Doing business in El Salvador.

DOING BUSINESS IN EL SALVADOR. The U.S. Dept. of Commerce has produced a 67-page Country Commercial Guide which offers helpful information on doing business in or with El Salvador. Excerpts follow. If you wish to read the complete report, Email me (kalwagenheim@cs.com). I'll Email it to you as a

Market Overview: The U.S.-Central American Free Trade Agreement (CAFTA), entered into force March 1, 2006 between the US and El Salvador. El Salvador was the first nation in Central America to implement the agreement. The agreement shall enter into force with the rest of the signatories on a date(s) to be agreed upon among the parties;

El Salvador has free trade agreements with Chile, Mexico, Dominican Republic, Panama and Centro America. It also belongs to the World Trade Organization. Preliminary data for 2005 indicate that the US is El Salvador's leading trade partner, enjoying a 46% import market share. The US is the destination of 65% of Salvadoran exports. Central America and Mexico are other top bilateral trade partners. El Salvador looks to the US and is only a 2-3 hour flight from key US gateways;

Increased trade with the US is central for further growth and development. El Salvador offers an outstanding platform for industrial and service investments aimed at re-exports to the region.

The Government of El Salvador views private investment, both domestic and foreign, and increased trade as crucial to development. The government has a marginal role in the economy due to privatizations that began in 1990. El Salvador has the most open trade and investment environment in Central America and is surpassed in Latin America only by Chile, according to the Heritage Index of Economic Freedom. The US dollar is the official currency. El Salvador enjoys excellent macroeconomic stability, low inflation, and falling interest rates;

Per capita income has risen during the last decade. Consumer demand is fueled both by the increase in income and the massive inflow of remittances from Salvadorans living in the US, by far the largest source of foreign income. In 2005, remittances reached US$2.8 billion--16.6% of GDP. El Salvador enjoys a democratically elected government and has an excellent relationship with the US, the home of more than 2 million Salvadorans;

Market Challenges

El Salvador offers an open market for US goods and services. Tariffs are relatively low and will be reduced further with the implementation of CAFTA. VAT rate is 13%. There are almost no import restrictions. Standards take ISO, Colombian and Mexican and those in the US as reference. Labeling and testing are not major issues. However, US firms need to be aware of certain challenges including the following:

The judicial system presents significant hurdles. The system is slow and tends to favor national interests. Attempts at establishing commercial arbitration have not been supported by the judiciary. IPR protection is in its early stages and making progress;

Expiration of the Multi Fiber Arrangement (MFA) at the end of 2004 caused dislocations and disinvestments in the textile maquiladora sector. In contrast, the most efficient and largest companies in the sector are expanding by vertical integration. Investment decisions from foreign textile mills and textile finishing companies are underway. El Salvador needs to address its anemic growth rate through programs to encourage new business in order to provide jobs and raise living standards;

Under the electricity sector law approved in April 2003, the government can determine the retail price of electricity. This adversely affects potential investors in the sector. Although the National Civil Police force has improved, high levels of crime add measurably to the cost of business operations. Low levels of literacy and of English as a Second Language are long-term drags on economic development;

Market Opportunities

El Salvador offers a steady and growing market for a wide range of goods and services. Companies exporting to Mexico under NAFTA are well positioned to increase exports by taking advantage of CAFTA. Best prospects include: Automotive Parts and Service Equipment; Electric Power Generation and Distribution Equipment; Medical Equipment; Telecommunication Equipment; Textile Materials and Machinery;

Major Projects Include: Cutuco Port construction and other projects related to a possible dry canal; Renewable-electric generation expansion; Regional electric grid interconnection; Regional telecom interconnection; Regional Highway interconnection;

Market Entry Strategy

The use of agents and distributors is the most common way to export products and services. One agent is sufficient as commercial activity is concentrated in the capital San Salvador and the size of the country does not justify regional agents. Agent or representative agreements should be non-exclusive. An exclusive territorial contract is recommended only when the business relationship has proven to be stable, professional, and profitable for both parties. An exclusive agent is entitled to compensation for damages upon termination of the relationship. A local lawyer should be consulted;

Political and Economic Environment: For background information on the political and economic environment of the country, go to the link below to the U.S. Department of State Background Notes. http://www.state.gov/r/pa/ei/bgn/2033.htm

Franchising

US franchises have been present for at least 30 years. They began to increase rapidly during the last 10 years and this trend has accelerated. Fast-food franchises (such as pizza, sub sandwiches, and hamburgers) have been the most successful. Despite the increasing number of used vehicles imported in recent years, automotive service franchises have not yet had much success. Office supply franchises have also not been as successful. Office Depot, however, opened two stores in 2003 so franchises in this sector may be gaining. Franchises operating here include hotel and car rental, auditing/accountancy, credit reports, mobile advertising and media marketing, print shop/one hour photo labs, beauty/hair salons, fitness centers, computer learning, child care/learning centers, video rental, and dry cleaning. A trademark protection law passed in 2002 improved protections of trademarks and distinctive signs to international standards. To get full protection, the trademarks must be registered at the Intellectual Property Registry at the National Registry Center. A longstanding dispute between a prominent US franchise and its former franchisee suggests that enforcement of franchise contracts in the courts can be difficult, and we urge franchisers to develop their business cautiously and based on careful analysis of the business bona fides of their potential franchisees.

Selling to the Government

In April 2000, government enacted a modern procurement and contracting law, which increased the efficiency and transparency in public sector purchases and contracting procedures and helped to eliminate corruption.

For small government purchases, sellers should contact the procurement office in each ministry or autonomous institution, consult postings on the web pages of each institution, or for general information go to www.comprasal. gob.sv/ moddiv/ HTML/. For purchases worth more than US$10,000-20,000 dollars (depending on the ministry or agency), the government publishes a tender in the major newspapers and/or sends written notices to various embassies. Salvadoran law calls for civil engineering and construction projects that are financed by Government funds to give preference to Salvadoran companies. This is not a major trade barrier since most large projects receive aid or loans from international financial institutions, and therefore are open to international bid.

Internet Use

El Salvador has at least a dozen internet providers. In 2003 internet users were estimated to number 550,000 and expected to increase due to the fact that government is using the internet to make available to the public the large amount of information that it generates. As new telephone providers improve access to telephone lines in rural areas and provide better services in metropolitan areas, additional internet growth will be seen. The government is fostering the creation of infocenters (www.infocentros.org.sv/nai/), the SME's access to information and e-commerce through the internet. On the private sector side, e-commerce efforts are being carried out by the electronic commerce division of the Salvadoran Chamber of Commerce and Industry. More and more companies have a presence in the internet but only few are doing business transactions involving payment with credit card. Companies doing business through internet are: department store "Siman", www.siman.com.sv.; virtual stores of art, crafts, books and music, www.latienda.com.sv

Trade Promotion & Advertising

The country has four VHF commercial TV stations (channel 2, 4, 6 and 12, three of which are a conglomerate that reaches about 80% of the viewers. Five newspapers have a daily circulation of 281,000; four of these have internet versions. Two of the newspapers are the leading dailies with nationwide coverage and about 75% of the total circulation. The main radio stations are located in San Salvador. There are about 200 FM radio stations but only 20% broadcast nationwide. About 70% of FM stations are music, 30% are news programs, commentary, religious, sports and/or educational. The American Chamber of Commerce, the Chamber of Commerce and Industry and the Salvadoran Association of Industry, as well as other trade organizations, circulate monthly and bi-monthly journals that accept advertising.

