AGP Executive Report

Construction & Trade: El Salvador’s construction boom is pushing cement imports to a 30-year high, with hydraulic cement and clinker imports reaching $36.15M in H1 2026 (+39% YoY) and volumes jumping to 389.33M kg (+100.2M kg), as China and other Asian suppliers expand supply. Finance & Real Estate: The same momentum is showing up in lending: construction led corporate borrowing with $341.6M in new loans (+27.6% YoY), while developers increasingly use digital asset tokenization via CNAD to tap new capital. Infrastructure Delivery: The Los Chorros mega-project on the Pan-American Highway is at 60% completion, with a planned full weekend road closure for rock blasting tied to slope stabilization and the Francisco Morazán Viaduct works. Energy Regulation: El Salvador is rolling out a regulatory framework for solar self-consumption, aiming to speed approvals for home solar systems. Crypto Payments & Policy: Treasury’s GENIUS Act enforcement moves forward with a proposed rule defining who can issue and sell payment stablecoins in the U.S., while local crypto adoption stories keep growing, including Bitcoin being used for everyday purchases in South Africa’s Witsand. Gaming Investment: EGT expanded in El Salvador via a new Imperius Casino installation in San Miguel, marking its first collaboration with the operator. Food & Community (East Bay): Salvadoran and Mediterranean restaurant openings in Richmond include Antojitos Caseros by El Cuscatlan and Amor Grill Falafel and Shawarma, alongside Balompie Sports Bar & Grill bringing SF pupusas across the bay.

Construction & Infrastructure: El Salvador’s construction boom is pushing cement imports to a 30-year high, with first-half 2026 hydraulic cement and clinker imports rising 39% to $36.15M and volumes up sharply as China leads supply. Finance & Capital Markets: The same surge is being fueled by both bank credit and digital asset tokenization, with construction grabbing $341.6M in new loans (+27.6% YoY) and multiple projects registering tokenized funding routes. Mega-Project Update: The Los Chorros corridor mega-project on the Pan-American Highway is at 60% completion, with a planned full road closure this weekend for controlled rock blasting tied to viaduct and lane expansion work. Energy Policy: El Salvador has started implementing its renewable “self-consumption” regulatory framework, with official procedures now in place for solar PV systems, including grid connection and surplus injection rules. Trade & Investment: Turkey’s Yilport secured a $1.62B deal to modernize and operate El Salvador’s Acajutla and La Unión ports under a 50-year concession, aiming to triple Acajutla capacity and revive La Unión. Payments & Stablecoins: Bitget Wallet’s COO says stablecoins and blockchain can support faster cross-border payments for Latin America, where instant rails like Brazil’s Pix already set expectations.

Renewables Push: El Salvador’s energy regulator (DGEHM) has started the official procedures to authorize solar self-consumption systems, rolling out rules for installation, grid connection, operation, and even surplus injection—an implementation step tied to the 2025 renewable law and SIGET’s 2026 special regulation. Solar Market Access: The framework also covers local, remote, and “virtual power plant” models, signaling a clearer path for companies and households to adopt rooftop generation. Trade & Tariffs: Belize and El Salvador signed a historic partial trade agreement after nearly three years, aiming to expand market access and improve cross-border commerce. Ports Investment: Turkey’s Yilport secured a $1.62B deal to modernize and jointly operate El Salvador’s Acajutla and La Unión ports under a 50-year concession, targeting capacity growth and reviving La Unión. Crypto Payments: Bitget Wallet’s COO argued stablecoins can help unify cross-border payments in Latin America, where instant rails like Brazil’s Pix already set expectations. Migration Policy Shock: U.S. TPS terminations are again in the spotlight, with New York Gov. Kathy Hochul warning abrupt changes could disrupt healthcare and other essential services.

Stablecoin Audit: Tether, based in El Salvador, says KPMG has issued an unqualified audit opinion on its 2025 financial statements and even counted gold bars—another step toward credibility for USDT’s reserve claims. Crypto Regulation Debate: In the US, the CLARITY Act’s odds have reportedly fallen to 10% as lawmakers face a tight schedule, with regulators like the SEC/CFTC preparing fallback rules. Trade & Market Access: Belize and El Salvador signed a Partial Scope Agreement after nearly three years, giving selected Belizean goods preferential access to the Salvadoran market and aiming to boost investment. Local Growth & Food Supply: El Salvador opened a new Usulután wholesale market with modern facilities to improve food distribution. Tourism Push: Tahmek (Yucatán) expects up to 20,000 visitors for its 2026 Mayan Paper Balloon Festival, with El Salvador among the international delegations—an example of regional tourism-linked trade opportunities.

