The Salvadoran government is actively working to enhance its trade agreement with the European Union (EU), aiming to create more opportunities for businesses within the framework of the EU-Central America trade agreement.
Minister of Economy, María Luisa Hayem, recently held a meeting with representatives from the European Union in El Salvador, including the International Trade Department of the EU (Trade UE). The purpose of the meeting was to strengthen the trade relations between the countries in the bloc.
“We will share a week of work to strengthen our trade relationship under the Association Agreement between Central America and the European Union,” stated Minister Hayem.
During the meeting, the delegation visited companies that export their products to the European market.
“We took the opportunity to visit Urrutia’s State Coffee’s production and processing farm, an exemplary model of sustainable production in harmony with the environment, which we proudly export to the European Union,” she said.
According to data from the Central Reserve Bank (BCR), El Salvador’s total exports to the European market reached $279 million in 2022, representing a 58% increase compared to 2021 when exports to the bloc amounted to $171 million.
Furthermore, the latest data reveals that from January to May 2023, Salvadoran exports to the European Union amounted to $113.4 million. Imports from the EU during the same period totaled $403 million.
In summary, from 2012 to 2022, foreign direct investment from the European Union in El Salvador reached $1.781 billion, according to the BCR.
The main Salvadoran products exported to EU countries include green coffee, tuna loins and canned tuna, sugar, herbicides, germination inhibitors, and plant growth regulators, mosses and lichens, textile manufactures, wooden and fabric handicrafts, as well as honey and frozen fish.
On the other hand, the primary products imported from the EU include engines, medicines, machinery and its parts, iron and steel manufactures, food preparations, perfumes, and toilet waters.
The Salvadoran government’s efforts to strengthen its trade agreement with the European Union demonstrate its commitment to expanding economic ties and opening up new avenues for Salvadoran businesses in the European market. With increased exports and investments, both El Salvador and the EU stand to benefit from a mutually beneficial partnership.