The leading newspapers with circulation over 90,000 each and nationwide distribution are: La Prensa Grafica, Tel (503) 2241-2364; Fax: (503) 2241-2000; www.laprensa.com.sv; and El Diario de Hoy, Tel (503) 2271-0100; Fax: (503) 2271-2040; www.elsalvador.com. Circulating mainly in the capital (about 30,000 daily): El Mundo, Tel. (503) 2225-3300; Fax: (503) 2225-3178; www.elmundo.com.sv; Mas, Tel (503) 2281-1477; Fax (503) 2222-2046. The smallest is Co-Latino (Circ. 14,000), Tel. (503) 2271-1303; Fax (503) 2271-0971; www.diariocolatino.com

The Fair authority (www.fies.gob.sv) organizes several exhibits and trade events on a regular basis. For company or brand promotion, the most known are the fashion, the automotive, and the biannual International Fair. The Catalog Show organized by the Salvadoran Chamber of Commerce and Industry (www.camarasal.com) every two years, catalyzes potential distributors for new to market companies. The Construction Chamber, CASALCO, (www.casalco.org.sv) holds an exhibit every two years, where new products and technology can be observed. The Distributors Association organizes the main food and beverage event for company or product promotion (www.ades.org.sv/index.php).

Due Diligence

The Commercial Section strongly recommends checking the bona fides carefully as soon as a business relationship begins to develop. It offers a service known as International Company Profile (ICP), to help determine if a company is a suitable trading partner. The report includes data on the firm's management, business activities, product lines, financial conditions, credit-worthiness, and trading experience. Some private sector credit-reporting services, including Dun & Bradstreet, also provide credit reports on Salvadoran firms. The Commercial Section can provide contact information for professional services such as legal counsel, auditors, collection agencies, trade publication, market research, advertising agencies, consultants and translators. Details: www.buyusa.gov/ elsalvador/en/localprofserv.html

Leading Sectors for Export and Investment

Agricultural products

El Salvador is a unique, dynamic market that is ranked as one of the most transparent business climates in all of Latin America. Most large importers/ distributors are members of the Salvadoran Distributors Association (ADES), which manages the relationship of its members with local retailers, wholesalers and supermarkets. The Salvadoran consumer is very familiar with US products and is an avid purchaser of quality goods.

Distribution of consumer-ready foods is carried out through a number of channels. Supermarkets are the principal outlets, but a fair amount is moved through wholesalers who may be supermarket owners themselves or who may be middlemen delivering products to smaller stores. Distributors normally handle product on an "exclusive" basis, most often as representatives of a line of products. Direct sales are also a way of doing business, but having a local distributor facilitates the operation and also provides solid customer service.

Salvadorans spend about 43% of their income on food. US exports to El Salvador in the consumer-oriented product category were a record US$47.9 million in 2004. Jan-Oct. 2005 exports reached US$33.9 million, 5.4% higher than in same period 2004. The Salvadoran market may be larger than portrayed by US export data. A high percentage of El Salvador's imports of consumer-oriented products are actually registered as imported by Guatemala. Many containers come through Guatemala's Santo Tomas port and even though they are in-transit to El Salvador, local customs officials tally them as Guatemalan imports;

An estimated 49% of the population lives in urban areas. There are four major cities: San Salvador, San Miguel, Santa Ana and Sonsonate. The capital, San Salvador, accounts for one-third of the country's 6.8 million population (2005 data). Households earning US$400 to US$1,500 per month and above are considered to be in the middle to middle-upper income classes. There are about 460,000 households in this category and, 60% of these reside in urban areas. About 1.2 million people (20% of the population) are middle class. About 40% of food sales are made in supermarkets. Consumers are increasingly purchasing in supermarkets and moving away from the traditional open-air markets or mom-and-pop stores.

Best products & services: Processed Fruit and Vegetables; Breakfast Cereals; Pet Foods (Dog and Cat); Meat Sausages; Wine; Ramen Style Noodle Soups; Dairy Products; Fresh and Frozen Potatoes, and Hash Browns; Salad Dressings; Apples; Grapes; Stone Fruit; Pork Cuts for Hotel/Restaurant/ Institutional and Retail (HRI); Beef Cuts for HRI and Retail; Sardines; Snacks (including candies and chocolates); Cookies; Food Processing Ingredients (i.e. raisins, concentrated juice, shelf extenders);

Opportunities: More than 2 million Salvadorans reside in the US, and they annually remit close to US$2.5 billion to relatives in El Salvador. The remittances in turn raise the disposable income and expenditures of Salvadoran consumers. Wheat is the number one US agricultural commodity exported to El Salvador. Most wheat processed by Salvadoran mills comes from the US, although Canadian wheat has become very competitive in recent years. Average annual imports of U.S. wheat are 240,000 metric tons. In Jan-Oct. 2005, U.S. wheat imports reached $29.9 million. Best products: Bulk Wheat--DNS, SRW and HRW varieties. Bakery consumption has increased tremendously, mainly due to the availability of fresh bakery centers in all major supermarket chains.

Rice: Local demand is estimated at 110,000 metric tons of rough rice. Local production only covers 33% of local demand. The Salvadoran Rice Millers Assn (ASALBAR) estimates that El Salvador will need to import 80,000 metric tons of rough rice to satisfy demand. The US is the main supplier. El Salvador imports rough rice in order to keep rice mills operating throughout the year. But small quantities of imported milled rice have recently reached local supermarket chains to fulfill upscale consumer demand. Import tariffs for rice are assessed according to a supply deficit quota that is established every marketing year by the Ministry of Agriculture (MAG). Under this quota rice millers can import at 0 % duty. Once demand has been satisfied, all additional imports are assessed a 40 % duty for both rough and milled rice. Under CAFTA, Tariff Rate Quotas have been established. Best products: Rough rice, Milled parboiled rice.

Rice production is decreasing at a fast pace, not only in El Salvador but also in the rest of the region. Under CAFTA, tariffs will be eliminated and Tariff Rate Quotas (TRQ) established as follows: 18-year duty phase-out, initial TRQ of 61,000 metric tons (MT) for rough rice, growing by 2 % per year and initial TRQ of 5,250 MT for milled rice, growing by 375 MT per year for the first five years, 1,000 MT increase in year 6, and an annual 325 MT increase thereafter.

Corn: Since the 1960's, El Salvador has been an important market for US yellow corn, used almost exclusively by the poultry and animal feed industries. Snack processing industry is also a major importer of hard endosperm corn. Annual imports of yellow corn from the US average 200,000 metric tons, and virtually cover 100% of local demand. Best products and services: Yellow corn--#2 and Hard Endosperm for snack manufacturing;

Opportunities: The food-processing sector is not as developed as in Guatemala or Costa Rica. However, snack food production is at the top of the list. Yellow corn is a main ingredient in the snack manufacturing process. The DIANA brand produced here offers respectable quality for the price, and has roughly 73% of the market. This company is the largest snack producer in Central America and is already exporting certain products to ethnic markets in the US. The poultry and dairy sectors are also major users of yellow corn for feed mix. CAFTA provides for a yellow corn Tariff Rate Quota (TRQ) of 350,000 metric tons (MT) with a 5 % growth per year with a 15-year duty phase-out. A fixed part of the TRQ will be subject to a performance requirement, which will be eliminated in 15 years. White corn was also granted a TRQ of 35,000 MT under CAFTA. There is a growing market for white corn flour to make local staple "Tortillas".