Colombia-US Trade Pressure: Colombia’s new President Abelardo de la Espriella asked Donald Trump to temporarily suspend higher U.S. tariffs on Colombian goods, saying businesses are under strain after the 7.4 earthquake that killed nearly 300 and destroyed about 13,000 homes. Regional Security-Trade Link: The same political shift in Colombia—tough-on-crime and closer alignment with Washington—comes as Latin America’s right-wing governments deepen ties with Israel and push stronger security cooperation. El Salvador Dollarization Context: A roundup on countries without their own national currency highlights El Salvador’s 2001 switch to the U.S. dollar, noting the stability benefits but also the limits on independent monetary policy. Stablecoin Audit Watch: Tether’s full 2025 audit by KPMG U.S. is reported as a major milestone for the stablecoin issuer based in El Salvador, with reserves and liabilities audited under U.S. accounting standards. Local Business & Trade: Belize and El Salvador signed a Partial Scope Agreement after nearly three years, granting preferential access for selected Belizean products to the Salvadoran market.

Trade & Diplomacy: Belize and El Salvador signed a Partial Scope Agreement after nearly three years, giving selected Belizean goods preferential access to the Salvadoran market and setting up a bilateral trade and investment promotion group. Public Security & Healthcare Investment: Mexican healthcare chain 50 Doctors plans to expand into El Salvador after meeting President Nayib Bukele, aiming to bring its hospital model, tech, and specialized services to the local market. Crypto & Finance: Tether, based in El Salvador, says KPMG completed its first full audit of 2025 financial statements, including a physical count of gold bars, with reserves exceeding liabilities by $6.814B at year-end 2025. Regional Geopolitics: Colombia’s new president asked Trump to temporarily suspend tariffs hitting Colombian products as the country faces earthquake fallout, while Colombia also moves closer to the U.S. “Shield of the Americas” anti-cartel coalition. Disaster Response: Colombia’s earthquake recovery continues as the search window shrinks, with Pope Leo XIV sending €100,000 in relief and the U.S. deploying a disaster assistance team.

Central America Trade: Belize and El Salvador signed a Partial Scope Agreement on Aug. 13 after nearly three years of talks, giving selected Belizean goods preferential access to the Salvadoran market and setting up a bilateral trade and investment promotion group. El Salvador Growth & Business Climate: El Salvador posted the fastest Central America economic growth in May at 5.39% y/y, led by construction (+9.7%), while tax enforcement and electronic invoicing pushed tax revenue to 22.1% of GDP in 2025, the region’s highest. Infrastructure for Commerce: El Salvador opened a modernized Usulután Wholesale Market with cold storage, docks, and improved logistics to expand food distribution. Digital Government & Environment: The government rolled out SIMACC, an AI-enabled system to streamline environmental assessments and water/climate monitoring. Healthcare Investment: Mexican hospital chain 50 Doctors plans to expand into El Salvador, presenting projects to President Nayib Bukele. Regional Security Watch: Colombia’s new president Abelardo “El Tigre” de la Espriella asked the U.S. for military help against drug cartels and joined Trump’s “Shield of the Americas” coalition, echoing El Salvador-style prison plans. Humanitarian Relief: Pope Leo XIV sent €100,000 to support Colombia earthquake recovery as the death toll and missing persons remain under pressure.

Trade & Investment: Belize and El Salvador signed a Partial Scope Agreement on Aug. 13, after nearly three years of talks, giving selected Belizean goods preferential access to the Salvadoran market and setting up a Bilateral Trade and Investment Promotion Group. Healthcare Expansion: Mexican hospital chain 50 Doctors says it will expand into El Salvador, presenting its model to President Nayib Bukele and aiming to bring new infrastructure and specialized services. Economic Momentum: El Salvador posted 5.39% year-on-year economic growth in May, led by construction (+9.7%) and stronger real estate and housing-related lending. Tax Enforcement: El Salvador recorded the highest tax burden in Central America at 22.1% of GDP by end-2025, driven by anti-evasion enforcement, smuggling crackdowns, e-invoicing, and base expansion. Public Commerce Upgrade: Usulután opened a modernized Wholesale Market with cold storage, loading docks, and improved logistics to boost food distribution. AI in Regulation: The government launched SIMACC and an AI-assisted environmental assessment tool (SEA+IA) to speed up intake and early categorization for projects while keeping human oversight. Crypto Governance: Stablecoin issuer Tether said KPMG completed a full independent audit of its 2025 financial statements, with reserves exceeding liabilities by $6.8 billion.

