# El Salvador - United States Department of State

- El Salvador HomeReportsBureau of Democracy, Human Rights, and Labor2023 Country Reports on Human Rights Practices&#8230;El Salvador				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Country Reports on Human Rights Practices: El Salvador																																					Bureau of Democracy, Human Rights, and Labor																																																																																							Download Report																																																							Translations																																																																 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															Section 1. Respect for the Integrity of the Person																																																									a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																																											b. Disappearance																																																																											c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																																			Prison and Detention Center Conditions																																																																																																																		d. Arbitrary Arrest or Detention																																																																			Arrest Procedures and Treatment of Detainees																																																																																																																		e. Denial of Fair Public Trial																																																																			Trial Procedures																																																								Political Prisoners and Detainees																																																																																																																		f. Transnational Repression																																																																											g. Property Seizure and Restitution																																																																											h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																																																	Section 2. Respect for Civil Liberties																																																									a. Freedom of Expression, Including for Members of the Press and Other Media																																																																			Internet Freedom																																																																																																																		b. Freedoms of Peaceful Assembly and Association																																																																											c. Freedom of Religion																																																																											d. Freedom of Movement and the Right to Leave the Country																																																																											e. Protection of Refugees																																																																											f. Status and Treatment of Internally Displaced Persons (IDPs)																																																																																	Section 3. Freedom to Participate in the Political Process																																																									Elections and Political Participation																																																																																	Section 4. Corruption in Government																															Section 5. Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																															Section 6. Discrimination and Societal Abuses																																																									Women																																																																											Systemic Racial or Ethnic Violence and Discrimination																																																																											Indigenous Peoples																																																																											Children																																																																											Antisemitism																																																																											Trafficking in Persons																																																																											Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																																											Persons with Disabilities																																																																											Other Societal Violence or Discrimination																																																																																	Section 7. Worker Rights																																																									a. Freedom of Association and the Right to Collective Bargaining																																																																											b. Prohibition of Forced or Compulsory Labor																																																																											c. Prohibition of Child Labor and Minimum Age for Employment																																																																											d. Discrimination (see section 6)																																																																											e. Acceptable Conditions of Work																																																																																																							EXECUTIVE SUMMARY				Under the state of exception, reports of gang violence decreased significantly, allowing citizens to exercise their right to life, liberty, and security of person, and to engage in daily activities and commerce without the constant threat of violence and extortion. Arbitrary arrests and mass pretrial hearings, however, undermined due process and exacerbated historically difficult conditions in overcrowded prisons.Significant human rights issues included credible reports of: unlawful or arbitrary killings; enforced disappearance; torture or cruel, inhuman, or degrading treatment or punishment by security forces; harsh and life-threatening prison conditions; arbitrary arrest or detention; serious problems with the independence of the judiciary; arbitrary or unlawful interference with privacy; extensive gender-based violence, including domestic and sexual violence, and femicide; substantial barriers to sexual and reproductive health services access; trafficking in persons, including forced labor; and crimes involving violence targeting lesbian, gay, bisexual, transgender, queer, or intersex persons.The government took credible steps to identify and punish officials who may have committed human rights abuses.																														Section 1.													 Respect for the Integrity of the Person												    																																																a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings										There were reports that the government or its agents committed arbitrary or unlawful killings, largely stemming from deaths of detainees while in prison, either from medical neglect or physical abuse. The human rights nongovernmental organization (NGO) Socorro Jurídico Humanitario recorded the deaths of 79 detainees as of August 16 and determined that 33 of the deaths were violent. The human rights organization Cristosal confirmed 71 deaths of detainees and determined that 13 of the deaths showed signs of violence, including beatings by a club or baton. In March the newspaper El Pais interviewed several released detainees, one of whom stated prison guards beat his cellmate to death. Socorro Jurídico Humanitario reported that 21 detainees died from a lack of medical attention. Cristosal reported two of the detainees who died had anemia and 11 died of complications from illnesses such as diabetes to chronic kidney disease.On June 13, the attorney general announced his office had investigated 143 deaths in prison during the state of exception and that his office, in conjunction with the Institute for Legal Medicine, had determined the 143 deaths resulted from pre-existing conditions or illness.The government reported that widespread killings by criminal gangs decreased significantly in comparison with previous years. The Attorney General’s Office reported intentional homicides of a criminal nature (excluding ones resulting from a family or social dispute) decreased from 366 during the first half of 2022 to 32 during the first half of 2023. The government and observers widely attributed the decrease to the government’s policies under the state of exception, declared in March 2022 and extended monthly. As of December, it continued in effect. Despite the reduction, the Observatory for Human Rights at the University of Central America, a human rights think tank, argued the government homicide figures could have been undercounted, as they did not take into consideration the number of human remains located or disappearances reported.																																				b. Disappearance										There were regular reports that security and law enforcement officials arrested persons and did not inform their families of their whereabouts. Socorro Jurídico Humanitario reported that as of August, it was tracking 1,376 cases in which the families of those detained under the state of exception did not receive confirmation that their relatives were in the prison system, information regarding their whereabouts, or confirmation that they were alive. Socorro Jurídico Humanitario also reported that in three cases, detainees’ bodies were interred before their families were notified of their deaths. The Human Rights Ombudsperson’s Office (PDDH) received 17 complaints regarding the lack of information on detainees under the state of exception.Media and human rights groups reported cases of disappearances and missing persons continued to occur, although it was often impossible to distinguish between a “disappearance” and a “missing person,” due to limited law enforcement resources to investigate. In June the Foundation of Studies for the Application of Law calculated there were 2,397 unresolved cases of missing persons first reported between January 2019 and June 2022. The National Civil Police (PNC) reported that of the missing persons reported from January to August, 143 cases remained unsolved as of August 11.On March 27, the minister of justice and public security announced that investigations into disappearances would remain suspended, as authorities continued to prioritize capturing gang members.																																				c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses										The law prohibited such practices, but there were credible reports that government officials employed them.Human rights organizations and media outlets reported complaints of abuse and mistreatment of detainees by prison guards. On July 14, a coalition of human rights organizations at an Interamerican Human Rights Commission public audience stated they collectively interviewed more than 100 released detainees, many of whom reported systemic abuse in the prison system, including beatings by guards and the use of electric shocks. The coalition alleged the treatment of prisoners constituted torture.On March 25, the newspaper El País reported a man released from Izalco prison said guards beat one of his cellmates to death with batons and the butts of their rifles. He also said guards activated electric stun guns against the prison’s wet floors to deliver electric shocks to all the prisoners in a cell.Cristosal spoke with the family of a prisoner who died of stomach cancer on February 10, after being released from Zacatecoluca prison on January 28. Cristosal reported his body showed signs of torture, including significant bruising on his back and stomach, as well as signs of malnutrition and gastrointestinal hemorrhaging.There were sporadic complaints of mistreatment by police and members of the armed forces. As of July 26, the PNC registered 48 complaints of threats committed by police officers. As of July 31, 129 victims registered complaints with the PDDH regarding the violation of physical integrity, mistreatment, or physical abuse by the PNC, and seven registered complaints of the same abuses committed by members of the armed forces. Five victims registered complaints with the PDDH concerning torture or cruel and inhuman punishment at the hands of PNC officers, and one victim registered a complaint of the same treatment committed by members of the armed forces.The judiciary continued prosecuting several cases from the civil war against members of the armed forces. The judge in the 1981 El Mozote massacre case continued to hear witness testimony. The government, however, continued to deny expert witnesses access to military archives to determine criminal responsibility for the massacre, in defiance of a 2020 judicial order. On February 7, a judge opened trial proceedings against three former soldiers who allegedly belonged to a death squad that kidnapped, tortured, and killed civilians in San Miguel during the civil war. This was the first time a case involving death squad members had come to trial.Impunity was a problem in the General Directorate of Penal Centers, particularly for prison guards. Human rights organizations noted the Attorney General’s Office had not opened any complaints into the allegations of torture, abuse, or mistreatment by prison guards.Some concerns remained regarding impunity in the PNC and armed forces. The state of exception empowered security forces to make arrests without meeting traditional evidentiary standards, and media and civil society reported some security officials might have used that authority to extract bribes, sexual favors, or other concessions from citizens. Some members of the security forces were convicted, however, and were facing criminal proceedings for misconduct, such as sexual assault.																Prison and Detention Center Conditions						Prison conditions before the state of exception were harsh and life threatening due to gross overcrowding; inadequate sanitary conditions; insufficient food and water shortages; a lack of medical services in prison facilities; and physical attacks. The addition of 72,000 detainees under the state of exception exacerbated the problem. Human rights organizations reported that as of August 22, more than 70 detainees died in prisons from violence, insufficient medical care, and chronic health conditions.Abusive Physical Conditions: Prisons were severely overcrowded, as the number of detainees increased and only a limited number were released. As of July, the government reported that 71,776 persons were detained under the state of exception. In 2021, the prison system had a capacity of 30,000 and was already overcrowded. The government inaugurated a new prison with a reported capacity for 40,000 on January 31, but as of September, only 12,000 detainees had been moved into it. A prisoner released from the Izalco prison reported that 100 prisoners were held in a cell built for 50.Detainees released from the Izalco and La Esperanza prisons reported a lack of food and potable water and being limited to two tortillas, one spoonful of beans, and one glass of water per day. They also reported limited water for sanitation. Human rights organizations noted released prisoners reported severe heat and lack of ventilation in the cells and prolonged confinement, without the opportunity for movement or the use of sanitary facilities.Released prisoners and their families reported a lack of access to medical care or medicine in prison. One released prisoner reported to El País that his diabetic cellmate received insulin only two or three times during his period of incarceration and died suddenly in his sleep. Although families of prisoners were often instructed to bring medicine to the prison for the prisoner, the medicine often did not reach the prisoner. Human rights organizations reported communicable diseases such as tuberculosis and scabies were widespread in the prisons.Human rights groups and news outlets reported unsanitary conditions and limited food and medical care in women’s prisons. There were reports of life-threatening lack of medical care or sanitation for detained pregnant women and young children held with their mothers. On July 24, the newspaper El Faro published an interview with a released prisoner who gave birth while in prison. She reported being held in a unit with 150 other pregnant women in the Izalco prison farm, with two doctors assigned to them. She reported receiving only sporadic prenatal care and extremely limited access to medicine. Cristosal published a statement from a released prisoner who reported many pregnant women miscarried due to a lack of medical care.Young babies often stayed with their mothers in prison and received limited medical care, despite widespread scabies and other communicable diseases. The newspaper El Diario de Hoy reported that on May 17, a girl, age one, died of pneumonia after being held in Apanteos prison with her mother for six months. Socorro Jurídico Humanitario reported a baby, age six months, born while his mother was held in Izalco, died of kidney failure, liver failure, and pneumonia on June 26, six days after he was transferred from the prison to the care of other members of his family.Administration: The PDDH had the authority to investigate allegations of abusive conditions in prison; however, the human rights ombudsperson reported the PDDH did not receive access to visit prisons during the year. PDDH representatives conducted 32 visits to jails in the Ahuachapan Department, where they found the detainees’ basic needs were provided for but detainees were transferred to prisons within five days of their arrest, without the ability to contact their families.Independent Monitoring: The International Committee of the Red Cross had access to prison facilities.																										d. Arbitrary Arrest or Detention										The constitution prohibited arbitrary arrests, and the law provided for the right of any person to challenge the lawfulness of their arrest or detention in court. The state of exception, itself a legal mechanism, suspended the right to legal defense, as well as the requirement that persons be informed of the reason of their arrest at the time of their detention, and increased the number of days an individual could be held in detention before being formally charged. The government did not always observe the requirements of the law and constitution.																Arrest Procedures and Treatment of Detainees						The constitution required a written warrant for arrest, except in cases where an individual was caught in the act of committing a crime. The language of the state of exception decree did not detail changes to enforcement procedures.Security forces arrested suspected gang members or collaborators “in the act” of being a gang member or collaborator without a warrant and entered homes without warrants, ostensibly with verbal permission of the residents. The state of exception decree suspended the right to legal counsel, and law enforcement agents did not wait for suspects to obtain counsel before questioning them.A July 2022 change in the law provided that hearings for gang membership charges could proceed without the detainees’ physical presence, although with defense counsel participating in person. Many detainees’ hearings were conducted virtually and en masse, often with one defense lawyer in the courtroom representing hundreds of persons appearing by video, unable to consult with their defense lawyers in real time or hear the proceedings because of technical problems, complicated by the number of participants.In July the Legislative Assembly approved legislation for the prosecution of detainees under the state of exception cases, eliminating the previous provision that a criminal process could not exceed 24 months. As of November, no case from the state of exception had gone to trial.The court system was slow to respond to habeas corpus petitions filed by those challenging their detention under the state of exception. In July Socorro Jurídico Humanitario submitted 1,285 requests for habeas corpus and received 28 responses, of which 25 were declared inadmissible.Arbitrary Arrest: As of July 31, the PDDH reported 738 complaints of arbitrary detention, compared with 283 from January to July 2022. Civil society entities also received complaints from the public regarding arbitrary arrests during the state of exception, although fewer than in 2022. Cristosal reported that as of August 9, it received 348 complaints of arbitrary arrest, compared with 3,110 such complaints in 2022. Several human rights organizations asserted that many detainees who remained in pretrial detention were arrested arbitrarily in 2022, without evidence of gang affiliation and only for having tattoos or living in a gang-controlled area. Leaked arrest files of 690 persons detained in March-April 2022 showed 50 were charged with being a gang member based on a suspicious or nervous appearance, and 50 for having a tattoo, with no indication if the tattoo was gang-related.The government established an anonymous tip line to provide information about gang members. Media reported cases in which detainees, or their families, believed they had been arrested on the basis of anonymous complaints. On March 30, in an interview with the BBC, the vice president declared police did not carry out arrests based on tattoos or being named in an anonymous call. He stated the government maintained a database of profiled gang members and carried out arrests based on that database. The vice president acknowledged it was possible persons with no gang ties were arrested but noted that courts released more than 3,000 detainees after determining they had no such ties. On August 22, the minister of justice and public security reported that of the more than 71,000 persons arrested under the state of exception, approximately 7,000 had been released.On July 28, the PNC reported four police officers were arrested on charges of detaining civilians and extorting their relatives for money in exchange for their release.Pretrial Detention: Lengthy pretrial detention was a significant problem. COVID-19 pandemic closures had already severely delayed trial and hearing dates, and the sharp increase in cases during the state of exception further exacerbated the situation. For example, in the majority of hearings, judges ordered defendants to remain in detention even when the Attorney General’s Office failed to provide sufficient evidence demonstrating defendants were affiliated with a gang.In March the Foundation for the Study of the Application of Law noted prosecutors often requested extensions to the six-month evidence-gathering period due to their large caseload resulting from the state of exception. This further prolonged pretrial detention.																										e. Denial of Fair Public Trial										The law provided for an independent judiciary. The government held approximately 72,000 detainees to try under the state of exception but presented no plan to accomplish this. The government indicated it likely would resort to mass trials, calling into question the availability of a fair public trial for these detainees.																Trial Procedures						The law provided for the right to a fair and public trial, but the state of exception suspended the right to be informed promptly of charges and the right to defense. Other rights were not always respected. The law allowed for trials for gang membership charges to proceed without the defendants’ physical presence, although with defense counsel participating in person. On July 26, the Legislative Assembly approved amendments to the law that would allow collective trials with up to 900 defendants for those who were already detained under the state of exception and were charged as gang members. No case of persons detained under the state of exception had gone to trial as of November.After implementation of the state of exception, the demand for public defenders exceeded the capacity of the Public Defender’s Office. One public defender noted in 2022 that his caseload had grown from 45-50 new cases a month to 95 new cases a day. In March the Foundation for the Study of the Application of Law reported that defense lawyers continued to be overwhelmed by cases.						Political Prisoners and Detainees						The government arrested or continued to detain sitting and former politicians from opposition parties and the governing party. Media questioned the legitimacy of the detentions, but the government declared the charges against them were legitimate. The detainees were generally subjected to the same harsh prison conditions as convicted prisoners.As of August 24, Ernesto Muyshondt, former mayor of San Salvador and a prominent opposition politician, had been detained for more than two years and two months, even though the criminal code prior to the state of exception did not allow for defendants to be held for more than two years in pretrial detention without a sentence. Arrested in 2021, he was acquitted of misappropriation of tax withholdings and breach of duty on August 9. The remaining charges against him were for appropriation of five million dollars in labor contributions and also electoral fraud and illicit associations for allegedly negotiating with gangs in exchange for votes in the 2015 legislative elections.Muyshondt developed serious health problems during his detainment and in 2022 said that while detained he was beaten and tied up. In January he was hospitalized after a four-week hunger strike. Prison officials did not comply with seven subsequent orders issued by a judge for Muyshondt to be taken to a hospital. During a preliminary hearing on April 23, Muyshondt said prison officials planned to kill him and that the Director of Penitentiaries, Osiris Luna, had denied him access to a hospital for 63 days.Two former Farabundo Marti National Liberation Front (FMLN) party officials, charged in 2021 with money laundering and illicit enrichment, remained in detention. Three other former FMLN officials also charged in the same case were under house arrest. Defenders of the three claimed they were detained for political reasons, while the government asserted the charges against them were legitimate. Investigations continued as of October.On January 11, six former FMLN guerrillas were arrested in Santa Marta, Cabañas, for the 1989 kidnapping, torture, and killing of Maria Inés Alvarenga during the civil war. Many in the Santa Marta community recalled the accused parading Alvarenga’s body around town as a warning and few denied the allegations, but they said the government was pursuing the charges for possibly political reasons. Five of those arrested were members of an FMLN-linked community organization that advocated against mining. Defenders of those arrested claimed authorities chose to prosecute the case to silence their environmental activism. The repeal of the civil war amnesty law in 2016 allowed for the prosecution of cases from the civil war. The government declared the charges against the former guerrillas were legitimate and based on testimony from multiple witnesses.																										