewise acknowledge the efforts of the authorities whi ch, since the previous review, 
have implemented significant reforms to the institutional environment and legal framework for 
foreign investment, according national treatment to foreign investors, once they have registered, 
and entitling them to transfer th e entirety of their investment funds abroad. Also, important 
progress has been made in customs modernization through, inter alia , the gradual implementation 
of a single window for imports, the use of non -intrusive inspection equipment, stronger risk 
manage ment and the progressive migration to ASYCUDA World.  
4.74.   We are pleased to note that El Salvador has an open trade regime in which a 0% tariff is 
applied to almost half of the tariff lines, with an average applied tariff of 13% for agricultural 
products and 5. 2% for non -agricultural products.  
4.75.   It is also registered good progress in the area of standards, having, in January of this year, 
issued the Special Law on trade defence, which combines the provisions on dumping, subsidies 
and safeguard measures in a single  legislative instrument, and specifies the procedures for 
conducting related investigations and the functions of the investigating authority. Progress has 
likewise been made in the area of intellectual property, through amendment of the Law on 
trademarks a nd other distinctive signs, reinforcing the status of protection of geographical 
indications.  
4.76.   Lastly, we submitted questions to El Salvador on its fiscal and monetary policy, its 
investment regime and its trade defence system, among other aspects. We are g rateful for the 
answers provided, and it only remains for us to wish El Salvador every success in this review and 
in the future.  
PERU  
4.77.   Peru welcomes the economic efforts deployed by the Government of El Salvador, which have 
enabled it to achieve positive re sults in the review period, in spite of the recent uncertain 
international climate. In particular, we acknowledge the policies to promote trade and foreign 
direct investment as development tools, and these factors have enabled El Salvador to achieve 
notabl e economic growth in 2015.  
4.78.   With regard to trade relations, I should like to highlight that over the last decade bilateral 
trade between Peru and El Salvador has evolved substantially. In the last five years alone, trade 
has just over doubled, peaking in 20 14 and 2015 at more than US$60  million. Moreover, the 
development of new trade opportunities in non -primary sectors and the increase in bilateral 
investments in the private sector offer a promising economic framework for bilateral relations.  
4.79.   A testimony to  this favourable trend is the fact that Peru and El Salvador have decided to 
give additional impetus to their economic and trade relationship, and accordingly, following an 
intense process of discussions, agreed on the need to put in place a stable and pre dictable trading 
framework that fosters trade and investment, by means of a free trade agreement. To this end, WT/TPR/M/3 44 • El Salvador  
 
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  the two countries are completing negotiations to conclude a broad and ambitious trade agreement 
that will open up opportunities for both countrie s. 
4.80.   Peru has submitted a number of questions on the basis of the content of the report prepared 
for this review. For instance, Peru has noted with keen attention the establishment of the National 
Trade Defence System in El Salvador, and has asked a number o f questions concerning the latter's 
structure and functioning. Likewise, Peru has expressed interest in gaining a greater insight into El 
Salvador's new trade facilitation measures, as well as the practical implications of those measures 
for commercial ope rators, and the results obtained from its implementation.  
4.81.   Peru thanks El Salvador for the prompt replies received, which will be carefully analysed, 
and we wish El Salvador every success in this fourth review.  
ECUADOR  
4.82.   We are participating in this trade pol icy review with great interest, because political, 
economic, trade and investment relations between El Salvador and Ecuador have been growing in 
recent years to our mutual benefit. For instance, the IVth round of negotiations for the 
Partial  Scope Economic  Complementarity Agreement between El Salvador and Ecuador was 
recently concluded. Through this mechanism, our countries are seeking to expand their trade 
exchanges, which in 2015 were worth tens of  millions of dollars.  
4.83.   The excellent relations between our two countries will be further strengthened with the 
entry into force of the Partial Scope Agreement, in terms both of cooperation and of tariff 
reductions on a certain number of products.  
4.84.   From the report submitted by the Secretariat, we note that El Salvad or, being a dollarized 
economy like our own, has been losing competitiveness against other countries of the region. Its 
real GDP grew at an average annual rate of barely 1% during the period 2009 -2015.  
4.85.   We observe that during the review period, an amendment  to the Investment Law was 
adopted in replacement of the provision on the settlement of disputes between private Salvadoran 
or foreign investors and the State regarding investments made in El Salvador.  
4.86.   Likewise, we see that preferential agreements have bec ome an increasingly important 
component of trade policy, with participation in CACM; El Salvador is a member of CAFTA -DR and 
the Association Agreement with the European Union; it has negotiated a preferential agreement 
with Mexico; it has agreements with C hile, Colombia and Chinese Taipei. It is currently 
negotiating, jointly with the rest of Central America, an FTA with the Republic of Korea.  
4.87.   Ecuador also recognizes that El Salvador has repealed the Export Recovery Law and 
amended the Law on industrial and  marketing free zones (LZFIC) in order to comply with its 
commitments under the Agreement on Subsidies and Countervailing Measures.  
4.88.   Furthermore, we highlight the Plan for Tourism 2014 -2019, which is seeking to turn tourism 
into a vehicle for sustainable de velopment and social inclusion; to this end, tariff and tax 
exemptions are granted for investments in the sector.  
4.89.   In conclusion, we wish to extend our greetings to Ambassador Francisco Lima, and underline 
his important contribution to the positions of GRUL AC, as well as our thanks to the delegation of El 
Salvador for its replies to the questions we have asked concerning certain specific aspects of its 
trade policy, which should provide important information for strengthening bilateral relations in 
this area  of foreign trade.  
SINGAPORE  
4.90.   While our bilateral trade account is relatively small, we are happy to report that Singapore 
continues to enjoy fr iendly and stable trade relations with El Salvador. El Salvador had been 
severely hit by the global financial cri sis and recorded lower than expected GDP growth in the 
review period. Nonetheless, we note that El Salvador's GDP growth was 2.5% in 2015, compared 
to an average annual GDP growth of 0.9% between 2009 and 2014. We also commend El Salvador WT/T PR/M/3 44 • El Salvador  
 
