El Salvador has successfully concluded negotiations to establish integrated border posts for the free movement of goods with Guatemala and Honduras. The agreement will facilitate faster distribution of products and result in significant savings on logistical costs.
The Salvadoran Minister of Economy, María Luisa Hayem, signed a landmark agreement with her counterparts from Guatemala and Honduras. This agreement concludes negotiations on the streamlined movement of Salvadoran products across borders, providing benefits for businesses and consumers alike.
With this advancement, approximately 90% of Salvadoran products will soon enjoy «free movement,» which will be implemented gradually at the main land borders that El Salvador shares with Guatemala and Honduras. The initiative will commence at El Amatillo, an integrated border post with Honduras, starting in December 2023.
This measure, promoted jointly with the General Directorate of Customs, stipulates that Salvadoran goods falling under the «free movement» category will enter Salvadoran, Guatemalan, and Honduran markets with just one invoice. This invoice, featuring a QR code and known as the Central American Invoice and Single Declaration (FYDUCA), will expedite border crossings.
According to Minister of Economy María Luisa Hayem, «With this agreement, Salvadoran companies and products will be more competitive, trading with Guatemala and Honduras more swiftly. This is expected to lead to lower logistical costs for businesses, lower prices for consumers, increased competitiveness, and greater economic growth.»
The agreement marks a significant step towards economic integration in the region, promising to enhance the ease of doing business and fostering economic development across the participating countries.