On November 13, 2025, the United States and El Salvador announced a framework for an Agreement on Reciprocal Trade aimed at enhancing their longstanding economic ties. This agreement builds upon the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) and includes El Salvador’s commitments to eliminate non-tariff barriers, facilitate U.S. exports across various sectors, and uphold high labor and environmental standards. Furthermore, the agreement underscores efforts to strengthen economic cooperation against non-market policies and mandates that El Salvador prohibit the importation of goods produced through forced labor.

Specifically, El Salvador has pledged to streamline regulatory processes for U.S. exports, ensure fair practices regarding agricultural products, and prevent discriminatory digital services taxes. The agreement also seeks to combat illegal activities such as logging and wildlife trade, while promoting transparency in international intellectual property matters. As both countries work towards finalizing this agreement, the United States intends to eliminate reciprocal tariffs on certain El Salvadoran exports as a goodwill gesture, signifying a bilateral commitment to a reciprocal trading relationship.

The negotiation of this framework reflects a mutual desire to strengthen economic and national security ties, particularly concerning supply chain resilience and innovation. The United States and El Salvador are expected to complete domestic formalities and prepare for signature soon, marking a significant step in enhancing trade relations. This agreement illustrates substantial efforts by both nations to foster a more robust and balanced economic partnership going forward.

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