Peru and El Salvador are currently in negotiations for a free trade agreement that could benefit their textile industry in a big way. The apparel industry in both countries is one of the most powerful in the region and together they could result in an interesting alliance.

The deal would fuse existing Salvadoran trade agreements, its economy and excellent labor and financial conditions with a long-standing Peruvian textile tradition, high-quality Peruvian products and Peru's added value.

Reaching a free trade agreement or at least a bilateral trade deal could further boost the apparel industry of both countries. El Salvador’s textile and apparel industry has been working towards structural changes, building capacity and meeting international compliance and standards in labor and environmental regulations. A robust and vertically integrated synthetic textile manufacturing cluster has developed over the past several years.

Peru’s economy is growing, and the spread of malls and stores is generating opportunities for local brands. Peruvian manufacturers are churning out fashionable apparel, with higher quality and faster delivery schedules. Attention is being paid to value added and upscale garments.

Although the free trade agreement hasn’t been reached between the two governments yet, the five-year negotiation process would appear to be ending soon.