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U.S.-El Salvador Agreement on Reciprocal Trade and Investment

Also known as: U.S.-El Salvador Agreement on Reciprocal Trade and Investment, U.S.-El Salvador Agreement on Reciprocal Trade

Facts (14)

Sources

Tracking Trump's Trade Deals | Council on Foreign Relations cfr.org Inu Manak, Allison J. Smith · Council on Foreign Relations Mar 17, 2026 14 facts

accountThe U.S.-El Salvador Agreement on Reciprocal Trade and Investment was announced on November 13, 2025, with the framework agreement text released as a joint statement on the same day.

claimThe objective of the U.S.-El Salvador Agreement on Reciprocal Trade and Investment is to strengthen the economic relationship between the two countries and build upon the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which entered into force in 2006.

perspectiveWill Freeman, a Council on Foreign Relations fellow for Latin America studies, argues that El Salvador will likely benefit less from the U.S.-El Salvador Agreement on Reciprocal Trade than Argentina or Ecuador will from their respective deals, noting that the agreement may weaken CAFTA-DR and encourage other members to seek bilateral deals with the Trump administration.

claimEl Salvador committed to not imposing digital service taxes and to supporting a permanent moratorium on customs duties for electronic transmissions at the World Trade Organization (WTO) as part of the U.S.-El Salvador Agreement on Reciprocal Trade.

claimThe U.S.-El Salvador Agreement on Reciprocal Trade does not outline specific exemptions from Section 232 tariffs in its main text, though the agreement notes that consideration will be given to such exemptions.

claimAgricultural products are exempt from the 10 percent reciprocal tariff rate under the U.S.-El Salvador Agreement on Reciprocal Trade, as provided for in Executive Order 14360.

claimEl Salvador agreed to cooperate with the United States on economic security priorities, including export controls, duty evasion, investment screening, and addressing nonmarket practices, as part of the U.S.-El Salvador Agreement on Reciprocal Trade.

claimAs of January 2026, South Korea has not received the same reciprocal tariff exemption treatment that El Salvador received under the U.S.-El Salvador Agreement on Reciprocal Trade.

claimThe preamble of the U.S.-El Salvador Agreement on Reciprocal Trade defines the agreement as a complement to the rights and obligations established under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

measurementProducts that do not meet the CAFTA-DR rules of origin are subject to a reciprocal tariff rate of 10 percent under the U.S.-El Salvador Agreement on Reciprocal Trade.

claimThe U.S.-El Salvador Agreement on Reciprocal Trade provides a reciprocal tariff exemption for goods that qualify as originating under the rules of origin of the CAFTA-DR, marking the first time the United States has provided this specific exemption to an existing Free Trade Agreement partner.

claimUnder the U.S.-El Salvador Agreement on Reciprocal Trade, El Salvador agreed to address nontariff barriers by accepting U.S. standards on automobiles and expediting product registration for U.S. exports.

accountThe U.S.-El Salvador Agreement on Reciprocal Trade was signed on January 29, 2026.

claimThe U.S.-El Salvador Agreement on Reciprocal Trade includes a specific commitment for El Salvador to treat exports of worn clothing as originating under the CAFTA-DR rules.