Soybeans: El Salvador does not produce any soybean meal, thus, all demand must be fulfilled with imports. The main users are the poultry and livestock sectors, which use the product for feed. Commercial trade is growing at a rapid rate due to the high demand for poultry products. In Jan.-Oct. 2005, soybean meal imports reached US$28.4 million. The poultry industry is the most developed in the region and is quickly increasing production to supply demand by other Central American neighbors, particularly Honduras. Argentina has become a major competitor in the soybean meal market. Best products: soybean meal.

Opportunities: Dairy production is increasing due to government incentives and sanitary regulations that provide protection against contraband cheese from Nicaragua and Honduras. Soybean meal is an important ingredient used in cattle feed mix. CAFTA provides immediate access for soybean meal.

Automotive Parts and Service Equipment (APS)

Parts and Accessories of Motor Vehicles: There are about 650,000 registered vehicles in the country; 32,000 were imported in 2004, of which 69% are used and mostly imported from the US. Salvadorans prefer to purchase used vehicles directly from car auctions in the US, drive them here, and repair them locally. US imports maintained the position of market leader over the closest competitor Japan, and a distant third place Taiwan. Best Prospects/Services: Engines, filters, accumulators, motors, wheels, radiators, sound systems, alarms, mufflers, tires, tire repair, electronic diagnostics, tire balancing, compressors, clutches, steering wheels.

Opportunities: The US Central America Free Trade Agreement (CAFTA) offers export opportunities for the US automotive industry, since there is no significant automotive production within the five economies. Resources: Vice Ministry of Transportation: http://www.mop.gob.sv/vmt.php Ministry of Economy: www.minec.gob.sv. CS San Salvador: san.salvador.office.box@mail.doc.gov. Salvadoran Assoc. of Auto Parts Importers (Asociacion Salvadorena de Importadores de Repuestos Automotrices): asira@salnet.net

Electric Power Systems (ELP): Electrical power distribution and some electrical power generators were privatized in the late 1990s. At that time, the electricity market was liberalized, leaving new investment opportunities in generation and distribution to be driven by market forces. The sector became the largest recipient of US investment in El Salvador. The total electricity supply in 2004 was 4,621.8 Gwh; thermal sources accounted for 39%, hydropower 30%, geothermal 21%; 10% was supplied by imports from Guatemala and Honduras. Mid year 2005 statistics indicate a total installed capacity of 1104.3 MW and total electricity supplied of 2,363.7 Ghw. Historical trend of electricity demand growth averages 4.5%, with the implementation of the Central America Free Trade Agreement (CAFTA) annual demand is predicted to grow as high as 12%.

Electricity supply: As of Dec. 2005, El Salvador's electric sector consisted of: six-generation companies (four thermal, one hydroelectric, one geothermal), three small hydroelectric generators with less than 3MW-installed capacity; and three co-generators. Also participating in the sector are five foreign distribution companies connected to 115Kv line, four of which are controlled by the same corporation; and eight companies which participate as electricity traders. Best products & services: Consulting services for hydroelectric projects and geothermal exploration are short-term best opportunities for services. Also, power transmission and distribution equipment; measuring equipment; devices to protect grids; current carrying wiring devices and power/distribution transformers. Demand for solar panels for isolated rural areas is expected, possibly covered by donations or grant agreements from European countries and under some projects initiatives by the autonomous generator CEL. The autonomous electricity generator, CEL, is financing the development of focalized windmills and has invited companies to submit proposal for a 50 MW thermal plant intended to be in operation in 2006.

Opportunities: Increasing energy demand as well as investment in rural electrification projects will provide opportunities for export sales. Four hydroelectric generation projects; "El Chaparral" a 64.4 MW EPR awarded in mid 2005; and "El Cimarron" of 243 MW under feasibility study--promise demand for energy-related products and consulting services. The other two projects in a very early stage are "La Honda" and a bi-national one (Honduras--El Salvador) with estimated capacity of 1,350 MW known as "El Tigre". Geothermal exploration and perforation of wells will continue in 2006, with an estimated investment of US$110 million.

Opportunities in rural electrification are based on plans by government, which estimates that 230,000 families in rural areas lack electricity and that an investment of US$96 million is required to reduce the deficit. Estimated investment includes US$24 million for the most isolated areas where solar or wind energy might be viable. In 2005 government assigned US$5 million for these types of projects and has US$1 million offered by the French government, which has committed long-term support to rural electrification through 2013. Private investors have announced the construction of a 220MW coal fired power plant and a 500MW natural liquefied gas

At a regional level, the Central America countries have launched an interregional energy trading system, known as SIEPAC, which presents ongoing opportunities for sales of electricity equipment as they upgrade their transmission infrastructure. SIEPAC's projects are being financed with funds from the IDB, the European Investment Bank and the Central America Bank for Economic Integration. US$41.2 million will be invested in the transmission system before the end of 2007. The period to receive offers for the construction of the 230kw interconnecting transmission line closed Dec. 2005. The award should be made in the first trimester of 2006. Also, at a regional level the Plan Puebla Panama has a Mesoamerica Energy Initiative that will request funds from the IDB to evaluate the feasibility of future long-term projects: a gas pipeline, a LNG terminal, petroleum refinery, and promotion of renewable energy.

Textile Fabrics and Machinery (TXF and TXM): The textile clothing assembly sector, or "maquila", is crucial to El Salvador's economy as a source of employment and economic growth. Restructuring is predicted over the next two years with the expiration of the Multifiber Arrangement (MFA), opening new windows of opportunity for certain imports as described in the opportunities below. Maquila operators expect CAFTA to help maintain business with the additional trade benefits provided to production that incorporates fabrics, yarns, thread and other inputs from the US, which in turn will help U.S. manufacturers of those articles.

El Salvador does not produce any textile machinery or parts. The US dominates the import market and further increase is expected based on potential investment. Best Prospects & Services: Vertical integration of the sector, the expansion of local mills and foreign mills investment prospects leads one to infer an expected increase in the demand for imported textile yarn; knitted and crocheted fabrics; textile machines for preparing textile fibers; weaving and knitting machines; dyeing or finishing machines; parts and accessories; and quality assurance services. Imports from the US control over 50% of the market for this type of textile machines. Main competitors are Germany and Italy.

Opportunities: A package of government incentives is being offered for new investment in the sector to local and foreign companies. Salvador's investment promotion agency is actively attracting key foreign textile companies. That, combined with CAFTA, has motivated textile companies from Europe, South American and North America to explore investment operations to join vertically integrated clusters. In 2005, several textile companies announced their decision to invest and others are awaiting the implementation of CAFTA. These companies are likely to demand machinery and services for the industry, yarns and fabrics, as well as packing and handling equipment, laundry equipment and software.

