U.S. and El Salvador Reach Framework for a New Reciprocal Trade Agreement

Trade Update • Nov 14, 2025

Key Points

• The U.S and El Salvador reached a framework that builds on their CAFTA-DR trade relationship.
• El Salvador agreed to remove several non-tariff barriers affecting U.S. exporters.
• The agreement supports open digital trade and bans discriminatory digital services taxes.
• The framework includes commitments on labor rights, environmental standards, and intellectual property.
• The U.S plans to remove certain reciprocal tariffs after the agreement takes effect.

The U.S. and El Salvador agreed on a framework for a new reciprocal trade agreement that strengthens their long-standing partnership under CAFTA-DR. The framework focuses on clearer market access, more predictable regulatory processes, and closer cooperation across key sectors. It outlines actions that improve trade conditions for goods, services, and digital products while supporting higher standards in labor, environmental enforcement, and intellectual property protection.

Market Access & Regulations

Non-Tariff Barriers

El Salvador will remove or simplify regulatory requirements that delay U.S. exports. The commitments cover pharmaceuticals, medical devices, remanufactured goods, and autos. El Salvador will accept electronic certificates, remove apostille requirements, and speed up product registrations.

Agricultural Access

El Salvador will prevent unnecessary barriers to U.S. agricultural products. The country will continue accepting certificates issued by U.S. regulators and respect existing oversight arrangements.

Intellectual Property and Geographical Indications

El Salvador will advance work on international intellectual property treaties. It will also apply fair rules on geographical indications and ensure that common cheese and meat terms do not limit U.S. agricultural exports.

Services and Digital Trade

El Salvador will maintain open access for U.S. services and digital trade. It will not impose discriminatory digital services taxes and will support a permanent moratorium on customs duties for electronic transmissions.

Labor and Environmental Commitments

Labor

El Salvador will protect internationally recognized labor rights and block goods produced with forced or compulsory labor.

Environment

El Salvador will uphold strong environmental protections and enforce its laws. The country will take steps to improve forest governance, strengthen fisheries enforcement, and address illegal logging, illegal wildlife trade, and illegal mining. It will also work toward adopting the WTO Agreement on Fisheries Subsidies.

Other Commitments

El Salvador will address practices involving state-owned enterprises and industrial subsidies that may distort trade or affect fair competition. It will also address practices involving state-owned enterprises and industrial subsidies that may distort trade or affect fair competition.

What’s Next?

The U.S. and El Salvador will finalize the agreement and complete domestic procedures. After this, the U.S will remove certain reciprocal tariffs on qualifying Salvadoran goods, including products not produced in sufficient quantities in the U.S. and select CAFTA-DR textile and apparel items. The impact of the agreement may also be considered in national security reviews under Section 232.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.