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  for continuing to  improve on its development indicators despite the slow economic growth. For 
example, the World Bank reported that El Salvador's population living in poverty had dropped 
significantly between 2008 and 2013, from 37.8% to 6.3%.  
4.91.   Singapore notes El Salvador's  ongoing effort to modernize its customs regime. This includes 
the gradual implementation of single window for imports, strengthening of risk management, and 
moving forward with electronic exchange of data with other customs authorities in the region. We 
commend El Salvador's ratification of the Trade Facilitation Agreement (TFA).  
4.92.   Finally, Singapore notes with interest El Salvador's reforms, in 2011 and 2015, of legislation 
for government procurement covering the streamlining of its procurement methods and promoting 
the participation of micro, small and medium enterprises (MSMEs). We would like to encourage 
El Salvador to consider participating in the Government Procurement Agreement (GPA) as an 
observer. This is the first step towards possible accession, to  provide enhanced opportunities for 
El Salvadorian exporters, including MSMEs, to participate in government procurement pr ocesses 
around the world.  
ARGENTINA  
4.93.   Argentina follows with great interest economic and trade development in El Salvador, which 
has mad e significant progress in terms of poverty reduction, the adoption of tax reforms, and the 
implementation of structural reforms. These improvements also include recent legislation on 
public -private partnerships, investment, intellectual property and combat ing money laundering.  
4.94.   Despite the effects of the global financial crisis, El Salvador managed to reduce its fiscal 
deficit from 3.7% of GDP in 2009 to 1.1% in 2015 and set the level of its public debt on a 
downward path. Changes to the export regime have b een instrumental in increasing exports by 
50% between 2009 and 2015.  
4.95.   Also praiseworthy are the efforts undertaken to modernize its customs system and ensure 
effective implementation of the WTO Agreements on Technical Barriers to Trade (TBT) and 
Sanitary an d Phytosanitary Measures (SPS), in particular through adoption of the Law creating the 
Salvadoran quality system (2011).  
4.96.   There is ample potential for developing the economic relationship between our country and 
El Salvador. The "Cooperation Agreement for t he Promotion of Trade and Investment" signed in 
2007 has been an extremely useful mechanism for participation in trade missions, which our 
country hopes to be able to expand in the coming years. We believe that the significant 
institutional reforms and cha nges to the legal framework for domestic and foreign private 
investment, especially through the Law establishing the Export and Investment Promotion Agency 
of El Salvador (PROESA), will help to deepen bilateral cooperation.  
4.97.   Argentina encourages strengtheni ng the processes for integration of El Salvador with the 
Latin American and Caribbean countries, one of the stated goals of the "Five -Year Development 
Plan 2014 -2019". Deepening political, economic and cooperation ties between the regional blocks 
to which both countries belong (the Southern Common Market – MERCOSUR, and the Central 
American Integration System - SICA) is the right way forward in order to increase and diversify 
bilateral trade.  
4.98.   It is also positive that the Five -Year Plan provides for diversif ying the production matrix, 
developing the production capacity of medium -size, small and micro enterprises, diversifying the 
energy matrix and promoting domestic and foreign investment in El Salvador.  
4.99.   In closing, we reiterate how much we appreciate this re newed opportunity to exchange 
points of view and comments on the trade policies and practices of El Salvador, and would like to 
draw attention once again to the importance of this exercise in transparency from every point of 
view, and we wish the Salvadora n authorities a successful conclusion to this review.  WT/TPR/M/3 44 • El Salvador  
 
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  AUSTRALIA  
4.100.   Australia enjoys warm bilater al relations with El Salvador. Last week Australia was pleased 
to host the first Senior Officials’ T alks between our two countries.  The talks were very productive , 
identifying several potential areas for further coop eration. We look forward to working with El 
Salvador to further build the relationship.   
4.101.   Australia welcomes the reforms undertaken by El Salvador to attract foreign investment, 
particularly recent chan ges to the inst itutional and legal framework. Austra lia also welcomes 
El Salvador promoting investment with a view to becoming the ‘e nergy hub’ of Central America. 
Australia encourages El Salvador to continue its reform agenda.   
4.102.   We congratulate El Salvado r on accepting the WTO Agreement on Trade Facilitation (TFA), 
and for notifying its Category A commitments. Implementation of the TFA will bring significant 
benefits for global trade, particularly for developing countries.  
4.103.   Australia looks forward to contin uing to work cooperatively with El Salvador in forums in 
which we have a shared interest, including the Central American Integration System (SICA), of 
which Australia became an extra -territorial observer in 2011. Australia supports the trade agenda 
of SICA  and its work towards closer regional economic integration.  
4.104.   For this review , Australia has submitted a number of written questions focusing particularly 
on El Salvador’s policies on foreign investment, and on the transport and telecommunications 
sectors.  We look forward to El Salvador’s response to these questions, and we wish El Salvador a 
successful Trade Policy Review.  
COSTA  RICA 
4.105.   Our two countries are united by strong historical and trade links. As indicated in the 
Secretariat's report, the Central Ameri can Common Market has attained a high level of trade 
integration which is reflected in the extensive harmonization of its trade rules, the common 
external tariff and the very rare exceptions to free trade among members.  
4.106.   Intra-Central American trade is of e xtreme importance to Costa Rica. Almost 13% of 
Costa  Rican exports to Central America go to the Salvadoran market, and El Salvador is the source 
of 20% of imports from the region. El Salvador is one of our major trading partners and in 2015 
was the ninth m ost important destination for Costa Rican exports. Total bilateral trade exceeded 
US$530  million in 2015, and has risen at an average rate of 6% since 2005.  
4.107.   Despite having suffered the effects of the 2009 crisis, El Salvador's economy has shown 
positive si gns of economic recovery which have enabled it to reduce its levels of poverty, although 
it is still striving to generate more vigorous growth so as to sustainably improve its population's 
quality of life. The country pursues responsible macroeconomic mana gement, with inflation rates 
and government deficit under control.  
4.108.   There is an upward trend in both trade flows and FDI, both of which are shielded within an 
open trade policy and bolstered by specific sectors that are highly integrated in the global 
econo my, such as the textile industry and, more recently, services. However, despite the broad 
trade platform developed in recent years, there is still a high level of concentration in terms of 
products traded and destinations, which exacerbates the vulnerabili ty of an economy highly 
dependent on foreign remittances.  
4.109.   With this in mind, we are pleased to note that, since the last review, El Salvador has 
continued to implement reforms in order to attract foreign investment, foster competition and 
production linkag es, and facilitate trade. It is worth underlining the joint work carried out to 
modernize and deepen economic integration of Central America, including in areas such as trade 
facilitation, especially the Central American Strategy for Trade Facilitation and  Competitiveness 
with Emphasis on the Coordinated Management of Borders, the Roadmap Towards the 
Central  American Customs Union, the incorporation of Panama in the Economic Integration 
Subsystem and, most recently, the joint negotiation with the Republic o f Korea.  WT/T PR/M/3 44 • El Salvador  
 
