AGP Executive Report

Airport & Tourism Momentum: El Salvador’s International Airport hit a record 3 million passengers in the first seven months of 2026, with 26,000+ flights and 22.5 million kg of cargo moved—CEPA expects an all-time annual record as August holidays approach. Crypto & Sovereign Reserves: Analysts say El Salvador’s Bitcoin holdings could top $1B by end-2026 if daily accumulation continues; the country holds about 7,474 BTC (~$480M). New Environmental Push: The government launched “Green Passport” and “Outdoor Classrooms” to turn protected areas into learning and eco-tourism hubs, starting with Montecristo and Barra de Santiago. Regional Integration Plan: Vice President Félix Ulloa proposes a “Central American Union” modeled on the EU, aiming to let citizens move and work freely across the region. Tech for Education: Stanbridge University donated ~215 Chromebooks to support phased distribution across Latin America, including El Salvador. Local Governance Watch: Santa Ana community gardens face confusion after budget cuts—access remains, but “programming” has been paused. Diplomacy: El Salvador and Laos established diplomatic relations.

Diplomacy & Trade Links: Laos and El Salvador officially established diplomatic relations after signing a joint communiqué at the UN in New York, signaling broader cooperation across multilateral forums. Bitcoin Policy Watch: Analysts say El Salvador’s Bitcoin holdings—about 7,474 BTC worth roughly $480M—could top $1B by end-2026 if the daily purchase and mining strategy stays on track. Local Budget Pressure: Santa Ana’s community gardens face uncertainty as city budget cuts pause “programming” even as residents keep access, raising transparency questions. Crypto Payments Innovation: Bitget Wallet Card launched “Assetback,” turning cashback into user-selected Bitcoin, gold, or tokenized US stocks/ETFs via eligible purchases. Land, Memory & Rights: A community in San Francisco Ángulo fears a landfill project will bury human-rights history tied to past military atrocities, as legal appeals run out. US Policy Spillover for Salvadorans: A US Supreme Court decision expanding DHS power to end TPS is increasing fear among immigrants, including those from El Salvador, as protections hang in the balance. Education & Inclusion: Stanbridge University donated about 215 Chromebooks to Iglesia de Dios Renacer for phased distribution across Latin America, including El Salvador.

Belize–US Safe Third Country: Belize is set to receive a new group under the agreement, with 18 passengers on a deportation flight—10 Belizeans returning home and 8 foreign nationals (including five Haitians plus one each from Honduras, El Salvador, and Nicaragua) who will undergo security and background checks before processing. El Salvador Aviation Training: Airbus has selected El Salvador as a regional hub for aviation safety training, signaling more investment and skills development tied to the aviation sector. Education for the Digital Era: El Salvador approved a major education boost aimed at preparing students for the digital economy, with scholarships and tech-focused funding. Coffee Exports: El Salvador’s coffee exports hit a 13-year peak, reaching $146.9 million, as exporters push for broader global demand. Energy Infrastructure: Surf City’s power grid got a boost with the opening of its first GIS technology substation, strengthening reliability in the coastal tourism zone.

Energy & Infrastructure: El Salvador completed the Surf City GIS substation in Tamanique, adding a 17.5-kilometer transmission line to stabilize power for more than 16,495 users and support tourism growth. Trade & Logistics: El Salvador’s customs agency earned international recognition from the WCO and SECO for AI-powered customs risk management under the SECO-WCO Global Trade Facilitation Programme. Education & Human Capital: The World Bank highlighted El Salvador’s AI-driven education reform, saying it’s benefiting 500,000+ students with digital tools and real-time data to prepare for a more digital economy. Remittances & Crypto: New Central Bank data shows Bitcoin remittances contributed just $35.4M (0.7%) of El Salvador’s $5.06B foreign remittances in H1 2026, up 39.1% year-on-year but still far below bank and remittance-company channels. U.S. Trade Policy Impact: USTR’s Section 301 forced-labor tariffs take effect July 24, with 10%–12.5% duties covering most imports from 60 trading partners, including El Salvador, raising near-term sourcing and compliance pressure for importers.