f. Transnational Repression										Not applicable.																																				g. Property Seizure and Restitution										Not applicable.																																				h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence										The constitution prohibited such actions. Reforms to the criminal code introduced in 2022 allowed the Attorney General’s Office to carry out a wide range of undercover digital monitoring activities without a warrant, with no restrictions on scope or duration. There were allegations the government tracked journalists, members of NGOs, and political opponents and collected information from private messages on their cell phones. There were reports security forces entered homes without warrants.As of August, the Association of Journalists of El Salvador (APES) reported two cases of government officials monitoring of journalists, two cases of surveilling journalists, and one case of illegally accessing the telephone of a journalist.The PNC reported that as of July 26, they received nine complaints that police officers entered homes without a warrant.																																					Section 2.													 Respect for Civil Liberties												    																																																a. Freedom of Expression, Including for Members of the Press and Other Media										The constitution provided for freedom of expression, including for members of the press and other media, and the government generally respected this right. Journalists, media and civil society organizations, and opposition figures criticized the government’s online harassment of critics and rhetoric towards journalists. There were sporadic reports of monitoring and threats against journalists.Freedom of Expression: In November the government repealed a 2022 amendment to the criminal code that prohibited creating, reproducing, or transmitting any visual content (texts, images, graffiti, or other forms of visual expression) that related to gangs, and stipulated a penalty of 10 to 15 years in prison. Media organizations and NGOs stated this had served as a threat to journalists and had created a chilling effect on the independent media for the duration of time it was active. The government stated the legislation was designed to prevent persons from relaying gang messages to the public. No one was arrested under this law while it was in effect.Violence and Harassment: As of August, the APES Center for Monitoring Attacks on Journalists reported 14 acts of intimidation against journalists committed by government officials, six cases in which government officials threatened journalists, and two instances in which government officials issued threats of legal action against journalists.APES and other media outlets reported one journalist was detained arbitrarily. The journalist, Victor Barahona, host of a local television show, was arrested in June 2022 on charges of gang associations and released on parole on May 19. Barahona said his arrest was either because he interviewed a guest on his show who criticized local government leaders for corruption or because of his involvement in a community organization in a gang-controlled neighborhood. In July he gave an interview regarding prison conditions to national media. After the interview, he was summoned to a hearing to review his conditions of release, during which he was warned to keep the process confidential, according to his lawyer.APES reported that from January to August, five journalists left the country. Two left pre-emptively after publishing investigative pieces, and three cited threats as their reason for leaving. One other journalist moved internally after publishing an investigative piece, and another moved internally after he reported he was followed to his residence by police and military officials.APES raised concerns that in 10 separate instances, government officials arbitrarily stopped journalists and prevented them from carrying out their work, restricting their access into certain areas and demanding that they delete photographic or video footage. In one such instance, on March 31, five soldiers prevented two journalists from El Diario de Hoy from entering a section of a neighborhood and said they needed a permit to enter.Censorship or Content Restrictions for Members of the Press and Other Media, Including Online Media: In April El Faro, an investigative online newspaper, moved its administrative headquarters and legal registration to Costa Rica, citing primarily the multiple audits it faced from the Ministry of Finance and fabricated criminal accusations, as well as surveillance, threats, harassment of advertisers, and defamation by public officials. Its journalists remained in the country and continued to report.There were reports that other news outlets also experienced harassment of advertisers and chose to self-censor or reduce operations.Nongovernmental Impact: Unlike in previous years, there were no reports that journalists who reported on gangs and narcotics trafficking were subject to threats from criminal groups.																Internet Freedom						The government did not restrict or disrupt access to the internet or censor online content.There were reports that government-backed bots and troll accounts were used to manipulate social media discourse. On July 14, the investigative digital magazine Revista Factum tracked the activity of a network of progovernment accounts they determined to be trolls. The site’s reporters determined the most prolific account tweeted up to 700 times per day and had 61,000 followers. Revista Factum reported that in one case, the network generated more than 2,000 negative tweets against a target in 24 hours.																										b. Freedoms of Peaceful Assembly and Association										The constitution provided for the freedoms of peaceful assembly and association, and the government generally respected these rights.																																				c. Freedom of Religion										See the Department of State’s International Religious Freedom Report at  https://www.state.gov/religiousfreedomreport/.																																				d. Freedom of Movement and the Right to Leave the Country										The constitution provided for freedom of internal movement, foreign travel, emigration, and repatriation. As part of Phase V of the administration’s “territorial control plan,” security forces occasionally restricted movement around and into certain, mostly low-income, neighborhoods with a history of gang activity.In contrast with previous years, gangs did not restrict movement between neighborhoods and areas. In February El Faro visited 14 previously gang-controlled communities. The residents interviewed reported gangs no longer restricted movement between communities or the circulation of outside service providers in their neighborhoods. The residents reported having access for the first time to services such as ride-hailing apps and food delivery. Communities were able to use communal spaces, including soccer fields and cemeteries, without restriction; previously only gang members were allowed access.																																				e. Protection of Refugees										The government cooperated with the Office of the UN High Commissioner for Refugees and other humanitarian organizations in providing protection and assistance to refugees or asylum seekers, as well as other persons of concern.Access to Asylum: The law provided for the granting of asylum or refugee status, and the government had a system for providing protection to refugees, but the law had major regulatory and operational gaps. The legal framework required persons with international protection needs to file their claim within five days of entering the country and asylum seekers to renew their status every 30 days.																																				f. Status and Treatment of Internally Displaced Persons (IDPs)										The Internal Displacement Monitoring Center estimated there were 52,000 new IDPs due to violence in 2022 (most recent data available), noting the causes included threats, extortion, and killings perpetrated by criminal gangs. The center also reported an additional 4,600 IDPs in 2022, affected mostly by Tropical Storm Julia.																																					Section 3.													 Freedom to Participate in the Political Process												    																						The constitution provided citizens the ability to choose their government in free and fair periodic elections held by secret ballot and based on universal and equal suffrage.																										Elections and Political Participation										Abuses or Irregularities in Recent Elections: National elections were widely reported to be fair and free of abuses and irregularities.Political Parties and Political Participation: On March 15, the Legislative Assembly repealed a section of the electoral code that prohibited changes to election laws within one year of elections. In June the Legislative Assembly approved laws to reduce the number of deputies in the assembly from 84 to 60 and the number of municipalities from 262 to 44. The law also changed the formula for calculating party seat distribution in the assembly. Some opposition politicians and political analysts argued these reductions were designed to consolidate the power of the president’s party, Nuevas Ideas (New Ideas). The NGO Acción Ciudadana (Citizen Action) stated several small minority parties risked losing representation in the Legislative Assembly altogether under the new formula. President Nayib Bukele and Nuevas Ideas legislators asserted the change would return the number of deputies to the same number that existed in 1991 prior to the signing of the peace accords, which added deputies to increase FMLN representation, and that reducing the number of municipalities was necessary to streamline government administration and to save money. The reforms were passed quickly, but in line with democratic requirements per the constitution.Participation of Women and Members of Marginalized or Vulnerable Groups: Some transgender persons reported difficulties registering to vote and voting because their gender identities did not match the gender stated on their identification cards.																																					Section 4.													 Corruption in Government												    																						The law provided criminal penalties for corruption by officials, and the government implemented the law, prosecuting officials from both the opposition and the governing party.Corruption: President Bukele touted his government’s enforcement actions against corrupt officials, declaring a “war on corruption” on June 1. The Attorney General’s Office filed civil and criminal charges against, and courts convicted, high-ranking officials from past administrations. Charges were also filed against sitting officials in municipal governments as well as several lower-level sitting Nuevas Ideas officials and one Nuevas Ideas Legislative Assembly member. Courts convicted former high-ranking officials from several past administrations on charges of corruption. Allegations of corruption among sitting officials persisted, however. Opposition critics argued the government selectively prosecuted corruption charges to persecute political opponents.As of July 26, the Attorney General’s Office opened investigations into 285 cases involving corruption, including embezzlement, extortion, illicit negotiations, illicit enrichment, and bribery. As of August 10, the Government Ethics Tribunal reported it opened 178 administrative proceedings against 290 public officials. The tribunal imposed sanctions in 25 cases and referred eight cases to the Attorney General’s Office.On May 29, a court sentenced former President Mauricio Funes to 14 years in prison for arranging a gang truce during his administration. Funes, who resided in Nicaragua, called the trial unjust and politically motivated. On August 10, court proceedings began against Funes’ former wife and nine other former high-level members of his administration for money laundering, embezzlement, and tax evasion.As part of President Bukele’s “war on corruption,” the Attorney General’s Office seized the assets of former President Alfredo Cristiani on June 1, alleging he stole public funds while in office and used those funds to enrich himself and family members. Cristiani did not reside in the country. Corruption-related charges were brought against a former Supreme Electoral Tribunal president and a former president of the Legislative Assembly. A former minister of defense, a former minister of justice, a former Legislative Assembly deputy, a former state intelligence agency director, and a former vice minister of commerce and industry were convicted of corruption-related charges.Municipal officials were also the subject of corruption charges and investigations. On August 11, the mayors of two municipalities, Conchagua and Tacuba, along with various other municipal officials and council members, were arrested on unrelated corruption charges. The mayor of Conchagua and two associates charged with him remained under arrest as of August 22, while the remaining officials were released pending their initial hearing.Although most officials investigated for or charged with corruption were from the ARENA party, FMLN, or minor opposition parties, several sitting members of the Nuevas Ideas party also faced corruption investigations. On January 11, the Attorney General’s Office charged the mayor of Soyapango, Nercy Patricia Montano De Martínez, and four other officials in the mayor’s office with misappropriation and embezzlement of public funds. Montano, a member of the Nuevas Ideas party, had been the subject of municipal unrest and protests due to her mismanagement of funds. In February a waste disposal company filed a complaint with the Attorney General’s Office against the Nuevas Ideas mayor of Mejicanos, Saúl Antonio Meléndez, accusing the mayor of embezzlement and breach of duty for nonpayment of services rendered totaling more than $896,000, plus interest. On August 9, the attorney general accused Nuevas Ideas deputy Erick Garcia of fraud relating to election campaign expenses and requested the Legislative Assembly strip Garcia of his immunity. The Legislative Assembly voted to do so on August 17, and Garcia was arrested the same day. Garcia’s alternate deputy, Nidia Aracely Turcios Anaya, was also arrested.For additional information about corruption in the country, please see the Department of State’s Investment Climate Statement for the country, and the Department of State’s International Narcotics Control Strategy Report, which includes information on financial crimes.																											Section 5.													 Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights												    																						A variety of domestic and international human rights groups generally operated without government restriction to monitor or investigate human rights conditions or cases and publish their findings. Several domestic human rights groups, including Cristosal, accused the government of opening excessive audits into their operations as an intimidation tactic and using the revocation of tax-exempt status as a tool to punish organizations critical of the government.Human rights groups observed that the government increasingly declined to make public data for monitoring and analysis purposes. Gato Encerrado, an investigative newspaper, noted the government continued to expand the types of information it classified as confidential and not subject to public disclosure requirements.Government Human Rights Bodies: The principal human rights investigative and monitoring body was the autonomous PDDH, whose ombudsperson was chosen by the Legislative Assembly for a three-year term. The PDDH had a constitutional duty to investigate human rights abuses and defend human rights conventions in the country. Some NGOs believed the PDDH was not fully independent or effective.On May 25, President Bukele created a Presidential Commission for Human Rights and Freedom of Speech and appointed Andrés Guzmán Caballero as the commissioner. The responsibilities and duties of the commission were unclear.																											Section 6.													 Discrimination and Societal Abuses												    																																																Women										Rape and Domestic Violence: The law criminalized rape of women or men, domestic or intimate partner rape, and other forms of domestic and sexual violence, including so-called corrective rape of lesbian, gay, bisexual, transgender, queer, or intersex (LGBTQI+) persons. The law could apply to spousal rape, at the judge’s discretion. The law required the Attorney General’s Office to prosecute rape cases whether or not the survivor pressed charges and did not permit the survivor to withdraw the charge. The penalty for rape was generally imprisonment for six to 10 years. Laws against rape were not effectively enforced.Violence against women, including domestic violence, remained a widespread and serious problem. The law prohibited domestic violence and generally provided for sentences ranging from one to three years in prison, although some forms of domestic violence carried higher penalties. The law also permitted restraining orders against offenders. The law against domestic violence was poorly enforced. The domestic NGO Feminist Network Against Violence Against Women analyzed cases of violence reported in the first half of 2021 and found the conviction rate was 6 percent. They attributed the low conviction rate to fear of aggressors, normalization of violence, a lack of understanding regarding survivors’ rights, impunity, and an overall patriarchal system.ORMUSA, a domestic women’s rights organization, registered 26 femicides between January and May 31, 42 percent of which were committed by the partner of the victim and 54 percent of which were committed in the home of the victim. On February 21, the Legislative Assembly unanimously voted to remove the statute of limitations for prosecuting femicide.Other Forms of Gender-based Violence or Harassment: The law prohibited sexual harassment and established sentences of five to eight years’ imprisonment for the crime. Courts also could impose fines in cases in which the perpetrator held a position of trust or authority over the victim. By law, employers were required to create and implement programs to prevent sexual harassment. The government, however, did not consistently enforce the law effectively. The Union of Seamstresses and Tailors asserted the Ministry of Labor lacked the will to investigate one such sexual harassment case it filed during the year.As of August 26, the PNC registered 21 complaints of sexual harassment committed by police officers. On February 7, a police officer filed a complaint against the chief inspector of her division for sexual harassment.Discrimination: The constitution granted women and men the same legal status. The law was generally respected, but with exceptions. Women faced discrimination in employment and occupation. Although the law provided for equal pay between men and women, women did not receive equal pay. In 2021, the United Nations reported that women made 18 percent less than men in the same jobs. The law established sentences of one to three years in prison for public officials who denied a person’s civil rights based on gender, and six months to two years for employers convicted of discriminating against women in the workplace, but labor organizations noted that employees generally did not report such discrimination due to fear of employer reprisals.Reproductive Rights: There were no reports of coerced abortion or involuntary sterilization on the part of government authorities.The law banned abortion under all circumstances. Civil society advocates expressed concern the ban led to the wrongful incarceration of women who suffered severe pregnancy complications, including miscarriages. As of July 26, the Attorney General’s Office reported six women were under investigation for abortions and two for alleged feticide, which the legal system termed “homicide of a ‘recently born’ child,” a charge often invoked for suspicions related to the cause of miscarriage. Charges were brought in one case of feticide.Numerous factors served as barriers to access sexual and reproductive health services. In 2021, UN experts noted that there was “a systemic practice of discrimination against women who suffer obstetric emergencies or pregnancy losses.” In 2022, the women’s rights organization Las Dignas presented the results of a study on contraception access carried out in two rural districts. It found that 20 percent of the population studied had an active sex life but did not use contraceptives for reasons including dangerous or difficult conditions that prevented travel to health centers, not having required parental authorization for minors to obtain contraceptives, and a lack of availability of contraceptives in health centers.The government provided access to sexual and reproductive health services for survivors of sexual violence, and emergency contraception and postexposure prophylaxis were available as part of clinical management of rape.																																				Systemic Racial or Ethnic Violence and Discrimination										There were several laws to protect members of racial or ethnic minorities or groups from violence and discrimination. The government did not enforce the laws effectively, and the administration took no action to implement a 2018 policy designed to focus on the inclusion of ethnic groups in all social and economic aspects. Some civil society organizations and individuals reported instances of racial discrimination against Afro-descendent persons and Indigenous groups.																																				Indigenous Peoples										The constitution recognized Indigenous peoples and stated the government was required to adopt policies to maintain and develop the ethnic and cultural identity, world view, values, and spirituality of Indigenous peoples. The law provided for the preservation of Indigenous languages and archeological sites. The municipalities of Cacaopera and Yucuaiquin, in the eastern part of the country, had special laws to recognize Indigenous cultural heritage.Although the law provided for Indigenous groups to participate in decision making on issues that affected their rights, it did not include the right to be consulted regarding development and other projects envisioned on Indigenous land, nor did it provide Indigenous groups the right to share in revenue from exploitation of natural resources on historically Indigenous lands. The government did not demarcate any lands as belonging to Indigenous communities. Because few Indigenous persons possessed title to land, opportunities for bank loans and other forms of credit were limited.As of October, there was no progress in the case against the Attorney General’s Office brought by victims’ family members for failing to investigate the death of three Indigenous persons during “The Massacre of 1932.”																																				Children										Child Abuse: The law prohibited child abuse. Penalties for child abuse included losing custody of the child and three to 26 years’ imprisonment, depending on the nature of the abuse. The government enforced the law effectively.Child, Early, and Forced Marriage: The legal minimum age for marriage was 18. The law banned child marriage to prevent child abusers from avoiding imprisonment by marrying their underage victims, and the law likewise banned exceptions to child marriage in cases where the child was pregnant. The government enforced the law effectively.Sexual Exploitation of Children: The law prohibited the sale, grooming, or use of children for commercial sexual exploitation, including sex trafficking. The law stipulated imprisonment of 16 to 20 years.The minimum age for consensual sex was 18. The law classified statutory rape as sexual relations with anyone younger than age 18 and included sentences of four to 13 years’ imprisonment.The law prohibited paying anyone younger than 18 for sexual services. The law prohibited participating in, facilitating, or purchasing materials containing child pornography and provided for prison sentences of up to 16 years. Despite these provisions, sexual exploitation of children remained a problem. The government did not enforce the law effectively.																																				Antisemitism										The Jewish community totaled approximately 150 persons. There were no reports of antisemitic incidents.																																				Trafficking in Persons										See the Department of State’s Trafficking in Persons Report at  https://www.state.gov/trafficking-in-persons-report/.																																				Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics										Criminalization: The law did not criminalize consensual same-sex conduct between adults, cross-dressing, or other sexual or gender characteristic-related behaviors.Violence and Harassment: COMCAVIS TRANS, a domestic NGO that promoted LGBTQI+ rights, found 43 percent of transgender women, 42 percent of cisgender men, and 14 percent of cisgender women had encountered problems with law enforcement officials.Violence against LGBTQI+ persons was a problem. The Attorney General’s Office reported that as of July 26, 13 LGBTQI+ persons were victims of sexual assault or harassment, and one was the victim of bodily harm.The law allowed for stricter sentences for crimes committed on the basis of sex, gender identity, and gender expression, among other categories. The PDDH recorded and investigated complaints of violence and harassment against LGBTQI+ individuals. As of July 31, the PDDH received 20 complaints, involving 23 victims, ranging from five victims of acts of cruel and degrading punishment to five victims of insults.Discrimination: The law prohibited discrimination by state and nonstate actors based on sexual orientation, gender identity or expression, or sex characteristics. Discrimination against LGBTQI+ persons was widespread and hindered access to education and employment. Surveys conducted in 2021 by COMCAVIS TRANS found that 39 percent of LGBTQI+ individuals surveyed were unemployed, compared with 5 percent of the general population. Transgender persons regularly faced discrimination in health care, banking, and voting.Availability of Legal Gender Recognition: The Legislative Assembly did not take steps to create a procedure allowing transgender persons to change their identity documents to reflect their gender, despite a 2022 Supreme Court ruling to do so by February.Involuntary or Coercive Medical or Psychological Practices: There were no reports of the practice of so-called conversion therapy targeting LGBTQI+ individuals in an attempt to change their sexual orientation, gender identity, or expression. There were no reports that medically unnecessary and irreversible “normalization” surgeries were performed on children or on nonconsenting adult intersex persons.Restrictions of Freedom of Expression, Association, or Peaceful Assembly: There were no restrictions on freedom of expression or association regarding LGBTQI+ matters.																																				Persons with Disabilities										The law prohibited discrimination against persons with physical, sensory, intellectual, and mental disabilities, but the government did not enforce the law. Persons with disabilities did not have access to education, health services, public buildings, or transportation on an equal basis with others. Persons with disabilities faced discrimination in employment and occupation. No formal system existed for filing a discrimination complaint based on disability.The National Council for Comprehensive Attention to Persons with Disability (CONAIPD), composed of representatives from multiple government entities, was the agency responsible for protecting the rights of persons with a disability, but it lacked enforcement power. According to a CONAIPD representative, the government did not effectively enforce legal requirements for access to buildings or information and communications for persons with disabilities. Few access ramps or provisions for the mobility of persons with disabilities existed.Disability advocates said children with disabilities faced access problems in school, including a lack of ramps and other accommodations. The government provided little support for schools to include accommodations, and there were few teachers trained to teach students with disabilities.Persons with disabilities also faced discrimination in the public health-care system. Disabilities rights groups reported that women with disabilities were often instructed by their doctors to use birth control to avoid having children, believing the women would bear children with disabilities.Persons with disabilities faced discrimination in employment and occupation. CONAIPD stated there was no mechanism to verify compliance with the law requiring businesses and nongovernment agencies to hire one person with disabilities for every 25 hires. CONAIPD reported employers frequently fired persons who acquired disabilities and would not consider persons with disabilities for work for which they were qualified. The Network of Survivors and Persons with Disabilities Foundation noted the Special Law on Inclusion of Persons with Disabilities was never implemented or enforced. The Association of Blind Women added that companies preferred to pay fines instead of employing workers with disabilities.																																				Other Societal Violence or Discrimination										The law prohibited discrimination based on HIV or AIDS status. As of August 11, the PDDH received three complaints of discrimination against persons with HIV or AIDS.																																					Section 7.													 Worker Rights												    																																																a. Freedom of Association and the Right to Collective Bargaining										The law provided for the right of most workers to form and join independent unions, in certain workplaces to bargain collectively, and after a lengthy regulated process, the right to strike. The government did not enforce these rights. Unions experienced lengthy delays in processing their credentials with the Ministry of Labor, some waiting nine months or longer. Without credentials, unions could not engage in collective bargaining or participate in tripartite entities that governed worker-related issues such as setting a minimum wage, health care, and housing. According to media reports and union representatives, the minister of labor rewarded unions loyal to him and his party with expedited credentials and punished unions critical of the government by delaying their certifications.The law prohibited antiunion discrimination, and workers were protected from firing or demotion for union organizing activity. If fired during this time, they could bring cases to court for reinstatement. Members of the military, judges, and high-level public officers could not form or join unions. Workers in private security firms could not form or join unions. The labor code did not cover public-sector workers and municipal workers, whose wages and terms of employment were regulated by law. Only citizens could serve on unions’ executive committees. The labor code also barred individuals from holding membership in more than one trade union. Unions had to meet certain requirements to register, including having a minimum of 35 members. If the Ministry of Labor denied registration, the law prohibited any attempt to organize for up to six months following the denial.Collective bargaining was strictly regulated. Unions representing fewer than 51 percent of the workers in an enterprise did not have the right to bargain, even on behalf of their own members. Provisions of the law allowed either party to a collective bargaining agreement, under some conditions, to seek to change its provisions after one year in force. Employees of most public institutions did not have the right to bargain collectively.The law contained cumbersome and complex procedures for conducting a legal strike. The law did not recognize the right to strike for public and municipal employees or for workers in essential services. The law did not specify which services met this definition, and courts therefore applied this provision on a case-by-case basis. The law required that 30 percent of all workers in an enterprise support a strike for it to be legal and that 51 percent support the strike before all workers were bound by the decision to strike. Unions could strike only to obtain or modify a collective bargaining agreement or to protect the common professional interests of the workers. Unions were required to engage in negotiation, mediation, and arbitration processes before striking, although many unions often skipped or expedited these steps. Workers at times engaged in strikes that did not meet legal requirements. The law provided no way for workers to appeal a government decision declaring a strike illegal.The government did not effectively enforce the laws on freedom of association and the right to collective bargaining, and penalties were less than those for other laws involving denials of civil rights, such as discrimination. Penalties were rarely applied against violators. Judicial procedures were subject to lengthy delays and appeals. According to union representatives, the government inconsistently enforced labor rights for a wide range of workers, and enforcement was dependent upon the political affiliations of their labor unions.Unions reported that their members sometimes faced violence or threats of violence and that viable legal recourse against such violence was unavailable. Public-sector union members reported public officials threatened to dismiss employees who made labor complaints.On January 10, three members of the union of municipal workers in Soyapango were arrested on charges of public disorder and resisting arrest during a demonstration in which they demanded payment of salary owed. The charges against them were provisionally dismissed in June.There were concerns the lowered standard of evidence required for an arrest under the state of exception allowed employers and municipal officials to retaliate against union members by alleging they were gang members. The human rights NGO Socorro Jurídico Humanitario reported 21 union members were arrested during the state of exception, 40 percent on charges of gang associations and 60 percent on charges of public disorder or resisting arrest. The NGO stated the individuals were arrested for their labor-related activities, but their cases were handled following the same procedures as other state-of-exception cases, as if the arrestees were members of illicit groups. The NGO further reported that as of August 16, 10 union members remained in pretrial detention.Although many unions were aligned with political parties, they functioned independently from the government and political parties.																																				b. Prohibition of Forced or Compulsory Labor										See the Department of State’s annual Trafficking in Persons Report at  https://www.state.gov/trafficking-in-persons-report/.																																				c. Prohibition of Child Labor and Minimum Age for Employment										See the Department of Labor’s Findings on the Worst Forms of Child Labor at  https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings/ .																																				d. Discrimination (see section 6)																																														e. Acceptable Conditions of Work										Wage and Hour Laws: The law provided for a minimum wage for all sectors, to be set by the government. The minimum wage varied by sector; all were above poverty income levels. The law set a maximum normal workweek of 44 hours – limited to no more than six days per week and to no more than eight hours per day – but allowed overtime, which was to be paid at double the usual hourly wage. The law mandated that full-time employees receive pay for an eight-hour day of rest in addition to the 44-hour normal workweek. The law prohibited compulsory overtime for all workers other than domestic employees, such as maids and gardeners, who were obligated to work on holidays if their employer made this request. In such cases, they were entitled to double pay.Occupational Safety and Health: The Ministry of Labor set and enforced occupational safety and health (OSH) standards, and the standards were appropriate for the main industries. The law established a tripartite committee to review the standards. The law required employers to take steps to meet OSH requirements in the workplace, including providing proper equipment and training and a violence-free environment. The law promoted occupational safety awareness, training, and worker participation in OSH matters.Workers could legally remove themselves from situations that endangered health or safety without jeopardy to their employment.Wage, Hour, and OSH Enforcement: The government did not adequately enforce wage, hour, or OSH laws. Penalties were less than those for similar crimes, such as fraud, and were rarely applied against violators. Some companies reportedly found it more cost-effective to pay fines than comply with the law. The Ministry of Labor was responsible for enforcing wage, hour, and OSH laws.The government trained inspectors on legal standards. The number of inspectors was insufficient to enforce compliance. Inspectors did not have the authority to initiate unannounced inspections or sanctions. Inspections were scheduled according to a calendar set by the Inspections Directorate or to verify a complaint, and labor inspectors notified companies prior to their arrival. Allegations of corruption among labor inspectors continued.The Ministry of Labor received complaints regarding failure to pay overtime, minimum wage violations, unpaid salaries, and the illegal withholding of benefits, including social security and pension funds. Reports of overtime and wage violations occurred in several sectors. According to the ministry, employers in the agricultural sector routinely violated the laws requiring annual bonuses, vacation days, and rest days. Women in domestic service faced exploitation, mistreatment, verbal abuse, threats, sexual harassment, and generally poor work conditions. Workers in the textile industry reportedly experienced violations of wage, hour, and safety laws.The informal sector represented almost 75 percent of the economy. The government did no enforce labor laws in this sector.																																				    							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Respect for the Integrity of the Person																																							a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																						b. Disappearance																																																						c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																				Prison and Detention Center Conditions																																																																																				d. Arbitrary Arrest or Detention																																																				Arrest Procedures and Treatment of Detainees																																																																																				e. Denial of Fair Public Trial																																																				Trial Procedures																																												Political Prisoners and Detainees																																																																																				f. Transnational Repression																																																						g. Property Seizure and Restitution																																																						h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																			Section 2. Respect for Civil Liberties																																							a. Freedom of Expression, Including for Members of the Press and Other Media																																																				Internet Freedom																																																																																				b. Freedoms of Peaceful Assembly and Association																																																						c. Freedom of Religion																																																						d. Freedom of Movement and the Right to Leave the Country																																																						e. Protection of Refugees																																																						f. Status and Treatment of Internally Displaced Persons (IDPs)																																																			Section 3. Freedom to Participate in the Political Process																																							Elections and Political Participation																																																			Section 4. Corruption in Government																Section 5. Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																Section 6. Discrimination and Societal Abuses																																							Women																																																						Systemic Racial or Ethnic Violence and Discrimination																																																						Indigenous Peoples																																																						Children																																																						Antisemitism																																																						Trafficking in Persons																																																						Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																						Persons with Disabilities																																																						Other Societal Violence or Discrimination																																																			Section 7. Worker Rights																																							a. Freedom of Association and the Right to Collective Bargaining																																																						b. Prohibition of Forced or Compulsory Labor																																																						c. Prohibition of Child Labor and Minimum Age for Employment																																																						d. Discrimination (see section 6)																																																						e. Acceptable Conditions of Work																																																									Tags																					Bureau of Democracy, Human Rights, and Labor																								Bureau of Western Hemisphere Affairs																								El Salvador
- Secretary Blinken’s Call with President-elect Nayib Bukele of El Salvador HomeOffice of the SpokespersonPress Releases&#8230;Secretary Blinken’s Call with President-elect Nayib Bukele of El Salvador				hide		if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}																										Secretary Blinken’s Call with President-elect Nayib Bukele of El Salvador																																		Readout																														February 8, 2024																																							The following is attributable to Spokesperson Matthew Miller:Secretary of State Antony J. Blinken spoke today with El Salvador’s President-elect Nayib Bukele. The Secretary congratulated President-elect Bukele on his February 4 electoral victory. The Secretary reiterated his commitment to prioritizing good governance, inclusive economic prosperity, fair trial guarantees, and human rights under the United States’ Root Causes Strategy.Secretary Blinken also reaffirmed shared values and longstanding friendship with the people of El Salvador.						Tags																					Bureau of Western Hemisphere Affairs																								El Salvador																								Office of the Spokesperson																								The Secretary of State
- Congratulations to El Salvador’s President-Elect Nayib Bukele Antony J. Blinken, Secretary of StateI congratulate Nayib Bukele on his electoral victory as President of El Salvador.&nbsp; The United States commends the work of electoral observers and looks forward to working with President-elect Bukele and Vice President-elect Felix Ulloa following their inauguration in June.&nbsp;&nbsp;The United States values our strong relationship with the people of El Salvador, forged over 160 years and built on shared values, regional ties, and family connections.&nbsp; Events in El Salvador have a direct impact on U.S. interests at home and abroad.&nbsp; Only by working together can we achieve our full potential and overcome the greatest obstacles in our hemisphere and globally.Looking ahead, the United States will continue to prioritize good governance, inclusive economic prosperity, fair trial guarantees, and human rights in El Salvador under our Root Causes Strategy.						Tags																					Bureau of Western Hemisphere Affairs																								El Salvador																								Office of the Spokesperson																								The Secretary of State
- Welcome Corps:  First Year of Refugee Private Sponsorship a Big Success Lenore T. AdkinsWhen Edwige* left Cameroon seeking refuge and political freedom, she resettled in the United States.Now, through Welcome Corps, a U.S. Department of State program, she and six other members of Boston’s Mission Maranatha church have formed a private sponsor group that is helping Ibrahim*, a newly arrived refugee from Somalia adjust to life in the United States. “Because of my faith, I believe that we should share the love of Christ in practical ways, not just preach to people, but demonstrate the love of God by doing good deeds, by helping our neighbor,” Edwige says in a Welcome Corps story video interview. Edwige, a former refugee herself, pays it forward by helping another refugee in Boston through Welcome Corps. Photo Courtesy: Welcome Corps / Axie BreenWelcome Corps empowers everyday Americans to sponsor refugees. In groups of five or more adults, Americans form sponsor groups to help refugees build new lives in the United States. This involves greeting refugees at the airport, securing and preparing initial housing, enrolling children in school, helping adults secure jobs, and helping them settle into their new communities. A consortium of nonprofit organizations specializing in resettling refugees has partnered with the Department to implement the program and support sponsors. The consortium, led by the Community Sponsorship Hub, includes Church World Service, the International Rescue Committee, International Refugee Assistance Project (IRAP), Integrated Refugee &amp; Immigrant Services (IRIS), HIAS, and Welcome.US. Beyond the consortium, dozens of community organizations have signed up to serve as private sponsor organizations (PSOs), providing technical expertise and support to sponsor groups as they carry out core services for refugees once they arrive in the United States.As a member of the consortium, IRIS provides support to sponsor groups throughout the application process. But IRIS also serves as a PSO, and in that role, they have supported the Mission Maranatha sponsor group with additional training, answering questions about local benefits for refugees, and how they can best deliver on their core responsibilities.“We’re basically here to provide resources to help them through ... any kind of little challenges that they might come across,” said IRIS Welcome Corps Coach Cindy Dunn. Fleeing war and violence in Somalia, Ibrahim landed in South Africa. In 2013, he moved to a refugee camp and three years later, he was admitted into a resettlement program. After Welcome Corps launched in 2023, Ibrahim resettled in the United States, with help from a private sponsor group.  Ibrahim, center, shares a moment with Ann O’Brien, director of sponsorship at IRIS, at left and Dr. Simone Bamba, pastor of Mission Maranatha church in Boston. Photo Courtesy: Welcome Corps / Axie Breen“Every time, I used to dream of coming to the U.S.,” he said in the video. “Today, my dream came true.” In the year since the State Department launched Welcome Corps, more than 15,000 American sponsors have applied to receive more than 7,000 refugees through Welcome Corps, exceeding the Department’s first year mobilization goal. Included in that milestone are more than 100 private sponsor groups from 32 states that have signed up to be matched with refugees they did not know from around the world. Under the U.S. Refugee Admissions Program, these refugees, from around the world, were already being considered for U.S. resettlement.Welcome Corps is one of the ways the Department is expanding domestic resettlement capacity and reaching the Administration’s target of admitting up to 125,000 refugees in fiscal year 2024. In the first year of the program, sponsors have welcomed nearly 100 refugees from various countries including Cuba, Ethiopia, El Salvador, Venezuela, and Syria. They settled in several states, including Arizona, Massachusetts, Illinois, and Texas. Last summer, the program added the Welcome Corps on Campus program, which helps qualifying refugee students pursue higher education in the United States, while private sponsor groups within their new college or university forming to support them. Nineteen universities have applied to welcome 35 refugee students for the fall 2024 semester.Welcome Corps recently expanded to let private sponsor groups refer refugees they know for consideration under the U.S. Refugee Admission Program. This marked the first time Americans have been allowed to refer specific refugees for resettlement. Willy Buhendwa Muhigirwa leads the Association for Congolese in Austin (ACA), a 12-member group that is supporting a Venezuelan refugee family, their way of giving back to a country that welcomed them. He pointed out that there are millions of refugees who have been displaced in many countries, including his own, due to war. They have no shelter, no water, no electricity, no food, no hope and are desperate.“We thought this was a good opportunity to change other people’s lives,” he said. “Some of us came here as refugees and understand the advantage of being helped.” ACA is helping Ronald*, his wife, Yoliana*, and their baby daughter Romina*. They arrived in the United States about a week before Christmas in 2023, and the group has helped them secure housing and register for English classes, furnishing their apartment before they move in, and finding employment for them.“We&#8217;ve had everything we&#8217;ve needed for living, for eating,” Ronald said. “ care and attention dedicated to our child, that group is always looking after her and after our needs to be met at every point.”*DipNote used first names to protect people’s privacy. About the Author:  Lenore T. Adkins is a public affairs specialist in the Bureau of Global Public Affairs and also produces The Week At State newsletter.
