El salvador Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in el salvador, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Challenges
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The most common challenges U.S. companies experience in El Salvador include an unpredictable regulatory environment and customs delays.

Many regulations are approved with limited to no public consultation period. The Administrative Procedures Law in El Salvador mandates a 15-day notice and comment period for private sector contribution to regulation development. However, not all government entities comply, and there is no single website or standardized process for providing notice and soliciting comments on proposed regulations and reforms.

Market entry requirements for importing goods and services are often related to environmental controls, consumer protection, and controlled products. U.S. and local companies have raised concerns about customs and non-tariff barriers, including tariff code reclassification, labeling requirements, inconsistent application of customs regulations, and delays in the registration of products. However, the National Trade Facilitation Committee, reactivated under the Bukele Administration and in conjunction with the private sector, has identified measures intended to simplify customs procedures, reduce costs, and improve the process for moving products through some border crossings. As of December 2023, the Salvadoran government continues negotiations to proceed with Customs Union implementation with Guatemala and Honduras, which is another positive step forward for facilitating the movement of goods across borders. 

According to the World Bank, El Salvador’s economy had a 2.8% growth rate in 2022 and is expected to average 2.3% in 2023. Potentially unsustainable public finances and a growing public debt-to-GDP ratio are significant risks to the economy and create uncertainty regarding El Salvador’s ability to pay its debts. The government’s bitcoin initiative and limited scope for local and international market financing negatively influence risk assessments.

El Salvador scored 33 points out of 100 and ranked 116 out of 180 on the 2022 Corruption Perceptions Index reported by Transparency International, which scores countries on their perceived levels of corruption. Soliciting, offering, or accepting a bribe are considered criminal acts, and U.S. companies doing business in El Salvador are subject to the United States Foreign Corrupt Practices Act (FCPA). 

In March 2022, the Legislative Assembly approved the State of Emergency in El Salvador to crack down on gang-related violence. This measure has been extended multiple times in 30-day intervals without a defined end date. Within this State of Emergency, the Executive Branch allows contracting and acquisitions without adhering to the Public Procurement Law if they can demonstrate ties with the emergency. This creates a fast-moving and nontransparent procurement process.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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