International Commerce Ministry of Economy (El Salvador) Exports & imports Free Trade Zone System Mario Roger Hernández free trade zone exports free zone Salvadorean Textile and Clothing Association Free Zones Law World Trade Organization Partial Scope Agreemen El Salvador - Trinidad & Tobago Partial Scope Agreement Patricia Figueroa Textile Industry

El Salvador: Law Free Zone Project Advances

The Economy Ministry will submit the draft to the Legislative Assembly during the first half of 2011.

Friday, January 14, 2011

According to representatives of the private sector the project is 90% complete.

"The World Trade Organization (WTO) determined, after two extensions, that the country should, by 2015, replace the incentives for the establishment of enterprises operating in free zones, as stipulated in current laws. The country will make annual assessments to determine progress and compliance of the extension," writes for Elmundo.com.sv Kriscia Recinos.

Source: elmundo.com.sv

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Key entities

Ministry of Economy (El Salvador) Asamblea Legislativa (El Salvador) Mario Roger Hernández

Countries

El Salvador

Insight

exports Free Trade Zone System free zone free trade zone International Commerce

El Salvador: New Law on Free Zones Delayed

August 2011

There is a growing demand for textiles and clothes manufacturing, but a new Law on Free Zones is needed in order to bring fresh investments to this sector.

The World Trade Organization (WTO) has determined, after two extensions, the country should, in 2015, replace the law that has been in force since 1998, which grants tax benefits such as a total and permanent exemption from taxes, among others.

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.

El Salvador Faces Tough Test at WTO

February 2010

The World Trade Organization demands explanation as to why the country is maintaining a 6% subsidy for exporters and various fiscal benefits for free zones.

El Salvador should have terminated the 6% exports subsidy four years ago, according to the agreement it reached with the World Trade Organization.

Costa Rica's Free Zones require definition of the system

November 2008

There is concern about the incentives to be received after 2015 when benefits expire according to World Commerce Organization provisions.

The Government wants to ensure these conditions through a reform of the free zone law aimed at attracting investment.

However, its early yet and the possibility of taking it to Congress for a vote seems far off.