Local demand for fabrics is not yet satisfied. The existing full package companies continuously comment on the lack of fabrics' diversity in the region, access to mills that are willing to serve smaller purchases, and/or wholesalers willing to supply the fabrics. Also, smaller garment manufacturers are limited to purchasing whatever is available locally and have the same complaint. This is not the case for full package companies that have developed a sophisticated chain of suppliers. Trade shows most visited by local companies are the Bobbin Show and Material World.

Telecommunications Equipment (TEL): The telecom industry is completely privatized. At least 17 companies offer services that include wired and wireless telephone, data, voice, video, cable TV, internet connectivity and private and public regional networking. Fixed lines installed in 2004 totaled 887,816. Twelve companies participate in the fixed telephony services, but one company--CTE--dominates hardwire telephone service. On the wireless side, four mobile operators aggressively compete in the 800, 900 and 1900 Mhz band. In 2004, the regulatory agency reported that 1,832,579 mobile lines were active, a 29% increase with respect to 2002. An eighth digit was added to phone numbers in 2005 due to the demand for cellular numbers that last year averaged 50,000 per month. US imports dominated over 50% of the market in 2002 and 2003, Sweden is the major competitor but with only 3-4% import market share. Local service providers believe that the market is mature.

El Salvador has 21 systems of 2 megabytes per second in submarine cable (Columbus II) and 12 systems of 2 megabytes in satellite (Intelsat). Competitive services are offered by the private sector for cellular phones, internet, radio search, pagers, multi-carriers systems, data transfer, multimedia and cable television.

Central American countries and Mexico plan to develop a regional fiber optic broadband telecommunications highway through Central America by 2007. This project is known as Mesoamerican Information Highway and the fiber optic line will utilize the existing electricity transmission infrastructure. Funds are from the Central America Bank for Economic Integration and from the IDB. Best Products & Services: Demand for fiber optic cable and other telecommunication equipment and services will likely increase with the development of the Central America broadband highway.

Opportunities: Information on telecom investment is managed by private companies, which do not reveal details on their expansion plans. However, data can be gathered through investment plans presented to the regulatory agency every five years in order to get the authorization to adjust basic tariffs. The only two areas where the government plays a role is in rural infrastructure and the regional telecommunication broadband highway that the Central America countries have agreed to conclude by 2007 with funds from the IDB and the Central America Bank for Economic Integration. In 2005, a Panamanian-Salvadoran consortium, Sky Technologies, was reported to be the new entrant in mobile services with an estimated investment of US$50 million to provide digital radio and GSM mobile telephone services with ISDN technology.

Medical Equipment: The Ministry of Health, Salvadoran Institute of Social Security (ISSS, Instituto Salvadoreno del Seguro Social), and private hospitals and clinics comprise the healthcare system. About 80% of the market is for new equipment, and 20% for used or refurbished. Private institutions' purchases are significantly smaller compared to public institutions. New and used medical equipment are treated the same and may enter the market without tariff. The only applicable tax is a 13% value added tax. The US is the main exporter of medical equipment, with 65.7% of the market share in 2004. The main competitor is Germany, followed by Mexico, and Brazil. Best Products & Services:

Hospital Equipment (x-ray equipment, surgery tables, beds, lamps, cardiac monitors, ultrasonic scanning apparatus, and magnetic resonance imaging apparatus).

Opportunities: The Ministry of Health's main reconstruction project is RHESSA Project (Hospital Reconstruction and Healthcare Services Extension Project) funded by the World Bank. It includes rehabilitation and reconstruction of 7 hospitals damaged during 2001 earthquakes, from which 3 were bid as turnkey projects during 2005. Ministry of Health expects to announce the tenders for Hospital San Vicente, Hospital San Miguel, and Hospital Zacatecoluca in the first quarter of 2006.

Trade Barriers

There are virtually no trade barriers that affect the import of manufactured goods, but El Salvador does maintain a few barriers to services. For example, notaries must be Salvadoran and certain professionals such as architects must be licensed locally and be a member of the local association.

Trade barriers primarily affect agricultural products. Rice and pork are both subject to import quota systems and 40% duties. Rice millers are required to buy rice locally. When there is insufficient local supply, the Ministry of Agriculture allows imports under the quota, and after the import quota has been exhausted and there is still a need for imported rice, rough or milled rice can be freely imported, subject to a 40% duty. Pork importers face a similar arrangement to first buy locally, then import, subject to a 40%. Under CAFTA, El Salvador committed to a 15-year phase-out for all tariffs on pork, except for bacon and most offal, which will be eliminated immediately. Only a fixed part of the tariff-rate quota (TRQ) will remain subject to a performance requirement, and the requirement will be eliminated in 15 years. Tariffs for rice will also be phased out over a 15-year period with no performance requirements.

Since 1992, the Ministry of Agriculture has imposed arbitrary sanitary measures on US poultry imports. These sanitary restrictions call for zero tolerance or negative laboratory tests for diseases such as avian adenovirus, chicken anemia, and salmonella. The International Office of Epizootics does not recognize these diseases, common worldwide, as list "A" diseases. The Salvadoran government applies these standards in a discriminatory manner since domestic production is not subject to the same requirements as imports. As a result of these measures, the US has been unable to export poultry to El Salvador. The industry estimates the value of lost US poultry exports at US$7.5 million to US$12.5 million per year. Resolution of this issue has been a priority for US agencies, which continue to work with the government in ongoing talks to gain equivalence of beef, pork and poultry inspection system as negotiated under CAFTA.

The government requires that rice shipments be fumigated at importers' cost unless they are accompanied by a US Dept. of Agriculture (USDA) certificate stating that the rice is free of Tilletia Barclayana. Since there is no chemical treatment that is both practical and effective against Tilletia Barclayana, USDA cannot issue these certificates. El Salvador failed to notify the WTO under the Agreement on the Application of Sanitary and Phytosanitary Measures when it imposed this requirement. The CAFTA-DR chapter on sanitary and phytosanitary (SPS) measures provides that the signatory countries accept each other's mechanisms for inspection.

Import Requirements and Documentation

In most cases Customs does not require import licenses and requires only a commercial invoice and bill of lading.

Food is another matter. Importers must deliver samples of all foods for laboratory testing to the Ministry of Public Health, which upon approval issues the product registration numbers that allow the imported goods to be sold at retail outlets. All imports of fresh food, agricultural commodities, and live animals must have a sanitary certificate from the Ministry of Agriculture and the Ministry of Public Health. Basic grains must have import licenses from the Ministry of Agriculture, while dairy products require import licenses from the Ministry of Public Health. Details: Customs Office, Ministry of Finance. (Direccion General de la Renta de Aduanas, Ministerio de Hacienda). Edif. Ministerio de Hacienda, Blvd. Los Heroes, San Salvador, El Salvador. Tel: (503) 2244-5000/2244-3000. Fax: (503) 2244-7201. Web: www.mh.gob.sv/mh_2003/legislacion.htm

Trade Agreements

The US and four Central American countries (El Salvador, Guatemala, Honduras, and Nicaragua) concluded negotiations on the U.S.-Central American Free Trade Agreement (CAFTA) in Dec. 2003, with Costa Rica following in Jan. 2004. The Dominican Republic became a party to the agreement in Aug. 2004. The U.S.-Central American Free Trade Agreement (CAFTA), was signed May 28, 2004 and ratified by El Salvador's Congress in Dec. 2004. El Salvador was the first nation in Central America to do so. The U.S. Congress approved it in July 2005 and President Bush signed it into law Aug. 2005. The agreement shall enter into force

on a date to be agreed upon among the parties.

