El Salvador: Government's Plan Will Not Replace 'Drawback'

Exporters are concerned that the government's $175 million investment in the sector will not make up for the loss of incentives.

Thursday, August 5, 2010

El Salvador's Corporation of Exporting Companies, known as COEXPORT, believes the impact on the export sector of the $175 million government investment plan will be minimal.

Francisco Bolaños, president of COEXPORT, told Laprensagrafica.com that, "according to our calculations, the employment bonus will cover around 4,000 jobs while job losses are in the region of 28,000. This is an example of where the budget falls short. Let's remember that the main aim is to create jobs and this is why much more is needed".

More on this topic

The Foreign Trade Promotion Office of Costa Rica

April 2013

PROCOMER is a key institution and key ally of entrepreneurs in Costa Rica's export sector.

The Foreign Trade Promotion Office of Costa Rica has presented its report on the work of 2012, in a document entitled Institutional Report 2012.

From a letter from the CEO introducing the report:

Delay in regulating Law for Production Promotion

December 2011

The regulation establishing export incentives for "draw back" substitutes is still pending approval in El Salvador.

During the inauguration of the Third Meeting of Exporters, the Exporters Corporation of El Salvador (Coexport) called on the Government to establish the dates for the entry into force of the regulations on the Law for the Promotion of Production, which establishes new incentives.

El Salvador’s Export Strategy Fails to Convince

July 2010

While exporters acknowledge that the strategy includes some useful instruments it is does not go far enough for the development of the sector.

El Salvador’s Corporation of Exporting Companies, known as COEXPORT, has reviewed the new Integrated Strategy for the Promotion of Exports (EIFE) and found no substitute for the “drawback” instrument, an import duty rebate triggered by the re-export of goods that were initially imported.

$175 Million for Salvadoran Export Sector

July 2010

The government presented its "National Export Strategy" in which it plans to invest $175 million during its five year mandate.

The funds come from the national budget in addition to a $40 million loan from the Inter-American Development Bank (IDB), commented the Secretariat to the Presidency.