The United States launches Regional Trade and Investment Project to promote economic growth in Central America
The United States Government, through USAID, launched its new “Regional Trade and Investment Project”, a $26 million initiative designed to foster export-driven economic growth and economic integration between El Salvador, Guatemala and Honduras.
This new project will boost economic growth, regional integration and job creation in Central America. By attracting foreign investments and encouraging local investments, the region’s productive capacity will increase, especially under the trend of nearshoring, which connects Central America with key markets such as the United States. This strategic approach, accompanied by trade facilitation and the strengthening of intra-regional value chains, will allow greater competitiveness, sustainable growth and the generation of new job opportunities.
The four main pillars of the project include: deepening the customs union and regional integration; strengthen the digitalization of business processes, improve trade policies and modernize regulations; increase the competitiveness of the private export sector, and improve access to financing and investment in the region.
The technical assistance that USAID will provide includes activities to improve border management and coordination, streamline processes, and build the capacity of government agencies that regulate trade. The project also finances small-scale infrastructure projects to reduce congestion and traffic jams at major border crossings.
Over five years, it is expected to achieve significant milestones, such as the training of more than 600 customs officials, a 30% increase in exports of participating companies and the mobilization of $100 million in investments, of which $30 million will be destined for clean energy projects. The intervention of the new project and its allies will contribute to reducing trade costs and times, boosting economic growth and job creation throughout the region.
The USAID project is working with the Secretariat of Central American Economic Integration (SIECA) and the ministries of Economy and customs authorities of the three countries to implement the Regional Trade Facilitation Strategy of Central America and the Deep Integration Process between El Salvador, Guatemala and Honduras.
