Accelerated Talks: Peru And El Salvador Aim For Free Trade Agreement In 2024


(MENAFN- The Rio Times) Peru and El Salvador will reignite discussions in September to establish a Free Trade Agreement (FTA).

Elizabeth Galdo, Peru's Minister of Foreign Trade and Tourism, announced this during the SUMMIC El Salvador 2024 summit.

The event took place in San Salvador and was organized by the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC) with El Salvador 's financial network, Sistema Fedecrédito.

Teams from both countries will meet to outline a roadmap and work schedule. They will work to expedite the negotiations. Galdo emphasized Peru's commitment to expanding commercial opportunities.

She stated, "Our active trade negotiation agenda aims to position Peruvian products in international markets, particularly in Central America."



The Salvadoran market presents significant prospects for Peru's small and medium-sized enterprises. Key sectors include textiles, food products, and construction materials.

In 2023, trade between the two countries reached $73 million. Peruvian exports accounted for $51 million, dominated by chemical products ($19 million), agricultural goods ($17 million), and metal products ($5 million).
Strengthening Bilateral Ties
Imports from El Salvador totaled $22 million, with agricultural products ($15 million), petroleum and gas ($4 million), and textiles ($1 million) leading the way.

Peru currently holds 22 FTAs with 58 economies worldwide. Galdo highlighted the country's ambition to diversify its exports beyond raw materials. This includes a focus on agro-industrial products, services, and manufactured goods.

Maria Luisa Hayem, El Salvador's Minister of Economy, expressed a commitment to strengthening commercial ties. She stressed the importance of creating more opportunities.

In November 2023, Peru's Ministry of Foreign Affairs removed the tourist visa requirement for Salvadorans. This decision has significantly boosted tourism between the two countries.

By July, Peru had welcomed 3,172 tourists from El Salvador. This marked a 41.2% increase compared to the previous year. In 2023, a total of 3,639 Salvadoran travelers visited Peru.

Supporting this surge in tourism, Avianca launched a direct flight route between Lima and San Salvador in June 2024.

In short, the service operates three times a week, enhancing connectivity and fostering closer relations between the two nations.

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The Rio Times

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