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  4.110.   Furthermore, as regards trade -related measures, my delegation welcomes the efforts 
made by El Salvador in areas such as modernizing the customs system (by incorporating 
risk-management techniques, extending the use of information technology for e -payment of taxes 
and creating the SICEX single window). In this domain, we await with interest the implementation 
of the computerized system for imports (SIMP) in March  2017.  
4.111.   We also see that the Policy to Promote, Diversify and Transform Patterns of Produ ction 
(FTDP) sets priority action lines for its trade policy, which includes short -term support not only to 
industries such as chemicals and pharmaceuticals, footwear, agriculture and textiles, but also to 
creative industries and those related to informati on technologies. For Costa Rica, these areas 
represent a great opportunity for developing countries, and so we will follow the implementation of 
these policies in El Salvador with utmost interest.  
4.112.   I wish to close my intervention by wishing the El Salvador delegation great success in this 
trade policy review and, above all, every success in its ultimate goal of contributing to human 
development, promoting the creation of employment and enhancing the quality of life and 
well-being of its citizens.  
PARAGUAY  
4.113.   Even though its economy was strongly affected by the global financial crisis and the fall in 
commodity prices, El Salvador has overcome the obstacles thanks to its strategy of integration in 
international trade.  
4.114.   In this regard, the success of its export -oriented strategy is visible in increased exports, 
more diversified exports, and GDP growth, which has been highest in the last decade. In 2015, 
positive growth was recorded across all sectors of the economy, but principally in real -estate and 
business service s (3.7%), the manufacturing industry (3.4%) and transport, storage and 
communications (3.3%).  
4.115.   Another positive result is the significant decline in inflation as from 2011. Today, 
El Salvador is the country with the second -lowest inflation rate in the Centr al American region. 
Nevertheless, considerable challenges lie ahead in the near future, thus calling for a growth rate 
capable of improving the population's standard of living and raising the levels of formal 
employment in a sustainable manner.  
4.116.   One point w hich I would like to stress is that El Salvador has continued to implement 
trade -facilitation measures during the period under review, as borne out by the efforts to 
modernize its customs through the single window for imports. We are sure that the problems  of 
congestion at customs will be resolved very shortly.  
4.117.   Likewise, we welcome the fact that, on 4  July 2016, El Salvador deposited its instrument of 
ratification of the WTO Trade Facilitation Agreement. I have fond memories of the El Salvador 
delegation's active and exemplary participation in the negotiations leading up to this Agreement.  
4.118.   In regard to intellectual property rights, we underline the amendment of the Law on 
trademarks and other distinctive signs, and the effective introduction of the National Intellectual 
Property Policy.  
4.119.   These aforementioned achievements testify to El Salvador's commitment to the multilateral 
trading system. Nonetheless, and as stated by a number of Members who have spoken before me, 
it will be extremely important to have as s oon as possible the notifications that are due on 
domestic support and export subsidies for agricultural products.  
4.120.   We also deem it important that the government focus efforts on attending in more detail to 
issues related to measures affecting the import of  goods into El Salvador, such as tariff -rate 
quotas, import licences and, in particular, the marketing mechanism for imports reserved for 
the State.  WT/TPR/M/3 44 • El Salvador  
 
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  4.121.   Elsewhere, I also wish to highlight the excellent bilateral relations that exist between my 
country and El Salvador, not only at the economic level, but also at the political, social and 
cultural  levels.  
4.122.   We have to acknowledge that our bilateral trade relationship is well below potential. 
El Salvador's leading goods exports to Paraguay include medicines and pha rmaceutical industry 
inputs, while its main imports from Paraguay are steel rods and machine parts.  
4.123.   Paraguay and El Salvador share the same vision for the future of the multilateral trading 
system, we support the early implementation of the Trade Facilitat ion Agreement and are in favour 
of a dynamic, transparent and development -oriented WTO.  
SRI LANKA  
4.124.   Going through the r eports by both the El Salvador G overnment as well as the WTO 
Secretariat, my delegation notes with interest the achievements in the economi c front by 
El Salvador despite the challenges in the global economy. We believe that sound and consistent 
economic poli cies adopted by the Salvadoran G overnment and proper implementation strategies 
have contributed towards the positive developments in the economy.  Remarkable growth in the 
services sector and increased inflow of foreign direct investment to the Salvadoran economy 
during the recent years are also highlighted.  
4.125.   Let me briefly reflect on the bilateral relations between El Salvador and Sri Lanka . 
Strengthening the relationship between the two countries, Sri Lanka and El Salvador established 
Diplomatic Relations in 2012, signing of an Agreement in Colombo on 10th December 2012. 
Sharing inherited characteristics of Small and Vulnerable Economies, S ri Lank a and El Salvador 
make every effort to increase bilateral trade and economic relations. Although the total trade 
between the two countries remains relatively low, it has showed steady increase in the recent 
past. The total trade has registered an in crease of around 71 % in 2015 compared to 2008. 
Sri Lanka is the main supplier of Ceylon Cinnamon to El Salvador.  
4.126.   My delegation welcomes El Salvador’s continued commitment to the m ultilateral trading 
system. We welcome El Salvador’s joining to the Trade Fac ilitation Agreement on 4th July 2016 
becoming the 85th member to deposit its instrument of acceptance of the TFA. My delegation 
highly appreciates El Salvador’s much valued contribution to the multilateral trading system and its 
active engagement in the ne gotiations in the WTO especially thr ough the SVE Group in which 
Sri Lanka is also a member. The dynamic role played by Ambassador Francisco Lima and his team 
in Geneva in proactively engaging in ongoing activities of WTO is highly commendable . 
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.127.   El Salvador's recent economic performance has been generally positive. Its economy grew 
by 2.5% in 2015, higher than in previous years and just above the levels forecast for the coming 
few years. In re cent years, some major investment in social protection has helped to reduce the 
rate of poverty, which according to official statistics has fallen from around 39% in the year 2000 
to 32% in 2014. Private consumption has been the main driver of economic gro wth in 2015, 
thanks to the solid flow of remittances totaling  US$4.3 billion, and an increase in net exports of 
4%. Exports of coffee and the products of the maquila industries have shown particularly strong 
recovery.  
4.128.   All this economic progress comes from El Salvador's excellent economic policies, focusing 
on creating jobs, attracting foreign investment, increasing exports, strengthening competitiveness, 
and promoting supply chains. With its Policy to Promote, Diversify and Transform Patterns of 
Production (the FDTP), the economy structure is diversifying into chemicals, pharmaceuticals, 
plastics, footwear, food and drink, textiles, the creative industries and information technologies, 
thus increasing its exports across a wider spectrum of goods and services .  
4.129.   In its attempt to attract more Foreign Direct Investment, El Salvador has continued to 
strengthen its legal framework (Laws on Legal Stability for Investment, Public -Private Partnership, 
the Free Zone and Inward Processing Warehouses, etc.), which has p rovided a stable and 
predictable business environment for foreign investors in the period under review.  WT/T PR/M/3 44 • El Salvador  
 
