U.S. Department of State Background Note
The first Salvadoran territory visited by Spaniards was on Meanguera Island, located in the Gulf of Fonseca, where Spanish Admiral, Andrés Niño, lead an expedition to Central America and disembarked on May 31, 1522. In June 1524 the Spanish Captain Pedro de Alvarado started a war to conquest Cuzcatlan. His cousin Diego de Alvarado established the village of San Salvador in April 1525. In 1546, Charles I of Spain granted San Salvador the title of city.
During the subsequent years, the country evolved under Spanish rule; however, towards the end of the year 1810 many people began to express discontent. On November 5, 1811, when the Priest José Matias Delgado, clang the bells of La Merced Church in San Salvador, calling for insurrection, the people began to officially band together for freedom.
In 1821, El Salvador and the other Central American provinces declared their independence from Spain. When these provinces were joined with Mexico in early 1822, El Salvador resisted, insisting on autonomy for the Central American countries. In 1823, the United Provinces of Central America was formed of the five Central American states under Gen. Manuel Jose Arce. When this federation was dissolved in 1838, El Salvador became an independent republic. El Salvador's early history as an independent state--as with others in Central America--was marked by frequent revolutions; not until the period 1900-30 was relative stability achieved. Following a deterioration in the country's democratic institutions in the 1970s a period of civil war followed from 1980-1992. More than 75,000 people are estimated to have died in the conflict. In January 1992, after prolonged negotiations, the opposing sides signed peace accords which ended the war, brought the military under civilian control, and allowed the former guerillas to form a legitimate political party and participate in elections.
GOVERNMENT AND POLITICAL CONDITIONS
The successes of Alfredo Cristiani's 1989-94 administration in achieving a peace agreement to end the civil war and in improving the nation's economy helped ARENA--led by former San Salvador mayor Armando Calderon Sol--keep both the presidency and a working majority in the Legislative Assembly in the 1994 elections. ARENA's legislative position was weakened in the 1997 elections, but it recovered its strength, helped by divisions in the opposition, in time for another victory in the 1999 presidential race, bringing President Francisco Guillermo Flores Perez to office. Flores concentrated on modernizing the economy and strengthening bilateral relations with the U.S. by becoming a committed partner in anti-terror efforts, sending troops to aid in the reconstruction of Iraq, and by playing a key role in negotiations for the Central American Free Trade Agreement (CAFTA).
Taking advantage of both public apprehension of Flores' policies and ARENA infighting, the chief opposition party, the Farabundo Marti Liberation Front (FMLN), was able to score a significant victory against ARENA in the March 2003 legislative and municipal elections. ARENA, left with only 29 seats in the 84-seat Legislative Assembly, was forced to court the right-wing National Conciliation Party (PCN) in order to form a majority voting bloc. However, in 2003 the PCN entered into a loose partnership with the FMLN, further limiting ARENA's ability to maneuver in the legislature.
Despite these constraints, ARENA made a strong showing at the March 2004 presidential election, which was marked by an unprecedented 67% voter turnout. ARENA candidate Elias "Tony" Saca handily defeated the FMLN candidate and party head Schafik Handal, garnering 57.71% of the votes cast. Nevertheless, Saca faced a complex political environment.
In March 12, 2006 Legislative Assembly and municipal elections, the ruling ARENA party garnered 34 Assembly deputies and 147 mayoralties, while the opposition FMLN won 32 legislative seats and 51 city halls (plus 8 additional mayoralties in which they participated as part of a coalition). The PCN, PDC, and CD carried 10, 6, and 2 Legislative Assembly seats, respectively. As with the 2003-2006 Assembly, the combined 44 seats of ARENA and their center-right PCN allies are sufficient for all legislation requiring a 43-vote simple majority, while the FMLN can still block legislation requiring a two-thirds (56 vote) supermajority. El Salvador's political parties have already begun preparation and planning for 2009, when presidential, Legislative Assembly, and municipal elections will be held simultaneously for the first time since 1994.
Human Rights and Post-War Reforms
In accordance with the peace agreements, the constitution was amended to prohibit the military from playing an internal security role except under extraordinary circumstances. Demobilization of Salvadoran military forces generally proceeded on schedule throughout the process. The Treasury Police, National Guard, and National Police were abolished, and military intelligence functions were transferred to civilian control. By 1993--9 months ahead of schedule--the military had cut personnel from a war-time high of 63,000 to the level of 32,000 required by the peace accords. By 1999, ESAF strength stood at less than 15,000, including uniformed and non-uniformed personnel, consisting of personnel in the army, navy, and air force. A purge of military officers accused of human rights abuses and corruption was completed in 1993 in compliance with the Ad Hoc Commission's recommendations. The military's new doctrine, professionalism, and complete withdrawal from political and economic affairs leave it the most respected institution in El Salvador.