- New Listings Under the Section 353 Corrupt and Undemocratic Actors Report Matthew Miller, Department SpokespersonThe United States today announced new listings of four Nicaraguan, four Guatemalan, three Honduran, and three Salvadoran individuals under the Section 353 Corrupt and Undemocratic Actors report.&nbsp;This report, published in the Federal Register, identifies individuals who have knowingly undermined democratic processes or institutions, engaged in significant corruption, or obstructed investigations into such acts of corruption in Guatemala, Honduras, Nicaragua, and El Salvador.&nbsp; Consistent with Section 353 of the United States–Northern Triangle Enhanced Engagement Act, as amended, persons on the list are generally ineligible for visas and admission to the United States.&nbsp;&nbsp;&nbsp;Promoting strong democratic governance in the region is a priority under the Administration’s Root Causes Strategy.&nbsp; Corruption and other practices that undermine democracy in Central America lead to instability and drive irregular migration.&nbsp;&nbsp;In El Salvador, Honduras, Guatemala, and Nicaragua, we work to promote, preserve, and restore democratic norms to build a more resilient, equitable, and prosperous hemisphere.&nbsp; We do this by tapping into a diverse set of accountability tools.&nbsp;We call on all government leaders, civil society, journalists, the private sector, and the international community to join us in strengthening democratic governance and ending corruption.The Secretary of State transmitted this report to Congress under Section 353 of the United States–Northern Triangle Enhanced Engagement Act, as amended. This report can be found on the Department&#8217;s Section 353 Report website.						Tags																																											Anti-Corruption and Transparency																															Bureau of Democracy, Human Rights, and Labor																								Bureau of Western Hemisphere Affairs																																Corruption																																							Democracy																															El Salvador																								Guatemala																								Honduras																								Nicaragua																								Office of the Spokesperson
- Assistant Secretary Nichols’ Travel to Guatemala and El Salvador Office of the SpokespersonAssistant Secretary for Western Hemisphere Affairs Brian A. Nichols will travel to Guatemala and El Salvador from October 23-27, 2023.In Guatemala, the Assistant Secretary will meet with President-elect Bernardo Arévalo and Foreign Minister Mario Búcaro to discuss the presidential transition process. Specifically, Assistant Secretary Nichols will discuss the need to ensure a peaceful democratic transition in January and prioritize dialogue among all actors as a means to resolving the country’s political crisis. He will also discuss continued efforts to collaborate on migration management.During his visit to Guatemala, the Assistant Secretary will engage with leaders of Indigenous communities, private sector representatives, and human rights defenders to discuss the importance of their voices in the political process. These conversations will also focus on inclusive economic prosperity and the investment climate in Guatemala. Across all meetings, the Assistant Secretary will emphasize the United States’ ongoing commitment to the Guatemalan people and interest in partnering to advance security, prosperity, and rule of law.In El Salvador, Assistant Secretary Nichols will meet with President Nayib Bukele and other Salvadoran officials to discuss inclusive economic prosperity, the rule of law, human rights, migration cooperation and security. The Assistant Secretary will visit the Human Rights Institute at the University of Central America. He will also meet with business leaders to discuss economic growth and the investment climate in El Salvador.Assistant Secretary Nichols’ visits to Guatemala and El Salvador demonstrate the United States’ steadfast commitment to promoting democracy, inclusive economic prosperity, collaborative migration management, and the protection of human rights in the region.						Tags																					Bureau of Western Hemisphere Affairs																								El Salvador																								Guatemala																								Office of the Spokesperson																																Official International Travel
- El Salvador National Day Antony J. Blinken, Secretary of StateOn behalf of the United States of America, I convey my heartfelt congratulations to the people of El Salvador as they celebrate their Independence Day.This year marks the 202nd anniversary of El Salvador’s independence.  On this special occasion, I am reminded of the family ties that bind our peoples together so closely, and of the important relationship between our governments.  We appreciate this opportunity to renew our bonds of friendship and cooperation based on mutual respect and shared values.I send my best wishes to the people of El Salvador this and every September 15.
- Secretary Blinken’s Meeting with El Salvador’s Foreign Minister Hill Office of the SpokespersonThe following is attributable to Spokesperson Matthew Miller:Secretary of State Antony J. Blinken met today with Salvadoran Foreign Minister Alexandra Hill Tinoco to address key priorities in the U.S.-El Salvador bilateral relationship and a range of regional issues.Secretary Blinken and Foreign Minister Hill discussed security challenges in El Salvador and joint efforts to promote economic prosperity. The Secretary reaffirmed that the United States would continue to work with El Salvador to address important challenges, including managing migration, promoting good governance, protecting due process, and respecting human rights.
- Secretary Blinken and Salvadoran Foreign Minister Alexandra Hill Tinoco Before Their Meeting Antony J. Blinken, Secretary of StateSECRETARY BLINKEN:  Well, good afternoon, everyone.  It’s a great pleasure to have Foreign Minister Hill here at the State Department.  We’ve been working together from the very start of my tenure in this job and seen each other on many different occasions throughout our hemisphere, but I’m particularly glad to have Alex here today at the State Department.El Salvador, the United States, we’re profoundly connected.  Our economies are connected, our people are connected, and we in the United States have a real stake in the success of El Salvador.  I’m looking forward to a conversation about ways we can find to deepen our cooperation on many issues that bring us together, including managing migration, dealing with counternarcotics, building inclusive economic growth, good governance, and we’re animated, I hope, by the values that join us as well.So Alex, it’s great to have you here.FOREIGN MINISTER HILL:  Thank you.  Thank you, Secretary.  It is a deep, deep honor to be here with you.  As you said, we’ve been working together since the beginning.  We share values, we share hopes, we share the better for our people – we want the best for our people.  The United States is crucial for us; 90 percent of our diaspora lives here.El Salvador since June of 2019 is not the same.  We can breathe security.  Our president has put and – become co-responsible of illegal migration, and we have been working deeply, 24/7, on issues such as security and job opportunity.  And you’re our greatest partners, and I am just delightful to be here, because as we share – our quote – everyone deserves to be at the land where they were born.  So we’ve been – we’re going to continue working with the United States on security issues, on illegal, irregular migration, finding legal ways for Salvadorans to get here, and most importantly, as President Bukele said, partnerships – deepen our partnerships and our investment opportunities for both of our peoples.So thank you so much, Tony.  Thank you for having me here.SECRETARY BLINKEN:  Thanks.  Come on back.FOREIGN MINISTER HILL:  It’s a blessing.  Thank you.SECRETARY BLINKEN:  Thanks, everyone.
- El Salvador HomeReportsBureau of Economic and Business Affairs2023 Investment Climate Statements&#8230;El Salvador				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Investment Climate Statements: El Salvador																																																																																												 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															1. Openness To, and Restrictions Upon, Foreign Investment																																																									Policies Toward Foreign Direct Investment																																																																											Limits on Foreign Control and Right to Private Ownership and Establishment																																																																											Other Investment Policy Reviews																																																																											Business Facilitation																																																																											Business Registration																																																																											Outward Investment																																																																																	2. Bilateral Investment Agreements and Taxation Treaties																															3. Legal Regime																																																									Transparency of the Regulatory System																																																																											International Regulatory Considerations																																																																											Legal System and Judicial Independence																																																																											Laws and Regulations on Foreign Direct Investment																																																																											Competition and Anti-Trust Laws																																																																											Expropriation and Compensation																																																																											Dispute Settlement																																																																			ICSID Convention and New York Convention																																																								Investor-State Dispute Settlement																																																								International Commercial Arbitration and Foreign Courts																																																																																																																		Bankruptcy Regulations																																																																																	4. Industrial Policies																																																									Investment Incentives																																																																											Foreign Trade Zones/Free Ports/Trade Facilitation																																																																											Performance and Data Localization Requirements																																																																																	5. Protection of Property Rights																																																									Real Property																																																																											Intellectual Property Rights																																																																																	6. Financial Sector																																																									Capital Markets and Portfolio Investment																																																																											Money and Banking System																																																																											Foreign Exchange and Remittances																																																																			Foreign Exchange																																																								Remittance Policies																																																																																																																		Sovereign Wealth Funds																																																																																	7. State-Owned Enterprises																																																									Privatization Program																																																																																	8. Responsible Business Conduct																																																									Additional Resources																																																																											Climate Issues																																																																																	9. Corruption																															10. Political and Security Environment																															11. Labor Policies and Practices																															12. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance Programs or Development Finance Programs																															13. Foreign Direct Investment and Foreign Portfolio Investment Statistics																															14. Contact for More Information																																																					EXECUTIVE SUMMARY				El Salvador’s location, preferential trade terms under the Central American Dominican Republic Free Trade Agreement (CAFTA-DR), use of the U.S. dollar as legal tender, and recent improvements in the business environment are strengths as an investment destination. Significant levels of sovereign debt, the legacy of decades of gang violence and a lack of transparency in rulemaking are weaknesses.GDP rebounded strongly from the pandemic to 11.2 percent growth in 2021. The economy grew 2.6 percent in 2022. The IMF forecasts real GDP will grow 2.4 percent in 2023.Public debt is on an unsustainable path and creates uncertainty about El Salvador’s ability to honor its future commitments. El Salvador has engaged in negotiations with the International Monetary Fund (IMF) on a new lending agreement but to date those discussions are at an impasse.For the last thirty years, El Salvador has lagged its regional peers in attracting foreign direct investment (FDI). This is attributed in part to widespread, gang-related crime and extortion. In March 2022, the Government of El Salvador (GOES) initiated a State of Exception (SOE) that suspended certain constitutional rights. The subsequent arrest of over 67,000 alleged gang members has significantly reduced gang-related activity. The implementation of the SOE has raised concerns about the rule of law and human rights of prisoners. Nonetheless, the SOE enjoys broad public support and is contributing to improved consumer confidence and optimism about economic conditions. Domestic companies and the Salvadoran diaspora have increased investment because of the safer environment, mainly in tourism, construction, wholesale, and retail sectors. Security improvements have not yet translated into significant new FDI. How the government will wind down the SOE and restore constitutional rights is not clear at this time.In 2021 El Salvador became the first country in the world to adopt Bitcoin as legal tender (alongside the U.S. dollar). This brought significant publicity to El Salvador and has contributed to El Salvador’s increasing popularity as a tourist destination but has otherwise had minimal impact on the Salvadoran economy. Few Salvadorans use Bitcoin. Low levels of adoption have mitigated potential risks associated with Bitcoin. The IMF has recommended that El Salvador remove Bitcoin’s status as legal tender. El Salvador also enacted a Digital Assets Issuance Law that would allow the government to issue a sovereign blockchain-based digital asset and establishes a framework to regulate issuers of digital assets and digital assets services providers.  The implications of the legislation will depend on implementing regulations still under development.Sectors with the largest investment are textiles and retail establishments. Investment in energy has increased in the last five years. The Bukele administration has planned several large infrastructure projects which could provide opportunities for U.S. companies. Project proposals include enhancing road connectivity and logistics, expanding airport capacity, and improving access to water and energy, as well as sanitation. Given limited fiscal capacity for public investment, the GOES seeks to use Public-Private Partnerships (PPPs) for infrastructure projects.A small country with no Atlantic coast, El Salvador relies on trade. The United States is El Salvador’s top trading partner. Proximity to the U.S. market is a competitive advantage. As most Salvadoran exports travel by land to Guatemalan and Honduran ports, regional integration is crucial for competitiveness. In 2018, El Salvador officially joined the Customs Union between Guatemala and Honduras. Progress on completing the Customs Union between the three countries has been slow, with differences existing on customs procedures, sanitary and phytosanitary standards, standards, quota management, and intellectual property rights. Senior GOES officials have expressed a strong desire to resolve all outstanding issues and expeditiously complete the full Customs Union. Completing the full implementation of the Customs Union would enhance El Salvador’s attractiveness as an investment destination.The Bukele administration has attempted to reduce cumbersome bureaucracy. In 2019, the GOES relaunched the National Trade Facilitation Committee (NTFC). The NTFC has produced three jointly developed private-public action plans to reduce trade barriers, with measures focused on simplifying procedures, reducing trade costs, and improving connectivity and border infrastructure. The NTFC reported the implementation of 26 (out of 29) measures of its 2022 action plan.In March 2023, the Ministry of Economy and the Secretariat of Commerce and Investment launched the first-ever trade facilitation strategy to attract investment and create jobs. The five-year strategy developed by the NTFC aims to digitize procedures, modernize the trade-related legal framework, improve logistical infrastructure, and coordinate border management to enhance competitiveness. The GOES intends to invest $140 million to implement the strategy.On April 19, 2023, the National Assembly passed the “Law for the Promotion of Innovation and Manufacture of Technology.” The law grants a 15-year exemption from income and capital gains taxes, municipal taxes on company net assets, and duties and taxes on imports of raw materials, machinery, equipment, and tools needed for new technology-related investments. Qualifying activities include software programming, cloud development services, big data analytics, distributed ledger technology, artificial intelligence, and cybersecurity solutions, as well as the manufacture and assembly of hardware for technology equipment, semiconductors, robotic parts, nanotechnology, and drones.  Companies with existing investments in El Salvador are not eligible for the new tax breaks, but existing companies can create new corporate entities for new investment and will be eligible. Companies already benefitting from special tax regimes under the International Services Law and the Free Trade Zone Law are not eligible for the new tax breaks.  President Bukele signed the bill into law on May 4, 2023.The principal complaint of businesses is that laws are passed and implemented quickly without meaningful, formalized consultation or assessing the impact on the business climate. The Legislative Assembly is not required to publish draft legislation and opportunities for public engagement are limited. Salvadoran law provides for greater opportunity for businesses to consult on implementing regulations, but businesses also complain that opportunities are infrequent for genuine two-way dialogue on the potential impact of regulations.Table 1: Key Metrics and RankingsMeasureYearIndex/RankWebsite AddressTI Corruption Perceptions Index2022116 of 180 https://www.transparency.org/en/countries/el-salvador Global Innovation Index2022100 of 132 https://www.globalinnovationindex.org/analysis-indicator U.S. FDI in partner country ($M USD, stock positions)20213,690 https://apps.bea.gov/international/factsheet/factsheet.html#209 World Bank GNI per capita20214,260 http://data.worldbank.org/indicator/NY.GNP.PCAP.CD 																																					1. Openness To, and Restrictions Upon, Foreign Investment						    																																																Policies Toward Foreign Direct Investment										The GOES recognizes the benefits of attracting FDI. El Salvador does not have laws or practices that discriminate against foreign investors, nor does the GOES screen or prohibit FDI. However, FDI levels are among the lowest in Central America. The Central Bank reported net annual FDI inflows of $223.2 million, or roughly 1 percent of GDP, at the end of September 2022. As of Spring 2023, the GOES has prioritized seeking to create a more attractive investment climate for international companies.The Exports and Investment Promotion Agency of El Salvador (PROESA) supports investment in seven main sectors: textiles, apparel, and light manufacturing; Bitcoin, digital technologies, and business services; tourism; aeronautics; agro-industry; energy and sciences (medical devices, biotechnology, and pharmaceuticals). PROESA provides information for potential investors about applicable laws, regulations, procedures, and available incentives for doing business in El Salvador. Websites:  https://investelsalvador.com/  and  https://proesa.gob.sv//servicios/servicios-al-inversionista/ .The National Association of Private Enterprise (ANEP) is El Salvador’s umbrella business chamber, with 50 member chambers and organizations across 55 economic subsectors and 15,000 member companies, of which 97 percent are SMEs. Website: http://www.anep.org.sv/.In 2019, the Bukele administration created the Secretariat of Commerce and Investment, a position within the President’s Office responsible for the formulation of trade and investment policies, as well as overall coordination of the Economic Cabinet. In addition, the Bukele administration created the Presidential Commission for Strategic Projects to lead the GOES’ major infrastructure projects. On February 21, 2023, the GOES created the Construction Procedures Directorate, an office within the President’s Office that will act as central point for processing permits and authorizations for all construction projects. The directorate will manage a centralized digital platform for construction processes.																																				Limits on Foreign Control and Right to Private Ownership and Establishment										Foreign citizens and private companies can freely establish businesses in El Salvador.No single natural or legal person – whether national or foreign – can own more than 245 hectares (605 acres) of land. The Salvadoran Constitution stipulates there is no restriction on foreign ownership of rural land in El Salvador except in cases where Salvadoran nationals face ownership restrictions in the corresponding country. Rural land to be used for industrial purposes is not subject to this reciprocity requirement.The Investments Law grants equal treatment to foreign and domestic investors. Apart from limitations imposed on micro businesses, which are defined as having 10 or fewer employees and yearly sales of $175,930 or less, foreign investors may freely establish any type of domestic business. Investors who begin operations with 10 or fewer employees must present plans to increase employment to the Ministry of Economy’s National Investment Office.The Investment Law provides that extractive resources are the exclusive property of the state. The GOES may grant private concessions for resource extraction, though concessions are infrequently granted. Metal mining is prohibited in El Salvador.																																				Other Investment Policy Reviews										El Salvador has been a World Trade Organization (WTO) member since 1995. The latest trade policy review performed by the WTO was completed on April 20, 2023.  