Congestion, Diversions, and Port Saturation Before the Tariffs

With the presidential proclamation signed by Donald Trump on March 26, 2025, the imposition of a 25% tariff on all light vehicles imported into the United States was made official, taking effect on April 2. Additionally, essential auto parts, including engines, transmissions, and electrical systems, will be subject to the same tariff starting May 3. This announcement has triggered one of the most significant logistical and production disruptions the North American automotive industry has faced in decades.

The logistical “rush” experienced in the final days of March has been described as a global emergency operation. Shipping lines have rerouted vessels from Asia and Europe to less congested U.S. ports to prevent vehicles in transit from being caught under the new tariff scheme. Notably, these ships are transporting unusually high numbers of units in a desperate bid to enter the U.S. before April 2.

This congestion has led to bottlenecks in yards, terminals, and customs facilities. As Daniel Harrison, an analyst at Automotive Logistics, noted, the industry is experiencing a “slow-motion crisis” that threatens to persist for years to come. The ramifications of these disruptions go beyond the immediate logistical challenges, raising concerns about the long-term resilience and efficiency of automotive logistics in North America. Industry players must rethink their supply chain strategies to mitigate these unprecedented challenges.

Structural Impact on the Supply Chain

The just-in-time model and regional integration under the USMCA (formerly NAFTA) have been the backbone of North America’s industrial success. However, as the consulting firm Bain & Company warned, this global network was already “stretched to the limit” due to disruptions accumulated since the pandemic and the transition to EVs. The tariffs further exacerbate the situation, forcing companies to reassess the feasibility of their current supply chain models.

The change will not only affect foreign manufacturers such as Toyota, Mercedes-Benz, and VW. U.S. firms like GM, Ford, and Stellantis also import parts and models from Mexico, Canada, Asia, and Europe. Even USMCA-compliant products could face tariffs if they do not certify their U.S. regional content properly. This highlights the growing complexity of automotive logistics in North America, where companies must balance cost efficiency and compliance with evolving trade regulations.

Beyond the manufacturing sector, logistics providers are also facing immense pressure. The increased scrutiny of import certifications means more administrative work at customs checkpoints, leading to delays and additional costs. As companies navigate these hurdles, the need for streamlined and technologically advanced logistics solutions has become more apparent.

Direct Impact on Mexico: Vulnerability and Opportunity

Mexico, the leading exporter of light vehicles to the U.S., faces a dual scenario. On the one hand, Mexican plants are crucial for North American supply chains. Still, on the other, many units may not meet the new thresholds for regional or “American” content, as the White House has defined the criteria for the vehicles Mexico exports to the U.S. Several OEMs will have to decide whether to relocate part of their production or transform their supply chains to balance U.S., Mexican, and Canadian content in their vehicles.

The consequence? No matter how you look at it, increasing the price of vehicles assembled in any USMCA country will be almost inevitable. No vehicle is manufactured with 100% American content alone. The added costs will ultimately be transferred to consumers, affecting demand and reshaping the competitive landscape of the automotive market.

The impact is further amplified in Mexico’s logistics hubs: Lázaro Cárdenas, Veracruz, and Mazatlán have reported accelerated growth in vehicle movement for several months, and the pressure is expected to continue. The integration of rail and road transportation with the U.S. is also operating at full capacity, presenting yet another challenge for automotive logistics in North America. Efficient coordination between different modes of transport will be essential to prevent bottlenecks and maintain a steady flow of goods across borders.

