As part of President Nayib Bukele’s economic strengthening strategy, El Salvador has taken a significant step toward expanding its global trade partnerships by initiating formal negotiations with Mercosur, South America’s largest economic bloc. The Ministry of Economy (Minec) confirmed that on December 9, 2024, both parties signed the terms of reference, officially launching the negotiation process.

“El Salvador and Mercosur are in the early stages of negotiating a trade agreement. The signing of the terms of reference marks a key milestone in strengthening trade relations between our countries,” stated Minec.

The ministry highlighted that the current phase involves an exchange of trade information between delegations. “This process is essential to ensure a mutual understanding of the trade structures and strategic interests of both parties,” it added.

Next steps include establishing general negotiation rules and setting dates for negotiation rounds. “These dates will be coordinated with the commercial agendas of each country to guarantee effective and coordinated participation at every stage. Both sides reaffirm their commitment to a transparent, constructive, and results-oriented negotiation,” Minec affirmed.

Mercosur, formed in 1991 by Argentina, Brazil, Paraguay, and Uruguay, includes a broader network of associate members such as Bolivia, Chile, Colombia, Ecuador, Guyana, Peru, Panama, and Suriname. Through this alliance, El Salvador aims to gain access to a market of over 300 million people for its products.

The country is also advancing in free trade talks with China and Peru. In the case of Peru, a second round of negotiations is set for the last week of May, with expectations to finalize the agreement before the end of 2025, based on the progress achieved so far.