How does this agreement impact Salvadoran companies, their intangible assets and digital trade?

 The recent Framework for an Agreement on Reciprocal Trade between El Salvador and the United States goes beyond tariffs and market access. While those elements often receive the most attention, the Agreement includes commitments that directly affect digital trade and intellectual property, two areas that are now central to any business, regardless of size.

 In the area of digital trade, the Agreement establishes that El Salvador shall ensure the free transfer of data across trusted borders for the conduct of business and recognize mechanisms that facilitate cross-border data transfers. In practical terms, this is particularly relevant for companies that rely on cloud services, technology platforms or international providers. It does not create new burdens for businesses, but rather provides greater legal certainty when data is processed or stored outside national territory.

 The Agreement also provides that El Salvador shall not impose conditions requiring U.S. persons to transfer or provide access to particular technology, production processes, source code or other proprietary knowledge as a condition for doing business in its territory. Such access may only be required in the context of a specific investigation or judicial proceeding, subject to safeguards against unauthorized disclosure. While such requirements have not been common in practice, the inclusion of this protection reinforces legal certainty for companies that develop and commercialize their own technological solutions.

 In addition, the Agreement reaffirms that El Salvador shall not impose customs duties on electronic transmissions, including content transmitted electronically, consistent with its commitments under CAFTA-DR and in support of a permanent multilateral moratorium on such duties.

 With respect to intellectual property, the Agreement requires El Salvador to provide a robust standard of protection and to maintain effective systems for civil, criminal and border enforcement of intellectual property rights, including in the online environment. It does not create new intellectual property rights under domestic law, but it elevates the standard of enforcement and prioritization of actions against trademark and copyright infringements.

 Furthermore, El Salvador has committed to submit to its Legislative Assembly requests for accession to certain international intellectual property treaties relating to industrial designs, patents, trademarks and plant varieties. While these accessions are not immediate, they form part of the commitments undertaken and may lead to technical adjustments in the regulatory framework over time.

 In today’s economy, a company’s value often lies not in tangible assets, but in software, data, brands and accumulated know-how. The Agreement does not transform the legal system overnight, but it strengthens the protection of these assets and provides greater clarity within a bilateral trade relationship that remains closely linked to global technological infrastructure.

 For companies that operate on international infrastructure, rely on cloud-based services, process payments through global platforms or maintain cross-border partnerships, these commitments are not merely formal. They affect how data flows across borders, how technology is protected and the level of legal certainty under which businesses expand.

 For companies in a growth phase, the protection of intangible assets is no longer a secondary consideration, but part of their broader business strategy.