Textiles, one of the country’s main exports, fell by 131 million dollars in sales to the US market, a contraction of 23.6 percent so far in 2024.

Production in the first eight months is at the lowest levels of the last four years, according to BCR statistics, causing a reduction of jobs, especially in free trade zones. The BCR report stated that of the more than 40 markets to which local textiles go, the United States is the main destination, with a share of 71.3 percent of the 594.49 million dollars sold between January and August 2024.

According to the Corporation of Exporters of El Salvador (Coexport), North American companies had purchased an excess inventory in 2022, out of fears of shortages, compounded by a lower purchasing power of consumers due to inflationary pressure.

On the other hand, sources in the sector voiced hopes that there will be no negative impact for them if a Free Trade Agreement with China is consummated by 2025, something that could help if there is a reduction in the raw material available from China.

According to sources close to negotiations of the pact, local producers harbored fears that the entry of Chinese products would be a competition for national production.

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