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  4.130.   Regarding the bilateral relationship between El Salvador and my country, we have very 
strong economic and trade ties. The Free -Trade Agreement betwee n us came into force in 
March  2008, and I am pleased to say that our bilateral trade has increased since, to the point 
where we are now one of El Salvador's most important exports destinations in Asia. Total value of 
two-way trade in 2015 was US$163 million.  In the first 6 months of 2016, for example, our sugar 
imports from El Salvador amounted to US$16.4 million, more than double the same period in 
2015. And besides sugar, we import many of its coffee, textiles, recycled paper, electronics and 
plastics produ cts as well. In the first -half of this year, we have become El Salvador's 9th largest 
export destination and its primary stepping -stone to the Asia -Pacific market.  
4.131.   There is an Investment Promotion and Protection Agreement between our two countries. 
We are  now one of its largest foreign investors. Since 2009, the cumulative total amount of 
investment by our private sectors into El Salvador stands at about US$124.1 million, which has 
created 6,000 jobs.  
4.132.   So, all -in-all, the economic and trade relationship we  share with El Salvador is strong and 
thriving. We would simply encourage El Salvador to maintain an open trade regime and to 
continue to further mature its trade and investment policies. This should help to stimulate 
economic growth and benefit the welfar e of the people.  
4.133.   I would also like to take this opportunity to congratulate Ambassador  Lima and his team 
for their excellen t work in contributing in multi lateral trade system here in Geneva.  
HONDURAS  
4.134.   The reports from the Secretariat and the Government of El Salvador clearly show the 
efforts the country has deployed to recover from the global economic crisis, which are reflected in 
the area of trade through its active participation in WTO, the pursuit of deeper economic 
integration in Central America and th e negotiation of preferential trade agreements.  
4.135.   We note with great satisfaction the improvement in performance of the Salvadoran 
economy, yielding growth on many economic indicators. The work undertaken has resulted in 
increased exports, greater diversific ation of Salvadoran products and higher inflows of FDI. 
Evidence of this can be found in the Doing Business 2016 report, in which El Salvador has 
improved its position significantly and now ranks 86th out of 189 countries.  
4.136.   We welcome the Five -Year Plan 201 4-2019, whose goal is to promote employment 
creation, education and security. Equally, the Salvadoran Government has set the goal of 
achieving a sustainable 3% growth through the implementation of broad structural reforms to 
improve productivity and attrac t investment. These measures include economic diversification, 
cutting red tape, better access to financing, improved access to cheaper energy, greater fiscal and 
legal security, and modernization of physical infrastructure.  
4.137.   We underline the promulgation, in April  2014, of the Law establishing the Export and 
Investment Promotion Agency of El Salvador (PROESA), whose objective is to promote and attract 
domestic and foreign private investment and promote exports of goods and services.  
4.138.   Similarly, we would emph asize the major progress made in customs modernization, 
through the establishment of a platform for electronic payment of import duties and other 
applicable taxes, and the SICEX computer system that enables businesses to obtain the 
documents they require f or their exports in a single online procedure.  
4.139.   Like my country, El Salvador has deposited its instrument of ratification of the 
Trade  Facilitation Agreement, which testifies to our countries' commitment to the WTO. 
The governments of Central America give s pecial attention to Central America's strategy on 
trade  facilitation.  
4.140.   We can but applaud El Salvador's efforts in regard to intellectual property, including the 
establishment of the National Intellectual Property Policy and amendment of the Law on 
trademar ks and other distinctive signs.  WT/TPR/M/3 44 • El Salvador  
 
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  4.141.   In addition, El Salvador was the first Latin American country and the second country in the 
world to ratify the Marrakesh Treaty to Facilitate Access to Published Works for Persons who are 
Blind, Visually Impaired or Otherwi se Print Disabled.  
4.142.   On a bilateral level, our country has maintained close trade and cooperation links with 
El Salvador for several decades. These historical ties date back to the signing in 1960 of the 
General Treaty on Central American Economic Integratio n, the legal instrument establishing the 
Central American Common Market (CACM).  
4.143.   Within the Central American region, Honduras has become the leading destination for 
El Salvador's exports, taking 13.9% of the total in 2015, compared with 13.4% in 2009.  
4.144.   El Salvador and Honduras are working bilaterally on a roadmap to establish a single border 
post at El Amatillo. Also, in October  2015, El Salvador announced that it would join the efforts 
being made by Guatemala and Honduras to promote the Central American Cust oms Union, which 
would involve the establishment of posts for the free movement of goods among these countries. 
We hope to be able to count on El Salvador's participation in this customs union, thereby 
strengthening the Northern Triangle in terms of trade and economically.  
4.145.   Last but not least, Honduras is pleased to congratulate our Salvadoran brothers on the 
significant progress made during the review period, and to wish them great success.  
INDIA  
4.146.   Despite the challenges the country faced during the period un der review, El Salvador has 
continued to make efforts and progress on the economic front.  It is heartening to learn that the 
economic strategy of the El Salvador Government has resulted in increased exports, greater 
diversification of El Salvadorian produc ts an d higher inflow of FDI. The GDP growth in 2015 of 
2.5%, the highest rate over t he last decade, is a result of the efforts of the El Salvadorian 
Government to strengthen the economy.  
4.147.   India shares close and friend ly relations with El Salvador. The relat ions have continued to 
strengthen in recent years. Since the last Trade Policy Review, there have been a number of high 
level visits of  dignitaries from both sides.   
4.148.   Bilateral trade between India and El Salvador, though modest, has continued to grow in 
recent y ears and the total stood at US$ 74.73  million in the year 2015 -2016.  Business delegations 
from India in the areas of textiles and pharmaceuticals have also visite d El Salvador in recent 
years. India has also an ongoing cooperation programme in the fie ld of information technology an d 
innovation with El Salvador. Under the programme, India has set an IT centre and the areas of 
cooperation include capacity building, training of trainers and ongoing cooperation for 
streng thening the IT centre at ITCA. India has also been offering scholarships to experts including 
in the area of agriculture to El Salvador under India Technical and Economic Cooperation 
programme.  
PANAMA  
4.149.   Panama and El Salvador have sound diplomatic and trade relations, bolstered by the 2003 
Free Trade Treaty between Panama and El Salvador, under which all products covered in the 
tariff-reduction scheme have been tariff -free for entry into both Panama and El Salvador since 
2013, the year when Panama joined the Central American Economic Integrati on Subsystem. These 
frameworks are tools that foster market access and trade in goods and services between our 
two countries, while promoting trade facilitation, investment and financial services.  
4.150.   The Secretariat's report highlights measures taken by El Sa lvador to address major 
challenges such as economic recovery after the global financial crisis. One example of this are the 
measures undertaken to improve tax collection and the policy of cost restraint, with the aim of 
bringing down the public debt and pu blic expenditure so as to rectify the structural factors that 
brought about an imbalance in public finances.  WT/T PR/M/3 44 • El Salvador  
 
