In a historic move to expand its commercial footprint across South America, El Salvador has officially entered into a Partial Scope Agreement (AAP) with Bolivia, effective July 30, 2026. The landmark deal grants over 250 Salvadoran products preferential market entry, marking El Salvador as the first Central American nation to establish a specialized trade framework with the South American country.

Designed to enhance the global competitiveness of domestic producers, the agreement provides significant tariff reductions across key export sectors, including veterinary pharmaceuticals, food and beverages, textiles, and paper products. Under the established timelines, import duties for selected goods will drop from rates as high as 40% down to 0%, dramatically reducing entry costs for Salvadoran enterprises entering Bolivian markets.

The initiative aligns with the strategic vision of President Nayib Bukele’s administration to diversify foreign trade beyond traditional regional partners. “This agreement converts El Salvador into the first country in Central America to establish a commercial instrument of this type with Bolivia, providing our companies with new opportunities to access the Bolivian market and strengthen their presence in South America,” the Ministry of Economy (Minec) stated.

Beyond duty-free access, the agreement introduces streamlined trade rules and operational mechanisms to reduce non-tariff barriers and optimize bilateral logistics. This expansion builds upon El Salvador’s recent trade momentum, following a similar accord with Belize that opened preferential access for more than 400 Salvadoran goods across the metalworking, pharmaceutical, and textile sectors.