Investment Climate

The Government views foreign investment as crucial for economic growth and development and has taken numerous steps in recent years to improve the investment climate. However, the legal system's failure to enforce commercial law consistently or promptly is a black mark on the otherwise positive record for encouraging investment. A free trade agreement among Central American countries, the Dominican Republic, and the United States (CAFTA-DR) includes an investment chapter and other chapters that, when implemented, will strengthen investment dispute resolution.

In 2005, the Ministry of Economy estimated that foreigners invested US$602 million in sectors such as hotels, apparel assembly, telecommunications, and beverages. The government has announced a medium-term objective to become a logistics/shipping hub for Central America, and construction of a deep-water port in the Gulf of Fonseca is underway. Salvadoran Central Reserve Bank statistics show that foreign investment stock has steadily increased, reaching US$3.2 billion by June 2005, up from US$1.97 billion in 2000. Companies from many countries--including the US, France, Spain, Canada, Germany, Luxembourg, the United Kingdom, Korea, Taiwan, Chile, Guatemala, Venezuela, and Mexico--have invested in El Salvador.

Government in 2004 reorganized its trade and investment promotion agencies under the Investment and Exports Promotion National Commission (CONADEI), headed by the Vice President. The National Investment Promotion Agency (PROESA) organizes investment promotion tours overseas and provides information and facilitation services in El Salvador. The National Agency for Export Promotion (EXPORTA) focuses on identifying niche markets for Salvadoran exports, especially nontraditional goods, and providing trade capacity building to new exporters.

The electricity sector is divided into generation, transmission, and distribution subsectors. The electricity generation market includes CEL, the state-owned energy company; two U.S. investors, one of which bought three thermal generation plants from CEL in 1999; and La Geo, a private-public geothermal power generation company, and other minor generators. The state-owned ETESAL provides transmission services. Investors from the US, Chile, and Venezuela bought controlling shares in four electricity distribution companies when the government privatized the sector in 1998; two US investors now provide distribution services for the country. The Transaction Unit (UT), owned by market participants, operates the wholesale energy market.

Privatization and foreign investment have modernized Salvadoran telecommunications. The only remaining restrictions for foreign investors are on free reception television and AM/FM radio broadcasting, where foreign ownership cannot exceed 49% of equity. In 1998, France Telecom purchased 51% of CTE, the state-owned fixed-line telephone firm, for US$275 million; Telefonica of Spain paid US$41 million for 51% of the state-owned wireless firm. The government sold additional shares of the state telephone companies on the Salvadoran securities exchange in 1999. In 2003, America Movil, the Mexican telecom giant, bought France Telecom's shares in CTE and other shares owned by the Salvadoran Government; including a Dec. 2004 purchase of additional shares, it now owns 94% of CTE. A US long distance telephone service provider has complained that CTE refuses to sign an interconnection agreement with it on terms already extended to another market entrant, as required by Salvadoran law.

Government created five privatized pension funds in 1998 with the participation of Citibank, Spanish banks Banco Bilbao Vizcaya and Argentaria, and two local investors. After considerable consolidation in the sector, two funds remain, both owned by local investors.

The Monetary Integration Law "dollarized" El Salvador in 2001, and the US dollar now freely circulates and can be used in all transactions; one objective of dollarization was to make El Salvador more attractive to foreign investors. El Salvador has long had a freely convertible currency and since 1994 the colon traded at 8.75 per US$1. The Monetary Integration law fixed the colon at that rate. While prices are often listed in both currencies, the colon is seldom used. U.S. dollars account for nearly all currency in circulation. Salvadoran banks, in accordance with the law, must keep all accounts in dollars. Dollarization is supported by family remittances--almost all from the US--that were US$2.8 billion in 2005, up from US$2.4 billion the year before. As of the end of Nov. 2005, the Central Reserve Bank reported international reserves of US$1.83 billion.

Expropriation and Compensation

El Salvador's 1983 constitution allows the government to expropriate private property for reasons of public utility or social interest, and indemnification can take place either before or after the fact. There are no recent cases of expropriation. In 1980, a rural/agricultural land reform established that no single natural or legal person could own more than 245 hectares (605 acres) of land. In 1980, the banks were nationalized, but in 1990 they were returned to private ownership.

Dispute Settlement

While foreign investors can seek redress of commercial disputes with Salvadoran companies through the courts, investors have found that seeking resolution of problems through the slow-moving domestic legal system can be costly and unproductive. The course of some cases has shown that the legal system is subject to manipulation by private interests, and final rulings are sometimes not enforced. Where possible, arbitration clauses, preferably with a foreign venue, should be included in commercial contracts as a means to resolve business disputes. Some US firms have been embroiled in major legal disputes in recent years, in cases where they asserted that a contract with a Salvadoran firm either had formally ended or never existed, but Salvadoran courts have ruled that the contract remained in force.

The 1998 Free Trade Zones Law is designed to attract investment in a wide range of activities, although more than 90% of the businesses in export processing zones are "maquila" clothing assembly plants. A Salvadoran partner is not needed to operate in a free zone, and some maquila operations are completely foreign-owned.

Firms located in the free zones and the bonded areas enjoy the following benefits: Exemption from all duties and taxes on imports of raw materials and the machinery and equipment needed to produce for export; Exemptions from taxes for fuels and lubricants used for producing exports, if these are not domestically produced; Exemption from income tax, municipal taxes on company assets and property; Exemption from taxes on real estate transferences that are related to export activity. Companies in the free zones are also allowed to sell goods or services in the Salvadoran market if they pay applicable taxes for the proportion sold locally.

The government approved a new tourism law to spur investment in the sector in Dec. 2005. It establishes fiscal incentives for those who invest a minimum of US$50,000 in tourism related projects. Incentives include an income tax break of 100% for 10 years and no duties on imports of capital and other goods, subject to limitations. The investor also benefits from a 5-year exemption from land acquisition taxes, as well as a 50% cut in municipal taxes over that period. To take advantage of these incentives, the enterprise must contribute 5% of profits during the exemption period to a government-administered Tourism Promotion Fund.

Efficient Capital Markets, Portfolio Investment

Foreign investors may obtain credit in the local financial market under the same conditions as local investors. Accounting systems are generally consistent with international norms.

El Salvador's banks are among the largest in Central America. The banking system is sound and in general well managed and supervised. The banking system's total assets as of Oct. 2005 were US$11 billion.

Political Violence

El Salvador's 12-year civil war ended in 1992 with a peace agreement. The former guerrilla organization, the FMLN, became a political party and has participated in elections since 1994. There has been no political violence aimed at foreign investors, their businesses, or their property. However, general levels of crime are high and a major concern to the business community.

Corruption

Soliciting, offering, or accepting a bribe is a criminal act in El Salvador. El Salvador ratified the Inter-American Convention Against Corruption in 1998. When it occurs, corruption is usually at lower governmental levels. However, a recent scandal involved senior officials of the Salvadoran water authority, including its former president. There have been credible complaints about judicial corruption. An active free press that reports on corruption issues. Another ongoing corruption scandal involves municipal governments and waste disposal contracting.

