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News > Latin America

El Salvador's Parliament Ratifies Cooperation Deal With China

  • President Xi Jinping (L) and El Salvador's President Nayib Bukele (R) in Beijing, China, Dec. 3, 2019.

    President Xi Jinping (L) and El Salvador's President Nayib Bukele (R) in Beijing, China, Dec. 3, 2019. | Photo: EFE

Published 19 May 2021
Opinion

The agreement is focused on sectors such as public infrastructure, health, education, tourism, transportation, water, and energy supply.

El Salvador's parliament on Tuesday ratified a US$500 million cooperation agreement with China for infrastructure works in this Central American nation. 

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Construction projects will be linked to sectors such as public infrastructure, health, education, tourism, transportation, water, and energy supply.

El Salvador's President Nayib Bukele highlighted that the deal is a "non-reimbursable" public investment with no conditions attached. The construction of a national library and a stadium are also among the negotiated works. 

Salvadorean authorities agreed not to apply migratory restrictions and customs duty for the Chinese personnel, who will offer the materials and technical assistance. Furthermore, Chinese workers' wages will be exempt from taxes. 

The agreement was signed in 2019 following Bukele's visit to China, with which the Central American nation established diplomatic relations a year earlier. 

Although the Parliament ratified the deal by 66 votes in favor and four against, opposition parties such as the Nationalist Republican Alliance (ARENA) argued that the accord would affect the country's free trade agreement with the U.S.

In recent weeks, the United States criticized the ruling New Ideas lawmaker's decision to dismiss five Supreme Court magistrates and the Attorney-General. Political tensions also climbed after the  U.S. State Department declassified a list of Salvadoran politicians allegedly linked to corruption and drug trafficking.

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