Trade Agreements of El Salvador: CAFTA-DR and Beyond
Agreements in force
| Partner | Type | In force since |
|---|---|---|
| Dominican Republic | Free trade agreement | 2001 |
| Chile | Free trade agreement | 2002 |
| Panama | Free trade agreement | 2003 |
| United States and Central America (CAFTA-DR) | Free trade agreement | 2006 |
| Colombia | Free trade agreement | 2010 |
| Mexico | Free trade agreement | 2012 |
| Korea | Free trade agreement | 2020 |
| European Union | Association agreement (trade pillar) | October 2013 |
| United Kingdom | Association agreement | January 2021 |
| Cuba | Partial scope agreement | 2012 |
| Ecuador | Partial scope agreement | 2017 |
Source: Ministry of Economy: trade agreements in force, Infotrade; Ministry of Economy: overview of trade policy, Infotrade1,2
The free trade agreement with Taiwan is no longer in force; it ended in 2022. A partial scope agreement with Bolivia awaits ratification and one with Belize is being negotiated.1,4
CAFTA-DR and the United States
- Coverage: CAFTA-DR links the United States, El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica and the Dominican Republic.
- Industrial goods: since 2015 all US industrial goods have entered El Salvador duty-free under the agreement.
- Trade in 2025: goods trade between the two countries was about USD 6.9 billion.
- Investment: the United States holds the second-biggest stock of foreign direct investment in El Salvador, about USD 2.4 billion, after Panama.
Source: Office of the US Trade Representative: El Salvador; US International Trade Administration: El Salvador trade agreements; Congressional Research Service: El Salvador in Brief, 6 October 20263,4,7
The 2026 Agreement on Reciprocal Trade
El Salvador and the United States signed an Agreement on Reciprocal Trade on 29 January 2026, after a framework announced on 13 November 2025. The framework removes the US reciprocal tariff on certain goods, including CAFTA-DR textiles and apparel. The agreement enters into force five days after both governments notify that their procedures are complete.8,9
US tariff measures on Salvadoran goods have changed several times since April 2025. Check the current rate for your product with a customs broker before you price a contract.7
Talks under way
- China: free trade talks since 2024.
- Mercosur: talks since 2024.
Source: US International Trade Administration: El Salvador trade agreements4
To claim a lower tariff under any agreement, the goods must meet its rules of origin and travel with the right certificate or declaration. The customs guide explains the procedures.1
Frequently Asked Questions
What trade agreements does El Salvador have?
Seven free trade agreements in force, including CAFTA-DR with the United States, plus association agreements with the European Union and the United Kingdom.
When did CAFTA-DR enter into force for El Salvador?
On 1 March 2006.
How many investment treaties does El Salvador have?
16 bilateral investment treaties in force. El Salvador has been a WTO member since 1995, and in January 2026 it signed a new Agreement on Reciprocal Trade with the United States.
Sources
- Ministry of Economy: trade agreements in force, Infotrade (in Spanish)
- Ministry of Economy: overview of trade policy, Infotrade (in Spanish)
- Office of the US Trade Representative: El Salvador
- US International Trade Administration: El Salvador trade agreements
- US Department of State: 2026 Investment Climate Statement, El Salvador
- Central Reserve Bank: foreign trade statistics (in Spanish)
- Congressional Research Service: El Salvador in Brief, 6 October 2026
- Office of the US Trade Representative: Agreements on Reciprocal Trade
- US Embassy in San Salvador: US-El Salvador Agreement on Reciprocal Trade (in Spanish)
Figures checked 8 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