Labor

El Salvador has a labor force of approximately 2.7 million. Salvadoran labor is perceived as hard working and receptive to training and advanced study. The general educational level is low, and the skilled labor pool is shallow, which may pose problems for investors needing skilled, educated labor. There is a lack of middle management-level talent, which sometimes results in foreigners being brought in to perform such tasks. Employers do not report labor-related difficulties in incorporating technology into their workplaces.

Foreign Trade Zones/Free Trade Zones

13 free zones were operating in the country as of Dec. 2005. Maquila textile operations constitute the businesses of 12 of the free zones. These firms, mostly owned by Salvadoran, U.S., Taiwanese, and Korean investors, employ about 70,000.

Foreign Direct Investment Statistics

Accumulated Foreign Investment by Country of Origin, based on 2004 data, in millions of dollars: US, $1,015.5; Mexico, $616.3; Venezuela, $309.5; Spain, $194.9; Panama, $105.1; Chile, $92.2; Germany, $84.9; Bahamas, $74.2; Costa Rica, $70.4; Taiwan, $57.5; Canada, $56.6; BVI, $56.2; Guatemala, $52.1; Netherlands, $39.1; Nicaragua, a $33.2; Singapore, $32.5; Italy, $26.6; South Korea, $23.8; Israel, $22.9; Peru, $22.3; Honduras, $21.0; Switzerland, $15.6; Aruba, $15.0; Japan, $14.2; Bermuda, $12.4; Ecuador, $9.0; England, $7.4; France, $5.8; Other, $27.2. Total: $3,113.1. Source: Central Reserve Bank of El Salvador.

Annual Foreign Investment Flows in Selected Sectors (Millions of Dollars, 2004): Communications, $337.1; Industry, $42.4; Maquila, $38.3; Retail, $39.0; Agriculture and fishing, $25.1; Services, $11.2; Finance, $3.1. Total: $496.6. Source: Central Reserve Bank of El Salvador.

Partial List of Major Foreign Investors: AES Corp. (USA), Electricity distribution; AIG (USA)--Insurance; AMNET--Cable television and internet; Avery Dennison (USA), Labels for clothing; Bayer de El Salvador (German), Pharmaceutical processing plant, fertilizer plant; Decameron International (Colombia), Tourism/hotels; Citigroup (USA), Banking; Digicel (USA), Cellular phone service; Dell Computer (USA), Customer service/sales call center; Duke Energy (USA), Thermal electricity generation plants; Elf (France), Propane gas; El Paso Corp. (USA), Owner/operator of the Nejapa power/generating plant; EMEL S.A. (Chilean/ USA), Electricity distribution; Esso Standard Oil (USA), Gas stations/small refinery at Acajutla ; America Movil (Mexico), Fixed and wireless telephone, retail; Fruit of the Loom (USA), Apparel assembly; Grupo Calvo (Spain), Tuna fishing/ processing; Holcim (Swiss), Cement Intelfon (Panama/El Salvador), Telecommunications; International Paper (USA), Packaging; Lacoste (France), Textiles/apparel; Liquidos de Centro America (ELCA), liquid packaging co.; Kimberly Clark de C.A. (USA), Distribution facility; Maseca (Mexico), Corn Milling; Max (Guatemala), Appliance retailing; Price Smart (USA), Member discount store & supermarket; SABMiller (South Africa), Beer, sodas, & other beverages; Sara Lee Knit Products (USA), Apparel assembly; Shell El Salvador (Netherlands/U.K.), Oil refinery (with Esso); Service stations/grocery marts; Telefonica de Espana (Spain), Cellphones; Telemovil (USA/ Luxembourg), Cellphones; Texaco Caribbean (USA), Fuel storage & lubricant blending plant in Acajutla, and service station/grocery markets; Unisola-Unilever (UK), Food products; WalMart (USA), Supermarkets.

Credit agencies operating in El Salvador

Equilibrium. Blvd del Hipodromo, edif. Gran Plaza, local 305, Col. San Benito, San Salvador. San Salvador. Phone: (503) 2275-4853 (503) 2245-1121. www.equilibrium.com.pe Fitch Centroamerica S.A., Edif. Plaza Cristal Local 2-4, 79 Avda Sur y Calle Cuscatlan, San Salvador Panama. Tel: (503) 2263-1300; (503) 2263-6039. www.fitchca.com/main.html Global Venture SA de CV, Calle Las Palmas, Pasaje 7, No. 130 Col. San Benito, San Salvador. San Salvador. Phones: (503) 2224-5701; (503) 2245-6173 Pacific Credit Rating SA de CV. 87 Avda Norte, No.720, Apto D, Col. Escalon, San Salvador. San Salvador. Phones: (503) 2263-3130; (503) 2263-3260. www.ratingspcr.com

The Banking System

Nine private banks, two branches of foreign banks, and two state-owned banks provide the full range of commercial banking services in El Salvador. The commercial banks include Banco Agricola Comercial and Banco Cuscatlan, which are, respectively, the second and third largest banks in Central America. These, along with Banco Salvadoreno and Scotiabank, account for more than 83% of the banking business. There are also five other private banks, branch operations for two foreign banks, Citibank and First Commercial Bank of Taiwan, and two banks that are still owned by the government. By law, all transactions carried out in Salvadoran banks must be denominated in US dollars.

Foreign-Exchange Controls

There are no foreign exchange controls in El Salvador. The US dollar is legal tender.

Major Banks

Citibank, N.A. Ing. Gijs Veltman, Pres. Alameda Dr. Manuel Enrique Araujo, Edif. PALIC. Calle Nueva No. 1, Col. Escalon. San Salvador, El Salvador, C.A. Tel. (503) 2211-2800, Fax (503) 2211-2892. www.citibank.com/ us/ index.htm

BAC Florida Bank. Rep. Rep: Ms. Antonella de Fernandez Edif. Credomatic, Edif. C, 50. Piso 55 Av. Sur, San Salvador, El Salvador, C.A. Tel. (503) 2298-6844, Fax (503) 2279-3556 www.bacflorida.com/

Inter-American Development Bank (IDB). Philippe Dewes Rep. for El Salvador, Edif. World Trade Center, 4o. NivelCalle El Mirador y 89 Av. Norte. Apto Postal No. (01) 199 San Salvador, El Salvador, C.A. Tel: (503) 2233-8900 (Ext. 2213), Fax (503) 2233-8921. www.iadb.org/exr/country/ eng/ElSalvador/

Central American Bank for Economic Integration (CABEI) Lic. Miguel Angel Siman, Dir., Calle La Reforma No. 130, Col. San Benito. San Salvador, El Salvador, C.A. Tel. (503) 2267-6147, 267-6100, Fax (503) 2267-6180 www.bcie.org/

Banco Cuscatlan, S.A. Ing. Mauricio Samayoa, Pres., Edif. La Piramide, Km. 10 Carretera a Santa Tecla, La Libertad, El Salvador, C.A. Tel. (503) 2228-7777, Fax (503) 2228-5700 www.bancocuscatlan.com/elsalvador/index.html

Banco Salvadoreno. Ms. Maria Eugenia Brizuela de Avila, Pres. Centro Financiero Banco Salvadoreno No. 3550, Alameda Dr. Manuel Enrique Araujo, San Salvador, El Salvador, C.A. Tel. (503) 2214-2788, Fax (503) 2298-0102 www.bancosal.com/