More than 35,000 eligible beneficiaries from among the former guerrillas and soldiers who fought the war received land under the peace accord-mandated land transfer program, which ended in January 1997. The majority of them also have received agricultural credits. The international community, the Salvadoran Government, the former rebels, and the various financial institutions involved in the process continue to work closely together to deal with follow-on issues resulting from the program.
National Civilian Police
Principal Government Officials
El Salvador maintains an embassy in the United States at 1400 16th Street NW, Washington, DC, 20036 (tel: 202-265-9671). There are consulates in Chicago, Houston, Los Angeles, Miami, New Orleans, New York, and San Francisco.
The Salvadoran government has maintained fiscal discipline during post-war reconstruction and reconstruction following earthquakes in 2001 and hurricanes in 1998 and 2005. Taxes levied by the government include a value added tax of 13%, income tax of 20%, excise taxes on alcohol and cigarettes, and import duties. The VAT is the largest source of revenue, accounting for about 55.1% of total tax revenues in 2006. For December of 2007, El Salvador projects a fiscal surplus of 0.6% of GDP. El Salvador's public external debt in May 2007 was about $5.8 billion, 29.9 percent of GDP.
Years of civil war, fought largely in the rural areas, had a devastating impact on agricultural production in El Salvador. A fall in world coffee prices, once a major export earner for El Salvador, has also hurt rural employment. Seeking to develop new growth sectors and employment opportunities, El Salvador created new export industries through fiscal incentives for free trade zones. The largest beneficiary has been the textile and apparel (maquila) sector, which directly provides approximately 70,000 jobs. Services, including retail and financial, have also shown strong employment growth, with about 49.8% of the total labor force now employed in the sector. During the last three years foreign companies have set up 96 new subsidiaries providing 18,000 new jobs, mainly in maquilas, tourism, and telephone call centers.
Remittances from Salvadorans working in the United States are an important source of income for many families in El Salvador. In 2006, the Central Bank estimated that remittances totaled $3.3 billion, and UNDP surveys show that an estimated 22.3 percent of families receive them.
Under its export-led growth strategy launched in 1989, El Salvador has pursued economic integration with its Central American neighbors and negotiated trade agreements with the Dominican Republic, Chile, Mexico, Panama, Taiwan and the United States. The trade agreement with Taiwan will enter into force in 2008. Central America will begin negotiating an Association Agreement with the European Union in 2007. Agreements with Colombia and Canada are under negotiation while agreements with CARICOM and Israel are being considered. Exports in 2006 grew 3.7% while imports grew 11.6%. As in previous years, the large trade deficit was offset by family remittances.
The U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) implemented between El Salvador and the United States on March 1, 2006, provides El Salvador preferential access to U.S. markets. Textiles and apparel, shoes, and processed foods are among the sectors expected to benefit.
In addition to trade benefits, CAFTA-DR also promises to provide a framework for additional reforms on issues such as intellectual property rights, dispute resolution, and customs that will improve El Salvador's investment climate. For sensitive sectors such as agriculture, the agreement includes generous phase-in periods to allow Salvadoran producers an opportunity to become more competitive.
U.S. support for El Salvador's privatization of the electrical and telecommunications markets markedly expanded opportunities for U.S. investment in the country. More than 300 U.S. companies have established either a permanent commercial presence in El Salvador or work through representative offices in the country. The Department of Commerce maintains a Country Commercial Guide for U.S. businesses seeking detailed information on business opportunities in El Salvador.
El Salvador enjoys normal diplomatic and trade relations with all of its neighboring countries including Honduras, with which it has previously had territorial disputes. While the two nations continue to disagree over the status of their maritime borders in the Gulf of Fonseca, they have agreed to settle their land-border disputes with the International Court of Justice (ICJ). In September 1992, the Court awarded most of the territory in question to Honduras. In January 1998, Honduras and El Salvador signed a border demarcation treaty to implement the terms of the ICJ decree although delays continue due to technical difficulties.
More than 19,000 American citizens live and work full-time in El Salvador. Most are private businesspersons and their families, but a small number of American citizen retirees have been drawn to El Salvador by favorable tax conditions. The Embassy's consular section provides the a full range of citizenship services to this community. The American Chamber of Commerce in El Salvador is located at World Trade Center, Torre 2, local No. 308, 89 Av. Nte. Col. Escalón, phone: 264-9393, fax: 263-9393.
Principal U.S. Embassy Officials
The U.S. Embassy in El Salvador is located at Final Blvd. Santa Elena, Antiguo Cuscatlán, La Libertad (phone 503) 2501-2999; fax number (503) 2501-2150).
Other Contact Information
Caribbean/Latin American Action
TRAVEL AND BUSINESS INFORMATION
For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.
The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.
Further Electronic Information
Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.
Revised: Sep. 2007