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  4.151.   It is worth pointing to the significant reforms undertaken by El Salvador during the review 
period, especially those related to attracting foreign investment, which should doubtless foster and 
attract investment and promote exports of goods and services. Panama, as one of the main and 
major investors in El Salvador, expresses satisfaction at these reforms, which include the 
establishment of an Export  and Investment Promotion Agency in El Salvador and a law which will 
bring legal stability for investments, thereby enhancing the investment climate.  
4.152.   The Salvadoran Government's efforts are noteworthy, and the economic outlook is 
positive. We believe that initiatives like the Five -Year Plan 2014 -2019, which seeks to improve 
productivity and attract investment, are a step on the path towards a new economic model that 
will allow greater economic diversification through economic and social integration initiati ves in the 
Central American region, as well as innovation, thereby increasing its productivity and 
competitiveness on international markets. In turn, this will ultimately bring about improvements in 
quality of life for the population.  
4.153.   Undoubtedly, there is  still room for improvement in some areas, specifically customs, 
where greater efforts are required in regard to infrastructure, fees and charges for customs 
formalities, streamlining documents and procedures, and cooperation between internal and 
external border agencies. Nonetheless, Panama wishes to salute initiatives such as the 
Mesoamerican Goods Transit System, which seeks to modernize customs and thereby facilitate 
trade, and in this respect we congratulate El Salvador on depositing its instrument of ratification 
for the Trade Facilitation Agreement.  
4.154.   We urge El Salvador to examine carefully the questions, recommendations and comments 
presented in the report and by Members.  
4.155.   We congratulate El Salvador on its commitment to and participation in the 
multil ateral  trading system and its role in the trade negotiations, as evidenced by the excellent 
work of its Permanent Mission to WTO and the commitment and outstanding work of 
Ambassador  Francisco  Lima within WTO.  
BARBADOS  
4.156.   My delegation commends the Government  of El Salvador for its steady economic 
performance over th e 2009 –2015 review period. Despite the debilitating effects which the global 
economic crisis has had on the Salvadoran economy, the country has succeeded in increasing its 
goods exports by almost 5 0% since its last review; and has realiz ed increased positive growth in 
2015 over the intervening four years, a trend which according to the IMF outlook on the country 
will continue into 2016.   
4.157.   We, however , note that there is much more work to be done if El Salvador is to continue 
on its track towards recovery; bring its competitiveness back in line with its potential and the 
regional average; effect sustained growth; and increase inward investment. In this regard, 
Barbados is pleased to see the forward th inking initiatives, which are being undertaken by this 
small vulnerable economy in an effort to advance its economy.  
4.158.   Barbados takes particular note of the multifaceted Five-Year Development Plan 2014 –2019 
which seeks to transform El Salvador’s economy fro m an agro -exporting economy to an innovation 
and services based economy thereby boosting its sustainable development and creating the 
synergies across the various se ctoral interest of the country.  We therefore note with pleasure  the 
Government’s thrust tow ards diversifying to renewable sources of energy, achieving environmental 
sustainability, mitigating and adaptation to climate change in terms of its agricultural sector and 
developing  its sustainable tourism niche.  We hope that these effort s will redound positively to 
El Salvador’s commitment  to the climate change agenda. In this regard, we look forward to 
welcoming El Salvador’s ratification of the Paris Climate Change Agreement in the near future.  
4.159.   Barbados and El Salvador established diplomatic relations  twenty -two years ago and have 
enjoyed a cordi al relationship here in Geneva.  One of the central links in this relationship has been 
El Salvador’s staunch membership of the Small Vulnerable Economies (SVEs) Group, and its 
vigorous advocacy for flexibilitie s for th is special group of countries.  WT/TPR/M/3 44 • El Salvador  
 
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  4.160.   The country has actively reiterated its commitment to th e multilateral trading system. The 
participation of H. E. Mr. Francisco Lima Mena and his Geneva based team in the WTO’s regular 
work, its dispute settlement mec hanism and in negotiations is incontestab le evidence of this 
commitment.  Barbados looks forward to its continued work with El Salvador in pursuit of our 
common objective as SVEs to become more fully integration into the multilateral trading system.  
REPUBLI C OF KOREA  
4.161.   Korea notes that El Salvador maintained steady economic progress despite the challenges 
of global economy during the review period. Especially, in 2015, its GDP growth recorded the 
highest rate over the past decade. Korea also recognizes the val ue of its reforms such as the new 
Investment Law, the Law establishing the Export and Investment Promotion Agency of El Salvador 
(PROESA), and its customs modernization.  
4.162.   We welcome that El Salvador deposited its instrument of acceptance for the WTO Trade 
Facilitation Agreement this July. It shows that El Salvador plays an active role in the multilateral 
trading system. El Salvador also continued to make its effort to expand its market to the world 
through preferential agreements with its main trading partne rs and its new strategic partners.  
4.163.   However, there still remain some tasks which need further efforts for its sustainable 
economic growth; enhancing the competitiveness of its industry, diversifying its export products, 
improving the environment for foreig n investment, and streamlining its import procedures. We 
hope that El Salvador will address these challenges through its reform efforts and achieve its 
sustainable economic growth under its 5 years Development Plan.  
4.164.   On the bilateral front, Korea and El Sal vador have developed the relationship 
encompassing trade, cultures, development cooperation, and more. In particular, Korea and 
Central America FTA negotiation is currently underway and we believe that the FTA will be a huge 
stepping stone to the progress of the economic partnership between two countries. In this regard, 
it is our hope that the negotiation will be concluded soon in a mutually beneficial way.  
4.165.   In closing, we would like to stress that trade is a key instrument for economic 
development. Along with this line, Korea strongly supports the trade policy of El Salvador to 
pursue its strategy of integration into world trade, and we hope that El Salvador will continue its 
efforts.  
NICARAGUA  
4.166.   Our two countries are linked by ties of brotherhood that we ha ve nurtured since before our 
independence, which we shall be celebrating tomorrow, 15  September, together with the other 
Central American countries, ties which we are furthermore still strengthening daily within the 
framework of our Central American Integr ation System.  
4.167.   In the area of trade, we are stimulating intra -regional and international trade by 
concluding trade agreements with various trading partners, which enables us to a large extent to 
establish better trading relations with other countries of the  region, sharing common objectives 
such as economy, development, culture, security and eliminating poverty in the region which are 
compatible with our countries' respective development policies and strategies. It is these trade, 
cultural and political aspe cts that in particular complement the bilateral relations between 
El Salvador and Nicaragua.  
4.168.   Nicaragua wishes to emphasize the strengthening and sustained growth of El Salvador's 
economy in recent years. These results have been shaped within the framework of its trade policy 
– the Policy to Promote, Diversify and Transform Patterns of Production (FTDP), focusing on 
creating employment, attracting foreign investment, implementing policies to promote and 
increase exports, strengthening competitiveness and pro moting supply linkages, enhancing the 
business climate and strengthening its trade with its main trading partners. We also congratulate 
El Salvador on its process of legislative reform to boost and attract foreign investment.  
4.169.   We also congratulate El Salvad or on ratifying the Trade Facilitation Agreement (TFA), 
which represents for us as a region a major challenge and commitment. In this regard, it is worth WT/T PR/M/3 44 • El Salvador  
 