Mitigation Options: From Production Redesign to Digital Traceability

Among the strategies discussed at forums like Automotive Logistics Europe, OEMs, and Tier suppliers are considering:

• Increasing production in the U.S. or strengthening regional content to meet USMCA requirements and avoid penalties.
• Redirecting shipments to ports with lower tax burdens or temporary exemption regimes to maximize efficiency.
• Integrating traceability tools and predictive analytics to provide real-time visibility into logistics flows.
• Diversifying suppliers, prioritizing those in North America or those with greater flexibility to adapt to new regulations.
• Reconfiguring logistics operations and assessing the transition to strategic inventory models or regionalized distribution centers.
• Forming partnerships with specialized logistics operators that offer integrated solutions adaptable to the new regulatory environment.
• Investing in automation, artificial intelligence, and blockchain as tools to reduce risks, anticipate disruptions, and ensure regulatory compliance.

The need for resilience and adaptability in automotive logistics in North America is more crucial than ever. Automakers and logistics providers must embrace digitalization and predictive modeling to enhance supply chain visibility. By leveraging real-time data, companies can make informed decisions that minimize delays and optimize cost efficiency.

Strengthening collaboration among foreign trade, product engineering, procurement, and logistics departments is essential to designing joint scenarios and making data-driven decisions. This cross-functional effort will be crucial for adapting the supply network to new international trade parameters.

Long-Term Implications and Industry Adaptation

While short-term strategies focus on mitigating immediate disruptions, industry leaders must also consider the long-term evolution of automotive logistics in North America. The move toward greater regionalization may incentivize investments in domestic manufacturing capabilities, reducing reliance on overseas production. However, this transition requires significant capital investment and reevaluating supply chain dependencies.

The importance of sustainability in logistics is also gaining traction. With the growing emphasis on reducing carbon emissions, companies are exploring eco-friendly transportation methods, such as electric freight vehicles and rail alternatives. Automakers can align with regulatory trends by integrating sustainability into logistics planning while enhancing operational efficiency.

Furthermore, geopolitical uncertainties continue to shape trade policies. The potential for further changes in tariff structures and shifting alliances between trade partners underscores North America’s need for agile and forward-thinking strategies in automotive logistics.

Conclusion: The Road Ahead

The imposition of 25% tariffs on imported vehicles and essential auto parts marks a defining moment for the automotive industry. The disruptions triggered by these tariffs demand urgent and strategic responses from automakers, logistics providers, and policymakers alike. While challenges persist, there are also opportunities for innovation and transformation within the supply chain.

Investments in technology, enhanced regional collaboration, and proactive adaptation to regulatory changes will be key to navigating this complex landscape. As the industry evolves, resilience and agility will define the success of companies operating in automotive logistics in North America.

Brazil is positioning itself as an attractive destination for Japanese investment. Brazilian President Luiz Inácio Lula da Silva recently highlighted that Brazil offers a favorable environment for foreign investment, backed by political stability, fiscal reforms, a commitment to democracy, economic growth, and social progress. These remarks were made during the closing of the Brazil-Japan Business Forum in Tokyo, where he emphasized that Brazil is a “safe harbor” for Japanese companies looking to expand.

Strengthening Bilateral Trade Relations

At the event, Lula announced the signing of ten cooperation agreements in various fields and nearly 80 instruments involving companies, banks, universities, and other institutions. He underscored his intention to consolidate a new strategy for relations with Japan, focusing on bilateral trade and establishing partnerships between Japanese and Brazilian companies to promote mutual growth. The increasing presence of Japanese investment in Brazil demonstrates the strengthening of economic ties between the two nations.

Brazil and Japan have enjoyed a long history of diplomatic and economic cooperation, and the latest agreements aim to deepen this relationship. Japanese businesses have recognized Brazil’s potential, particularly in infrastructure, energy, and agriculture, further solidifying the country as an attractive hub for foreign capital.

The Energy Sector: A Key Investment Opportunity

One of the highlighted sectors was energy. Lula mentioned that Brazil will increase the percentage of ethanol in gasoline from 27% to 30%, while diesel will reach 20% by 2030. According to Japan’s Strategic Energy Plan, the country aims to increase bioethanol use to 10% by 2030 and up to 20% from 2040 onwards. This shift aligns closely with Brazil’s efforts to position itself as a leader in renewable energy.

