Business in El Salvador Salvadoran economy Exports Imports

Course summary Doing business in El Salvador

El Salvador is located in a strategic position in Central America, between the north and south zones of the continent, which gives it privileged access to the most important Latin American and United States markets.

The Republic of El Salvador occupies an area of 21,041 square kilometers in the north of Central America. The territory of El Salvador borders the following countries: Guatemala to the west, Honduras to the north, Honduras and Nicaragua to the east and the south is bordered partly by the Gulf of Fonseca and partly by the Pacific Ocean.

Macro economic stability in El Salvador allowed year 2007 to close with a 4.7% economic growth rate of the Gross domestic product, higher than the 4.2% of the previous year. Likewise, inflation in El Salvador has decreased since the nineties, until reaching a rate of 4,9% in December 2007, the lowest rate at regional level.

Example of the course Doing business in El Salvador (English):

This is a result of reforms that El Salvador’s government implemented starting in 1989, with the purpose of stabilizing The economy to attract foreign investment. Among the most important ones are the deregulation of fuels, fiscal reforms, the elimination of trade barriers, the strengthening of public finances, reforms to the financial system, and reforms to monetary integration policy, which stipulates that the US dollar is the country’s official currency since the law came into effect.

The aforementioned has led El Salvador to obtain recognition from prestigious international entities that have distinguished the country for its economic stability, ease of doing business, and competitiveness, among other aspects.

El Salvador is the second country with most free trade throughout Latin America, after Chile. It is thanks to this open-mindedness combined with its different free trade treaties (regional and multilateral) that its competitiveness at an international level has increased over the past few years.

These treaties are signed within a framework of two or more countries, eliminating the tariffs of products included in the program in order for them to move freely between their borders. These agreements ensure a healthy environment for direct investment. Currently, El Salvador is linked to 6 Free trade Agreements (FTA).

Free trade agreements: FTA Mexico - Northern Triangle (El Salvador, Guatemala and Honduras), Dominican Republic, Chile, Panama, Taiwan, CAFTA-DR United States - Central America- Dominican Rep FTA. Is negotiating one FTA with Colombia. EU - Central America Association Agreement

European Union and Central America Trade Relations:

In 2001, after establishing an excellent business relationship with the Investment Promotion Agency (PROESA), Grupo Calvo, with presence in the five continents, decided to install its largest tuna processing plant in El Salvador. The new plant, built in the Pacific coast of the department of La Unión, in El Salvador’s eastern zone, provides jobs to 3,000 employees around the world, half of them living in Salvadoran territory.

Pettenati is one of the most important textile companies in Brazil. Pettenati started operations in El Salvador on November 2008, in part as a result of PROESA’s intensive coaching and to the favorable country conditions, such as easiness to reach the U.S. market taking advantage of the different Free Trade Agreements. With and investment of $50 million, Pettenati inaugurated its production plant where its expects to provide jobs to some 400 people.

SYKES is a global leader in providing customer contact management solutions and services in the business process outsourcing (BPO) arena. In 2001 the company explored Latin America and the Caribbean in search of a destination to install a contact center. They found many of these factors in El Salvador and started operations in 2003, with such success that they underwent expansions in 2006 and in 2008. SYKES El Salvador has 1,400 employees.

International Economic Relations. El Salvador is member of: Association of Caribbean States (ACS), Central American integration system (SICA), Mesoamerica project, Economic Commission for Latin America (ECLAC), Inter-American Development Bank (IDB), Forum for East Asia-Latin America Cooperation (FEALAC), Organization of American States (OEA), World Bank, International Monetary Fund, World Trade Organization (WTO), United Nations ...

Taiwan - Honduras - El Salvador Free Trade Agreement (FTA)

Taiwan Honduras El Salvador Free Trade Agreement (FTA)

Business, El Salvador, Economy, Exports, Imports, Trade, foreign, Salvadoran , FDI, Investment, services, textiles, agribusiness, tourism, Devices, Medical