Scotiabank El Salvador, S.A. Ing. Luis Tomas Ivandic, Pres. Torre Scotiabank, Av. Olimpica No. 129, San Salvador, El Salvador, C.A. Apdo. Postal No. 824. Tel. (503) 2245-1400, Fax. (503) 2245-3303. www.scotiabank.com.sv/

Banco Agricola Comercial. Lic. Rodolfo Schildknecht, Pres. Blvd. Constitucion No. 100 y 1a. Calle Pte., Plaza Las Americas. San Salvador, El Salvador, C.A. Tel. (503) 2267-5900, Fax (503) 2267-5920. www.bancoagricola.com

Banco Hipotecario, Ing. Roberto Navarro, Pres. Sucursal Senda Florida Sur, Col. Escalon, San Salvador, El Salvador,. Tel. (503) 2250-7101, Fax (503) 2298-0447. www. bancohipotecario.com.sv/

Banco Americano. Ing. Ronald Lacayo, Pres. Alameda Roosevelt No. 2511. Tel. (503) 2245-0651, Fax (503) 2298-5261. www.bamericano.com/

Banco Uno. Ing. Albino Roman, Pres. Carretera a Comalapa Km. 9, Edif. Avalcard. San Salvador, El Salvador, C.A. Tel. (503) 2213-2604, Fax (503) 2238-2323. ww.bancouno.com.sv

Banco de America Central. Lic. Raul Ernesto Cardenal Debayle, Pres. Edif. Credomatic 51 Av. Sur y Alameda Roosevelt y Av. Olimpica, San Salvador, El Salvador. Tel. 2247-4453, Fax 2224-4138. www.credomatic.com/ lsalvador/esp/credo/index.html

Banco Procredit. Mr. Gabriel Schor, Pres. Blvd. Constitucion y 1a. Calle Pte. No. 3538. Col. Escalon San Salvador, El Salvador. Tel. (503) 2267-4411; Fax (503) 2267-4511. www.bancoprocredit.com.sv/

Project Financing

Bank finance is readily available. Since dollarization in 2001, interest rates for deposits and for loans have dropped sharply and are near US levels. Banks offer 30-year mortgage loans. US exports to El Salvador are usually financed by loans made by local banks to importers. Rates for loans to finance consumer goods imports average 6.4% for terms of less than a year. Intermediate goods are financed at even lower interest rates. Local banks offer a variety of letters of credit, sight drafts, and other methods of payment at competitive prices. Irrevocable letters of credit are recommended for any commercial transactions.

The US Overseas Private Investment Corp. (OPIC) provides medium to long-term financing in the form of investment guarantees and direct loans and loans guaranties to projects with at least 25% US investor equity. It also offers political risk insurance that protects against expropriation, political violence and inconvertibility. OPIC can participate in up to 50% of the total costs of a new venture but cannot exceed 75% of the total investment. OPIC support is available for new investments, privatizations, and expansions and modernizations of existing plants. The Export-Import Bank of the US also offers a wide range of guarantees, insurance and financing to U.S. exporters.

The Inter-American Development Bank, through the Salvadoran Multisector Bank for Investments (Banco Multisectorial de Inversiones), offers credit to support the development of the private sector, especially small and medium-sized enterprises. These credits to date have not been widely used due to the extensive paperwork required. Machinery and other capital goods exports to El Salvador may be financed at low rates and long terms through special credit lines offered by international financial institutions.

Travel Advisory

The US State Dept. warns citizens to exercise caution when traveling to El Salvador because of the high rate of crime. For additional general or specific travel information contact: Bureau of Consular Affairs, Office of Overseas Citizen Services (CA/OCS) 1-888-407-4747, from overseas: 317-472-2328 or the El Salvador Desk, U.S. Department of State, Phone: (202) 647-3505.

Telecommunications

After a successful privatization of the sector, El Salvador has more than 900,000 installed phone lines. El Salvador is one of the largest cell phone markets in Central America with over 2,024,375 subscribers in 2005. There are direct dialing, fax and telex facilities to most countries in the world. Ten different companies offer Internet connectivity. The mail system is inadequate, but there are many private courier services, such as DHL, Federal Express and UPS.

Country Government Agencies

Ministry of Economy. Yolanda de Gavidia, Minister. Complejo Plan Maestro. Centro de Gobierno. San Salvador, El Salvador. Tel. (503) 2231-5603; Fax: (503) 2221-2797. Web: www.minec.gob.sv

Ministry of Public Works. David Gutierrez, Minister Plantel DUA/La Lechuza. Km. 5 Calle a Santa Tecla. San Salvador, El Salvador. Tel. (503) 2279-3727; Fax: (503) 2224-1882. Web:www.mop.gob.sv/

Ministry of Finance. Guillermo Lopez Suarez, Minister. Edif. Los Cerezos, Blvd. Los Heroes. San Salvador, El Salvador. Tel. (503) 2244-3002; Fax (503) 2225-7491 Web: www.mh.gob.sv

Ministry of Public Health. Dr. Jose Guillermo Maza, Minister. Calle Arce No. 827, San Salvador, El Salvador. Tel. (503) 2271-0008; Fax: (503) 2221-0985. Web: http://www.mspas.gob.sv

Ministry of Agriculture & Livestock, Mario Salaverria, Minister. Final 1a. Av. Norte y Av. Manuel Gallardo, Santa Tecla, La Libertad. Tel. (503) 2288-9983; Fax: (503) 2288-5040. Web: www.mag.gob.sv

Ministry of Environment. Hugo Cesar Barrera, Minister, Km. 5 1/2 Carretera a Santa Tecla, Calle y Colonia Las Mercedes, Edif. MARN (anexo al edif ISTA) No. 2, San Salvador, El Salvador. Tel. (503) 2267-6276; Fax: (503) 2267-9420. Web: www.marn.gob.sv

Ministry of Foreign Relations. Francisco E. Lainez Rivas, Calle Circunvalacion, No. 227. Colonia San Benito, San Salvador, El Salvador. Tel. (503) 2243-9715 Fax: (503) 2243-9658

Ministry of Governance. Rene M. Figueroa, Minister. Edif. del Ministerio del Interior, Torre de Gobernacion, 14 Nivel, Centro de Gobierno. San Salvador, El Salvador. Tel. (503) 2221-6574 Fax: (503) 2281-5959. Web: www. gobernacion.gob.sv

Ministry of Tourism. Ruben Rochi, Minister, Avda El Espino No. 68, Urb. Madreselva, Sta Elena, Antiguo Cuscatlan, La Libertad, El Salvador. Tel. (503) 2243-7835 Fax: (503) 2243-7844. Web: www.elsalvadorturismo.gob.sv

Exec. Dir. Civil Aviation Authority. Renzo Zaghini. Aeropuerto de Ilopango. San Salvador, El Salvador, Tel. (503) 2295-0265; Fax: (503) 2295-0345. Web: www. aac. gob.sv

Vice Ministry of Transportation. Angel Benjamin Cestoni, Vice Minister. 1a. Av. Sur No. 630. San Salvador, El Salvador. Tel. (503) 2222-2681, 2222-2677; Fax: (503) 2221-2954. Web: www.mop.gob.sv/vmt.php