With Brazil’s vast experience in biofuel production and ambitious sustainability goals, Japanese investment in Brazil’s energy sector is expected to rise significantly. Japan sees Brazil as a strategic partner in reducing reliance on fossil fuels. This collaboration presents substantial business opportunities for Japanese firms specializing in renewable energy, biofuels, and innovative technologies aimed at sustainability.

Advancing an Economic Partnership Agreement

Lula emphasized the need to sign an economic partnership agreement between Japan and Mercosur. He argued that, in an increasingly complex world, it is essential for long-standing partners to unite to address uncertainties and instabilities in the global economy. Such an agreement would enhance trade relations, reduce tariffs, and encourage further Japanese investment in Brazil across various industries.

Both nations would benefit from increased efficiency and competitiveness by removing trade barriers and fostering a more integrated economic environment. Japanese investors are particularly interested in Brazil’s industrial and technological sectors, which offer numerous growth opportunities. The anticipated trade agreement would provide further incentives for companies to enter the Brazilian market, reinforcing the country’s position as a key player in international trade.

Promoting Free Trade and Multilateralism

The president also addressed the importance of democracy, free trade, and multilateralism as fundamental pillars of global stability. He criticized the rise of protectionism and stressed the need to defend free trade and multilateral relations among countries, universities, and the scientific and technological spheres. This commitment to open markets significantly drives Japanese investment in Brazil.

Japan and Brazil are committed to maintaining strong international partnerships that foster economic resilience. By prioritizing open markets and collaboration, Brazil ensures it remains an appealing destination for Japanese investors seeking stability and long-term growth.

Major Commercial Deals and Investments

In the commercial sector, selling up to 100 Embraer E-190 aircraft to the Japanese airline ANA was highlighted as a significant step in bilateral trade. This deal further demonstrates Japanese companies’ confidence in Brazil’s aerospace industry. Embraer, one of the world’s leading aircraft manufacturers, has long been a major player in the global aviation market, and this agreement solidifies its relationship with Japan’s airline sector.

Additionally, cooperation in biofuel production remains a central focus of economic discussions. Brazil is a pioneer in developing and using biofuels, and Japanese investment in Brazil’s bioenergy sector is expected to grow as the country seeks to diversify its energy sources. Japanese companies specializing in green technology, sustainable fuels, and energy-efficient solutions see Brazil as a key partner in their global expansion strategies.

Strengthening Diplomatic and Economic Ties

Lula’s visit to Japan also included meetings with Emperor Naruhito, Empress Masako, and Japanese Prime Minister Shigeru Ishiba. These high-level discussions reinforced both nations’ commitment to deepening investment, security, and sustainability cooperation.

Brazil’s leadership in renewable energy, agriculture, and industrial development presents a compelling case for further Japanese investment in Brazil. The country’s political stability and ongoing economic reforms have made it increasingly attractive to foreign investors looking for new growth markets. The potential for expanded trade agreements and deeper bilateral relations suggests that Japanese companies will continue to seek business opportunities in Brazil across multiple sectors.

The Future of Japanese Investment in Brazil

As Brazil continues implementing reforms to improve its business environment, it is likely to attract even greater foreign direct investment. Japanese companies are particularly well-positioned to benefit from Brazil’s economic policies, trade agreements, and infrastructure projects.

With significant investment opportunities in energy, transportation, technology, and agriculture, Japanese businesses will play an essential role in shaping Brazil’s economic future. The increasing presence of Japanese investment in Brazil is a testament to the country’s potential as a significant global player in trade and industry.

In conclusion, the strengthening economic ties between Brazil and Japan provide promising business prospects for both nations. Japanese investors are finding new and exciting opportunities in Brazil through strategic partnerships, trade agreements, and investments in key sectors. This growing relationship underscores both countries’ potential for continued economic expansion and mutual prosperity.