Energy & Infrastructure: El Salvador completed the Surf City Substation in Tamanique, the country’s first GIS-technology substation, plus a 17.5-km transmission line to stabilize power for about 16,495 users and support tourism and local business growth. Trade & Costs: The U.S. Section 301 forced-labor tariffs take effect July 24, adding 10% or 12.5% duties on most imports from 60 trading partners (including El Salvador), with a short in-transit grace period—raising near-term sourcing and compliance pressure for regional exporters and importers. Customs Modernization: El Salvador’s customs authority earned international recognition from the WCO and SECO for AI-powered customs risk management under the SECO-WCO Global Trade Facilitation Programme. Education & Tech: The World Bank highlighted Bukele’s AI-driven education reforms, citing benefits for 500,000+ students and a push to prepare workers for a more digital economy. Global Outreach: El Salvador promoted its tourism, culture, and coffee to Russian audiences at the Hermitage Garden event, while a Saudi Coffee Company mission explored importing Salvadoran beans.

El Salvador Exports: El Salvador’s export sector kept momentum in the first half of 2026, with foreign sales up 4.1% to $3.4006B and export volume rising 10.3% to 2,112.6M kg, led by textiles/apparel (t-shirts $233.1M; sweaters $198.7M) plus sugar ($182.1M) and coffee ($147M), and a strong June rebound to $597.2M. US Trade Policy: The U.S. finalized Section 301 forced-labor tariffs that replace an expiring 10% surcharge, with duties set at 10% or 12.5% for 60 trading partners starting July 24—meaning El Salvador exporters may need to re-check product coverage and exemptions. Bitcoin Politics: Opposition parties for El Salvador’s 2027 election picked candidates who reject Bukele’s Bitcoin strategy as a fiscal failure, turning crypto accumulation into a direct campaign issue. Tourism & Security: El Salvador announced a full schedule for the 2026 August Festivals to boost family travel and local commerce, while also marking another milestone in public safety with 1,278 homicide-free days. Regional Investment Signal: Sri Lanka ranked among the fastest improvers in investor relations and debt transparency, with El Salvador also noted for progress in ESG data and policies.

US–China Tech & Telecom Push: The Trump administration plans $175.8M to replace aging undersea telecom cables across the Caribbean and Central America, aiming to block China’s influence in critical infrastructure. Trade Policy Shock: The U.S. finalized Section 301 forced-labor tariffs on 60 trading partners (10% or 12.5%), effective July 24, replacing the expiring 10% global surcharge—an immediate cost risk for regional exporters including El Salvador. El Salvador Exports: El Salvador’s first-half 2026 exports rose 4.1% to $3.40B, with export volume up 10.3% to 2.11B kg, led by textiles/apparel, sugar, and coffee. Bitcoin Politics: Opposition parties are positioning 2027 election candidates against Bukele’s Bitcoin strategy, framing it as a fiscal failure as state crypto purchases continue. Tourism & Culture: El Salvador kicked off its 2026 August Festivals with a full family-friendly schedule, betting on tourism and local commerce. Public Security Milestone: El Salvador reported 1,278 homicide-free days under Bukele, reinforcing its security narrative for investors and visitors. Regional Rights Initiative: OAS, CAF, and El Salvador’s INABVE launched a regional workshop to modernize disability legal capacity frameworks in El Salvador, Mexico, and Paraguay.

US Tariffs Hit 60 Partners: The U.S. started imposing new Section 301 forced-labor tariffs after the temporary 10% global levy expired, with rates of 10% or 12.5% depending on each country’s enforcement status; El Salvador is listed among the 10% group, while the broader plan covers 60 economies and includes product exemptions. Crypto & Remittances Reality Check: A new look at El Salvador’s remittance flows finds crypto is still a small slice of the roughly $5B market (about 0.7%), with most transfers staying in traditional channels. Digital Assets Regulation: El Salvador and Gibraltar are moving to advance global digital asset and tokenization rules, signaling continued push for fintech-friendly oversight. Tourism & Investment Push: COAMSS-OPAMSS opened a new office in Punta Roca to support tourism and investment. Energy & LNG Exports: Argent LNG received a long-term U.S. authorization to export LNG, with El Salvador named among authorized destinations. Local Development: El Salvador reallocated a $226M surplus toward public infrastructure and telehealth expansion, while the Los Chorros highway expansion hit 60% completion. Climate & Conservation: A historic trinational plan protects 313,000 hectares across Honduras, Guatemala, and El Salvador’s Trifinio-Fraternidad reserve with €11M support from KfW. Weather Alert: An Arctic cold wave brought record lows across Central America, including 3.5°C in Santa Ana, El Salvador. Business/Trade Context: A fashion sourcing survey notes El Salvador remains a key CAFTA-DR sourcing hub for U.S. brands, even as companies weigh policy uncertainty.

