U.S.–El Salvador Trade Agreement 2026: legal opportunities and risks for businesses

On January 29, 2026, in Washington D.C., the United States Trade Representative, Jamieson Greer, and El Salvador's Minister of Economy, María Luisa Hayem, signed the U.S.–El Salvador Reciprocal Trade Agreement. It was the first agreement of its kind in the Western Hemisphere under the Trump administration, and El Salvador was the first country to sign it.

For companies with operations in both countries, or that are evaluating establishing them, this agreement is not just diplomatic news. It is a map of opportunities and legal obligations that should be clearly understood before acting.

An important warning from the outset: the tariff landscape has continued to evolve since the signing. In February 2026, the United States Supreme Court invalidated the original legal basis for the 10% tariffs, which led to the issuance of a new tariff decree under the Trade Act of 1974. According to Coexport, the Salvadoran exporters' association, this temporarily left the reciprocal agreement without full effect for certain products. We review the current status further below.

What is and what is not this agreement?

The U.S.–El Salvador Reciprocal Trade Agreement is a complementary instrument to CAFTA-DR, the free trade agreement in force since 2006. It does not replace it: it expands and updates it in areas where CAFTA-DR had gaps or where the conditions of bilateral trade had changed.

Its central objective, according to the official text published by the USTR, is to reduce tariff and non-tariff barriers between both countries, strengthen intellectual property protection, align technical regulations, protect labor and the environment, and open investment channels in strategic sectors — in particular, critical minerals.

The main commitments: what was agreed

On the part of the United States:
The U.S. committed to eliminating reciprocal tariffs on certain goods originating from El Salvador, according to the list contained in Annex I of the agreement, which covers hundreds of agricultural and industrial products. In practice, this restores the tariff-free access that El Salvador already had under CAFTA-DR and that was suspended by the 2025 tariff decrees.

On the part of El Salvador, the commitments are broader and structure a new framework of obligations:

In the area of technical barriers to trade: El Salvador committed to applying technical regulations, standards and conformity assessment procedures in a non-discriminatory manner, and to eliminating existing obstacles in areas affecting reciprocity, including duplicate or unnecessary testing requirements.

In the area of agriculture: El Salvador guaranteed non-discriminatory or preferential access for U.S. agricultural goods, including specific commitments on geographical indications for American cheeses and meats (Annex II).

In the area of non-tariff barriers (Annex III): The agreement establishes specific commitments for medical devices, pharmaceutical products, vehicles and parts, among other items, including simplification of documentation, procedures and taxes.

In the area of intellectual property: El Salvador assumed the implementation of robust protection and enforcement standards, including the full ratification of international intellectual property treaties.

In the area of labor: El Salvador committed to protecting internationally recognized labor rights and to prohibiting the importation of goods produced with forced labor.

In the area of the environment: El Salvador adopted high-level environmental protection commitments: improvement of forest governance, combating illegal logging, strengthening fisheries measures and fighting illegal wildlife trade and illegal mining.

In the digital area: El Salvador agreed not to impose taxes on digital services or similar charges that discriminate against U.S. companies, which reinforces its attractiveness for technology operations and BPO services.

In the area of export controls: El Salvador committed to implementing mechanisms to restrict the unauthorized re-export of articles of U.S. origin or control subject to EAR (Export Administration Regulations).

The 3 most relevant legal opportunity areas for companies

  1. Bilingual corporate structuring for companies with operations in both countries

The agreement reinforces regulatory interoperability between the U.S. and El Salvador. For companies that operate, or plan to operate, in both markets, this is the ideal time to review and optimize their corporate structure: defining whether the parent company should be in El Salvador or in the U.S., how intangible assets are distributed, how intellectual property is managed at the bilateral level and how the tax incentives available in El Salvador are leveraged (International Services Law, Free Trade Zones, Investment Promotion Law).

  1. Intellectual property protection under the new bilateral framework

El Salvador's commitments on intellectual property are one of the most substantive elements of the agreement. For companies that export technology, trademarks, software, audiovisual content or pharmaceutical products to or from El Salvador, the new framework raises protection standards and offers greater legal certainty. This is the time to register trademarks, patents and copyrights in El Salvador and structure licensing agreements that take advantage of the new environment.