The Salvadoran market presents numerous opportunities for expanding Peru’s export offerings. In 2024, El Salvador imported agricultural goods worth $3.3 billion, with 24% of these products already traded with Peru, such as grapes, mandarins, sweet biscuits, onions, and chocolate. However, the trade relationship between the two nations remains underdeveloped compared to its potential. Recognizing this, Peru and El Salvador have initiated negotiations for a Peru-El Salvador free trade agreement to foster deeper economic ties and improve market access.

According to the Peruvian Ministry of Foreign Trade and Tourism (Mincetur), between March 24 and 28, 2025, both countries held the first negotiations to establish this trade deal. The meeting in San Salvador marked a critical step toward strengthening trade relations. The goal is to reach an agreement as soon as possible to enable businesses from both nations to benefit from enhanced trade terms.

According to statements by Desilú León Chempén, Peru’s Minister of Foreign Trade and Tourism, the initial round demonstrated both nations’ commitment to advancing a smooth negotiation process. “We have made significant progress in the different negotiation tables, and we expect the process to continue optimally in the upcoming sessions,” the official stated. These negotiations covered key technical areas such as Market Access, Rules of Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Temporary Entry of Businesspersons, E-commerce, and Government Procurement. Additionally, it was announced that the Trade Facilitation and Customs Procedures table would convene on April 9 and 10, reflecting the continuity of technical work at this early stage.

A Strategic Market for Peruvian Products

Establishing a Peru-El Salvador free trade agreement represents a strategic opportunity to strengthen the presence of Peruvian products in the Central American market. Mincetur highlights that geographical proximity and a shared language facilitate access to this market, which demands value-added products. Reducing tariffs and simplifying customs procedures would allow Peruvian exporters to compete more effectively, diversify markets, and generate employment there.

Minister León emphasized that these negotiations are part of Peru’s broader trade policy focused on opening new markets with preferential treatment, benefiting small and medium-sized enterprises (SMEs). These businesses, which are constantly seeking nearby and compatible markets, could find El Salvador an attractive destination for their products. The agreement’s potential benefits extend beyond tariff reductions, offering streamlined trade processes, regulatory cooperation, and improved market predictability.

A Growing Trade Relationship

Bilateral trade between Peru and El Salvador has steadily grown in recent years. In 2024, trade between the two countries reached $91 million, representing a 25.3% increase compared to the previous year. Peruvian exports accounted for $71 million, while imports from El Salvador totaled $20 million.

The chemical sector led Peruvian exports, making up 32.6% of the total trade, followed by agricultural products (16.9%) and metallurgical goods (10.8%). Notable exports included plastics, copper wire, and fruits. For example, copper wire exports reached $7.8 million, marking a 281% increase compared to 2023, while plastic product exports totaled $22 million, reflecting an 87% growth.

In contrast, imports from El Salvador have declined over the past two years. In 2024, these imports decreased by 6.1%, totaling $20.3 million. This decline was mainly due to lower purchases of agricultural products, such as sugar, which accounts for 60% of El Salvador’s exports to Peru. However, there were notable increases in textile and apparel imports (44%) and paper, wood, and chemical products.

Prospects and Opportunities in the Salvadoran Market

The Salvadoran market presents significant potential for Peruvian products. As mentioned, El Salvador imported agricultural goods worth $3.3 billion in 2024, and 24% of those consisted of products already traded with Peru. Despite this, Peru’s share in this segment was only 2.7%, indicating ample room to increase the presence of national products through a Peru-El Salvador free trade agreement.

Additionally, 19% of Salvadoran imports included goods that Peru has not yet exported to this country but for which it has an exportable supply, such as palm oil, polished rice, malt extract, and beans. This presents an opportunity to diversify Peru’s offerings in the Salvadoran market, leveraging an FTA’s advantages.