https://www.wto.org/english/tratop_e/tpr_e/tp540_crc_e.htm .The latest investment policy review performed by the United Nations Conference on Trade and Development (UNCTAD) was in 2010:  http://unctad.org/en/Docs/diaepcb200920_en.pdf A September 2021 report on foreign direct investment in El Salvador authored by the Salvadoran Foundation for Economic and Social Development (FUSADES) highlighted that investment attraction continues to be constrained by the lack of a comprehensive development and competitiveness strategy, poor coordination among government agencies on investment issues, including promotion and aftercare, and institutional capacity limitations. The analysis also notes that stabilizing public finances would contribute to supporting capital flows to El Salvador. Moreover, FUSADES latest position paper on private investment published in May 2022 notes that not having an investment attraction strategy prevents El Salvador from taking advantage of nearshoring to join global supply chains and diversify its productive structure, as well as expand access to technology and innovation. The paper proposes drafting a mid-term strategy focused on nearshoring that prioritizes sectors with potential to expand exports and create jobs, adoption of regulations to continue simplifying and digitizing procedures, implementation of labor flexibility, and jointly working with the private sector and academia in the creation workforce development programs. As of April 2023, the GOES is reportedly working on such a strategy.																																				Business Facilitation										El Salvador has various laws that promote and protect investments, as well as providing benefits to local and foreign investors. These include: the Investments Law, the International Services Law; the Free Trade Zones Law; the Tourism Law, the Renewable Energy Incentives Law; the Law on Public Private Partnerships; the Special Law for Streamlining Procedures for the Promotion of Construction Projects; and the Legal Stability Law for Investments.																																				Business Registration										El Salvador launched an online business registration portal in 2017 designed as a one-stop shop for registering new companies. The online portal allows new businesses the ability to formalize registration within three days and conduct administrative operations online, including payment for services. The portal ( https://miempresa.gob.sv/ ) is available to all, though services are available only in Spanish.The Investment Directorate has launched a new online platform that allows companies to register their investments and apply for tax incentives granted by the International Services Law, the Free Trade Zone Law and the Law for the Promotion of Innovation and Manufacture of Technology.  The portal is still under construction, but investors can submit their applications using this link: . https://inversionista.economia.gob.sv/login The Ministry of Economy Investment Directorate caters to entrepreneurs and investors. The office has two divisions: “Growing Your Business” (Crecemos Tu Empresa) and the National Investment Office (Oficina Nacional de Inversiones, ONI). “Growing Your Businesses” provides business advice, especially for micro-, small- and medium-sized enterprises. The ONI administers investment incentives and facilitates business registration.Contact information:Investment DirectorateTelephone: +503 2590-5107Address: Boulevard Del Hipódromo, Colonia San Benito, Century Tower, 7th Floor, San Salvador. Schedule: Monday-Friday, 7:30 a.m. – 3:30 p.m.Crecemos Tu EmpresaE-mail: crecemostuempresa@economia.gob.sv https://www.economia.gob.sv/ The National Investment Office:Clarissa Valdebran Sanchez, Director of Investments, cvaldebran@economia.gob.svChristel Schulz, Business Climate Deputy, cdearce@economia@gob.svLaura Rosales de Valiente, Deputy Director of Investment Facilitation, lrosales@economia.gob.svSandra Llirina Sagastume, Deputy Director of Special Investments, llirina.sagastume@economia.gob.svTelephone: +503 2590-5116.The Directorate of Innovation and Competitiveness at the Ministry of Economy focuses on three areas: strengthening supply chains to enhance competitiveness and innovation, capacity building, and digital transformation.  https://www.economia.gob.sv/guia-de-programas/ The Productive Development Fund (FONDEPRO) provides grants to small enterprises to strengthen competitiveness. http://edigital.economia.gob.sv/ The National Commission for Micro and Small Businesses (CONAMYPE) supports micro and small businesses by providing training, technical assistance, financing, venture capital, and loan guarantee programs. CONAMYPE also provides assistance on market access and export promotion, marketing, business registration, and the promotion of business ventures led by women and youth. https://www.conamype.gob.sv/ The Micro and Small Businesses Promotion Law defines a microenterprise as a natural or legal person with annual gross sales up to 482 minimum monthly wages, equivalent to $175,930 and up to ten workers. A small business is defined as a natural or legal person with annual gross sales between 482 minimum monthly wages ($175,930) and 4,817 minimum monthly wages ($1,758,205) and up to 50 employees. To facilitate credit to small businesses, Salvadoran law allows for inventories, receivables, intellectual property rights, consumables, or any good with economic value to be used as collateral for loans.El Salvador provides equitable treatment for women and under-represented minorities. The GOES does not provide targeted assistance to under-represented minorities. CONAMYPE provides specialized counseling to female entrepreneurs and women-owned small businesses.																																				Outward Investment										While the government encourages Salvadoran investors to invest in El Salvador, it neither promotes nor restricts investment abroad.																																												2. Bilateral Investment Agreements and Taxation Treaties						    																						El Salvador has bilateral investment treaties in force with Argentina, Belize, BLEU (Belgium-Luxembourg Economic Union), Chile, the Czech Republic, Finland, France, Germany, Israel, Republic of Korea, Morocco, the Netherlands, Paraguay, Peru, Spain, Switzerland, the United Kingdom, and Uruguay. El Salvador is one of the five Central American Common Market countries that have an investment treaty among themselves. El Salvador and Canada began negotiations on a bilateral investment treaty in 2022.The CAFTA-DR entered into force in 2006 between the United States and El Salvador. CAFTA-DR’s investment chapter provides protection to most categories of investment, including enterprises, debt, concessions, contract, and intellectual property. Under this agreement, U.S. investors enjoy the right to establish, acquire, and operate investments in El Salvador on an equal footing with local investors. Among the rights afforded to U.S. investors are due process protections and the right to receive a fair market value for property in the event of expropriation. Investor rights are protected under CAFTA-DR by an effective, impartial procedure for dispute settlement that is transparent and open to the public.El Salvador also has free trade agreements (FTAs) with Mexico, Chile, Panama, and Colombia.In January 2020, the South Korea-Central America FTA became effective. This FTA includes investment provisions. El Salvador’s FTAs with Mexico, Chile, Dominican Republic, Colombia, and Panama also include investment provisions. The Salvadoran government signed a Partial Scope Agreement (PSA) with Cuba in 2011 and an additional Protocol to the PSA in October 2018. El Salvador and Bolivia signed a PSA in November 2018 that is pending ratification in the Legislative Assembly. A PSA with Ecuador entered into force in 2017.El Salvador, along with Costa Rica, Guatemala, Honduras, Nicaragua, and Panama, signed an Association Agreement with the European Union that establishes a Free Trade Area. The agreement entered into force with El Salvador in 2013. On March 1, 2022, El Salvador ratified the Protocol to the Association Agreement to take account of the accession of the Republic of Croatia to the European Union. The United Kingdom-Central America Association Agreement entered into force in January 2021. The agreement ensures continuity of commercial ties following Brexit and provides a framework for cooperation and investment.In November 2022, El Salvador announced the termination of its FTA with Taiwan and an intent to launch FTA negotiations with the People’s Republic of China (PRC).El Salvador does not have a bilateral taxation treaty with the United States. El Salvador has one tax agreement, with Spain, in effect since 2008.El Salvador is a signatory of the Central American Mutual Assistance and Technical Cooperation Agreement in Tax and Customs Matters in force since 2012. El Salvador ratified the OECD  Multilateral Convention on Mutual Administrative Assistance in Tax Matters  in effect since June 2019. The jurisdictions participating in the Convention can be found at:  www.oecd.org/ctp/exchange-of-tax-information/Status_of_convention.pdf El Salvador became a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2011. The OECD published El Salvador’s Second Round peer review report Phase 1 on April 12, 2022. The report concluded that El Salvador has the legal and regulatory framework in place to ensure availability of legal ownership, accounting, and banking information, but improvements are needed regarding the availability of beneficial ownership information and access to information held by banks and related notification requirements. An overall rating will be issued once Phase 2 review is completed.El Salvador is not a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting.In November 2020, El Salvador eliminated the Security Special Contribution on Large Taxpayers (CESC). Enacted in 2015, the CESC levied a five-percent tax on companies whose net income exceeded $500,000 to finance security measures, including the GOES’ Plan Control Territorial (Territorial Control Plan).In May 2019, the legislature also approved an Authentic Interpretation of the Income Tax Law to clarify that energy distributors may deduct energy losses from the income tax, as energy losses are an unavoidable cost of distribution.  Prior to the authentic interpretation, tax authorities repeatedly imposed back taxes, interest, and penalties for improper deductions. Companies successfully challenged most of the tax assessments but had incurred legal costs and increased financial exposure.																																		3. Legal Regime						    																																																Transparency of the Regulatory System										The laws and regulations of El Salvador are relatively transparent and generally foster competition, but government accountability has weakened in recent years. Legal, regulatory, and accounting systems are transparent and consistent with international norms. However, the discretionary application of rules can complicate routine transactions, such as customs clearances and permitting applications. Regulatory agencies are often understaffed and inexperienced in dealing with complex issues. New foreign investors should review the regulatory environment carefully. In addition to applicable national laws and regulations, localities may impose permitting requirements on investors.Environmental, social and governance (ESG) disclosures are not mandatory in El Salvador. ESG strategies and reporting are still in initial stages. International corporations operating in El Salvador are implementing ESG standards and reporting, and local businesses are beginning to incorporate sustainability practices into their business operations, models, and strategies. The financial services industry is introducing ESG factors into investment portfolios and strategies. In June 2021, the Stock Exchange issued guidelines for the issuance of sustainability-linked bonds and announced dedicated listing segments for thematic bonds (green, social, and sustainable bonds). In June 2022, a private bank issued the first sustainable thematic bonds in El Salvador, raising $20 million to finance green and social projects of small and medium-sized companies, primarily women-led and youth-led businesses.Companies note the GOES has enacted laws and regulations without adhering to established notice and comment procedures.TheRegulatory Improvement Law, which entered into force in 2019, requires GOES agencies to publish a regulatory agenda listing laws and regulations they plan to approve, reform, or repeal each year. Institutions cannot adopt or modify regulations and laws not included in that list. Full implementation of this law, to include municipalities, will take effect in 2023. Prior to adopting or amending laws or regulations, the Simplified Administrative Procedures Law requires the GOES to perform a Regulatory Impact Analysis (RIA) based on a standardized methodology. Proposed legislation and regulations, as well as RIAs, must be made available for public comment for a 15-day period. However, not all government entities comply with the mandated notice and comment period. The Legislative Assembly is not required to publish draft legislation, nor does it solicit comments on pending legislation. The GOES does not yet require the use of a centralized online portal to publish regulatory actions. In 2022, 14 ministries (out of 16), 53 autonomous entities (out of 71) and the Judiciary drafted and published their regulatory agendas. GOES agencies performed only eight RIAs prior to approving new legislation. Although the implications of the reforms are still not apparent, private sector stakeholders have expressed support for the measures.El Salvador continues developing the National Procedures Registry, an online platform listing all investment and trade-related procedures and requirements. The registry aims to increase transparency and legal certainty, as only registered procedures and requirements will be enforceable. Procedures and requirements of central government agencies will be registered in 2022, autonomous institutions and state-owned companies in 2023, and municipalities in 2024. In 2022, ten ministries and 3 autonomous entities registered their procedures and requirements. Registered procedures can be consulted at:  https://omr.gob.sv/category/rnt/ El Salvador began implementing the Simplified Administrative Procedures Law in February 2019. This law seeks to streamline and consolidate administrative processes among GOES entities to facilitate investment. Implementation of the Electronic Signature Law to facilitate e-commerce and trade began in 2021. Companies interested in providing digital certification services and electronic document storage services must be licensed. Four companies are licensed to provide digital certification services. There are no licensed electronic document storage providers. Only 22 government agencies have implemented electronic signature; those include the Ministries of Economy, Finance, and Environment and Natural Resources; the National Directorate of Medicines, the National Registry Center, the Planning Office of the Metropolitan Area of San Salvador, and the Attorney General’s Office. In 2021, El Salvador enacted the Electronic Commerce Law, which establishes the framework for commercial and financial activities, contractual or not, carried out by electronic and digital means, introduces fair and equitable standards to protect consumers and providers, and sets processes to minimize risks arising from the use of new technologies. The law aims to support rapidly growing online businesses and financial technology (FinTech).In 2018, El Salvador enacted the Law on the Elimination of Bureaucratic Barriers, which created a specialized tribunal to verify that regulations and procedures are implemented in compliance with the law and to sanction public officials who impose administrative requirements not contemplated in the law. However, the law is still pending implementation until the GOES appoints members of the tribunal.The GOES controls the price of some goods and services, including electricity, liquid propane gas, gasoline, public transport fares, and medicines. The government also directly subsidizes water services and residential electricity rates. In 2022, El Salvador reinstated a subsidy paid directly to propane gas bottling companies as part of a series of measures to mitigate the impact of the sharp increase in fuel prices stemming from the Russia-Ukraine war. The subsidy will expire on May 31, 2023, if not further extended. Electricity price is set by supply and demand and traded on a spot market. The market also operates with Power Purchase Agreements (PPAs) and long-term contracts. The GOES took over some private buses and routes in March 2022 in an effort to confront rising inflation, which critics said violated the Constitution.The Superintendent of Electricity and Telecommunications (SIGET) oversees electricity rates, telecommunications, and distribution of electromagnetic frequencies. The Salvadoran government subsidizes residential consumers for electricity use of up to 105 kWh monthly. The electricity subsidy costs the government between $50 million to $64 million annually.El Salvador’s public finances are relatively transparent, but do not fully meet international standards. Budget documents including enacted budget, and end-of-year reports, as well as information on debt obligations are accessible to the public at:  http://www.transparenciafiscal.gob.sv/ptf/es/PTF2-Index.html .An independent institution, the Court of Accounts audits the financial statements, economic performance, cash flow statements, and budget execution of all GOES ministries and agencies. The results of these audits are publicly available online.The GOES routinely withholds from public disclosure details on how it uses public funds, including but not limited to budgeting and procurement information. El Salvador’s use of Bitcoin remains opaque.  The GOES has not released fiscal information about its purchases of Bitcoin or related expenditures, such as the launch and maintenance of its state-owned Bitcoin wallet app, Bitcoin ATMs, and financial details of a public trust fund used to guarantee convertibility of Bitcoin and dollars.  In addition, the GOES has limited the Court of Accounts’ capacity to audit state-owned enterprise subsidiaries.																																				International Regulatory Considerations										El Salvador belongs to the Central American Common Market and the Central American Integration System (SICA), organizations which are working on regional integration, e.g., harmonization of tariffs and customs procedures. El Salvador commonly incorporates international standards, such as the Pan-American Standards Commission (Spanish acronym COPANT) into its regulatory system.El Salvador is a member of the WTO, adheres to the Agreement on Technical Barriers to Trade (TBT Agreement), and has adopted the Code of Good Practice annexed to the TBT Agreement. El Salvador is also a signatory to the Trade Facilitation Agreement (TFA) and has notified its Categories A, B, and C commitments. In 2017, El Salvador established a National Trade Facilitation Committee (NTFC) as required by the TFA, which was reactivated in July 2019.El Salvador is a member of the U.N. Conference on Trade and Development’s international network of transparent investment procedures:  https://elsalvador.eregulations.org/ . Investors can find information on administrative procedures applicable to investment and income-generating operations including the name and contact details for those in charge of procedures, required documents and conditions, costs, processing time, and legal bases for the procedures.																																				Legal System and Judicial Independence										El Salvador’s legal system is codified law. Commercial law is based on the Commercial Code and the corresponding Commercial and Civil Code of Procedures. There are specialized commercial courts that resolve disputes.Although foreign investors may seek redress for commercial disputes through Salvadoran courts, many investors report the legal system to be slow, costly, and unproductive. Local investment and commercial dispute resolution proceedings routinely last many years. Final judgments are at times difficult to enforce. The Embassy recommends that potential investors carry out proper due diligence by hiring competent local legal counsel.According to the Constitution, the judicial system is independent of the executive branch. Recent legislative changes have weakened judicial independence, raising concerns over the rule of law. In May 2021, the Legislative Assembly dismissed the Attorney General and all five justices of the Supreme Court’s Constitutional Chamber and replaced them with officials chosen by the administration. In August 2021, the legislature amended the Judicial Career Organic Law to force into retirement judges ages 60 or above and those with at least 30 years of service. The move was justified by the ruling party as an effort to root out corruption in the judiciary from past administrations. A September 2021 ruling from Constitutional Chamber allows for immediate presidential re-election, despite what many say are constitutional prohibitions on re-election to a consecutive term.																																				Laws and Regulations on Foreign Direct Investment										Miempresa is the Ministry of Economy’s website for new businesses in El Salvador. At Miempresa, investors can register new companies with the Ministry of Labor (MOL), Social Security Institute, pension fund administrators, and certain municipalities; request a tax identification number/card; and perform certain administrative functions.  https://www.miempresa.gob.sv/ The country’s e-Regulations site provides information on procedures, costs, entities, and regulations involved in setting up a new business in El Salvador.  https://elsalvador.eregulations.org/ The Exports and Investment Promoting Agency of El Salvador (PROESA) is responsible for attracting domestic and foreign private investment, promoting exports of goods and services, evaluating and monitoring the business climate, and driving investment and export policies. PROESA provides technical assistance to investors interested in starting operations in El Salvador, regardless of the size of the investment or number of employees.  http://www.proesa.gob.sv/ 																																				Competition and Anti-Trust Laws										The Office of the Superintendent of Competition reviews transactions for competition concerns. The OECD and the Inter-American Development Bank note the Superintendent employs enforcement standards that are consistent with global best practices and has appropriate authority to enforce the Competition Law effectively. Superintendent decisions may be appealed directly to the Supreme Court, the country ́s highest court.  https://www.sc.gob.sv/ 																																				Expropriation and Compensation										The Constitution allows the government to expropriate private property for reasons of public utility or social interest. Indemnification can take place either before or after the fact.In November 2021, the Legislative Assembly passed the Eminent Domain Law for Municipal Works to enable the National Directorate of Municipal Works (DOM) to expropriate land necessary for the development of infrastructure projects in the 262 municipalities of the country. The law allows the DOM to begin works before condemnation proceedings are finalized and without depositing the estimated value of the property. Landowners can appeal the court’s determination of the compensation but cannot challenge the grounds for the seizure. Legal experts have noted that the law’s broad expropriation parameters and insufficient guarantees for landowners could lead to arbitrary land seizures.In April 2022, the Legislative Assembly enacted regulations to expedite the construction of two signature projects of the Bukele administration: the Pacific Airport, located in eastern El Salvador (La Unión), and the Pacific Train, a railroad network connecting the Port of Acajutla with La Unión Port. Under the Law for the Construction, Maintenance and Operation of the Pacific Airport and the Pacific Train Administrative Procedures Simplification Law, the Autonomous Executive Port Commission (CEPA), which operates the airports, and the Ministry of Public Works (MOP) have authority to expropriate land where the projects will be built. The bills establish abbreviated condemnation proceedings that give affected landowners only three days to file an answer and grounds of defense and five days to produce evidence. Landowners cannot appeal the court’s decision regarding public use/necessity or the condemnation award.There are no recent cases of expropriation. In 1980, a rural/agricultural land reform established that no single natural or legal person could own more than 245 hectares (605 acres) of land, leading to the government expropriating the land of some large landholders. In 1980, private banks were nationalized but were subsequently returned to private ownership in 1989-90. A 2003 amendment to the Electricity Law requires energy-generating companies to obtain government approval before removing fixed capital from the country.																																				