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  mentioning our joint effort through the Central American Strategy for Trade Facilitation and 
Competiti veness with Emphasis on Coordinated Border Management which was adopted by our 
respective ministers at the end of 2015.  
4.170.   With respect to trade between our countries, in terms of the value of exports in 2015, 
El Salvador occupies first place among purchasers  of Nicaraguan goods, for a total amount of 
US$259.4  million, being the top trading customer for several of our main export products, such as, 
inter alia , cheese, bovine meat, red beans, coffee, powdered milk and clothing. As far as imports 
are concerned, El Salvador has positioned itself as one of our main suppliers of products imported 
by Nicaragua in 2015, for a total of US$307.7  million; the products imported from El  Salvador 
include, inter alia , medicines for human use, plastic bags, hydraulic cement a nd bottles.  
4.171.   Lastly, my delegation wishes to acknowledge the work and endeavour of 
Ambassador  Francisco Lima and his team in the many WTO activities in all its bodies, and we wish 
El Salvador, our trading partner, success in the presentation of its fourth t rade policy review.  
BRAZIL  
4.172.   Brazil notes the recent economic results of El Salvador. The country has shown a 
consistent growth of the GDP, in spite of global economic slowdown. Unemployment has also been 
kept low, while inflation remains below 2% per year. Those indicators provide a solid ground for it 
to benefit from the expansion and further liberalization of trade, a goal shared by Members of the 
WTO.  
4.173.   Bilateral trade flows with Brazil are down since the last TPR, in 2010, but their composition 
is reasonab ly diversified in terms of goods. Brazil's exports consist mainly of machinery, 
automobiles and agricultural products. El Salvador's exports, on their part, include plastics, textiles 
and aluminium. Brazil hopes that the current negotiations regarding sani tary requirements for the 
importation of meat and their by -products will be conducive to a rapid agreement, so as to enable 
exports of those products from Brazil.  
4.174.   We are confident that our bilateral trade will continue to be reinforced in an open way. An 
increase in bilateral trade of goods and services will be beneficial for the economic growth of our 
countries.  
H.E.  MR. THARSIS  SALOMÓN  LÓPEZ  (HEAD  OF DELEGATION)  
4.175.   I wish to thank everyone, and especially the discussant, Ambassador Héctor Casanueva, 
for the historical background depicting El Salvador's character, as well as our economic history – a 
fine study and a fine overview. Thank you for the suggestions and recommendations. I also thank 
the 24 participating delegations that have taken the floor. Our rec ognition goes to our 
Ambassador, Francisco Lima, and his Mission here and its representatives for the work they have 
accomplished. I also appreciate the words of our brother countries in Central America with whom 
we face the same challenges, on a daily bas is, to ensure the growth of our region. To the 
cooperating countries which took the floor, I also thank them for all the recommendations, 
suggestions and questions they have put forward, as well as for their fraternal collaboration with 
us in our social pr ogrammes.  
4.176.   It must be stated that, within today's globalization, one of the greatest challenges we are 
striving to meet is eliminating inequality in our countries' economies, and I believe we expect to 
carry on improving on the results which we have all men tioned here and which we treat as our 
national agenda. Without further ado, most sincere thanks to all.  WT/TPR/M/3 44 • El Salvador  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF EL SALVADOR  AND ADDITIONAL COMME NTS 
5.1.  We thank the Member states for the interest shown in the progress made in El Salva dor's 
trade policy, as reflected through all the positive comments, queries and suggestions raised by the 
various delegations during the first session of this review.  
5.2.  This exercise has clearly been enriched by the different questions formulated by Members,  to 
all of which we are submitting replies in writing. On this occasion, I wish to address some of the 
comments raised by Members at the opening session on Wednesday.  
5.3.  As far as the economic environment is concerned, while the growth in GDP over the review 
period has been conservative, it is important to emphasize that El Salvador is a dollarized 
economy and, as such, this diminishes our competitiveness against other trading partners.  
5.4.  That having been said, with the measures implemented under the Government' s 
Five-Year Plan, we have succeeded in keeping the unemployment rate under control and 
maintaining one of the lowest inflation rates in Latin America, and last year GDP at constant prices 
grew by 2.5%, marking a turning point in the country's economic grow th. All of this was achieved 
in spite of an adverse global economic climate.  
5.5.  In relation to the considerations on the public debt raised by some Members in their 
interventions, it is important to point out that while it is true that the total public sector  debt at 
end-2015 represented 64.4% of GDP, the figure falls to 44.4% if the debt forecast is not included. 
For this reason, we are engaged in an evaluation of the current forecasting system, so as to 
guarantee its sustainability and ease the fiscal burden  it represents for the country.  
5.6.  One of the challenges facing El Salvador is the need to diversify our range of exports and 
reach more markets. While there is no doubt that the textiles and tailoring sector continue to be 
one of our main export items, El Sa lvador is focusing its efforts on promoting and developing other 
strategic sectors, such as chemicals and pharmaceuticals, plastics, software development, 
food and beverages.  
5.7.  It is for this reason that one of the key actions we are banking on in order to a chieve 
diversification of our export matrix is implementation of the National Policy to Promote, Diversify 
and Transform Patterns of Production, through which we are seeking to diversify export markets 
and develop products with greater added value up to in ternational quality standards.  
5.8.  With regard to the progress made with our investment regime, especially through the recent 
approval of the Law establishing PROESA and the entry into force of the Law on legal stability for 
investments, we feel it is importan t to point out that these form part of a broader effort to create a 
more conducive business environment that will lead in future to greater domestic and foreign 
investment flows.  
5.9.  In the same vein, we highlight the positive comments elicited by the amendmen ts to the Law 
on industrial and marketing free zones, which provide stability for investors operating in the 
country and guarantee compliance with our WTO commitments.  
5.10.   Some Members commented on the import controls applied in a number of tariff lines. Here,  
it is only right to point out that these measures respond to the country's legitimate interest, in line 
with WTO rules, in safeguarding its citizens' health, security and environment. Nevertheless, El 
Salvador is deploying efforts to streamline and automa te procedures on an ongoing basis in order 
to facilitate trading of the goods concerned, as shown by the launch of the Single Window for 
Exports and Imports.  
5.11.   This review has brought to light the positive steps which we have taken in terms of customs, 
and M embers have particularly emphasized the fact that we recently deposited our instrument of 
ratification of the Trade Facilitation Agreement, as well as the entry into force of the Central 
American Strategy for Trade Facilitation.  
5.12.   In this regard, I wish to r eiterate that both these initiatives are priority items on our trade 
agenda and we will deploy the necessary efforts to ensure their effective implementation. I cannot WT/T PR/M/3 44 • El Salvador  
 
