El Salvador: Free Zone Generates Benefits

A private report has analyzed the contribution of the scheme to economic activity.

Tuesday, May 24, 2011

80 000 direct jobs and more than 2230 thousand dollars in products exported in 2010 are some of the results achieved by companies operating under the free zone system and active improvement scheme in El Salvador.

This is affirmed in the report presented by the Salvadoran private sector, and from it emerges the positive results achieved by the textile and clothing sector, which grew by 26% in 2010 and has become a leading U.S. provider.

A report by newsmillenium.com notes: The President of the Chambersof the Textile, Clothing and Free Zones in El Salvador (CAMTEX) said "in the private sector we believe and know that there is an opportunity to keep growing as long as conditions are right ", He also said that for this reason the private sector wants more jobs for El Salvador, more production and more exports in order to get maximum advantage from free trade agreements and an improve industrial development. "

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More and More Free Zones in Nicaragua

February 2013

With a record $2.207 billion in exports last year in 2012, the nation aims to continue growing its free zone regime, both in terms of the number of companies and volume of exports.

Beyond having obtained these successful figures, the aim is to attract more businesses and diversify economic activities.

Agricultural Free Zones Act

November 2011

The government of El Salvador is discussing with the private sector a bill to create specific zones for agricultural activities.

Once the Assembly approves the amendments to the free zones law, which will modify the industrial free zone scheme, negotiations will begin for the creation of a specific regime for the agricultural industry.

Free zones in El Salvador, Engine of Growth

May 2011

Under the free zone system around 240 000 Salvadorans are employed directly and indirectly.

Free zones in the country have become one of the main drivers of economic dynamism in the country.

Not only do they generate employment but the productive links that connect other sectors of the economy create a dynamism that is reflected throughout the economy as a whole.

Salvadoran Free Zones Export $ 2,069 Million

January 2011

Foreign sales of companies under the free zone regime accounted for 50% of total exports in 2010.

Of the $4,097 million exported by the country from January to November 2010, free zones contributed $ 2,069 million.

Companies operating under this model generate between 85 and 90 thousand jobs a year, most of them in the textile industry, which employs over 73,000 people", explained Elsalvador.com.