Dispute Settlement																										ICSID Convention and New York Convention						El Salvador is a member state to the ICSID Convention. ICSID is included in a number of El Salvador’s investment treaties as the forum available to foreign investors.						Investor-State Dispute Settlement						In 2016, ICSID ruled in favor of El Salvador on a case brought by an international mining company that sought to force government acceptance of a gold-mining project.  Following the ruling, El Salvador banned the exploration and extraction of metal mining in the country.In September 2021, a British bank filed a claim against El Salvador under the Bilateral Investment Treaty (BIT) El Salvador-United Kingdom of Great Britain and Northern Ireland with the ICSID. The claim seeks to recover a substantial amount in damages the bank alleges were wrongfully awarded against it by the Supreme Court of Justice. The ICSID registered the request for arbitration in November 2021 and the arbitral tribunal was constituted in November 2022.The rights of investors from CAFTA-DR countries are protected under the trade agreement’s dispute settlement procedures. There have been no successful claims by U.S. investors under CAFTA-DR. There are currently no pending claims by U.S. investors.For foreign investors from a country without a trade agreement with El Salvador, amended Article 15 of the Investment Law limits access to international dispute resolution and may obligate the use of national courts. Submissions to national dispute panels and panel hearings are open to the public. Interested third parties have the opportunity to be heard.						International Commercial Arbitration and Foreign Courts						A 2002 law allows private sector organizations to establish arbitration centers to resolve commercial disputes, including those involving foreign investors. In 2009, El Salvador modified its arbitration law to allow parties to appeal a ruling to the Salvadoran courts. Investors have complained that the modification dilutes the efficacy of arbitration as an alternative method of resolving disputes. Arbitrations takes place at the Arbitration and Mediation Center, a branch of the Chamber of Commerce and Industry of El Salvador. https://mediacionyarbitraje.com.sv/ El Salvador is a signatory to the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention) and the Inter-American Convention on International Commercial Arbitration (Panama Convention). Local courts recognize and enforce foreign arbitral awards and judgments, but the process can be lengthy and difficult.																										Bankruptcy Regulations										The Commercial Code, the Commercial Code of Procedures, and the Banking Law contain sections that deal with the process for declaring bankruptcy. There is no separate bankruptcy law or court. Bankruptcy proceedings are cumbersome, lengthy, and costly. In practice, bankruptcy proceedings are uncommon. In El Salvador, real estate mortgages and pledges grant the creditor privileged rights to obtain payment from assets given in guarantee. Thus, in case of insolvency, creditors with preferred guarantees file individual lawsuits. In addition, any creditor can request a judge appoint a receiver, a procedure much simpler than bankruptcy.Companies in financial distress can request a payment deferral from the judge to prevent bankruptcy. If approved by the judge and the creditors, the company may be able to negotiate a rescue plan with creditors.Bankruptcy is not criminalized, but it can become a crime if the judge determines there was intent to defraud.																																												4. Industrial Policies						    																																																Investment Incentives										The International Services Law, approved in 2007, established service parks and centers with incentives like those received by El Salvador&#8217;s free trade zones. Service Park developers are exempted from income tax for 15 years, municipal taxes for ten years, and real estate transfer taxes. Service Park administrators are exempted from income tax for 15 years and municipal taxes for ten years.Firms located in the service parks/service centers may receive the following permanent incentives:Tariff exemption for the import of capital goods, machinery, equipment, tools, supplies, accessories, furniture, and other goods needed for the development of the service activities, along with full exemption from income tax and municipal taxes on company assets.Service firms operating under the existing Free Trade Zone Law are also eligible for the incentives, though firms providing services to the Salvadoran market cannot receive the incentives. Eligible services include: international distribution, logistical international operations, call centers, information technology, research and development, marine vessels repair and maintenance, aircraft repair and maintenance, entrepreneurial processes (e.g., business process outsourcing), hospital-medical services, international financial services, container repair and maintenance, technology equipment repair, elderly and convalescent care, telemedicine, cinematography postproduction services, including subtitling and translation, and specialized services for aircraft (e.g., supply of beverages and prepared food, laundry services and management of inventory).The Tourism Law establishes tax incentives for those who invest a minimum of $25,000 in tourism-related projects in El Salvador, including: value-added tax exemption for the acquisition of real estate; import tariffs waiver for construction materials, goods, equipment (subject to limitation); and a ten-year income tax waiver. The investor also benefits from a waiver of land acquisition taxes and a 50 percent reduction of municipal taxes for five years. To qualify for these incentives the enterprise must contribute five percent of its profits during the exemption period to a government-administered Tourism Promotion Fund. More information about tax incentives for tourism, please visit:  http://www.mitur.gob.sv/ii-aspectos-legales-en-beneficio-de-la-inversion-contemplados-en-la-ley-de-turismo/ The Renewable Energy Incentives Law promotes investment projects that use renewable energy sources. In 2015, the Legislative Assembly approved amendments to encourage the use of renewable energy sources and reduce dependence on fossil fuels. These reforms extended the incentives to power generation using renewable energy sources, such as hydro, geothermal, wind, solar, marine, biogas, and biomass. The incentives include a 10-year exemption from customs duties on the importation of machinery, equipment, materials, and supplies used for the construction and expansion of substations, transmission, or sub-transmission lines. Revenues directly derived from renewable power generation enjoy full income tax exemptions for a period of five years in case of projects above 10 MW and 10 years for smaller projects. The Law also provides a tax exemption on income derived directly from the sale of certified emission reductions (CERs) under the Mechanism for Clean Development of the Kyoto Protocol, or carbon markets (CDM).El Salvador does not issue guarantees or directly co-finance foreign direct investment projects. However, El Salvador has a Public-Private Partnerships Law that allows private investment in the development of infrastructure projects, including in areas of health, education, and security. In August 2021, the Legislative Assembly approved the contract award of the first-ever PPP project to design, expand, construct, and operate expanded cargo operations of El Salvador’s primary international airport. The estimated budget for the PPP is $57 million. El Salvador has undertaken pre-feasibility studies on other potential PPP projects, including a second airport in eastern El Salvador, a toll road concession to connect its biggest port (Acajutla) to the La Hachadura border with Guatemala, and improvements of three intermediate customs facilities (Metalio, Santa Ana and San Bartolo). The GOES has planned a total of 13 PPPs. Under a Build-Operate-Transfer (BOT) model, the GOES awarded two geothermal energy contracts for a total of 30 MW on February 27, 2023. At an estimated cost of $150 to $200 million, the construction of the two geothermal plants located in eastern El Salvador will be the first new investment in geothermal power in over 30 years.																																				Foreign Trade Zones/Free Ports/Trade Facilitation										The Free Trade Zone Law is designed to attract investment in a wide range of activities, although most of the businesses in free trade zones are textile plants. A Salvadoran partner is not needed to operate in a free trade zone, and some textile operations are completely foreign owned.There are 17 free trade zones in El Salvador. They host 281 companies in sectors including textiles, distribution, call centers, business process outsourcing, agribusiness, agriculture, electronics, and metallurgy. Owned primarily by Salvadoran, U.S., Taiwanese, and Korean investors, free trade zone firms employ more than 83,000 people. The point of contact is the Chamber of Textile, Apparel and Free Trade Zones of El Salvador (CAMTEX) at:  https://www.camtex.com.sv/ .The Free Trade Zone Law establishes rules for free trade zones and bonded areas. The free trade zones are outside the nation&#8217;s customs jurisdiction while the bonded areas are within its jurisdiction, but subject to special treatment. Local and foreign companies can establish themselves in a free trade zone to produce goods or services for export or to provide services linked to international trade. The regulations for the bonded areas are similar.Qualifying firms located in the free trade zones and bonded areas may be exempted from:All duties and taxes on imports of raw materials, machinery, equipment, tools, parts, components, accessories, containers, labels, packaging, samples, and patterns needed to produce for export;Taxes for fuels, lubricants, catalysts, reagents, and any other substance or material used for producing exports;Income and municipal taxes on company assets and property for either 15 years (if the company is in the metropolitan area of San Salvador) or 20 years (if the company is located outside of the metropolitan area of San Salvador). After the 15- year or 20 -year period expires, companies are entitled to a reduction of 60 percent of income tax and 90 percent of municipal taxes for the next ten years;Taxes on certain real estate transfers, e.g., the acquisition of goods to be employed in the authorized activity; andValue-added tax on goods and services sourced locally to be employed in the authorized activity, including goods that are not incorporated into the final product, security, and transportation services, as well as construction services and materials.Companies in the free trade zones are also allowed to sell goods or services in the Salvadoran market if they pay applicable taxes on the proportion sold locally. Additional rules apply to textile and apparel products.Regulations allow a WTO-complaint “drawback” to refund custom duties paid on imported inputs and intermediate goods exclusively used in the production of goods exported outside of the Central American region. Regulations also included the creation of a Business Production Promotion Committee with the participation of the private and public sector to work on policies to strengthen the export sector, and the creation of an Export and Import Center.All import and export procedures are handled by the Import and Export Center (Centro de Trámites de Importaciones y Exportaciones &#8211; CIEX El Salvador). More information about the procedures can be found at:  https://www.ciexelsalvador.gob.sv/ciexelsalvador/ 																																				Performance and Data Localization Requirements										El Salvador&#8217;s Investment Law does not require investors to meet export targets, transfer technology, incorporate a specific percentage of local content, turn over source code or provide access to surveillance, or fulfill other performance criteria.In August 2021, the Legislative Assembly passed amendments to the Credit History Law. The amendments introduce data localization requirements mandating credit bureaus and economic agents that report on credit history to store data and its backup exclusively in El Salvador and grant unrestricted access to the Central Bank and the Superintendency of the Financial System. The amendments took effect on March 9, 2022. U.S. stakeholders have expressed concerns that these new requirements could compromise consumer data privacy and protection. There are no restrictions on cross-border transfers of other business-related data.Foreign investors and domestic firms are eligible for the same incentives. Exports of goods and services are exempt from value-added tax.The International Services Law establishes tax benefits for businesses that invest at least $150,000 during the first six months of operations, including working capital and fixed assets, hire at least 10 permanent employees, and have at least a six-month contract. For business processing, information technology, and cinematography services, an investment of $250,000 during the first year of operations and the creation of 20 permanent jobs are required. For hospital/medical services, the minimum capital investment must be $1 million and a minimum of $250,000 for care services for the elderly and convalescent with the creation of at least 15 permanent positions. Hospitals or clinics must be located outside of major metropolitan areas, and medical services must be provided only to patients with insurance. The investment for aircraft maintenance and repair services must be $500,000 during the first year of operations and the creation of at least 50 permanent jobs.																																												5. Protection of Property Rights						    																																																Real Property										Private property, both non-real estate and real estate, is recognized and protected in El Salvador. Mortgages and real property liens exist. Companies that plan to buy property are advised to hire competent local legal counsel to guide them on the property’s title prior to purchase.Per the Constitution, no single natural or legal person – whether national or foreign – can own more than 245 hectares (605 acres) of land. Reciprocity applies to the ownership of rural land, i.e., El Salvador does not restrict the ownership of rural land by foreigners, unless Salvadoran citizens are restricted in the corresponding states. The restriction on rural land does not apply if used for industrial purposes.Real property can be transferred without government authorization. For title transfer to be valid regarding third parties, however, it needs to be properly registered. Laws regarding rental property tend to favor the interests of tenants. For instance, tenants may remain on property after their lease expires, provided they continue to pay rent. Likewise, the law limits the permissible rent and makes eviction processes extremely difficult.Squatters occupying private property in “good faith” can eventually acquire title. If the owner of the property is unknown, squatters can acquire title after 20 years of good faith possession through a judicial procedure; if the owner is known, squatters can acquire title after 30 years.Squatters may never acquire title to public land, although municipalities often grant the right of use to the squatter.Zoning is regulated by municipal rules. Municipalities have broad power regarding property use within their jurisdiction. Zoning maps, if they exist, are generally not available to the public.The perceived ineffectiveness of the judicial system discourages investments in real estate and makes execution of real estate guarantees difficult. Securitization of real estate guarantees or titles is legally permissible but does not occur frequently in practice.																																				Intellectual Property Rights										El Salvador is not listed in the U.S. Trade Representative’s Special 301 Report or its Review of Notorious Markets for Counterfeiting and Piracy. There are no IP-related laws pending.El Salvador’s intellectual property rights (IPR) legal framework is strong. El Salvador revised several laws to comply with CAFTA-DR’s provisions on IPR, such as extending the copyright term to 70 years. The Intellectual Property Promotion and Protection Law (1993, revised in 2005), Law of Trademarks and Other Distinctive Signs (2002, revised in 2005), and Penal Code establish the legal framework to protect IPR. Investors can register trademarks, patents, copyrights, and other forms of intellectual property with the National Registry Center ́s Intellectual Property Office. In 2008, the government enacted test data exclusivity regulations for pharmaceuticals (for five years) and agrochemicals (for 10 years) and ratified an international agreement extending protection to satellite signals.In November 2021, the National Registry Center inaugurated the first Technology and Innovation Support Center (TISC) to assist innovators and entrepreneurs to create, protect, and manage IP rights. The TISC provides access to patent and non-patent (scientific and technology) databases and IP-related publications, and information on IP laws and regulations. In October 2022, the National Registry Center launched the National Network of Technology and Innovation Support Centers with the opening of four regional centers in the departments of La Libertad, Usulutan, San Miguel and Santa Ana, mostly under higher education institutions and technology, innovation, and research centers. It also opened three more centers in San Salvador, with one housed within the Ministry of Economy Directorate of Innovation and Competitiveness. The National Registry Center also created the Intellectual Property Academy in November 2022 to build capacity of enforcement bodies and small and medium-sized businesses to protect IP rights.El Salvador’s enforcement of IPR protections falls short of its written policies. Salvadoran authorities have limited resources to dedicate to enforcement of IPR laws. The National Civil Police (PNC) has an Intellectual Property Section with five investigators, while the Attorney General’s Office (FGR) has 13 prosecutors in its Private Property division that also has responsibility for other property crimes including cases of extortion. According to the Access to Specialized Patent Information (ASPI) program, a public-private partnership administered by the World Intellectual Property Organization (WIPO), the PNC section coordinates well with other government and private entities. Nevertheless, the PNC admits that a lack of resources and expertise (e.g., regarding information technology) hinders its effectiveness in combatting IPR crimes.The National Directorate of Medicines (DNM) has 39 products registered for data protection. The DNM protects the confidentiality of relevant test data and the list of such protected medications is available on the DNM: https://expedientes.medicamentos.gob.sv/productos/protecciondatos The Salvadoran Intellectual Property Association (ASPI &#8211; Asociación Salvadoreña de Propiedad Intelectual) notes that piracy is common in El Salvador because the police focus on investigating criminal networks rather than points of sale. Trade in counterfeit medicines and pirated software is common.Customs officials have identified some counterfeit products arriving directly from China through the Salvadoran seaport of Acajutla. In 2022, Customs officials seized 24 shipments based on the presumption of containing counterfeit products. These shipments primarily involved toys, clothing, wallets, footwear, mobile phone accessories, and accessories for vehicles. Contraband and counterfeit products, especially cigarettes, liquor, toothpaste, and cooking oil, remain widespread. According to the GOES and private sector contacts, most unlicensed or counterfeit products in country are imported to El Salvador. The Distributors Association of El Salvador (ADES) estimated in 2019 that the annual cost of illicit trade in El Salvador amounts to $1 billion. Most contraband cigarettes originate in China, India, Panama, South Korea, and Belize and undercut legitimately imported cigarettes, which are subject to a 39 percent tariff. According to ADES, most contraband cigarettes are traditionally smuggled in by gangs, with the complicity of Salvadoran authorities. The ability of gangs to engage in these activities has been severely disrupted by the State of Exception begun in March 2022.The national Intellectual Property Registry has 22 registered geographical indications for El Salvador. In 2018, the GOES registered four geographical indications involving Denominations of Origin for “Jocote Barón Rojo San Lorenzo” (a sour fruit), “Pupusa de Olocuilta” (a variant of El Salvador’s traditional food), “Camarones de la Bahía de Jiquilisco” (shrimp from the Jiquilisco Bay), and “Loroco San Lorenzo” (flower used in Salvadoran cuisine). Existing geographic indications include “Balsamo de El Salvador” (balm for medical, cosmetic, and gastronomic uses – since 1935), “Café Ilamatepec” (coffee – since 2010), and “Chaparro” (Salvadoran hard liquor- since 2016).El Salvador is a signatory of the Berne Convention for the Protection of Literary and Artistic Works; the Paris Convention for the Protection of Industrial Property; the Geneva Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication; the WIPO Copyright Treaty; the WIPO Performance and Phonograms Treaty; the Rome Convention for the Protection of Performers, Phonogram Producers, and Broadcasting Organizations; and the Beijing Treaty on Audiovisual Performances (2012), which grants performing artists certain economic rights (such as rights over broadcast, reproduction, and distribution) of live and recorded works.For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at  http://www.wipo.int/directory/en/details.jsp?country_code=SV 																																												6. Financial Sector						    																																																Capital Markets and Portfolio Investment										The Superintendent of the Financial System ( https://ssf.gob.sv/ ) supervises individual and consolidated activities of banks and non-bank financial intermediaries, financial conglomerates, stock market participants, insurance companies, and pension fund administrators. Foreign investors may obtain credit in the local financial market under the same conditions as local investors. Interest rates are determined by market forces, with the interest rate for credit cards and loans capped at 1.6 times the weighted average effective rate established by the Central Bank. The maximum interest rate varies according to the loan amount and type of loan (consumption, credit cards, mortgages, home repair/remodeling, business, and microcredits).In January 2019, El Salvador eliminated a Financial Transactions Tax (FTT), which was enacted in 2014 and greatly opposed by banks.The Securities Market Law establishes the framework for the Salvadoran securities exchange. Stocks, government and private bonds, and other financial instruments are traded on the exchange, which is regulated by the Superintendent of the Financial System. El Salvador has agreements with Panama and Nicaragua to integrate their stock markets via remote operator.Foreigners may buy stocks, bonds, and other instruments sold on the exchange and may have their own securities listed, once approved by the Superintendent. Companies interested in listing must first register with the National Registry Center’s Registry of Commerce. In 2022, the exchange traded $2.9 billion, with average daily volumes between $10 million and $24 million. Government-regulated private pension funds, Salvadoran insurance companies, and local banks are the largest buyers on the Salvadoran securities exchange. For more information, visit: https://www.bolsadevalores.com.sv/																																				Money and Banking System										All but two of the major banks operating in El Salvador are regional banks owned by foreign financial institutions. Given the high level of informality, measuring the penetration of financial services is difficult; however, it remains relatively low, between 39 percent–- according to the Salvadoran Banking Association (ABANSA)–- and 45 percent–- reported by the Superintendence of the Financial System (SSF). The banking system is sound and generally well-managed and supervised. El Salvador’s Central Bank is responsible for regulating the banking system, monitoring compliance of liquidity reserve requirements, and managing the payment systems. No bank has lost its correspondent banking relationship in recent years. There are no correspondent banking relationships known to be in jeopardy.The banking system’s total assets as of December 2022 were $21.9 billion. Under Salvadoran banking law, there is no difference in regulations between foreign and domestic banks and foreign banks can offer all the same services as domestic banks.The Cooperative Banks and Savings and Credit Associations Law regulates the organization, operation, and activities of financial institutions such as cooperative banks, credit unions, savings and credit associations, and other microfinance institutions. The Money Laundering Law requires financial institutions to report suspicious transactions to the Attorney General. Despite having regulatory schemes in place to supervise the filing of reports by cooperative banks and savings and credit associations, these entities rarely file suspicious activity reports.The Insurance Companies Law regulates the operation of both local and foreign insurance firms. Foreign firms, including U.S., Colombian, Dominican, Honduran, Panamanian, Mexican, and Spanish companies, have invested in Salvadoran insurers.																																				