San Salvador, Dec 4 – El Salvador today has a dependence on the United States that can be dangerous in economic terms, something that became evident when President Donald Trump threatened the world with his tariff policy.
When the country was imposed a 10 percent tariff on its exports (the lowest), which was later eased, local business sectors spoke about seeking greater diversity in trade, turning their attention to China and other nations.
This reality is highlighted by a recent report from the Economic Commission for Latin America and the Caribbean (ECLAC), which states that
El Salvador is one of the Latin American countries most dependent on exports to the northern nation, its main trading partner.
The organization indicated that the small Central American state ranks seventh out of 24 economies in the region with the highest concentration of exports to the nation of the stars and stripes.
ECLAC explored the outlook and conditions of the foreign market of Latin American countries, this year marked by uncertainty amid the wave of tariffs imposed by Washington on its partners.
Of the countries assessed, Mexico has the highest concentration of its exports to the world's largest economy, with 81 percent, followed by the Dominican Republic with 59 percent, while Nicaragua and Costa Rica are around 48 percent respectively. They are followed by Honduras (47), Trinidad and Tobago (41), and at the bottom of the table is El Salvador (34 percent).
In summary, of the 14 billion dollars forecast by the president of the El Salvador Exporters Corporation, Silvia Cuéllar, to be sold abroad, an important percentage will go to the northern market, which is also the main center of Salvadoran imports.
On the other hand, figures from the Central Reserve Bank (BCR) assure that the so-called Thumbelina of the Americas, despite its mere 21 thousand square kilometers, exported to 130 countries in 2024, with more than 6.4475 billion dollars, of which 2.1349 billion were sent tothe United States.
According to ECLAC, Americans are the main trading partners of the region, with a concentration of 45 percent of exports, while imports account for 29 percent.
It is evident that there is concern at the White House about China’s progress in the region through investments, soft loans, and a supply of more affordable products.
El Salvador is no exception, and currently a Free Trade Agreement (FTA) is being negotiated that will challenge the commercial relationship with the United States.
It is noticeable that there is a setback in trade with the northern nation, as China is advancing steadily in its relations with the region, and the Cuscatlecos (people from El Salvador) are no exception as exporters of raw materials and a major supplier of manufactured goods.
For example, coffee sales have already entered the Asian market, along with other products that previously, in most cases, were destined for the north.
The head of Coexport explained that with registered goods exports of 5.6 billion dollars through October, they could finish the year near 7 billion, especially to the United States, which is also the main destination for goods exports.
Among the export products experiencing the most growth, Cuéllar highlighted food and beverages, construction, metalworking, electronics, plastics, pharmaceuticals, cardboard and paper, machinery, sugar, and coffee, among others.
Something else that influences that dependence on the northern nation is that about three million Salvadorans live there, and it is expected that they will send at least 10.1 billion dollars this year, a figure that surpasses other income streams contributing to the gross domestic product (GDP) and that are also recipients of some exports.