Central Reserve Bank. Luz Maria de Portillo, Pres. Alameda Juan Pablo II, San Salvador, El Salvador. Tel. (503) 2281-8403, 2281-8402; Fax: (503) 2281-8401. Web: www. bcr.gob.sv

Comision Ejecutiva Portuaria Autonoma (CEPA). (Port and Airport Admin), Miguel Angel Salaverria, Pres. Blvd Los Heroes, Edif. Torre Roble, Metrocentro, San Salvador, El Salvador. Tel: (503) 2260-5477. Web:www.cepa.gob.sv

Comision Ejecutiva Hidroelectrica del Rio Lempa (CEL) Nicolas Salume, Pres. 9a Calle Pte. No. 950 Entre 15 y 17 Av. Nte. Centro de Gobierno. San Salvador, El Salvador.Tel. (503) 2211-6000. Web: www.cel.gob.sv

Admin. Nacional de Acueductos y Alcantarillados (Water & Sewage Adm.), Manuel Arrieta, Pres. Av. Don Bosco, Col. Libertad, Edif. ANDA. San Salvador, El Salvador Tel.: (503) 2225-3534, 2225-3152. Web: www.anda.gob.sv

Consejo Superior de Salud Publica. Loly Claros de Ayala, Pres. Paseo General Escalon, No. 3551, Col. Escalon, Salvador del Mundo, Fte. a Super Selectos, San Salvador, El Salvador. Tel: (503) 2245-3885 2245-3886; Fax: 2245-3886 Web: www.cssp.gob.sv

Country Trade Associations/Chambers of Commerce

American Chamber of Commerce El Salvador (AMCHAM). David Huezo, Pres. Edif. World Trade Center, Torre 2 Nivel 3, San Salvador, El Salvador. Tel. (503) 2263-9494; Fax: (503) 2263-9393. Web: www.amchamsal.com

Asociacion Distribuidores de El Salvador (ADES) (Distributors' Assn of El Salvador). Carlos Imberton Beneke, Pres. Plaza Suiza, 3ra. Planta, Local LC-5. San Salvador, El Salvador. Tel.: (503) 2223-6574; Fax:(503) 2245-3359. E-mail: ades@salnet.net. Web: www.ades.org.sv

Asociacion Nacional de la Empresa Privada (ANEP) (Private Enterprise National Assn). Federico Colorado, Pres. 1a. Calle Poniente y 71 Avenida Norte 204, San Salvador, El Salvador. Tel. (503) 2298-0966, 2224-1236 Fax: (503) 2223-8932. Web: www.anep.org.sv

Asociacion Salvadorena de Distribuidores de Materiales de Construccion (ASDEMAC). (Construction Material Distributors Assn). Alejandro Marroquin, Pres. 4a Calle Poniente y 13a Ave. Sur #807 [2.sup.a] Planta local #4. San Salvador, El Salvador, C.A. Tel.: (503) 2222-3712; Fax: (503) 2222-3524

Asociacion Salvadorena de Empresarios del Transporte de Carga (ASETCA) (Cargo Transportation Assn). Nelson Vanegas, Pres. 37 Ave. Sur No. 535, Col. Flor Blanca. San Salvador, El Salvador. Tel.: (503) 2275-6813; Fax: (503) 2275-6657. E-mail: asetcaes@hotmail.com

Asociacion Salvadorena de Industriales (Industrial Assn) Napoleon Guerrero, Pres. Calles Roma y Liverpool, Col. Roma, San Salvador, El Salvador. Tel. (503) 2279-2488; Fax: (503) 2279-2070. Web: www.asi.com.sv

Asociacion Salvadorena de Importadores de Respuestos Automotrices (ASIRA). (Auto-parts Importers Assn). David Canahuati, Pres., Cond. Monte Maria, Edif. C 1-1 1a C. Pte. #2904. San Salvador, El Salvador. Tel. (503) 2260-5327; Fax: (503) 2261-1803. E-mail: asira@salnet.net

Asociacion de Industriales de la Confeccion (ASIC). (Apparel Industry Assn). Francisco Escobar, Pres. Ofic. ASI, Colonia Roma y Calle Liverpool, San Salvador, El Salvador. Tel.: (503) 2279-2488; Fax: (503) 2298-3508. E-mail: direccion_asic@integra.com.sv. Web:www.asic.com.sv

Camara de Comercio e Industria. (Salvadoran Chamber of Commerce and Industry). Elena Maria de Alfaro, Pres. 9a. Avenida Norte y 5a. Calle Poniente, San Salvador, El Salvador. Tel. (503) 2231-3000; Fax: (503) 2271-4461 Web:www.camarasal.com/

Camara Salvadorena de la Industria de la Construccion (CASALCO). (Salvadoran Chamber of the Construction Industry). Jose Raul Castaneda. Paseo General Escalon No. 4834, Col. Escalon. Tel. (503) 2263-5344, 2263-6521; Fax: (503) 2263-6518. Web:www.casalco.org.sv

Camara de la Industria Textil y Confeccion de El Salvador (CAMTEX). (Textile and Apparel Industry Chamber). Roberto Bonilla, Pres. Edif. ASI, Tercera Planta, San Salvador, El Salvador. Tel. (503) 2245-3540; Fax: 2279-1880 Web: www.camtex.com.sv

Corp. de Exportadores de El Salvador (COEXPORT) (Exporters Corp.) Licda. Vilma de Calderon, Pres. Cond. del Mediterraneo, Edif. A-23, Jardines de Guadalupe, San Salvador, El Salvador. Tel. (503) 2243-3110, 2243-1329 Fax: (503) 2243-3159. Web: www.coexport.com

Fundacion Salvadorena para el Desarrollo Economico y Social (FUSADES). (Social and Economic Development Think Tank). Antonio Cabrales, Pres. Edif. FUSADES Blvd. y Urb. Santa Elena, Antiguo Cuscatlan. San Salvador, El Salvador. Tel: (503) 2278-3366; Fax: (503) 2278-3356 Web:www.fusades.com.sv/i_index.html

Fundacion Empresarial para Accion Social (FUNDEMAS) Roberto H. Murray Meza, Pres. Edif. FUSADES, Blvd Santa Elena, Antiguo Cuscatlan, La Libertad, Tel. (503) 2278-3366 Fax: (503) 2244-0539. Web: www.fundemas.org. E-mail: fundemas@fusades.com.sv

National Commission for Investment (PROESA). Patricia Figueroa, Exec. Dir., Calle Circunvalacion, No. 248. Col. San Benito, San Salvador, El Salvador. Tel. (503) 2210-2500 Fax: (503) 2210-2520. Web: www.proesa.com.sv. E-mail: info@proesa.com.sv

Union de Industrias Textiles (UNITEX). (Textile Industry Org.), Ing. Edwin Zamora, Pres., Calle Liverpool y Calle Roma, Edif. ASI, Col. Roma, San Salvador, El Salvador. Tel. (503) 2257-3283; Fax: (503) 2223-2558. E-mail: unitex_99 @telesal.net

Trade Events

The websites listed below offer information on upcoming trade events in El Salvador: www.export.gov/tradeevents.html www.buyusa.gov/ elsalvador/en/events.html www.fies.gob.sv/fies/