AI-generated image for Our Life in El Salvador Illustrating expanded trade cooperation between El Salvador and Belize.
El Salvador and Belize have taken a new step toward closer economic cooperation by signing a Partial Scope Agreement designed to increase trade, reduce tariffs, and create new opportunities for businesses in both countries.
The agreement was signed in San Salvador by El Salvador’s Minister of Economy, María Luisa Hayem, and Belize’s Minister of State for Foreign Trade, Marconi Leal. It follows negotiations that began in December 2023 and represents a significant expansion of the commercial relationship between the two Central American nations.
Although El Salvador and Belize share the same region, trade between them has remained relatively modest. The new agreement could begin to change that by giving selected products preferential access to each country’s market.
What Is a Partial Scope Agreement?
A Partial Scope Agreement is more limited than a full free trade agreement. Instead of covering nearly all trade between two countries, it applies preferential tariffs to a negotiated list of products.
This allows the countries to reduce or eliminate import duties in selected areas while protecting industries that are not included in the agreement.
In this case, the agreement covers more than 400 Salvadoran products. The Salvadoran Ministry of Foreign Affairs provided a more precise figure of 422 products that will receive either complete or partial tariff relief after the agreement is ratified and enters into force.
Of those products, 316 will be able to enter Belize with zero tariffs. Another 106 will benefit from reduced tariffs.
Which Salvadoran Industries Will Benefit?
The agreement could create opportunities for Salvadoran companies working in more than 10 productive sectors. Among the industries expected to benefit are:
- Agroindustry
- Food and beverages
- Pharmaceuticals
- Chemical products
- Metalworking
- Paper and cardboard
- Plastics and rubber
- Textiles
- Clothing and apparel
These are industries in which El Salvador already has manufacturing and export experience. Lower tariffs could make Salvadoran products more competitive in Belize by reducing some of the costs faced by importers.
The agreement may be particularly useful for small and medium-sized businesses looking for regional markets that are easier to enter than larger and more distant destinations.
Belize Will Also Gain Access to El Salvador
The agreement is not limited to Salvadoran exports. El Salvador will grant preferential access to 276 products manufactured in Belize.
Of those, 194 will enter El Salvador without tariffs, while the remaining products will receive partial reductions.
Belizean goods expected to benefit include leather and hides, stone products, furniture, wood products, and other manufactured items.
This two-way arrangement is important. A trade agreement is more sustainable when businesses and producers on both sides can see practical opportunities.
Current Trade Remains Modest
El Salvador exported approximately $15.2 million in goods to Belize during 2025. Belize ranked 23rd among the principal destinations for Salvadoran exports.
That amount is small compared with El Salvador’s trade with the United States, Guatemala, Honduras, or other major partners. However, it also shows that there is considerable room for growth.
At the end of the first half of 2026, El Salvador’s total exports had surpassed $3.4 billion. Export value increased by approximately 4 percent, while the volume of exported goods rose by 10 percent.
The Belize agreement forms part of El Salvador’s broader effort to diversify its export destinations and reduce dependence on a limited number of markets.
More Than Lower Tariffs
The agreement is also intended to address some of the administrative difficulties that can discourage regional commerce.
In addition to reducing tariffs, it establishes rules governing trade between the two countries and seeks to remove certain non-tariff barriers. These provisions should give exporters and importers a clearer framework for moving qualifying products across borders.
Lower tariffs alone do not guarantee increased trade. Businesses must still identify buyers, meet product standards, arrange transportation, and comply with customs requirements.
Government agencies and private-sector organizations will therefore need to help companies understand which products qualify and how to take advantage of the new preferences.
A Link Between Central America and the Caribbean
Belize occupies a distinctive position in the region. Geographically, it is part of Central America, but its historical, cultural, and commercial connections also extend deeply into the Caribbean.
The country is a member of the Caribbean Community, commonly known as CARICOM. For Salvadoran companies, stronger commercial ties with Belize could eventually provide a useful connection to other Caribbean markets.
For Belizean businesses, El Salvador offers access to a larger consumer market and a growing manufacturing and logistics network.
Marconi Leal described the agreement as part of a broader vision for stronger regional cooperation and a more interconnected economy. Salvadoran officials similarly presented it as an opportunity for companies to expand, invest, generate employment, and take their products into new markets.
The Agreement Is Not Yet in Effect
The signing is an important step, but the agreement will not take effect immediately.
It must first complete the required ratification and legal procedures in both countries. Only after that process is finished will businesses be able to use the tariff preferences.
The true economic impact will also depend on how quickly companies respond. If businesses do not know about the agreement or find the procedures too difficult, its potential benefits may remain limited.
For that reason, implementation will be just as important as the signing ceremony.
A Practical Step Toward Regional Integration
Central American governments have spoken about economic integration for many years, but regional trade can still be complicated by tariffs, different regulations, customs delays, and limited transportation links.
This agreement will not eliminate all those problems. It is also too small to transform either country’s economy on its own.
However, it is a practical step toward strengthening commerce between two regional neighbors that have not traditionally traded on a large scale.
For El Salvador, the agreement opens another market for locally manufactured goods and supports the country’s effort to diversify exports. For Belize, it provides better access to Salvadoran consumers while creating additional opportunities for its producers.
The most important question now is whether businesses in both countries will turn those tariff reductions into real commercial relationships. If they do, the agreement could become more than another document signed by government officials. It could help build a stronger economic bridge between Central America and the Caribbean.
Sources: Diario El Salvador, Diario El Mundo, and the Ministry of Foreign Affairs of El Salvador.
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