El Salvador begins negotiations for a trade agreement with Mercosur

With the signing of the terms of reference, El Salvador and Mercosur begin a process whose objective is to eliminate barriers to trade between the country and the South American bloc, expanding the destinations for Salvadoran exports.

The Government of El Salvador launched negotiations in search of a trade agreement with the four countries that make up the Southern Common Market (Mercosur) bloc.

The Minister of Economy, Maria Luisa Hayem, made the announcement of the launching of these negotiations together with the ambassador of the Republic of Argentina in the country, Sergio Luis Iaciuk, representing the four Mercosur countries, a block that also includes Brazil, Paraguay and Uruguay.

The negotiations between El Salvador and Mercosur, which began with the signing of the terms of reference that provide a framework for them, seek to establish a trade agreement that opens the doors of the South American market to Salvadoran products, thus diversifying the destinations of national exports.

“This is the first time that El Salvador, individually, initiates trade negotiations with a region or customs union, such as Mercosur, which demonstrates the strong interest of our country in continuing to open opportunities to diversify export destinations for Salvadoran products,” says Hayem.

With this agreement, El Salvador aspires to become a commercial bridge between Central America and Mercosur, a bloc that represents the fifth largest economy in the world, with more than 200 million potential consumers and to which the country already exports products such as medicines, coffee, pesticides, cotton T-shirts, plastics, among others.

This agreement would also facilitate the conditions for the establishment of new investments in El Salvador.

Ambassador Iaciuk emphasized that the signing of these terms of reference “is the starting point to begin negotiations that will allow us to have in a short time an agreement that will facilitate and promote our commercial exchanges and investments between our countries”.

Panama recently signed in Montevideo the protocols for the Central American country to initiate the process to become an associated state of Mercosur.

Source: Revista E&N