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Industry and Trade
Context
Since 1992, at the time of the Peace Accords, the
country entered into a very aggressive globalization
process of commercial openness that took it to
compete face-to-face with strong economies such
as Mexico, Chile and the United States. This was
decisive proof for the country’s industry to take
advantage of developing an export platform of non-
traditional industrial products and displacing Maquila
as an export sector. Even though, this latter one still
represents 45% of all exports.
The Salvadoran economy was transformed in
the last two decades. The productive structure
changed, moving from an export market dependent
on agricultural products such as coffee and
sugar, to others based on manufacturing with low
technological level and minimum added value such
as maquilas in the textile production and commercial
and financial services.
The government is attempting to attract activities
with greater local added value at the same time
that is promoting the national industry exports to the
Caribbean, the United States and Mexico.
The main resource and wealth of El Salvador is its
people, for being hard-working, qualified and with
great initiative.
Industry
The industry continues maintaining its participation
in the Gross Domestic Product to a near 25%
with 3% growth rates in the last years.This growth
has temporarily been paralyzed due to the global
financial crisis and the 2009 US economic pattern
that is the principal extra regional market of El
Salvador. Once the US economy reactivates, the
recovery of the Salvadoran industrial growth will
consequentially as well. The industry uses 16% of
the workforce population.
Beverage and food bottling, manufacturing of bags
and boxes, production of mineral based utensils,
textiles, leather, plastic, are some of the industries
that experienced a higher growth, as well as the
Hilasal and ADOC companies.
Soda beverage and beer industry from La Constancia
Industry and cement are some of the monopolist or
oligopolistic sectors.
El Salvador is in the 45
th
position of industrial
development of 122 countries belonging to the
ONUDI (United Nations Organization for Industrial
Development). In order to face competition between
neighboring countries and Southeast Asia the
country must improve its productivity. To establish a
company in El Salvador, 68 days are necessary for
the processing of legal paperwork.
Generator at El Ángel sugar refinery
Control room in a sugar refinery