The United States and El Salvador have taken a significant step toward deepening their economic partnership, announcing a new Framework for an Agreement on Reciprocal Trade aimed at modernizing and strengthening bilateral commerce. The move builds upon the foundation of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which has governed trade relations between the two countries since 2006, and signals a renewed commitment to expanding opportunities for businesses and workers on both sides.
Two-way trade in goods and services between the United States and El Salvador surpassed $10.7 billion in 2024, underscoring the importance of the relationship. U.S. goods and services exports to El Salvador reached $6.7 billion last year, while the United States maintains a $2.2 billion goods trade surplus. The new framework is designed to preserve that momentum by reducing regulatory friction, streamlining approvals, and addressing long-standing non-tariff barriers that affect key sectors such as agriculture, manufacturing, pharmaceuticals, and medical devices.
Under the agreement, El Salvador has committed to simplifying import procedures, accepting U.S. standards in specific industries, and improving transparency in regulatory practices. The framework also includes provisions to protect intellectual property rights, prevent discriminatory digital services taxes, and support the free flow of data across borders. In addition, both nations pledged to strengthen cooperation on supply chain resilience, export controls, and national economic security matters.
Labor and environmental standards also feature prominently in the agreement. El Salvador has reaffirmed its commitment to internationally recognized labor rights and agreed to prohibit the importation of goods produced through forced labor. The framework further calls for stronger enforcement of environmental laws, including measures to combat illegal logging, wildlife trafficking, and illegal mining, reinforcing broader sustainability goals tied to trade.
U.S. officials indicated that, in recognition of El Salvador’s commitments, certain reciprocal tariffs on qualifying Salvadoran exports will be lifted. As Washington and San Salvador move toward implementation, the agreement represents not just a policy update, but a strategic effort to solidify an economic relationship that already exceeds $10 billion annually.