US Tariffs Hit El Salvador: The U.S. began imposing new 10%–12.5% duties on imports from 60 trading partners under Section 301, targeting countries Washington says haven’t fully enforced bans on goods made with forced labor—El Salvador is listed in the 10% bracket, adding pressure on exporters and supply chains. Legal Fallout in Washington: Two small businesses sued to block the tariff plan, arguing the administration is using Section 301 to revive a regime courts already struck down. CECOT Flight Lawsuit: Venezuelan deportees filed a federal suit against private aviation firms tied to March transfers to El Salvador’s CECOT prison, alleging unlawful detention and a risk of torture. Tourism & Investment Push: COAMSS-OPAMSS opened a new office in Punta Roca, La Libertad, to support territorial planning and investment as the coastal tourism corridor expands. Local Culture & Recovery: Zacamil in San Salvador is being transformed into an open-air museum, using public art to mark a neighborhood once dominated by gang violence. Trade & Industry Signals: El Salvador’s premium spirits are showcased in South Korea’s Seoul Bar & Spirits Show, aiming to grow exports and brand awareness in Asia.

US Tariff Shock for the Region: The U.S. started imposing new 10%–12.5% Section 301 tariffs on imports from 60 trading partners, citing forced-labor enforcement gaps, with El Salvador included in the 10% bracket—raising costs and competitive pressure for exporters across Central America and beyond. Local Investment & Planning: COAMSS-OPAMSS opened a new office in Punta Roca (La Libertad Costa) to coordinate territorial planning and support tourism and investment in one of El Salvador’s fastest-growing coastal zones. Water & Climate Resilience: CABEI approved US$1.2 million in technical cooperation to help design recovery programs for Lakes Ilopango and Coatepeque, aiming to strengthen water management and climate resilience. Trade & Tourism Diplomacy: El Salvador promoted premium spirits in South Korea’s Seoul Bar & Spirits Show and hosted a forum with more than 25 Colombian business leaders to pitch investment opportunities and deepen economic ties. Cyber & Security Watch: A new Russia-aligned malware campaign is hiding malicious code in a counterfeit Notepad++ plugin, targeting Ukrainian government and defense networks—another reminder of rising cyber risk for businesses.

US Tariff Shock (Forced Labor): The U.S. started imposing new 10%–12.5% Section 301 tariffs on imports from 60 trading partners after the temporary 10% levy expired, targeting countries the USTR says failed to block forced-labor goods; El Salvador is listed in the 10% bracket, meaning exporters face added duties on top of existing MFN rates unless they qualify for exclusions. Local Investment & Planning: COAMSS-OPAMSS opened a new office in Punta Roca (La Libertad Costa) to speed up territorial planning and support tourism and investment in one of El Salvador’s fastest-growing coastal zones. Water & Climate Resilience: CABEI approved a US$1.2 million technical cooperation deal with ASA and ANDA to prepare a recovery program for Lakes Ilopango and Coatepeque, aiming to strengthen water management and climate resilience. Trade Promotion: El Salvador showcased premium spirits at South Korea’s Seoul Bar & Spirits Show and held a business forum in Colombia to pitch investment opportunities to more than 25 Colombian business leaders. Legal/Policy Noise: Separate from trade, a lawsuit says Venezuelan men were “rendered” to El Salvador’s CECOT prison via U.S.-linked aviation firms, while CBS News faces renewed internal pressure claims around editorial bias.

US Tariffs Reset: The Trump administration started imposing new 10%–12.5% duties on imports from 60 trading partners under Section 301, after a temporary 10% surcharge expired July 24—aimed at countries Washington says failed to block forced-labor goods; rates vary by country and product, with many exemptions (oil, gas, fertilizer, some food). Legal Pushback: Two US small businesses sued to block the new tariff plan, arguing Section 301 is being used to revive a tariff regime the Supreme Court already struck down. El Salvador Angle: El Salvador is listed in the 10% bracket, meaning exporters may face higher US costs depending on product classification and MFN stacking. Local Development: COAMSS-OPAMSS opened a new office in Punta Roca (La Libertad Costa) to support tourism and investment planning. Water & Climate: CABEI approved US$1.2m technical cooperation to help design recovery programs for Lakes Ilopango and Coatepeque. Trade & Branding: El Salvador promoted premium spirits in South Korea’s Seoul Bar & Spirits Show, while also pitching investment opportunities to Colombian business leaders. Security/Tech: Ukraine warned of a Russia-linked malware campaign hiding in a counterfeit Notepad++ plugin targeting defense and government networks.

