The United States and El Salvador have reached a framework for an agreement on reciprocal trade, aiming to enhance their existing economic partnership. This new arrangement will build on 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.
According to a joint statement, both nations will work in the coming weeks to finalize the details of the agreement, prepare it for signature, and complete necessary domestic procedures before it comes into effect.
The agreement includes provisions for the United States to remove reciprocal tariffs on certain qualifying exports from El Salvador. These exemptions apply to goods that cannot be grown, mined, or produced in sufficient quantities within the United States. Additionally, specific products such as textiles and apparel originating under CAFTA-DR are included in these tariff removals.
The statement notes: "Given El Salvador’s commitment to take significant steps to advance a stronger and more reciprocal trade relationship, the United States will remove the reciprocal tariffs on El Salvador’s exports to the United States for certain qualifying exports that cannot be grown, mined, or naturally produced in the United States in sufficient quantities, as well as certain products, such as textiles and apparel products, originating under the CAFTA-DR."
Furthermore, U.S. authorities may consider how this agreement affects national security when taking action under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862). The two countries expressed optimism about concluding negotiations soon.
