El Salvador is strengthening its commercial ties with South America, aiming to open new markets for its products. Under the leadership of President Nayib Bukele, the government has initiated negotiations with various countries, while private enterprises have been actively pursuing agreements to foster economic growth in the region.

This month, El Salvador and Peru announced the commencement of negotiations for a Free Trade Agreement (FTA), a significant step following the formal initiation of talks in August 2024. The treaty will grant economic operators from both nations access to expanded business opportunities, further building upon existing trade exchanges.

According to data from the Central Reserve Bank (BCR), Peru’s exports to El Salvador reached $29.1 million in 2024, reflecting a 41.8% year-on-year growth. This marks a significant increase from the $4.4 million recorded in 2015. The primary exports from Peru include sugar ($12.1 million), petroleum oils ($3 million), and tableware and kitchen items ($1 million).

In line with these efforts, the Corporation of Exporters of El Salvador (Coexport) and the Association of Exporters of Peru (ADEX) signed an agreement last Thursday to enhance trade cooperation and boost investment between both nations.

Further expanding its regional trade reach, El Salvador’s Ministry of Economy (Minec) announced in January the initiation of trade negotiations with the Southern Common Market (Mercosur), a bloc established in 1991 that includes Argentina, Brazil, Paraguay, and Uruguay. If successful, the agreement could provide Salvadoran entrepreneurs access to a market of 200 million potential consumers. Currently, El Salvador exports food products, metals, hand tools, footwear, limited textile goods, and natural products to South America.

“We are negotiating a free trade agreement with Mercosur, which includes Argentina, Paraguay, Uruguay, and Brazil. We already have agreements with Chile and Colombia and are exporting to Ecuador. Now, we seek to expand commercial relations with Peru,” said Silvia Cuéllar, president of Coexport, in a statement to the media. While recognizing the opportunities these agreements provide, Cuéllar emphasized the need for in-depth market research to effectively penetrate new consumer bases.

With these strategic initiatives, El Salvador continues to expand its commercial horizons, solidifying its presence in South America and fostering economic growth through international trade.