One key benefit of a free trade agreement is the establishment of clear trade rules that minimize trade barriers. As negotiations progress, both nations will seek to ensure fair competition, eliminating restrictions that may hinder trade flow. The agreement could further unlock potential in non-traditional sectors such as services and digital trade, paving the way for broader economic cooperation.

A Favorable History of Bilateral Trade

Trade between Peru and El Salvador has evolved positively over the past two decades. According to the 2024 Annual Bilateral Trade Report prepared by Mincetur, trade between the two countries reached its second-highest value of the century in 2024, second only to the record set in 2019, when it reached $99 million. This performance is attributed to the sustained growth of Peruvian exports, which increased by 39% in 2024, while imports from El Salvador have shown a downward trend.

Among the standout Peruvian exports were biscuits, generating nearly $5 million, and cocoa, which amounted to $1.2 million. Meanwhile, imports of textiles and apparel from El Salvador grew by 42%, reflecting dynamism in this sector. This trend suggests a growing interest in Salvadoran products in the Peruvian market, reinforcing the need for a formal trade agreement.

The Road Ahead

The first negotiation round for the Peru-El Salvador free trade agreement has laid the groundwork for future discussions. Both countries have expressed optimism about reaching an agreement to facilitate increased trade flows, reduce trade costs, and create new business opportunities.

For Peru, securing a preferential trade agreement with El Salvador aligns with its broader trade diversification strategy. Given the country’s track record of successfully negotiating FTAs with various partners, expectations remain high that this agreement will bring tangible benefits to businesses and consumers.

For El Salvador, deeper trade ties with Peru will provide access to a broader range of Peruvian goods at competitive prices while enhancing its economic integration with South America. As both countries refine the agreement’s terms, businesses in key sectors such as agriculture, manufacturing, and technology should prepare to capitalize on the new trade landscape.d

With the second round of negotiations on the horizon, stakeholders from both nations remain engaged in shaping a deal that maximizes economic benefits. The Peru-El Salvador free trade agreement represents a pivotal opportunity for enhancing bilateral economic relations, ensuring long-term trade growth, and strengthening regional integration. If successfully concluded, this agreement will deepen economic cooperation and serve as a model for future trade partnerships between South American and Central American nations.

Authorities are meticulously evaluating the feasibility, costs, and benefits of establishing a strategic port within the Panamanian Pacific, specifically between Mensabé and Farfán. This critical assessment is driven by the growing recognition of port development’s national and international importance for Panama, especially in light of the recent announcement of the sale of CK Hutchinson Ports to BlackRock. This conglomerate, owning 90% of the Cristóbal and Balboa ports through Panama Ports Company (PPC), underscores the need for a robust and future-proof port strategy.

In this context, a long-term, comprehensive approach is imperative to strengthen Panama’s Pacific Ocean port logistics platform. This initiative aligns with the Strategic Maritime and Port Development Plan of the Republic of Panama, Vision 2040, a forward-thinking framework promoted by the Development Bank of Latin America (CAF) and the Panama Maritime Authority (AMP). Central to this strategy is the careful consideration of the Mensabé port versus the Farfán port, focusing on the technical, logistical, and cost-benefit aspects of these two significant projects under evaluation by the National Government, located within the strategic Panamanian Pacific region.

As a signatory to international treaties related to maritime activity, Panama holds the jurisdiction to develop its port sector, adhering to the rules stipulated in national and international legal instruments. This legal mandate provides the foundation for ambitious port development initiatives.

Panama, a Global Logistics Hub

Historically, Panama has served as a vital nerve center for global maritime trade, owing to its advantageous geostrategic location and the indispensable infrastructure of the Panama Canal. However, Panama must modernize and expand its port and logistics infrastructure to maintain its competitive edge in the rapidly evolving global trade landscape. The National Government’s evaluation of the Mensabé and Farfán ports directly responds to this imperative. Industry experts, recognizing the optimal characteristics of Mensabé, assert that it offers greater economic, operational, and strategic viability, ensuring the sustained supply and demand of port services over the next 25 to 50 years.

