US Finalizes Reciprocal Trade Frameworks with Argentina, Ecuador, El Salvador, Guatemala

The administration of President Donald Trump formally announced on November 13, 2025, the establishment of reciprocal trade framework agreements with four Latin American nations: Argentina, Ecuador, El Salvador, and Guatemala. This series of agreements is designed to reshape market access by focusing on mutual tariff reductions and the dismantling of non-tariff trade impediments for American exports.

These frameworks are part of a broader strategy by the President to renegotiate global commerce rules, following the U.S. imposition of a baseline 10 percent tariff on most of Latin America. A senior administration official, speaking anonymously, indicated the agreements aim to increase the capacity for United States firms to sell industrial and agricultural products within these partner countries. The White House released joint statements detailing the reciprocal nature of the deals, which are expected to be formalized within approximately two weeks. This development follows tariff actions announced by the administration at the end of July 2025, which placed a 10 percent tax on goods imported from Argentina, El Salvador, and Guatemala due to existing trade surpluses the U.S. held with those three nations.

Specific concessions were outlined for each partner. For Argentina, the framework ensures preferential market access for U.S. exports including pharmaceuticals, chemicals, machinery, and motor vehicles, while the U.S. will eliminate tariffs on select Argentine natural resources and pharmaceuticals. Argentine President Javier Milei characterized the framework as "tremendous news," marking the country's first bilateral trade agreement with the U.S. in nearly a decade. Ecuador will see the U.S. eliminate tariffs on specific products like bananas and cocoa, in return for commitments to reduce tariffs on priority U.S. sectors such as machinery, health products, and auto components; products from Ecuador had previously faced a 15 percent tariff.

El Salvador and Guatemala secured reciprocal tariff elimination on exports the U.S. cannot produce sufficiently. Guatemala's framework is notable as over 70 percent of its exports to the U.S. will receive zero tariffs, with the remaining portion subject to a 10 percent levy. Guatemalan President Bernardo Arévalo characterized the framework as "good news," anticipating it would attract new investment. Guatemala will also work to lower trade barriers for U.S. medical and agricultural products and commit to avoiding discriminatory digital services taxes.

Beyond tariffs, the agreements address broader trade governance, including commitments from the Latin American nations to eliminate import licenses, streamline regulatory requirements, and resolve outstanding intellectual property rights issues. The frameworks also seek to establish robust standards for labor rights protection and environmental standards. The U.S. Trade Representative highlighted these deals as forging a new era of partnership across the Western Hemisphere, occurring as the IMF recently lowered Argentina's 2025 growth forecast amid high inflation projections.