White House Reaches Trade Frameworks with Several Latin American Countries
On November 13, the White House announced trade frameworks with Argentina, Ecuador, El Salvador and Guatemala. These are largely aimed at enhancing U.S. market access in Latin America as opposed to providing tariff relief for imports from the countries involved. Once final agreements are reached, these trading partners will remain subject to reciprocal tariffs, with exemptions for certain goods on the administration’s “Annex III” list of “Potential Tariff Adjustments for Aligned Partners (PTAAP).” The announcement of these frameworks came a day before the administration granted agricultural exemptions to all trading partners to ease concerns about high food prices. Below outlines the latest commitments reached between the United States and (I) Argentina, (II) Ecuador, (III) El Salvador and (IV) Guatemala.
Argentina: Fact Sheet, Joint Statement
The United States and Argentina reached a Framework for an Agreement on Reciprocal Trade and Investment, strengthening economic and diplomatic relations between the nations. The majority of Argentinian imports will remain subject to the 10% baseline tariff; however, “certain unavailable natural resources and non-patented articles for use in pharmaceutical applications” will be exempt from the 10% duty under the future agreement. In addition, the United States will consider future modifications to product-specific tariffs under Section 232 of the Trade Expansion Act of 1962 based on the agreement’s impact on U.S. national security. In exchange, Argentina will grant the United States preferential market access for key exports, including select agriculture products, chemicals and medicines, medical devices, machinery, motor vehicles and technology. Additional commitments from Argentina include:
Trade Barriers
- Removing non-tariff barriers that hinder U.S. market access, including import licensing, consular requirements and taxes;
- Refraining from discriminatory practices that harm digital trade, as well as allowing the cross-border transfer of data, including personal data;
- Addressing the distortionary practices of state-owned enterprises, such as industrial subsidies, which undermine bilateral trade; and
- Accepting U.S. beef, poultry and dairy exports, as well as eliminating registration processes that hinder U.S. market access, within one year.
- Conforming to international technical standards to ensure U.S. goods can enter the nation without additional conformity assessment requirements. This will apply to American-made motor vehicles, medical devices and pharmaceuticals;
- Improving enforcement against counterfeit goods and working to align intellectual property (IP) laws with international standards, specifically related to patentability criteria and geographical indications;
- Implementing a prohibition on the importation of goods produced using forced labor; and
- Adopting the World Trade Organization (WTO) Agreement on Fisheries Subsidies and measures to combat illegal logging.
- Enhancing coordination with the United States to combat unfair trade by other countries through the identification of tools that enhance fair trade, such as export controls; and
- Facilitating investment and trade in critical minerals.
Ecuador: Fact Sheet, Joint Statement
The United States and Ecuador reached a Framework for an Agreement on Reciprocal Trade and Investment aimed at enhancing coordination on economic and national security priorities. The majority of Ecuadorian imports with remain subject to a 15% reciprocal tariff; however, goods that “cannot be grown, mined, or naturally produced in the United States in sufficient quantities” will be exempt from the 15% duty under the future agreement. In exchange, Ecuador will reduce or eliminate tariffs on key U.S. products, including select agricultural products, chemicals, machinery, motor vehicles and technology. Additional commitments from Ecuador include:
- Removing non-tariff barriers that affect the trade of strategic goods;
- Streamlining regulatory requirements and approvals for U.S. exports such as automotives, medical devices and pharmaceuticals;
- Removing import restrictions on remanufactured goods;
- Modifying import licensing and facility registration systems to enhance U.S. market access for agricultural goods;
- Facilitating trade by ending pre-shipment inspection mandates and improving logistics for delivery carriers; and
- Committing to not introduce discriminatory barriers to digital and services trade, including digital services taxes.
- Aligning IP laws with international standards, specifically related to geographical indications;
- Implementing a prohibition on the importation of goods produced using forced labor; and
- Adopting the WTO Agreement on Fisheries Subsidies and measures to combat illegal logging, among other environmental protection measures.
- Strengthening economic and national security cooperation to enhance supply chain resiliency, foster innovation and combat tariff evasion.
