El Salvador market overview

Doing business in El Salvador presents a compelling opportunity for companies looking to expand their operations in Latin America. Strategically located, the country serves as a gateway to Central America, making it an attractive hub for trade and investment.

The country has made notable progress in improving its business environment, fostering a climate supportive of entrepreneurship. Canadian companies can find lucrative opportunities in areas of infrastructure development, renewable energy, education services and agriculture, food and beverages.

The Salvadoran workforce is known for its dedication and adaptability, with a sizable portion being young and digitally savvy. This talent pool is complemented by a strong emphasis on education, which is increasingly aligned with modern industry demands. Moreover, El Salvador’s dollarized economy provides stability and reduces currency risk, making it easier for foreign businesses to operate there.

The Trade Commissioner Service (TCS) is available to assist Canadian companies entering the Salvadoran market. We offer practical advice, market intelligence, and support for establishing connections with local partners, helping businesses unlock niche opportunities.

In summary, El Salvador’s favorable investment climate, combined with its strategic location and skilled workforce, makes it an attractive destination for Canadian businesses aiming to expand their footprint in Latin America. If you are considering entering this market, the TCS can provide the necessary resources and insights to help you succeed.

Key facts about the Salvadoran market

  • Canada is highly regarded by Salvadorans, with 715 students having a Canadian study permit in 2022
  • Canada has an Air Transportation Agreement (ATA) with El Salvador since 2019
  • El Salvador has been member of the World Trade Organization (WTO) since 1995 and a signatory of the Central American Mutual Assistance and Technical Cooperation Agreement in Tax and Customs Matters since 2012
  • The GDP was around USD 32.4 billion in 2022 (The World Bank Figures)

Trade between El Salvador and Canada

  • Bilateral merchandise trade in 2023 reached CAD$354.5 million

  • Merchandise exports from Canada to El Salvador totaled CAD $149.7 million (2023, Statistics Canada)

  • Imports from El Salvador totaled CAD$204.8 million (2023, Statistics Canada)

Priority sectors in the market

  • Clean technologies and renewable energy
  • Infrastructure, building products, and services
  • Education
  • Agriculture and processed foods

Top imports into Canada

  • Farm, fishing, and intermediate food products
  • Consumer goods
  • Electronic and electrical equipment and parts

Top exports from Canada

  • Farm and fishing products
  • Consumer goods
  • Basic and industrial chemical, plastic, and rubber products
  • Forestry products and building and packaging materials
  • Industrial machinery, equipment, and parts

Additional market information

Country facts – El Salvador

Get information about El Salvador from The Investment and Exports Promotion Agency (Invest in El Salvador).

Economic Statistics and Reports

The Central Reserve Bank of El Salvador offers economic statistics and reports that can be particularly useful for understanding the country’s financial landscape.

Contact a Trade Commissioner – Embassy of Canada in El Salvador

Get help with export advice and guidance to help you achieve your international business goals. Our trade commissioners can provide you with key business insights and access to an unbeatable network of international contacts.

Additional Information

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