WASHINGTON—The United States finalized on Nov. 13 framework trade agreements with four South American countries—Argentina, Guatemala, El Salvador, and Ecuador—according to the White House.
The previously announced U.S. reciprocal tariffs will remain the same under these agreements. Goods from Guatemala, El Salvador, and Argentina will continue to face a 10 percent U.S. tariff because the United States has modest trade surpluses with these countries, according to a senior administration official. Meanwhile, goods from Ecuador will be subject to a 15 percent tariff, as the United States has a small trade deficit with that country.
The agreements will provide targeted tariff relief on specific goods while opening foreign markets for U.S. companies in ways they have not been open before, the official said.
Products such as bananas and coffee from Ecuador will receive tariff relief, which is expected to reduce consumer prices in the United States.
Before the announcement, a key political issue was whether the administration would allow more Argentinian beef imports to help reduce domestic prices.
The official said beef imports from Argentina fall under the existing quota system. Once those quotas are filled, a 25 percent tariff applies, and that rate is set by Congress. For now, the administration plans to let the market determine how much beef is imported, the official said.
The agreements, which are subject to change, remove or streamline many burdensome non-tariff barriers that were in place with these countries. This gives U.S. farm and industrial markets better access to these markets, according to the official.
The countries also agreed to not impose digital services taxes on U.S. tech companies.
“President [Donald] Trump’s leadership is forging a new era of partnership and prosperity across the Western Hemisphere, further advancing the economic and national security interests of the American people,” U.S. Trade Representative Jamieson Greer said in a statement. “Today’s announcements lay the groundwork for Agreements on Reciprocal Trade to unlock new markets for U.S. exports and lower trade barriers facing American workers and producers.”
The Trump administration has already announced trade frameworks with the European Union, Japan, and South Korea. During its recent Asia trip, the administration also signed new framework deals with Vietnam and Thailand and announced full reciprocal trade agreements with Malaysia and Cambodia.