El Salvador bets on long-term strategy
The Government of El Salvador launched the National Trade and Investment Policy 2020-2050, a strategic commitment to long-term economic growth, which is also intended to be a roadmap for the reactivation of El Salvador’s economy, after the severe impact of the COVID-19 pandemic in 2020, but also, with a view to making El Salvador a strategic destination for diverse investments.
In 2019, the process of formulating this policy had been presented by the Secretary of Commerce and Investment of the Presidency. At that time, the objectives mentioned were the imposition of investment and the creation of conditions to achieve sustainable growth.
Through coordinated work between government institutions, the private sector, and with the support of the Inter-American Development Bank (IDB), this framework was created to generate economic growth. It is worth mentioning that historically this has been a difficult issue for our country, which has depended in large part on the remittances from Salvadorans abroad.
Diversification of products and export destinations; pushed trade agreements; promotion of competitiveness and internationalization of companies (especially micro and small companies); infrastructure development, as well as turning our country into an export hub for digital services, are part of the strategies that this long-term plan will imply, which seeks “the definitive leap that will allow to take advantage of the opportunities of opening up trade with the world and promote the development of its own capacities,” in the words of Marian Scheifler, international consultant for the IDB.
Due to the economic shock of 2020 the plan was delayed in its implementation and underwent planning adjustments, this represents an enormous challenge for the country, as well as for the world’s economies who are simultaneously seeking for recovery. In this sense, this plan will require the unity and coordination of all productive sectors and the ability to strengthen trade relations with the regions of interest.
Julio Vargas Solano
Managing Partner
García & Bodán
El Salvador