AI for Environment: El Salvador rolled out SIMACC, a new Information System for Environment, Monitoring, and Climate Change, to centralize real-time data and speed up environmental assessments using an upgraded AI tool (SEA+IA) plus water and watershed monitoring modules. Tax Enforcement: El Salvador ended 2025 with the highest tax burden in Central America at 22.1% of GDP, driven by stronger anti-evasion enforcement, electronic invoicing, and efforts to broaden the tax base beyond large firms. Food Trade Boost: The country opened a modernized Usulután Wholesale Market with stalls, loading docks, cold storage, and a seafood washing area to improve logistics and access to competitively priced food. Crypto Transparency: Tether said KPMG completed a full independent audit of its 2025 financial statements, aiming to reassure markets after years of reserve scrutiny. Regional Context: Colombia’s earthquake response continues as the 72-hour survivor window fades, with hundreds still missing and new leadership facing pressure over aid and reconstruction planning. Media & Business Signals: The Edward R. Murrow Awards highlighted coverage including “Start Here: Inside El Salvador’s Mega-Prison,” keeping local business-and-policy stories in international view.

TPS Deadline for Salvadorans: The U.S. ends Temporary Protected Status for El Salvador on Sept. 9, putting about 170,000 Salvadorans in the U.S. at risk, with roughly 36,000 in California and thousands in San Diego County facing potential deportation. Diaspora Mobility & Work: El Salvador moves to ease cross-border driving rules with Italy via a reciprocal agreement that lets eligible drivers convert licenses without extra exams, aiming to speed labor-market access. Energy & Home Solar: El Salvador’s energy regulator opens procedures for residential renewable self-consumption, streamlining solar PV approvals and formalizing accreditation for installers and suppliers. Trade Deal: El Salvador signs a Partial Scope Agreement with Belize covering 400 tariff lines, targeting reduced non-tariff barriers and preferential access for sectors like agro-industry, pharma, plastics, textiles, and metalworking. Health Access: Mobile care units expand women’s and girls’ health services across 14 eastern districts, adding mental health and specialized support through UNFPA-backed deployment. Crypto & Finance: Tether completes its first independent reserves audit with KPMG U.S., a major step for transparency in the stablecoin market. Ag Innovation: El Salvador and Singapore expand an agricultural innovation partnership focused on biotech and climate-resilient food systems.

Colombia Disaster Finance: Colombia declared an economic, social and ecological emergency after its 7.4 earthquake, with President Abelardo de la Espriella setting up a “Fondo Milagro” to centralize donations and rebuild damaged infrastructure as the death toll climbed to 273 and hundreds remain missing. Rescue Deadline: Teams in Cali and Pereira pushed through the final stretch of the 72-hour survival window, with officials warning odds drop sharply after Thursday afternoon. Pope-Backed Relief: Pope Leo XIV sent €100,000 for humanitarian aid to quake-hit dioceses, adding to U.S. and regional support. El Salvador Growth Watch: El Salvador’s industrial activity kept accelerating—June output rose 4.3% y/y, led by maquila electrical components, pharma contracts, and food processing, alongside stronger construction and cement demand. Poverty & Security Narrative: New figures show poverty falling sharply in 2025 alongside faster growth and lower crime, reinforcing Bukele’s economic argument. Legal Cooperation: El Salvador expanded ties with the World Jurist Association, meeting senior officials to deepen rule-of-law and international legal cooperation. Tech & AI Events: El Salvador is set to host EmTech AI LATAM in November, positioning the country as a regional technology hub. Regional Environment Diplomacy: Belize chaired CCAD talks on biodiversity, waste, water and Sargassum, with El Salvador among participating countries.

Earthquake Response: Colombia’s 7.4 quake recovery entered a “final phase” as officials reported 265 dead, 3,500+ injured, and nearly 500 missing, with rescuers warning the critical first 72 hours are nearly over and international aid coordination still under scrutiny. Economic Emergency: President Abelardo de la Espriella declared an economic emergency to speed reconstruction of hospitals, schools, and highways, plus subsidies for public services and housing, amid pressure to deliver help to isolated communities. El Salvador–Legal Cooperation: El Salvador boosted ties with the World Jurist Association after meetings in San Salvador, focusing on rule of law, democratic governance, and new avenues for international legal cooperation. Industrial Growth: El Salvador’s industrial activity accelerated, with June 2026 output up 4.3% year-on-year, led by apparel/maquila exports, pharmaceuticals, food processing, and construction-linked demand. Poverty & Growth Narrative: Coverage highlights falling poverty alongside faster growth as Bukele’s new economic argument, while noting the challenge of sustaining momentum. Telecom Spectrum: SIGET allocated Tigo additional mobile spectrum for 60 days, supporting short-term network capacity. Crypto & Finance: El Salvador’s Bitcoin experiment turns five in renewed debate over results, while regional crypto developments also keep regulators and markets in focus.