  1. Residency and professional mobility under the updated regime

The agreement promotes the mobility of people and companies between both countries. For executives, entrepreneurs and professionals with ties in both markets, the new context opens opportunities for immigration planning: investment visas, residencies based on economic activity and structures that allow operating in El Salvador with solid legal backing.

The critical factor every company must monitor: the tariff status

This is the point that requires the most attention at this time.

The agreement signed on January 29, 2026 established the elimination of the 10% tariff imposed by the U.S. on Salvadoran goods. However, in February 2026, the United States Supreme Court declared the original tariffs issued under the International Emergency Economic Powers Act (IEEPA) illegal. In response, the government issued a new tariff decree under the Trade Act of 1974, reimposing a general 10% tariff for 150 days.

According to Coexport, the Salvadoran exporters' association, the private sector's interpretation is that, under this new decree, the reciprocal agreement is temporarily without full effect for the products it originally covered, and the 10% tariff applies. The sectors exempted from the tariff include textiles and apparel (which represents approximately 80% of Salvadoran exports to the U.S. under CAFTA-DR), technology products, aviation and some agricultural products.

What does this mean for your company?

That the current tariff landscape requires case-by-case verification before making import, export or structuring decisions. It is not enough to know that an agreement exists: it is necessary to confirm which regulation applies today to your specific product or sector.

Steps for your company to take advantage of this agreement

Step 1. Audit your current tariff exposure. Identify which products you export or import between the U.S. and El Salvador, and verify which tariff applies today under the current regulations — not those of the January agreement, but the February 2026 tariff decree.

Step 2. Evaluate your bilateral corporate structure. If you operate in both markets, review whether your current structure is the most efficient from a tax, regulatory and intellectual property standpoint under the new framework.

Step 3. Protect your intellectual property. Register your trademarks, patents and rights in El Salvador before the increase in commercial activity raises competition and conflicts in IP matters.

Step 4. Review your export and import contracts. Tariff variation, force majeure and price adjustment clauses must be updated to reflect the current tariff uncertainty environment.

Step 5. Consult a specialist attorney in foreign trade and corporate law. The complexity of the current scenario — signed agreement, new decree, disputed interpretations — requires legal advisory that is familiar with both the Salvadoran and U.S. legal frameworks.

Frequently Asked Questions

Originally yes. However, following the U.S. Supreme Court ruling in February 2026 and the new tariff decree issued under the Trade Act of 1974, the Salvadoran export sector reports that the 10% tariff was reimposed on most products. The textile and apparel sector maintains tariff-free access under CAFTA-DR. It is recommended to verify the status of each product before operating.

No. It is a complementary instrument that updates and expands commitments in areas not covered or outdated in CAFTA-DR, including intellectual property, technical barriers, digital services and critical minerals.

Companies in the textile and apparel sector, agricultural exporters, technology and digital services companies, pharmaceutical and medical device firms, and any company that manages intellectual property on a bilateral basis.

Yes. The commitments on digital services, intellectual property, conformity assessment and non-tariff barriers are highly relevant for service companies.

Yes. Given the changing state of tariff regulations and the complexity of bilateral commitments, advisory from attorneys specialized in international trade and corporate law is essential for making informed decisions.

Conclusion: a window of opportunity that demands legal clarity

The U.S.–El Salvador Reciprocal Trade Agreement 2026 positions the country as a preferred partner of the United States in Central America and opens real opportunities in terms of exports, investment and asset protection. But the current tariff environment is dynamic and demands constant monitoring.

The companies that will act with advantage in this context are those that combine agility to seize opportunities with legal rigor to manage risks. At Legal Spot we follow every reform, every decree and every regulatory change to offer our clients clear analysis and timely advisory.

Does your company operate or plan to operate between El Salvador and the United States?

Let's talk. At Legal Spot we analyze your case and guide you clearly on what applies today and how to structure your operation safely.


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This article is for general informational purposes only and does not constitute legal advice. The regulatory environment described is subject to change. For specific decisions, consult a specialized attorney. · Legal Spot · legalspotsv.com

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