The Need to Generate Added Value

In 2020, the Panama Maritime Chamber emphasized the need to generate added value to the cargo transiting the country. The traditional transit and transshipment model has reached saturation, necessitating a strategic shift towards a more sophisticated and decentralized logistics model. A compelling example is the success of ports like Singapore and Rotterdam, which transitioned from mere transshipment hubs to value-added logistics centers.

Dr. Estivenson Girón, an expert in economics and logistics, advocates for the Mensabé port as the optimal national project. He argues, “The Panamanian government faces the challenge of prioritizing a mega port project to guarantee the country’s logistics future. To consolidate itself as the logistics hub of the Americas and compete with emerging projects in the region, such as the Port of Chancay in Peru, the new port infrastructures must have a depth of 18 to 20 meters to accommodate mega container ships of 18,000 to 24,000 TEUs over the next 25 to 50 years; in addition to ample space for the development of value-added logistics parks away from the congestion of large cities.” This necessity for deep water ports is particularly relevant to the future development of the Panamanian Pacific.

The Farfán Port

The Farfán port, proposed by the Panama Canal Authority and located at the Pacific waterway entrance, presents several disadvantages. The high investment costs associated with the extensive dredging required to achieve the necessary depth for mega container ships pose a significant challenge. The construction of the port would also entail substantial infrastructure and maintenance expenses due to its proposed location. Furthermore, the logistical difficulties stemming from congestion in the metropolitan area underscore the global trend of relocating ports away from densely populated urban centers. The development of Farfan, also located on the Panamanian Pacific, is a complex issue.

The Mensabé Port

The Mensabé port offers several distinct advantages. Its significantly lower construction costs, attributed to its natural depth of 18-20 meters, enable it to accommodate mega container ships that currently cannot access Panama. Its strategic location mitigates traffic logistics problems and balances national economic development. The integration of the Mensabé port with the development of a Special Economic Zone for value-added transformation, coupled with the La Candelaria airport and the area’s maritime and tourist activities, facilitates the creation of an optimized and competitive comprehensive logistics platform. This platform promotes the development of logistics, multimodal, and tourism activities, seamlessly integrating maritime and air transport. The possibilities of tax incentives and other advantages for the private sector also reduce the burden on public finances, contrasting sharply with the high investment costs associated with the Farfán port. The strategic importance of Mensabé is evident when considering the entire scope of the Panamanian Pacific.

Connectivity and Regional Development with the Mensabé Port

Mensabé’s development would decentralize port operations and alleviate congestion near the Canal. Its connectivity with other port projects, such as the Aguadulce Multipurpose Port Terminal and the Barú Multipurpose Marine Terminal, will bolster the economic competitiveness of the Panamanian Pacific. Developing a multimodal corridor, the Panama-David-Border Train, would further enhance connectivity, linking Panama with Central America and the Mexican Pacific. The development of the Panamanian Pacific region is paramount, and the Mensabé port is a vital component of this strategy.

Honduras and El Salvador are jointly charting a path toward the productive integration of their border region to attract foreign investment and establish a strategic economic corridor. Recognizing the potential for economic transformation, both nations are implementing a comprehensive plan that aligns infrastructure development with business incentives to create an attractive investment destination.

Historically left behind in economic development, the border area between Honduras and El Salvador is about to turn a new page. With a shared agenda, both countries have agreed to collaborate in transforming the southeastern region into a regional investment hub. The primary objective is to leverage geographic advantages and sectoral strengths to present compelling investment opportunities in Honduras and El Salvador.

Both nations are betting on a logistics and industrial strategy that could reshape the economic landscape of the Northern Triangle. By enhancing connectivity and facilitating trade, they aim to stimulate economic activity, generate employment, and attract sustainable investments that will contribute to long-term regional development.

