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Background

Eastern Region

Objectives

Progress

Stages & Tasks

Output

Bases

Organization

Approach

Look at Nation:

Urban Hierarchy

Devt. Diagnosis

Eastern Region:

Position & Devt. Issues

Opportunities

Owing to its geographic location and the successful economic reform, El Salvador has benefited from economic globalization and trade liberalization.  The total export and import value doubled during 1994-2001.  In particular, the maquila export and import accounted for 57.7% and 23.1% respectively of the total export and import value in 2001.  El Salvador has concluded a free trade agreement (FTA) with Mexico, Chile, Dominican Republic, and Panama, and is negotiating the same with Canada, the U.S., EU, and Taiwan.  Practically no custom duties exist between El Salvador, Guatemala, Honduras, and Nicaragua.

It is expected that the La Union port at the eastern end of the Country will be revitalized with support of an yen loan in the amount of 11.23 billion yen (about US$90 million) provided by the Japan Bank for International Cooperation (JBIC).  It will become the only port on the Pacific side of Central America with a large container terminal.  It will constitute core facilities of transportation infrastructure to support the Central America Integration System (SICA) according to the Plan Puebla Panama (PPP).  The port of La Union may serve as a hub of international trade not only for Central America but also for the Americas and even beyond at large.