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  omit to mention that, like the majority of developing -country Members of the WTO, El Sal vador will 
require technical cooperation and assistance to achieve this.  
5.13.   Most Members made reference to the recent amendments to the Law on trademarks and 
other distinctive signs, as well as the adoption of the National Intellectual Property Policy. We are  
grateful for the interest shown and all the positive comments regarding the policy and the fact that 
we have strengthened the protection of geographical indications. We stress that these regulations 
are in conformity with all the international commitments  we have undertaken.  
5.14.   Elsewhere, we have been asked to express our expectations in regard to implementation of 
the policy and cooperation pillars of the Association Agreement with the European Union. Here, it 
is worth pointing out that we remain attentive t o the outstanding process of ratification by the 
European Union, since those pillars are an especially important component of the 
Association  Agreement as a whole.  
5.15.   In response to the requests for additional information on the integration process between 
Guatemala and El Salvador, it is important to emphasize that this entails streamlining trade flows 
through the integration of border posts. It includes implementing measures to reduce waiting 
times for land transport, joint inspections and the development of  computerized procedures for 
interconnection.  
5.16.   As pointed out on Wednesday, we are banking on Central American economic integration as 
one of the major means of developing our country and, accordingly, it is a priority item on our 
trade agenda, along with h arnessing the benefits stemming from the free trade agreements to 
which we are party.  
5.17.   Throughout this review, reference has been made to the fundamental importance of 
El Salvador's trade within the framework of regional trade agreements, which for our coun try 
constitute tools that complement our efforts to strengthen the multilateral trading system.  
5.18.   In this respect, I wish to point out that the Government of El Salvador reiterates the 
importance of the WTO Agreements, as the main axis of our trade policy. O ur country thus 
attaches special importance to the activities taking place in all the WTO bodies. We shall work 
relentlessly to promote a balanced outcome and a successful meeting at our eleventh Ministerial 
Conference.  
5.19.   By way of conclusion, I should like to state that although El Salvador is facing daunting 
challenges in the future, as is the case for all other Members in this Organization, this exercise in 
transparency has highlighted the progress the country has made in terms of economic and trade 
policy  since our last review, and I hope to be in a position to continue reporting further progress to 
the Membership in the fifth review.  
5.20.   Last but not least, it only remains for me to thank Members once again for their presence 
and their active engagement in El  Salvador's fourth policy review. Thank you for your attention.  
DISCUSSANT  
5.21.   Having listened last Wednesday to the interventions by both the Minister and 
the 24 Missions that took the floor, and looked at the questions raised and answers given during 
the rev iew, my impression is that we had a fruitful day, and that the process has met the 
objectives for which it was created.  
5.22.   Indeed, the impact of the situational analyses, the specific data and in particular the 
review's focus on specific areas and aspects, ma ny of them sensitive, in order to reveal gaps, 
unfinished work, institutional intentions, but also strengths, successes, experiences, processes 
gone through or under way, is threefold.  
5.23.   First, it pulls the Member being reviewed towards excellence; it indica tes where, in the 
minds of the peer community, emphasis should be placed; and at the same time it is useful to all 
of us insofar as we learn from the experiences of the Member under review as input to our 
own processes.  WT/TPR/M/3 44 • El Salvador  
 
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  5.24.   The very fact that a country subject s itself to the scrutiny of its peers is in itself a 
demonstration of transparency and at the same time a contribution to strengthening the system.  
5.25.   I believe that this type of exercise produces the same situation as in our personal 
professional life: there  is nothing more difficult and yet at the same time more rewarding than 
being subject to peer evaluation.  
5.26.   That said, I wish to thank the delegation of El Salvador for its hard work and application in 
responding to the various questions received. In this re gard, I consider that the statement just 
provided by the Minister of the Economy goes a long way to satisfying the concerns and 
suggestions raised by Members.  
5.27.   This is also an excellent opportunity to show commitment to the multilateral trading system. 
This was clear from the interventions by the Minister, Mr  López, highlighting his country's efforts to 
comply with the rules emanating both from the WTO and from other multilateral organizations.  
5.28.   Many of the delegations remarked positively on the progress achi eved and the various 
programmes and reforms instituted by the Government, in line with the multilateral system and in 
pursuit of the country's development.  
5.29.   I do not find in my notes any instance of adverse criticism of El Salvador on the part of the 
Member s, even if they alluded to problems in its economic and trade policy or in its instruments, 
deficiencies and needs of its external sector, and concerns on specific aspects of its development 
process. Some concerns have also been expressed in relation to me asures requiring greater clarity 
as to their compatibility with WTO standards or with notification requirements and requirements of 
transparency and oversight stipulated by the WTO.  
5.30.   The Members have unanimously highlighted ratification of the Trade Facilit ation Agreement 
as clear proof of its commitment to the reforms that need to be carried out in this area and to the 
multilateral system.  
5.31.   The delegations have stressed this Central American economy's achievements and 
challenges. There has been a call to div ersify the production structure, improve infrastructure, 
bring down energy costs, promote foreign direct investment, drastically reduce the level of debt 
and fiscal deficit (one of the fundamental aspects to which we subscribe), increase domestic 
savings, complete the implementation of the single window, press on with the austerity measures 
already taken by the State and improve external trade logistics, among many other things that 
need not be listed.  
5.32.   On the basis of the ground already covered by El Salvad or, and with the political and 
institutional will that its authorities have demonstrated to us and the reforms implemented and to 
be undertaken, maintaining its commitment to rule -based free trade, we know and are confident 
that the country will continue a ddressing existing challenges and any new ones that lie ahead in 
order to advance on its path to development.  
5.33.   I also encourage El Salvador to continue playing its role and contributing in our 
Organization. Its constructive and forward -looking spirit is app reciated, and this is what is required 
in order to move the multilateral trading system forward.  
5.34.   The Mission in Geneva, led by Ambassador Francisco Lima, is a key player which we 
acknowledge for its inputs to the process.  
5.35.   As we know, these speeches are rec orded in the minutes, and so in six years' time, when El 
Salvador's fifth trade policy review is carried out, I hope that the whole delegation present here 
today will feel great satisfaction, because it will be able to compare and show tangible and 
measura ble progress through its impact on growth, international integration and social indicators.  
5.36.   Please allow me one final comment: Many delegations have reacted positively, both in the 
room and in private, and not without some degree of surprise, to the fact t hat in my capacity as 
discussant I included in my presentation some historical components, geographical background 
and reference to a literary work by an eminent Salvadoran author. Regarding this kind feedback, WT/T PR/M/3 44 • El Salvador  
 