Foreign Exchange and Remittances																										Foreign Exchange						There are no restrictions on transferring investment-related funds out of the country. Foreign businesses can freely remit or reinvest profits, repatriate capital, and bring in capital for additional investment. The Investment Law allows unrestricted remittance of royalties and fees from the use of foreign patents, trademarks, technical assistance, and other services. Tax reforms introduced in 2011, however, levy a five percent tax on national or foreign shareholders’ profits. Moreover, shareholders domiciled in a state, country or territory that is considered a tax haven or has low or no taxes, are subject to a tax of twenty-five percent.The Monetary Integration Law dollarized El Salvador in 2001. The U.S. dollar accounts for nearly all currency in circulation and can be used in all transactions. On September 7, 2021, Bitcoin became legal tender in El Salvador, alongside the U.S. dollar. The Bitcoin Law mandates that all businesses must accept Bitcoin, with limited exceptions for those who do not have the technology to carry out transactions. To date, the provision mandating businesses must accept Bitcoin is not being enforced. Bitcoin is not widely used in consumer transactions. Even though banks can accept payments of loans, credit cards, and financial services in Bitcoin, they do not offer products or services in Bitcoin. There is no bank balance sheet exposure, as Bitcoin is converted to U.S. dollars during the payment process through external digital wallet providers. Salvadoran banks, in accordance with the law, must keep all accounts in U.S. dollars.Dollarization is supported by remittances – almost all from the United States – that totaled $7.7 billion in 2022. While Bitcoin was touted as a means to facilitate remittance transfers and reduce transaction costs, remittances in Bitcoin are low. The Central Bank reported remittances in Bitcoin totaled $126.7 million in 2022, accounting for just two percent of total remittances.						Remittance Policies						There are no restrictions placed on investment remittances. The Caribbean Financial Action Task Force’s Ninth Follow-Up report on El Salvador ( https://www.cfatf-gafic.org/documents/search?q=El+Salvador ) noted that El Salvador has strengthened its remittances regimen, prohibiting anonymous accounts and limiting suspicious transactions. In 2015, the Legislature approved reforms to the Law of Supervision and Regulation of the Financial System so that any entity sending or receiving systematic or substantial amounts of money by any means, at the national and international level, falls under the jurisdiction of the Superintendence of the Financial System.																										Sovereign Wealth Funds										El Salvador does not have a sovereign wealth fund.																																												7. State-Owned Enterprises						    																						El Salvador has successfully liberalized many sectors, though it maintains state-owned enterprises (SOEs) in energy generation, transmission and distribution, water supply and sanitation, ports and airports, and the national lottery (see chart below).SOE2023 Budgeted RevenueNumber of EmployeesNational Lottery$58,000,000145State-run Electricity Company (CEL)$428,446,180957Water Authority (ANDA)$295,680,3504,263Port Authority (CEPA)$182,703,2302,666Although the GOES privatized energy distribution in 1999, it maintains significant energy production facilities through state-owned Rio Lempa Executive Hydroelectric Commission (CEL), a significant producer of hydroelectric and geothermal energy. On January 13, 2023, CEL made public the purchase of its first power distribution company operating under the commercial name Distribuidora Cuscatlan. The company will supply energy to rural areas. On February 21, 2023, El Salvador created a new autonomous entity called ENTE that now owns the state-run transmission company ETESAL. ENTE will oversee the planning and execution of the national transmission grid expansion. ETESAL will continue to build, maintain, and operate the electricity transmission grid.The Creation Law of the Power, Hydrocarbons, and Mines General Directorate entered into force on November 8, 2022. The new General Directorate is responsible for dictating the national energy policy and proposing amendments to energy legislation and by-laws, as well as implementing the energy policy. President Bukele appointed the President of the state-owned power company (CEL) as the Director General of the new entity. Industry stakeholders are concerned about a potential conflict of interest resulting from CEL making energy policy and participating in the sector as a SOE.The primary water service provider is the National Water and Sewer Administration (ANDA), which provides services to 96.6 percent of urban areas and 80.1 percent of rural areas in El Salvador.The Autonomous Executive Port Commission (CEPA) operates both the seaports and the airports. CEL, ANDA, and CEPA Board Chairs hold Minister-level rank and report directly to the President.State-owned enterprises in the energy sector operate in the market in accordance with commercial considerations, as any other participant in the sector. Energy is a highly regulated market in El Salvador. Energy sector SOEs competing in the market provide non-discriminatory treatment in their purchases and sales of goods. Energy generated by CEL (hydroelectric, geothermal, and heavy-fuel oil) is sold in the wholesale market. Salvadoran SOEs do not compete internationally.On January 25, 2023, the legislature approved the Public Procurement Law for all government agencies, state-owned companies, and municipalities, replacing the Public Administration and Procurement Contracting Law (LACAP) in force since 2000.  Procurement and contracting financed with funds from international cooperation agencies, agreements between state institutions, contracting of personal services under the Law on Salaries, Contracts and Day Work are exempt. Procurement for municipal infrastructure works continues to be governed by the Simplified Procurement Law for Municipal Works, in force since November 2021 and centralized in the National Directorate of Municipal works created by the Bukele administration to oversee investment in infrastructure and social projects in municipalities. Procurement and contracting for strategic infrastructure projects led by the Presidential Commission for Strategic Projects falls under the Procurement Law for Public Works. Enacted in November 2022, the Procurement Law for Public Works allows the Ministry of Public Works (MOP) to design and award its own infrastructure contracts and bidders to offer financing for public works, either directly or via domestic or external financial institutions, with the GOES paying the resulting debt.  This process allows the GOES to delay its financial commitments and results in no direct contractual relationship between the GOES and the financial institution that may be funding the project.The Public Procurement Law allows government agencies to use the auction system of the Salvadoran Goods and Services Market (BOLPROS) for procurement of standardized products (office supplies, cleaning products, basic grains, etc.) with no thresholds. However, the GOES has used BOLPROS to procure a variety of goods and services, including high-value technology equipment and sensitive security equipment. In 2022, public procurement using BOLPROS totaled $346.6 million. The United Nations Office for Project Services (UNOPS) and United Nations Development Program (UNDP) also support government agencies in the procurement of a wide range of infrastructure projects. The GOES has a centralized procurement website to publish tenders by government institutions: https://www.comprasal.gob.sv/comprasal_web/. Alba Petroleos is a joint venture between a consortium of mayors from the FMLN party and a subsidiary of Venezuela&#8217;s state-owned oil company PDVSA. As majority PDVSA owned, Alba Petroleos has been subject to Office of Foreign Assets Control (OFAC) sanctions since January 2019. Alba Petroleos has been surrounded by allegations of mismanagement, corruption, and money laundering. In May 2019, the Attorney General’s Office initiated an investigation against Alba Petroleos and its affiliates for money laundering. Alba Petroleos’ assets are frozen by court order and some of its businesses were sold or are being managed by the National Council for Asset Administration (CONAB).																										Privatization Program										El Salvador is not engaged in a privatization program and has not announced plans to privatize.																																												8. Responsible Business Conduct						    																						The private sector in El Salvador, including several prominent U.S. companies, has embraced the concept of responsible business conduct (RBC). Many companies donated to COVID-19 relief efforts in 2020. Several local foundations promote RBC practices, entrepreneurial values, and philanthropic initiatives. El Salvador is also a member of international institutions such as Forum Empresa (an alliance of RBC institutions in the Western Hemisphere), AccountAbility (UK), and the InterAmerican Corporate Social Responsibility Network. Businesses have created RBC programs to provide education and training, transportation, lunch programs, and childcare. In addition, RBC programs have included inclusive hiring practices and assistance to communities in areas such as health, education, senior housing, and HIV/AIDS awareness. Organizations monitoring RBC can work freely.Following a reorganization under the Bukele administration, the Legal Secretariat is responsible for developing strategies and actions to promote transparency and accountability of government agencies, as well as fostering citizen participation in government. The watchdog organization Transparency International is represented in-country by the Salvadoran Foundation for Development (FUNDE).El Salvador does not waive or weaken labor laws, consumer protection, or environmental regulations to attract foreign investment. El Salvador’s ability to enforce domestic laws effectively and fairly is limited by a lack of resources. El Salvador does not allow metal mining activity.																										Additional Resources										Department of State Country Reports on Human Rights Practices; Trafficking in Persons Report; Guidance on Implementing the &#8220;UN Guiding Principles&#8221; for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities; U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises; and; Xinjiang Supply Chain Business Advisory Department of the Treasury OFAC Recent Actions Department of Labor Findings on the Worst Forms of Child Labor Report ; List of Goods Produced by Child Labor or Forced Labor ; Sweat &amp; Toil: Child Labor, Forced Labor, and Human Trafficking Around the World  and;Comply Chain .																																				Climate Issues										El Salvador has a high exposure to natural hazards, such as earthquakes and volcanic eruptions, and is highly vulnerable to climate change impacts, including frequent occurrences of floods, droughts, and tropical storms. Climate change, poor land use practices, contamination, and overexploitation have contributed to water insecurity.The Water Resources Law took effect in July 2022. The law prohibits the privatization of water resources and establishes access to water and sanitation as a human right, as well as prioritizes water usage towards human consumption. The law created an all-public governing body the Salvadoran Water Authority (ASA) charged with drafting policies and guidelines for water extraction and wastewater discharge.  The ASA issues water permits for industrial purposes and other GOES ministries issue permits relevant to their sectors.  ASA is the sole issuer of effluent discharge permits. The GOES has yet to publish implementing regulations. The private sector has expressed concerns about legal uncertainty, as the law does not differentiate existing water permits from new ones and does not clearly define regulatory entity by sector.In November 2022, ASA issued the General Guidelines for Wastewater Discharge. The guidelines establish discharge limits and conditions for industrial, agro-industrial, recreational, and other sources. The guidelines are mandatory for public or private entities that indirectly or directly discharge into receiving waters.The Ministry of Environment and Natural Resources (MARN) released for public consultation the National Environmental Policy on February 7, 2022. The policy focuses on climate change management and adaptation, biodiversity mainstreaming in the economy, restoration and conservation of water resources, and environmental zoning. To enable implementation, three cross-cutting issues are highlighted in the policy (education and awareness-raising, research and scientific innovation, and governance) as action required by the GOES. MARN published the final version of the policy in September 2022El Salvador presented the update of its Nationally Determined Contributions (NDC) to the United Nations Framework Convention on the Climate Change (UNFCCC) on January 6, 2022. The updated NDCs include actions to reduce greenhouse gas emissions (GHG) in the energy sector; a cumulative emissions reduction target, and activities to increase carbon sinks and reservoirs in the agricultural landscape of the agriculture, forestry, and land-use change sector if large-scale financing is obtained from international and national sources with the participation of the private sector. The Minister of Environment and Natural Resources participated in the 27 United Nations Conference on Climate Change 2022 (COP 27), where he called on countries with the highest greenhouse gas emissions to change their practices for the benefit of all.The GOES does not have a climate strategy aligned with the UN System of Environmental-Economic Accounting. However, the United Nations Development Programme (UNDP) is providing technical assistance to MARN and the Ministry of Finance (MH) in reinforcing specific goals and streamlining compliance with NDCs. The implementation of national climate goals requires financing mechanisms and instruments for investments. According to UNDP, El Salvador is working on strengthening its institutional system to channel climate resources with the creation of the Climate Financing Roundtable and the design of the National Climate Financing Strategy.The Environmental Law creates the National Incentives and Disincentives Program and establishes parameters for its design. The program is prepared by MARN in conjunction with the Ministries for Finance and Economy. In 2021, MARN finalized drafting the program that focuses on restoration of ecosystems and productive landscapes and includes tools such as reputational incentives (National Price for the Environment), financial incentives (payments for ecosystem services and lines of credit with state-owned banks to undertake restoration actions in productive landscapes), non-financial incentives (technical assistance), and market incentives (eco-labels and certifications). The program is pending approval of the Economic Cabinet.Protected areas, use of nature-based solutions, sustainable forest management, and other ecosystem management plans are regulated in the Natural Protected Areas Law and Wildlife Conservation Law. El Salvador does not have policies to address deforestation resulting from the production of commodities or supply chains.The Public Procurement Law introduces sustainable acquisitions by ensuring that environmental performance and sustainability factors are included to the extent possible in purchases. The law mandates that preference must be given for products made of recycled content, energy and water efficient goods, and reusable, refillable, more durable, or repairable articles.																																												9. Corruption						    																						U.S. companies operating in El Salvador are subject to the U.S. Foreign Corrupt Practices Act (FCPA).Corruption can be a challenge to investment in El Salvador. El Salvador ranks 116 out of 180 countries in Transparency International&#8217;s 2022 Corruption Perceptions Index. While El Salvador has laws, regulations, and penalties to combat corruption, their effectiveness is at times questionable. Soliciting, offering, or accepting a bribe is a criminal act in El Salvador. The Attorney General&#8217;s Anticorruption and Anti-Impunity Unit handles allegations of public corruption. The Constitution establishes a Court of Accounts that is charged with investigating public officials and entities and, when necessary, passing such cases to the Attorney General for prosecution. Executive-branch employees are subject to a code of ethics, including administrative enforcement mechanisms, and the government established an Ethics Tribunal in 2006.Corruption scandals at the federal, legislative, and municipal levels are commonplace and there have been credible allegations of judicial corruption. The law provides criminal penalties for corruption, but implementation is generally perceived as ineffective. Three of the past four presidents have been indicted for corruption, a former Attorney General is in prison on corruption-related charges, and a former president of the Legislative Assembly, who also served as president of the investment promotion agency during the prior administration, faces charges for embezzlement, fraud, and money laundering. The former Minister of Defense during two FMLN governments is being prosecuted for providing illicit benefits to gangs in exchange for reducing homicides (an agreement known as the 2012-2014 Truce). High-ranking members of the ARENA and FMLN parties face charges of conspiracy and electoral fraud for negotiating with gangs for political benefit during the run up to the 2014 presidential elections. Former Presidents Funes and Sanchez Ceren face criminal charges for embezzlement, money laundering, and misappropriation of public funds. Although there are several pending arrest warrants against Funes and Sanchez Ceren, they fled to Nicaragua and cannot be extradited because they were granted Nicaraguan citizenship. In 2018, former president Elias Antonio (Tony) Saca pleaded guilty to embezzling more than $300 million in public funds. The court sentenced him to 10 years in prison and ordered him to repay $260 million.Since El Salvador terminated its agreement with the Organization of American States (OAS) to back the International Commission Against Impunity and Corruption (CICIES) in June 2021, criminal investigations into fraud and misuse of public funds related to COVID-19 purchases have not progressed. These investigations began in November 2020 after CICIES finalized auditing pandemic spending. In addition, investigations of the Director of Prisons and Vice Minister of Justice, and the Director of Social Cohesion for negotiating with gangs a reduction in gang violence in return for better prison conditions for gang leaders remain stalled. U.S Treasury designated five officials of the Bukele administration for financial sanctions in December 2021 and 2022, including the Chief of Cabinet and the Presidential Legal Secretary.The NGO Social Initiative for Democracy stated that officials, particularly in the judicial system, often engaged in corrupt practices with impunity. Long-standing government practices in El Salvador, including cash payments to officials, shielded budgetary accounts, and diversion of government funds, facilitating corruption and impeding accountability.  For example, the accepted practice of ensuring party loyalty through off-the-books cash payments to public officials (i.e., sobresueldos) persisted across five presidential administrations. President Bukele eliminated these cash payments to public officials and the “reserved spending account,” nominally for state intelligence funding. In July 2021, the Attorney General’s Office accused ten former FMLN legislators and former cabinet members who served in the Funes administration (2009-2014), including former President Salvador Sanchez, of money laundering, embezzlement, and illicit enrichment for allegedly receiving sobresueldos from the President’s reserved spending account.El Salvador has an active, free press that reports on corruption. The Illicit Enrichment Law requires appointed and elected officials to declare their assets to the Probity Section. The declarations are not available to the public, and the law only sanctions noncompliance with fines of up to $500. In 2015, the Probity Section of the Supreme Court began investigating allegations of illicit enrichment of public officials. In 2017, Supreme Court Justices ordered its Probity Section to audit legislators and their alternates. In 2019, in observance of the Constitution, the Supreme Court instructed the Probity Section to focus its investigations only on public officials who left office within ten years. In 2020, the Supreme Court issued regulations to standardize the procedures to examine asset declarations of public officials and carry out illicit enrichment investigations, as well as to set clear rules for decision-making. At the end of 2021, the Probity Section had a total of 452 active investigations on illicit enrichment. Between 2015 and 2021, the office completed economic examinations in 58 cases, but the Supreme of Court recommended civil prosecution for illicit enrichment in only 21 of those cases. In 2022, the Supreme Court of Justice ordered civil trial for illicit enrichment against the Press Secretary of former President Sanchez Ceren and a former FMLN lawmaker for their inability to justify a portion of their income while serving office.In 2011, El Salvador approved the Law on Access to Public Information. The law provides for the right of access to government information, but authorities have not always effectively implemented the law. The law gives a narrow list of exceptions that outline the grounds for nondisclosure and provide for a reasonably short timeline for the relevant authority to respond, no processing fees, and administrative sanctions for non-compliance. The Bukele administration has weakened the autonomy of the Access to Public Information Agency (IAIP) &#8211; charged with ensuring compliance with the law &#8211; by reforming IAIP’s regulations to grant the President’s Office the right to appoint all five of its commissioners and eliminating the right to challenge the appointments. Previously, the President appointed one commissioner, while the press, labor groups and academia were each authorized to appoint one of the other commissioners, and a right existed to challenge any appointment. Enacted amendments also add requirements for accessing information, including for the release of restricted information. Civil society organizations claim it is common practice of the Bukele administration to declare information to be reserved (confidential) or deny information without justification and in violation of the law to avoid citizen oversight and accountability.In practice, under the State of Exception, the government has limited access to information about public procurements, especially as related to its security institutions. The administration has also made statements that independent press view as threatening, particularly for suggesting prosecution of journalists that are critical of the administration’s policy toward gangs.On March 25, the Open Government Partnership’s (OGP) steering committee removed El Salvador from its list of member countries for failing to create an action plan to meet minimum requirements in fiscal transparency, access to information and citizen engagement. El Salvador was a founding member in the OGP, an NGO created in 2011 linking governments and civil society to promote open, transparent, and accountable governments, as well as strengthening citizen participation.