New Export Strategy in El Salvador

The country aims to increase its exports to 530 products by 2014.

Wednesday, October 27, 2010

The new goal is part of an export strategy set by the Government which seeks to replace the current subsidy of 6% (Drawback) for foreign sales. reports, "Authorities have also set other goals mostly related to increasing the number of export destinations from 52 to 60 and increase the number of exporters with sales greater than $500,000 from 428 in 2008 to 540 in 2014."

More on this topic

El Salvador Creates Program to Support Exporters

January 2011

The program allocates $ 28 million for a total of 21 instruments to benefit exporters.

Mario Cerna, Vice Minister of Commerce and Industry in the MINEC, said half of the resources will go to "non-reimbursable funds for co-financing of all types of business." outlined in their article: "The rest of the money will be divided between efforts to promote export products and returns associated with the purchase of supplies and other components to boost the sector. In the coming years it is expected to maintain the amount of resources or increase them."

El Salvador: Proposal for 'Drawback' Removal

December 2010

The Minister of Economy submitted to the National Assembly a draft bill that would remove the 6% export incentive.

Hector Dada Hirezi, Minister of Economy, said the country has had the obligation to eliminate this incentive since 1990.

"The continuity of this incentive had generated claims from some trading partners, mainly from the Dominican Republic, with whom El Salvador has had several trade disputes due to this issue.

Guarantee Fund for Salvadoran Exports

October 2010

The BMI and the Ministry of Economy presented the Export Guarantee Fund (FIDEXPORT).

According to the president of BMI, the FIDEXPORT aims to provide guarantees for short-term financing for export of goods and services required by companies exporting to Financial System institutions in El Salvador.

El Salvador Officially Eliminates ‘Drawback’

March 2010

The Economy Ministry announced that the ‘Drawback’, a 6% incentive to exporters, will not be paid anymore in 2011.

Exporting companies are working with the government to devise a gradual elimination plan, to be executed this year.

Economy Minister Hector Dada explained that by the end of 2010 the 6% subsidy must be eliminated, because the government assumed the commitment committed to do so in the past.