El Salvador joins Guatemala-Honduras customs union
Garment and textile producers will be among the main beneficiaries of the expansion next month of the inclusion of El Salvador in the customs union between Honduras and Guatemala
With faster cross-border procedures, producers will find it easier to adjust production among operations in the three countries.
The customs union includes the use since last May of a standardized digital billing and declaration form, which helps reduces border crossings in most cases to less than five minutes, compared to a current average of close to an hour and a half.
The customs union also harmonizes tariff codes for 98% of goods traded among member countries.
Garments last year accounted for a third of total exports in each of Honduras and El Salvador, with a value of $2.7 billion and $1.9 billion, respectively.
Guatemalan garment exports last year were valued at $1.1 billion.