El Salvador’s exports to China saw a staggering growth of 536.4% by July 2024, according to the Central Reserve Bank (BCR). Shipments to the Asian nation jumped from $7.4 million during the same period in 2023 to $47.1 million this year.

In terms of volume, the increase was even more dramatic, with a growth rate of 13,485.9%. El Salvador exported 82.3 million kilograms of goods to China by July, compared to just 0.6 million kilograms (7,400 kilograms) in 2023.

These numbers position China as El Salvador’s ninth-largest export destination, accounting for 1.2% of the country’s total exports. The main contributor to this surge was the export of cane or beet sugar and chemically pure sucrose in solid form, amounting to $38.5 million (81.8 million kilograms). Other significant exports included sweaters, pullovers, cardigans, and similar items ($4.9 million; 57,700 kilograms), as well as aluminum waste and scrap ($1.4 million; 208,900 kilograms).

“These positive results highlight the growing importance of China as a trade partner, with a 536.4% increase in export activity,” the BCR analysis noted.

This comes as El Salvador and China recently began negotiations for a Free Trade Agreement (FTA), aiming to enhance trade between the two nations. According to the Ministry of Economy (Minec), the initial meeting covered topics such as intellectual property protection, market access for Salvadoran products, and trade facilitation.

FTA Potential with China

The announcement of potential FTA talks last year drew optimism from local business sectors. Silvia Cuéllar, president of the Salvadoran Export Corporation (Coexport), stated, “We are actively involved as exporters and believe the process could move quickly toward achieving a trade agreement.”

Mario Salaverría, president of the Salvadoran Sugar Association (AAES), also expressed support for the FTA, noting that China is a major sugar consumer, importing 4 to 5 million metric tons annually. “We fully support President Bukele’s initiative to negotiate a trade agreement with China, which could secure favorable tariff preferences,” Salaverría remarked.

This significant growth in exports, particularly in sugar, highlights the potential for stronger economic ties between El Salvador and China, especially with the prospect of an FTA on the horizon.