A Shared Vision with Presidential Backing

This initiative is not occurring in isolation. It is part of broader commitments made by Presidents Xiomara Castro and Nayib Bukele, who are advancing an economic diplomacy agenda through concrete plans and initiatives. Their administrations recognize that regional cooperation is crucial to overcoming historical economic challenges and ensuring that growth benefits all regions of both nations.

The recent high-level binational technical meeting brought together officials from the National Investment Council (CNI) of Honduras, the Office for Investment Promotion, and their counterparts from El Salvador. During this meeting, they defined key actions aimed at attracting sustainable investments and positioning the region as a competitive platform in the international arena.

The technical teams focused on five strategic sectors: agribusiness, tourism, infrastructure, manufacturing, and energy. These industries hold transformative potential for the region and offer direct access to the Pacific Ocean, a key point in global value chains. By fostering growth in these sectors, Honduras and El Salvador seek to provide a fertile ground for foreign direct investment while ensuring sustainable economic benefits for local communities.

Dry Canal, Ports, and Border Crossings

One of the agreement’s most significant pillars is integrating key infrastructure: Honduras’ Dry Canal, El Salvador’s Port of La Unión, and Puerto Cortés. These considerable projects represent critical logistical assets that can enhance the movement of goods, making the region a key node in international trade.

In addition to these significant projects, border crossings will be modernized to facilitate the flow of commerce and reduce bureaucratic bottlenecks that have historically hindered trade. The modernization efforts will allow businesses to operate more efficiently, improving the overall investment climate.

Representatives from both delegations emphasized the importance of these efforts: “The objective is clear: to transform the southeastern region into an efficient and competitive hub within international value chains.” With improved infrastructure and a commitment to streamlining trade, the governments of Honduras and El Salvador are working to unlock significant investment opportunities, creating an economic environment that attracts multinational companies and regional enterprises alike.

A Binational Presentation of Opportunities

Both countries have agreed to move forward with a Binational Presentation of Opportunities as part of the strategy. This initiative will showcase the competitive advantages of investing in the border region between Honduras and El Salvador. The presentation will accompany a joint country profile, a trade mission in October, and coordinated participation in the Regional Expo Fair in June, with support from the Honduran Ministry of Foreign Affairs.

These coordinated efforts align with CNI’s Vision 2030, which includes Guatemala’s consolidation of an integrated regional investment offering. By working together, these three nations aim to create a unified investment region that appeals to international markets and enhances economic resilience.

A Strategic Corridor for Development

Southeastern Honduras and eastern El Salvador have historically been marked by migration and economic stagnation. However, this narrative is shifting. Today, the region is emerging as the heart of a new cross-border economic corridor, capable of attracting investment in dynamic sectors such as clean energy, export-oriented agribusiness, and sustainable tourism.

By focusing on these high-growth industries, the governments of both countries are addressing long-standing development gaps while opening new economic frontiers. The commitment to creating a stable, business-friendly environment ensures that companies considering expansion will find compelling investment opportunities in Honduras and El Salvador.

A Border That Unites, Rather Than Divides

At a time when regional challenges seem to be multiplying, Honduras and El Salvador are opting for a bold response: integration as a path to development. By fostering a shared economic vision and implementing concrete measures to support investment, both countries are demonstrating that cooperation yields tangible results.

This binational cooperation represents more than just an economic alliance; it is a geostrategic vision aimed at integrating both countries into 21st-century trade routes. By developing a robust, connected, and sustainable logistics platform, Honduras and El Salvador are ensuring that their economies remain competitive in an increasingly globalized world.

With agreements that go beyond rhetoric and an ambitious yet tangible vision, both nations are laying the foundations for a new economic narrative in Central America. The southeastern region will no longer be a forgotten borderland but rather a regional growth engine where investment and cooperation drive prosperity. If the roadmap is successfully implemented, investors will discover unparalleled investment opportunities in Honduras and El Salvador, transforming the region into a beacon of economic progress for the entire Northern Triangle.