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.