El Salvador: Fact Sheet, Joint Statement
The United States and El Salvador reached a Framework for an Agreement on Reciprocal Trade and Investment aimed at strengthening the two countries’ economic relationship, especially within the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). The majority of Salvadoran goods remain subject to a 10% baseline tariff, with two notable exceptions. Goods that cannot be “grown, mined, or naturally produced in the United States in sufficient quantities” and certainly products originating under the CAFTA-DR, such as textiles and apparel products, will be exempt from the 10% duty under the future agreement. In addition, the United States will consider future modifications to product-specific tariffs under Section 232 based on the agreement’s impact on U.S. national security. While El Salvador did not alter tariff rates for U.S. goods, it will reduce or eliminate a range of non-tariff trade barriers and regulatory requirements on key U.S. products, including agricultural products, automobiles and pharmaceuticals. Additional commitments from El Salvador include:
Trade Barriers
- Streamlining regulatory requirements and approvals for U.S. exports such as automotives, medical devices and pharmaceuticals;
- Removing import restrictions on remanufactured goods;
- Reducing technical barriers to trade (TBT) such as certificate of free sale requirements, electronic certificates and product registration requirements for U.S. exports;
- Addressing barriers to U.S. agricultural products, including acceptance of certificates issued by U.S. regulatory authorities; and
- Committing to not introduce discriminatory barriers to digital and services trade, including digital services taxes.
- Continuing to adopt and implement good regulatory practices;
- Increasing transparency through publishing regulatory measures, including upcoming regulatory policy priorities that are being developed, modified or eliminated; and
- Addressing distortionary actions of state-owned enterprises and industrial subsidies.
- Aligning IP laws with international standards, specifically related to geographical indications;
- Implementing a prohibition on the importation of goods produced using forced labor; and
- Adopting the WTO Agreement on Fisheries Subsidies and measures to combat illegal logging, among other environmental protection measures.
- Strengthening economic and national security cooperation to enhance supply chain resiliency, foster innovation and combat tariff evasion.
Guatemala: Fact Sheet, Joint Statement
The United States and Guatemala reached a Framework for an Agreement on Reciprocal Trade and Investment aimed at strengthening the two countries’ economic relationship, especially within the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). The majority of Guatemalan goods remain subject to a 10% reciprocal tariff, with two notable exceptions. Goods that cannot be “grown, mined, or naturally produced in the United States in sufficient quantities” and certainly products originating under the CAFTA-DR, such as textiles and apparel products, will be exempt from the 10% duty under the future agreement. While Guatemala did not alter tariff rates for U.S. goods, it will reduce or eliminate a range of non-tariff trade barriers and regulatory requirements on key U.S. products, including agricultural products, automobiles and pharmaceuticals. Additional commitments from Guatemala include:
- Streamlining regulatory requirements and approvals for U.S. exports such as automotives, medical devices and pharmaceuticals;
- Removing import restrictions on remanufactured goods;
- Reducing technical barriers to trade (TBT) such as certificate of free sale requirements, electronic certificates and product registration requirements for U.S. exports;
- Addressing and preventing barriers to U.S. agricultural products, including acceptance of certificates issued by U.S. regulatory authorities and quicker authorization processes for agricultural products; and
- Committing to not introduce discriminatory barriers to digital and services trade, including digital services taxes.
- Continuing to adopt and implement good regulatory practices;
- Increasing transparency through publishing regulatory measures, including upcoming regulatory policy priorities that are being developed, modified or eliminated;
- Aligning procurement restrictions for non-free trade agreement partners with U.S. practices; and
- Addressing distortionary actions of state-owned enterprises and industrial subsidies.
- Aligning IP laws with international standards, specifically related to geographical indications;
- Joining and fully implementing key international IP treaties and addressing issues identified in the 2025 Special 301 Report, including enhanced cooperation with enforcement agencies and increased criminal prosecution of IP cases;
- Implementing a prohibition on the importation of goods produced using forced labor; and
- Adopting the WTO Agreement on Fisheries Subsidies and measures to combat illegal logging, among other environmental protection measures.
Coordination
- Strengthening economic and national security cooperation to enhance supply chain resiliency, foster innovation and combat tariff evasion.