Trade Policy Shock: The U.S. imposed new 10% and 12.5% tariffs on goods from 60 trading partners under Section 301, timed to replace an expiring temporary 10% global levy—El Salvador is in the 10% tier—after Washington alleged failures to block forced-labor imports; the move covers about 99.4% of U.S. imports but includes exemptions (like oil, gas, fertilizer, and some food). Local Investment & Tourism: COAMSS-OPAMSS opened a new office in Punta Roca, La Libertad, to speed up territorial planning and support tourism and investment in one of El Salvador’s fastest-growing coastal zones. Water & Climate Resilience: CABEI approved a US$1.2 million technical cooperation deal with ASA and ANDA to design recovery plans for Lakes Ilopango and Coatepeque, aiming to strengthen climate resilience and water management. Export Promotion: El Salvador showcased premium spirits at South Korea’s Seoul Bar & Spirits Show, highlighting brands tied to the country’s volcanoes and Surf City. Business Diplomacy: El Salvador presented investment opportunities to 25+ Colombian business leaders via a forum with Bogotá’s chamber and trade groups, pushing economic ties and potential partnerships.

Forced-Labor Tariffs Hit El Salvador: The U.S. imposed new Section 301 tariffs on 60 trading partners, effective July 24 at 12:01 a.m., replacing an expiring temporary 10% levy. Rates range from 10% to 12.5% based on whether countries are deemed to have imposed and effectively enforced forced-labor import bans; El Salvador is listed in the 10% tier. The U.S. says the move covers 99.4% of U.S. imports and includes product exemptions (like oil and gas, fertilizer, and some food), while goods in transit get limited relief. Trade Shock for Supply Chains: Reuters reports the tariffs are the latest attempt to rebuild a near-global tariff wall after earlier Supreme Court setbacks, and trading partners have protested the rationale. Local Business Impact Watch: For El Salvador-linked exporters—especially apparel and textiles—duty exposure can change sourcing and pricing decisions even when the headline rate is “only” 10%.

US Tariffs Hit El Salvador: The Trump administration imposed new 10% and 12.5% duties on 60 trading partners under Section 301, tied to forced-labor enforcement claims. El Salvador is listed in the 10% band, effective July 24 as the prior temporary 10% global tariff expired, with multiple product exemptions (including key foods and some minerals). Fintech Funding Boost: Ábaco Technologies, a Salvadoran fintech, raised US$53M—its biggest Central America capital raise—using token-based structuring under El Salvador’s LEAD framework to speed SME receivables financing. Infrastructure Push: El Salvador’s Los Chorros highway expansion reached 60% completion, widening the San Salvador–west corridor and advancing major viaduct work. Energy Upgrade: ETESAL inaugurated the US$35M Surf City substation in Tamanique to strengthen grid reliability for the fast-growing coastal zone. Budget Reallocation: The Ministry of Finance asked lawmakers to amend the 2026 budget, reallocating US$226M from tax surpluses into public works, DoctorSV Phase II, and education preparations. Crypto Expansion: Bitget completed New Zealand registration to expand tokenized stock services.

Digital Assets Regulation: El Salvador’s National Digital Assets Commission (CNAD) signed a landmark MOU with Gibraltar’s financial regulator to boost cross-border oversight and information sharing for crypto and tokenization. Economic Growth Watch: El Salvador’s economy grew 5.78% year-over-year (April), with construction up 18.5% and real estate, commerce, transport and hospitality also rising—supporting a stronger GDP picture. IMF Update: The IMF highlighted El Salvador’s economic progress after talks with President Nayib Bukele, pointing to continued work toward the next program reviews. Tourism Push (Russia): El Salvador promoted its safety, culture and attractions to Russian audiences in Moscow, including Surf City, volcanoes and coffee, aiming to grow international arrivals. Coffee Trade Links: Saudi and Ecuadorian firms visited to explore new partnerships to import and expand Salvadoran coffee in their product portfolios. Crypto Payments: Bitget Wallet expanded its crypto payments reach by partnering with Mesh, making it easier to move and spend digital assets across connected platforms. Corporate Finance (Local relevance): FirstCash reported record results and announced a new $150M share repurchase plan and leadership succession timeline. Immigration & Deportations (US impact on Salvadorans): A TCU student deported to El Salvador after a June arrest underscores ongoing U.S. enforcement pressures affecting Salvadoran families. Energy (Renewables): MPC Caribbean Clean Energy shareholders will vote on a proposed sale of El Salvador’s San Isidro solar park, with details still limited. Trade Policy Risk: The U.S. is preparing new tariffs targeting forced-labor-linked imports, with El Salvador listed among countries that could face up to 12.5% levies.