El Salvador–Colombia Security & Digital Assets: El Salvador and Colombia are tightening strategic ties around security, AI, and digital assets as Colombia’s new president Abelardo de la Espriella faces a major test after a 7.4 earthquake. Earthquake Response & Aid: Central America countries including El Salvador pledged support after the quake, while rescue teams in Cali and Pereira raced against the shrinking 72-hour window; officials report hundreds dead and thousands injured, with aid and coordination ramping up. TPS Fallout for Salvadorans: With El Salvador TPS protections in the U.S. set to end Sept. 9, families are bracing for deportation risk and work authorization loss—plus knock-on effects for roughly 150,000 Salvadoran children. Telecom & Market Moves: Siget granted Tigo extra mobile spectrum (30 MHz) for 60 days, boosting capacity in the 700 MHz band. Bitcoin & Payments: El Salvador’s Bitcoin experiment marks five years, and the country continues buying 1 BTC daily as it refines its crypto strategy. Business & Investment: Aillio opened a Latin America showroom in San Salvador to sell and service coffee roasting equipment locally. Energy & Corporate Finance: MPC Caribbean Clean Energy approved a US$3.27m sale of its San Isidro solar park in El Salvador, signaling portfolio reshuffling. Crypto Industry Marketing: Bitget Wallet launched a global affiliate program offering up to 60% trading commission and rebates tied to card spending. Agrifood Tech: IICA selected 15 AgTech startups, including Tlaloc Agrofintech from El Salvador, for Digital Agriculture Week in Costa Rica.

Renewables & Investment: MPC Caribbean Clean Energy said its renewable portfolio delivered strong Q2 results, with San Isidro Solar Park in El Salvador exceeding generation and revenue targets, while grid curtailment weighed on the Monte Plata solar project in the Dominican Republic. Security & Justice: A trial of veterans accused of plotting to disrupt President Nayib Bukele’s inauguration was postponed to Sept. 7, with families calling the case irregular and tied to the state of emergency. Migration Impact on Families: An EFE report warns that if the U.S. cancels El Salvador’s TPS, about 150,000 Salvadoran children and adolescents could be affected through family separation and loss of work authorization for parents. Digital Assets & Banking: A Q&A highlights BAC’s push to make Central America’s cross-border payments and treasury management easier via a more unified regional banking model. Regional Earthquake Response: Colombia’s 7.4 quake recovery is drawing international aid offers, including from El Salvador, as the government coordinates rescue and damage assessment efforts. Labor & Compliance: El Salvador’s nighttime labor inspection program aims to protect overnight workers, while new fraud-detection tech strengthens border control.

El Salvador–Colombia Business & Security: Salvadoran VP Félix Ulloa met Colombia’s incoming leadership to share Bukele-era judicial and penal reforms, CECOT, and Plan Cero Ocio, and both sides agreed to form a Binational Business Council to boost trade, investment, and tech exchange, including digital transformation and digital-asset/tokenization frameworks. Border & Labor Oversight: El Salvador handed UN-backed fraud detection document verification tech to strengthen border controls, while the Ministry of Labor launched Justicia Laboral Nocturna to inspect workplaces during late-night/early-morning shifts. Regional Finance & Payments: BAC highlighted how it’s moving Central America toward a more unified corporate banking model, aiming to simplify cross-border payments and treasury management across the isthmus. Climate Risk: NOAA and NASA data show July 2026 tied as Earth’s hottest month on record, raising pressure on food and market stability planning.

Security & Regional Cooperation: Salvadoran VP Félix Ulloa met Colombia’s incoming leadership to share Bukele-era judicial and penal reforms, CECOT, and Plan Cero Ocio, while both sides agreed to form a Binational Business Council to boost trade and investment. Border & Labor Enforcement: El Salvador rolled out UN-backed real-time document verification to spot forged passports and fraud at entry points, and launched “Justicia Laboral Nocturna” to expand labor inspections into late-night and early-morning shifts. Digital Assets & Payments: El Salvador highlighted its fintech push in talks on AI and digital transformation, including its digital-asset/tokenization regulatory framework, as regional interest in blockchain-based finance keeps growing. Crypto Market Talk: Economist Nouriel Roubini softened his stance, calling Bitcoin a major financial innovation, while other coverage points to continued expansion of tokenized deposits and crypto payment rails. Humanitarian Shock (Regional): A 7.4 earthquake in western Colombia killed at least 111, with rescue efforts underway after widespread building collapses.