El Salvador: Proposal to Raise Tariff Barriers

In April 2017 the government will be presenting a bill to raise rates on imports of finished goods from countries with which it does not have trade agreements.

Monday, December 12, 2016

The government intends to present the initiative for consideration by the National Assembly in last week of April, according to the Minister of Economy of El Salvador, Tharsis Solomon Lopez, for which it will be scheduling meetings with representatives from the business sector in January and February.

"...Currently, said Lopez, these measures are in a phase of diagnosis and consultation with the productive sector, where the Minec (Ministry of Economy) is conducting a study to determine the feasibility of applying new tariff rates and also which products to change, as they do not want include raw materials that are needed by the domestic industry".

"... 'We are importing from countries with whom we do not have free trade agreements, which are highly industrialized and they are devaluing their currency, about $2.6 billion," reasoned the minister arguing that if the reforms are approved, they will support domestic production and employment generation", reported Elmundo.sv.

¿Busca soluciones de inteligencia comercial para su empresa?



More on this topic

Protectionism in Times of Crisis

June 2020

Arguing that the unusual growth in sugar imports is harming local production, the Alvarado administration decided to raise the tariff on products entering Costa Rica from 45% to 73% for a three-year period.

The Ministry of Economy, Industry and Commerce (MEIC) concluded the investigation requested by the Agricultural Industrial League of Sugar Cane (LAICA) and 4 mills, on the safeguard measure against imports of solid state, granulated sugar, known as white sugar, used for domestic and industrial consumption, justifying a deterioration in the main economic indicators of the National Production Branch (RPN), details an official statement dated June 15.

Tariffs to Mexico: Opportunity for the Region?

June 2019

The plan to impose a 5% tariff on Mexican products entering the U.S. would open up opportunities for Central American countries to increase their sales to the U.S., but there are fears that similar measures could be taken against the region.

On May 30, President Trump announced on his Twitter account that he plans to impose a 5% tariff on Mexican products entering the U.S.

El Salvador to Increase Import Taxes

November 2016

The government announced that it will carry out a review of the goods produced locally and those imported, in order to evaluate the option of raising tariffs to "protect domestic production."

The government's proposal is to analyze what goods are produced in the country and which are imported in order to raise taxes on the entry of goods which are in direct competition with local production.  Tharsis Lopez said "...'I asked for a study of those products manufactured here, either in free zones or outside of them, to see the levels of tariffs or taxes that have to be introduced on those products. Why? To increase these tariffs'. "   

El Salvador and the Trans-Pacific Partnership

February 2015

The government is seeking US support in order to improve conditions in the negotiation of the Trans-Pacific Partnership to minimize the impact it will have on sectors such as textiles.

From a statement issued by the Ministry of Economy of El Salvador (MINEC):

The Minister of Economy, Tharsis Solomon Lopez began a series of meetings in Washington DC with Senators, Congressmen, trade officials from the US Government and private entities, in order to present the position of the Salvadoran government in the negotiations for the Trans-Pacific Partnership, known by its acronym TPP, in relation to the impact it could have on Salvadoran exports carried out under the Free Trade Agreement with the United States, known as CAFTA-DR.

ok