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  which I highly appreciate, I would like to sa y, not in any way as a justification, but rather by way 
of explanation, that to my mind an evaluation of a country's trade policy cannot be approached in 
a historical, geographical and human vacuum. Countries are a community of people before 
anything else,  and not only data, interests, negotiations or exchanges. We are descendants of our 
history and ancestors of our future. The economy is a tool at the service of people, families and 
the common good. To assess the performance of an economic and trade policy  without being 
overcritical and harsh, we cannot afford to ignore all the background factors that explain the good 
and the bad which we always find in any human venture.  
5.37.   I believe I speak on behalf of all of you in wishing our friends in El Salvador every success, 
for the good of its people, a success in which we will all indeed share in some way, insofar as 
between us we have helped to some extent during this review to inform improvements in its 
economic and social performance. Thank you, Madam Chairperson . 
BENIN 
5.38.   El Salvador's economy is recovering from the effects of the global financial crisis. Since 
then, the country has launched various reforms. The recovery of exports and the surplus on 
services registered by El Salvador have helped to improve its macr oeconomic indicators. This 
results in a GDP growth of 2.5 % in 2015.  
5.39.   The Government of El Salvador has geared its trade policy towards creating jobs, attracting 
foreign investment, promoting exports, strengthening competitiveness and promoting supply 
linkag es, and diversifying and transforming production. The aim of this policy is to raise the 
standard of living of the population and achieve sustainable development.  
5.40.   In order to achieve that goal, El Salvador has strengthened its legislation in the area of 
investment and public -private partnerships and overhauled its law on free zones and inward 
processing warehouses to bring it into line with its international commitments, as well as providing 
stability and predictability for investors.  
5.41.   The Benin delegation c ongratulates El Salvador for the initiatives taken to restructure its 
economy towards productivity and innovation -led growth.  
5.42.   The Government of El Salvador has also strengthened its trading relations with its major 
partners at the bilateral, regional, plur ilateral and multilateral level. The various preferential 
agreements signed testify to the effectiveness of the strategy for integrating the country in the 
multilateral trading system. This attachment to the multilateral trading system is also reflected in  
the efforts to reduce the cost of trade transactions and streamline procedures in line with its 
WTO commitments on trade facilitation.  
5.43.   The delegation of Benin encourages El Salvador to continue with its efforts to restructure its 
trade policies. It highly  appreciates El Salvador's active involvement in multilateral trade 
negotiation activities.  
5.44.   The delegation of Benin invites El Salvador to lend its support to the concerns of the 
least-developed countries (LDCs) set out in the document outlining LDC priori ties post -Nairobi.  
5.45.   Benin thanks the WTO Secretariat and the Government of El Salvador for the reports drawn 
up for the present session of El Salvador's trade policy review.  
UNITED  STATES  
5.46.   We sincerely thank Minister  López, the entire delegation  of El Salvad or and the Secretariat. 
We know how much work goes into this Trade Policy Review  and we sincerely appreciate the 
constructive efforts. We also greatly value Ambassador Casanueva's deep insights. We appreciate 
the summary of day one discussion and the respo nses received from El Salvador. We are 
reviewing them and we have sent  a couple of follow -up questions.  
5.47.   The United States notes the issues of importance that were raised during the discussions by 
other Members, in particular El Salvador's continued efforts  towards integration and global WT/TPR/M/3 44 • El Salvador  
 
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  economy and its recent policy reforms to attract investment and promote and facilitate trade. In 
that regard, we again commend El Salvador on its ratification of the TFA. We recognize 
El Salvador's reforms  and its recognitio n to focus on IP as a key development of national 
development.  
5.48.   Finally, we congratulate the team on a successful TPR and look forward to  a continue d 
cooperation and El Salvador's continued  active participation in the work of the WTO.  WT/T PR/M/3 44 • El Salvador  
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This fourth Trade Policy Review of El Salvador has provided an excellent opportunity for us to 
better understand El Salvador's trade and investment policies, as well as the changes implemented 
since the last review in 2010. I would like to  thank Minister López and his delegation for their 
constructive engagement throughout this exercise. I would also like to thank our discussant, 
Ambassador Casanueva, for his comprehensive and insightful remarks; and  also the 
26 delegations which have asked  questions or taken the floor, for their active participation.  
6.2.  Members noted that despite the negative effects of the 2008 financial crisis, El Salvador had 
managed to achieve positive growth rates during the review period, in part due to a robust export 
performance and strong domestic consumption, while maintaining a low level of inflation. 
Remittances from workers abroad, which accounted for 16% of GDP, had played an important role 
in supporting domestic demand and had contributed to partly offsetting the  current account deficit. 
Several Members congratulated El Salvador for the significant progress it had made in poverty 
alleviation  and the improvement in its social indicators. The delegation of El Salvador was pleased 
to report that the country had achie ved most of its social goals.  
6.3.  However, Members noted that the country's economic growth remained below potential and 
that there were key challenges to overcome. For instance, actions had to be taken to reduce the 
fiscal deficit and external debt; diversify  the economic structure; and boost productivity. In this 
connection, Members were informed by the El Salvador delegation that a policy to promote 
diversification and enhance productivity was already in place. There is also a review on the pension 
system to  address fiscal challenges.  
6.4.  As was the case in the previous review, El Salvador was commended for the continued 
liberalization of its trade and investment regimes at the bilateral, regional and multilateral levels. 
Members praised El Salvador's active par ticipation in the WTO, and its strong commitment to the 
multilateral trading system. Efforts to deepen economic integration with Central American 
countries were noted, as well as initiatives to seek closer economic ties with other trading 
partners.  
6.5.  Members  welcomed El Salvador's ratification of the Trade Facilitation Agreement in July this 
year. They also praised El Salvador's efforts to further modernize and streamline customs 
procedures through the implementation of a Single Window and other measures, and  for engaging 
in a trade facilitation initiative at the regional level.  
6.6.  Members appreciated that El Salvador had an open trade regime with a relatively low applied 
average MFN tariff. However, they were concerned about the large number of tariff lines still 
subject to import permit or approval procedures. They urged El Salvador to streamline these 
import requirements. Several Members commended the country for establishing a Salvadorian 
Quality System; some Members called on the authorities to notify any mu tual recognition 
agreement on technical regulations and conformity assessment procedures.  
6.7.  The delegation of El Salvador highlighted the many reforms implemented with respect to 
investment, intellectual property, quality control, trade facilitation, export  promotion; as well as 
the changes introduced to El Salvador's free zone legislation to remove export subsidies and local 
content requirements. These efforts were well recognized by Members. In particular, El Salvador 
was commended for the introduction of legislation on contingency measures; the improvements 
made to the protection of trademarks and geographical indications; the r eform of export 
promotion agencies ; and the provision of greater legal certainty for investors . More information 
was sought on the  implementation of these new measures. On government procurement, Members 
noted that procurement methods had been streamlined, but that new exemptions to open 
tendering had been introduced. Some Members encouraged El Salvador to be an observer in the 
WTO C ommittee on Government Procurement, with a view to joining the Agreement in due course.  
6.8.  The growing importance of services was highlighted by some Members. In their written 
questions, Members had enquired about the limitations of market access in insurance  and 
reinsurance, telecommunication services requirements for foreign suppliers, transport services 
exports, and fiscal incentives for investment in tourism.  WT/TPR/M/3 44 • El Salvador  
 
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  6.9.  Looking forward, Members encouraged El Salvador to continue on the path towards 
sustainable growt h by diversifying exports, further improving the investment climate, streamlining 
import procedures and implementing fiscal adjustment s, so as to keep debt at sustainable levels.  
6.10.   El Salvador by now has provided answers to all advance written questions rais ed by 
Members, as well as most additional questions that came after. This TPR will be successfully 
concluded once El Salvador has replied to all outstanding questions in a month's time. As the 
discussant has so aptly observed, El Salvador has demonstrated a clear political will to implement 
reforms. I believe Members will feel encouraged by the action plans outlined in the delegation's 
presentation, and I hope that the discussion will prove useful and constructive to El Salvador in its 
pursuit of economic a nd trade reforms. So that, as the Minister envisioned in his responding 
statement, we can look forward to El Salvador reporting further achievements in its fifth Trade 
Policy Review.  
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