( http://www.opengovpartnership.org/country/el-salvador ).UN Anticorruption Convention, OECD Convention on Combating BriberyEl Salvador is not a signatory to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. El Salvador is a signatory to the UN Anticorruption Convention and the Organization of American States’ Inter-American Convention against Corruption.Resources to Report CorruptionThe following government agency or agencies are responsible for combating corruption:Doctor Jose Nestor Castaneda Soto, President of the Court of Government EthicsCourt of Government Ethics (Tribunal de Ética Gubernamental)87 Avenida Sur, No.7, Colonia Escalón, San Salvador(503) 2565-9403Email: n.castaneda@teg.gob.sv http://www.teg.gob.sv/ Licenciado Rodolfo DelgadoFiscalía General de La República (Attorney General’s Office)Edificio Farmavida, Calle Cortéz BlancoBoulevard y Colonia Santa Elena(503) 2593-7400(503) 2528-6012Email: radelgado@ fgr.gob.sv http://www.fiscalia.gob.sv/ Chief JusticeOscar Alberto López JerezAvenida Juan Pablo II y 17 Avenida NorteCentro de Gobierno(503) 2271-8888 Ext. 1424Email: oscar.lopez@oj.gob.sv http://www.csj.gob.sv Contact at &#8220;watchdog&#8221; organization (international, regional, local, or nongovernmental organization operating in the country/economy that monitors corruption, such as Transparency International):Roberto Rubio-FabiánExecutive DirectorNational Development Foundation (Fundación Nacional para el Desarrollo &#8211; FUNDE)Calle Arturo Ambrogi #411, entre 103 y 105 Avenida Norte, Colonia Escalón, San Salvador(503) 2209-5300Email: direccion@funde.orgResources to request government information:Access to Public Information Institute (IAIP for its initials in Spanish)Ricardo Gómez GuerreroCommissioner President of the IAIPColonia San Benito, Edificio 109, Pasaje 1Boulevard El Hipódromo, San Salvador(503) 2205-3800Email: rgomez@iaip.gob.svPrincipal																																		10. Political and Security Environment						    																						President Bukele’s Nuevas Ideas party currently has a super majority in the National Assembly.The crime threat level in El Salvador is critical. Most serious crimes in El Salvador are never solved. El Salvador lacks sufficient resources to properly investigate and prosecute cases and to deter crime.For the last thirty years, gang members from several gangs including Mara Salvatrucha (MS-13) and 18th Street (M18) have terrorized Salvadoran society. The gangs or “maras” have concentrated on extortion, violent street crime, carjacking, narcotics and arms trafficking, and murder for hire. Extortion of businesses was a common crime usually perpetrated by gang members in El Salvador.In March 2022, the GOES declared a “State of Exception” (SOE) in response to an increase in homicides. The declaration has been renewed multiple times and remains in effect. The SOE grants the authorities the power to arrest anyone suspected of gang activity and suspends several constitutional rights, including the normal protections of criminal procedure such as the right to a speedy trial. Over 67,000 suspected gang members have been detained under the SOE. The SOE enjoys broad public support with the government touting historically low homicide rates. The improved security conditions arising out of the SOE are contributing to improved consumer confidence and general optimism about economic conditions. Many local businesses have an increasingly positive view of the investment climate, attributing it to reduced insecurity. How the GOES will wind down the SOE and return all constitutional rights to the Salvadoran people is unclear.																																		11. Labor Policies and Practices						    																						According to the National Directorate of Statistics and Censuses (DIGESTYC), in 2021 El Salvador had a labor force of about 2.9 million people. The Salvadoran Foundation for Economic and Social Development (FUSADES) reported that the employment rate returned to pre-pandemic levels in 2021, but underemployment persisted, especially among women. In El Salvador, underemployment is defined as having to work more than 40 hours per week to earn enough to survive. Around 70 percent of the workers were employed in the informal sector and did not have access to government health and pension benefits. FUSADES reported a slight growth in the percentage of those covered by social security, but still only 3 out of every 10 people in the workforce had access to benefits in 2021. More workers in urban areas have formal work and access to those benefits than those in rural areas. https://fusades.org/publicaciones/informe-de-coyuntura-social-2021-2022  https://onec.bcr.gob.sv/encuesta-de-hogares-de-propositos-multiples-ehpm/ Women face particular challenges with employment and benefits. According to the 2021 DIGESTYC survey, female labor force participation remained low at 41.2 percent. The Fundación para el Desarrollo de Centroamérica (FUDECEN) used DIGESTYC data to calculate that in 2021 64.8 percent of women of employment age were not seeking employment because they had to perform domestic and caretaking duties, compared to only 2.3 percent of men. In 2021, 46.1 percent of men in the workforce had a permanent and salaried job, while only 38.9 percent of women did. Almost 10 percent of women in the workforce were employed in domestic service, compared to .5 percent of men, a sector with notoriously low wages, benefits, and protections. Of those employed in domestic service, 46 percent worked over 49 hours per week, and made, on average, 90 dollars less than workers in other sectors. FUDECEN calculated that 98.46 percent of domestic workers did not have any kind of social security coverage.  https://observatoriodesigualdad.sv/publicaciones Labor laws require 90 percent of the workforce in plants and in clerical positions be Salvadoran citizens. While Salvadoran labor is regarded as hard-working, general education and professional skill levels are low. According to many large employers, there is a lack of middle management-level talent, which sometimes results in the need to bring in managers from abroad. Employers do not report labor-related difficulties in incorporating technology into their workplaces.The law provides for the right of most workers to form and join independent unions, to strike, and to bargain collectively. The law also prohibits anti-union discrimination, although it does not require reinstatement of workers fired for union activity. Military personnel, national police, judges, and high-level public officers may not form or join unions. Workers who are representatives of the employer or in “positions of trust” also may not serve on a union’s board of directors. Only Salvadoran citizens may serve on unions’ executive committees. The labor code also bars individuals from holding membership in more than one trade union.Unions must meet complex requirements to register, including having a minimum membership of 35 individuals. If the Ministry of Labor (MOL) denies registration, the law prohibits any attempt to organize for up to six months following the denial. Collective bargaining is obligatory only if the union represents most workers.Some unions remain concerned about the MOL’s delay in approving their organization’s credentials, required to continue operating as a union and to participate in various tripartite consultative committees between government, the private sector, and the unions. Without credentials, unions cannot participate in decision-making within tripartite committees on subjects such as worker social security benefits, minimum wage, housing, and other worker benefits. The members of the unions also lose their immunity from termination by their employers if their unions do not have credentials.The law contains cumbersome and complex procedures for conducting a legal strike. The law does not recognize the right to strike for public and municipal employees or for workers in essential services. The law does not specify which services meet this definition, and courts therefore interpret this provision on a case-by-case basis. The law requires that 30 percent of all workers in an enterprise must support a strike for it to be legal and that 51 percent must support the strike before all workers are bound by the decision to strike. Unions may strike only to obtain or modify a collective bargaining agreement or to protect the common professional interests of the workers. They must also engage in negotiation, mediation, and arbitration processes before striking, although many unions often skip or expedite these steps. The law prohibits workers from appealing a government decision declaring a strike illegal.The government did not effectively enforce the laws on freedom of association and the right to collective bargaining. Penalties remained insufficient to deter violations. Judicial procedures were subject to lengthy delays and appeals. According to union representatives, the government inconsistently enforced labor rights for public workers, maquiladora/textile workers, food manufacturing workers, subcontracted workers in the construction industry, security guards, informal-sector workers, and migrant workers.Unions technically function independently from the government and political parties, although in practice many are either aligned with the Nuevas Ideas dominated government or with opposition parties. Workers at times engaged in strikes regardless of whether the strikes met legal requirements.Employers are free to hire union or non-union labor. Closed shops are illegal. Labor laws are generally in accordance with internationally recognized standards but are not enforced consistently by government authorities. Although El Salvador has improved labor rights since the CAFTA-DR entered into force and the law prohibits all forms of forced or compulsory labor, there remains room for better implementation and enforcement.The MOL is responsible for enforcing the law. The government is more effective in enforcing the minimum wage law in the formal sector than in the informal sector. Unions reported the ministry failed to enforce the law for subcontracted workers hired for public reconstruction contracts. The government provided its inspectors updated training in both occupational safety and labor standards and conducted thousands of inspections from June 2020 to May 2021. The MOL did not publicly report on its activities in 2022.The law sets a maximum normal work week of 44 hours, limited to no more than six days and to no more than eight hours per day, but allows overtime, which is to be paid at a rate of double the usual hourly wage.  The law mandates that full-time employees receive pay for an eight-hour day of rest in addition to the 44-hour normal work week. The law provides that employers must pay double time for work on designated annual holidays, a Christmas bonus based on the time of service of the employee, and 15 days of paid annual leave. The law prohibits compulsory overtime. The law states that domestic employees are obligated to work on holidays if their employer makes this request, but they are entitled to double pay in these instances. The government does not adequately enforce these laws.There is no national minimum wage; the minimum wage is determined by sector. On July 1, 2021, the government announced an increase in the minimum wage by about 20 percent for all industries in the formal sector. This was implemented on August 1, 2021, resulting in a one-month implementation period for industry. The increase had no impact on most workers because most are employed in the informal sector.El Salvador adopted the Telework Regulation Law in March 2020. The law is applicable in both private and public sectors and requires a written agreement between employer and employee outlining the terms and conditions of the arrangement, including working hours, responsibilities, workload, performance evaluations, reporting and monitoring, and duration of the arrangement, among others. Legislation prescribes employers as responsible for providing the equipment, tools, and programs necessary to perform duties remotely. Employers are subject to the obligations contained in labor laws, while workers are entitled to the same rights as staff working at the employer’s premises, including benefits and freedom of association.																																		12. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance Programs or Development Finance Programs						    																						DFC has more than $761 million invested in energy, clean water, and inclusive financial services in El Salvador.In February 2023 the Biden Administration launched Central America Forward. This initiative is an extension of the Call to Action program launched Vice President Harris in May 2021 and seeks to encourage the private sector to increase investment in Northern Central America, including El Salvador, to sustainably address the root causes of migration. Central America Forward combines commitments initially made by companies under Call to Action with dedicated U.S. government programming and resources to facilitate investment-led growth in the region, including increased access to DFC financing for private sector projects. DFC inherited an Overseas Private Investment Corporation (OPIC) agreement with El Salvador that requires governmental approval on each project application. To date, the Central America Forward initiative has had minimal impact in El Salvador.El Salvador uses the U.S. dollar, so full inconvertibility insurance is unnecessary. El Salvador is a member of the Multilateral Investment Guarantee Agency (MIGA).																																		13. Foreign Direct Investment and Foreign Portfolio Investment Statistics						    																						Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/EconomyHost Country Statistical source*USG or international statistical sourceUSG or International Source of Data:  BEA; IMF; Eurostat; UNCTAD, OtherEconomic DataYearAmountYearAmountHost Country Gross Domestic Product (GDP) ($M USD)2020$24,5602020$24,560https://data.worldank.org/country/el-salvadorForeign Direct InvestmentHost Country Statistical source*USG or international statistical sourceUSG or international Source of data:  BEA; IMF; Eurostat; UNCTAD, OtherU.S. FDI in partner country ($M USD, stock positions)2020$2,059.022020N.A.**BEA data available at  https://apps.bea.gov/international/factsheet/factsheet.html#209 Host country’s FDI in the United States ($M USD, stock positions)2020$3,2292020N.A.**BEA data available at  https://apps.bea.gov/international/factsheet/factsheet.html#209 Total inbound stock of FDI as % host GDP2020 41.4%202041.4%IMF Data&nbsp;* Central Bank, El Salvador.** Data suppressed to avoid disclosure of data of individual companies.Table 3: Sources and Destination of FDIDirect Investment from/in Counterpart Economy Data (2021)*From Top Five Sources/To Top Five Destinations (US Dollars, Millions)Inward Direct InvestmentOutward Direct InvestmentTotal Inward$10,378100%Total OutwardN/APanama$4,01439%GuatemalaN/A United States$2,14621%HondurasN/ASpain$1,54615%Costa RicaN/AColombia$6969%NicaraguaN/AMexico$8947%&#8220;0&#8221; reflects amounts rounded to +/- USD 500,000.*Coordinated Direct Investment Survey, International Monetary Fund																																		14. Contact for More Information						    																						Aaron FeitDeputy Economic CounselorU.S. Embassy San SalvadorAddress: Final Blvd. Santa Elena, Antiguo Cuscatlán, La Libertad, El SalvadorPhone: +503 2501-2999Email: FeitAL@state.govhttps://sv.usembassy.gov/To reach the U.S. Foreign Commercial Service (FCS) Office, please email: Office.Sansalvador@trade.gov																										    							View report by:																				Albania											Algeria											Andorra											Angola											Antigua and Barbuda											Argentina											Armenia											Australia											Austria											Azerbaijan											The Bahamas											Bahrain											Bangladesh											Barbados											Belarus											Belgium											Belize											Benin											Bolivia											Bosnia and Herzegovina											Botswana											Brazil											Brunei											Bulgaria											Burkina Faso											Burma											Burundi											Cabo Verde											Cambodia											Cameroon											Canada											Chile											China											Colombia											Costa Rica											Côte d’Ivoire											Croatia											Cyprus											Czechia											Democratic Republic of the Congo											Denmark											Djibouti											Dominica											Dominican Republic											Ecuador											Egypt											El Salvador											Equatorial Guinea											Eritrea											Estonia											Eswatini											Ethiopia											Fiji											Finland											France and Monaco											Gabon											The Gambia											Georgia											Germany											Ghana											Greece											Grenada											Guatemala											Guinea											Guyana											Honduras											Haiti											Hong Kong											Hungary											Iceland											India											Indonesia											Iraq											Ireland											Israel											Italy											Jamaica											Japan											Jordan											Kazakhstan											Kenya											Kosovo											Kyrgyz Republic											Laos											Latvia											Lebanon											Lesotho											Liberia											Libya											Lithuania											Luxembourg											Macau											Madagascar											Malawi											Malaysia											Maldives											Mali											Malta											Marshall Islands											Mauritania											Mauritius											Mexico											Micronesia											Moldova											Mongolia											Montenegro											Morocco											Mozambique											Namibia											Nepal											Netherlands											New Zealand											Nicaragua											Niger											Nigeria											North Macedonia											Norway											Oman											Pakistan											Palau											Panama											Papua New Guinea											Paraguay											Peru											Philippines											Poland											Portugal											Qatar											Republic of the Congo											Romania											Rwanda											Saint Kitts and Nevis											Saint Lucia											Saint Vincent and the Grenadines											Samoa											Sao Tome and Principe											Saudi Arabia											Senegal											Serbia											Seychelles											Sierra Leone											Singapore											Slovakia											Slovenia											Somalia											South Africa											South Korea											South Sudan											Spain											Sri Lanka											Suriname											Sweden											Switzerland											Taiwan											Tajikistan											Tanzania											Thailand											Timor-Leste											Togo											Trinidad and Tobago											Tunisia											Türkiye											United Arab Emirates											Uganda											Ukraine											United Kingdom											Uruguay											Uzbekistan											Vietnam											West Bank and Gaza											Zambia											Zimbabwe															Build A Custom Report																						On This Page				search													>																										EXECUTIVE SUMMARY																1. Openness To, and Restrictions Upon, Foreign Investment																																							Policies Toward Foreign Direct Investment																																																						Limits on Foreign Control and Right to Private Ownership and Establishment																																																						Other Investment Policy Reviews																																																						Business Facilitation																																																						Business Registration																																																						Outward Investment																																																			2. Bilateral Investment Agreements and Taxation Treaties																3. Legal Regime																																							Transparency of the Regulatory System																																																						International Regulatory Considerations																																																						Legal System and Judicial Independence																																																						Laws and Regulations on Foreign Direct Investment																																																						Competition and Anti-Trust Laws																																																						Expropriation and Compensation																																																						Dispute Settlement																																																				ICSID Convention and New York Convention																																												Investor-State Dispute Settlement																																												International Commercial Arbitration and Foreign Courts																																																																																				Bankruptcy Regulations																																																			4. Industrial Policies																																							Investment Incentives																																																						Foreign Trade Zones/Free Ports/Trade Facilitation																																																						Performance and Data Localization Requirements																																																			5. Protection of Property Rights																																							Real Property																																																						Intellectual Property Rights																																																			6. Financial Sector																																							Capital Markets and Portfolio Investment																																																						Money and Banking System																																																						Foreign Exchange and Remittances																																																				Foreign Exchange																																												Remittance Policies																																																																																				Sovereign Wealth Funds																																																			7. State-Owned Enterprises																																							Privatization Program																																																			8. Responsible Business Conduct																																							Additional Resources																																																						Climate Issues																																																			9. Corruption																10. Political and Security Environment																11. Labor Policies and Practices																12. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance Programs or Development Finance Programs																13. Foreign Direct Investment and Foreign Portfolio Investment Statistics																14. Contact for More Information																						Tags																					Bureau of Economic and Business Affairs																								Bureau of Western Hemisphere Affairs																								El Salvador