Diving into El Salvador's Exports to Singapore: Spotlight on Key Products

In the intricate web of global trade, countries often engage in mutually beneficial exchanges, each offering unique products that meet the needs and demands of their trading partners. One such intriguing trade relationship exists between the Central American nation of El Salvador and the bustling city-state of Singapore. As we delve into the exports that El Salvador sends to Singapore, we uncover a tale of innovation, growth, and market dynamics that shape this economic partnership.

A Blossoming Partnership: El Salvador's Exports to Singapore

In the year 2021, El Salvador's exports to Singapore stood at a notable $18.6 million, ranking 20th among 142 countries. This figure not only showcases the significance of this trade relationship but also underscores El Salvador's role as a supplier of diverse products to meet Singapore's market demands.

Electrical Capacitors: Powering the Trade

A standout product in El Salvador's export portfolio to Singapore is electrical capacitors, accounting for a significant chunk of their exports with a value of $14.9 million. These devices, which store and release electrical energy, are essential components in various electronic devices and systems, including consumer electronics, industrial equipment, and renewable energy systems. The prominence of electrical capacitors as a top export reflects El Salvador's prowess in manufacturing and its ability to cater to Singapore's technological and industrial needs.

Beyond Capacitors: Diversified Exports

El Salvador's export repertoire to Singapore extends beyond electrical capacitors, encompassing a range of products that showcase the country's versatility and ability to cater to various market demands. Integrated circuits, valued at $1.56 million, find their way into numerous electronic applications, reinforcing El Salvador's standing as a source of technological components. Additionally, knit t-shirts worth $1.12 million highlight the country's textile industry's ability to reach international markets.

Whats more, here's the rest of the breakdown....

Section ID 2: Vegetable Products

HS4 ID 20901 - Coffee

Trade Value: 146,244

Trade Value Growth: 17.57%

HS4 ID 21301 - Insect Resins

Trade Value: 84,644

Trade Value Growth: 75.27%

Section ID 4: Foodstuffs

HS4 ID 42101 - Coffee and Tea Extracts

Trade Value: 10,049

HS4 ID 42208 - Hard Liquor

Trade Value: 10,219

Trade Value Growth: 84.16%

Section ID 6: Chemical Products

HS4 ID 63004 - Packaged Medicaments

Trade Value: 61,390

Section ID 7: Plastics and Rubbers

HS4 ID 73926 - Other Plastic Products

Trade Value: 655

Trade Value Growth: 108.17%

Section ID 8: Animal Hides

HS4 ID 84203 - Leather Apparel

Trade Value: 88

Trade Value Growth: 0.49%

Section ID 10: Paper Goods

HS4 ID 104821 - Paper Labels

Trade Value: 1

HS4 ID 104901 - Brochures

Trade Value: 24

HS4 ID 104911 - Other Printed Material

Trade Value: 329

Trade Value Growth: -0.53%

Section ID 11: Textiles

HS4 ID 115301 - Flax Fibers

Trade Value: 922

HS4 ID 115609 - Other Articles of Twine and Rope

Trade Value: 249

HS4 ID 116002 - Light Rubberized Knitted Fabric

Trade Value: 73

HS4 ID 116101 - Knit Men's Coats

Trade Value: 28,847

Trade Value Growth: 12.36%

HS4 ID 116102 - Knit Women's Coats

Trade Value: 14,614

HS4 ID 116103 - Knit Men's Suits

Trade Value: 1,816

Trade Value Growth: -0.80%

HS4 ID 116104 - Knit Women's Suits

Trade Value: 2,162

Trade Value Growth: 0.21%

HS4 ID 116105 - Knit Men's Shirts

Trade Value: 369

Trade Value Growth: -0.90%

HS4 ID 116106 - Knit Women's Shirts

Trade Value: 888

Trade Value Growth: 48.33%

HS4 ID 116107 - Knit Men's Undergarments

Trade Value: 260

Trade Value Growth: 1.06%

Sailing the Seas of Trade: Singapore's Exports to El Salvador

In the reverse flow of trade, Singapore exports a significant array of products to El Salvador, contributing to the $170 million trade between the two nations in 2021. At the forefront of Singapore's exports to El Salvador is the category of other heating machinery, valued at a substantial $104 million. These machines play a pivotal role in various industries, from manufacturing to energy production, reflecting El Salvador's demand for sophisticated industrial equipment.

Special purpose ships, with an export value of $47.3 million, emphasize Singapore's maritime industry's global reach. These vessels serve diverse purposes, from cargo transportation to offshore operations, underscoring Singapore's reputation as a maritime hub. Refined petroleum, valued at $9.44 million, highlights the energy sector's role in the trade relationship, meeting El Salvador's energy needs.

A Glimpse into Economic Complexity

Economic complexity indices provide insights into a country's economic diversification and its capacity to engage in intricate trade relationships. El Salvador, with an Economic Complexity Index (ECI) of -0.037, ranked 66th out of 131 countries, while Singapore's ECI of 1.74 positioned it impressively at the 6th spot. These indices signify the extent to which each country can engage in complex and diverse trade patterns, with Singapore's higher index indicating a broader spectrum of exports and imports.

Growth Trajectories: A Path of Prosperity

El Salvador's exports to Singapore have experienced remarkable growth over the last 26 years, expanding at an annualized rate of 17.7%. This evolution underscores El Salvador's adaptability and resilience in capturing Singapore's market opportunities. Similarly, Singapore's exports to El Salvador have grown at an annualized rate of 14.9%, revealing a consistent effort to meet the nation's evolving needs.

A Glimpse into Market Competitiveness

Comparing market competitiveness sheds light on the intricate trade relationships that shape the global economy. El Salvador's top export destination, the United States, reflects its strong economic ties with its North American neighbor, with exports amounting to $2.67 billion. In contrast, Singapore's leading export destination, China, exhibits a substantial trade volume of $56.8 billion, illustrating the magnitude of Singapore's economic interactions with one of the world's largest economies.

Mapping the Trade Landscape

Analyzing the bilateral trade between El Salvador and Singapore provides intriguing insights into their trade preferences. Guatemala, Honduras, and Nicaragua are prominent importers of El Salvador's goods, reflecting strong regional trade relationships. On the other hand, Singapore's exports find their way to major global players like China, Hong Kong, and Malaysia, demonstrating its role as a key trade partner for these countries.

The Gift of Comparative Advantage

The concept of comparative advantage plays a pivotal role in shaping trade relationships, allowing countries to specialize in producing goods in which they possess a relative advantage. In 2021, El Salvador exhibited a comparative advantage in exporting machines, textiles, and vegetable products to Singapore. Simultaneously, Singapore's comparative advantage was evident in exporting machines, transportation equipment, and mineral products to El Salvador, illustrating a symbiotic exchange that leverages each country's strengths.

Summary

The trade dynamics between El Salvador and Singapore unveil a story of mutual benefit, innovation, and growth. El Salvador's exports of electrical capacitors and other products reflect its adaptability and technological prowess, while Singapore's exports of heating machinery and specialized ships showcase its industrial and maritime expertise. As these two nations continue to engage in the intricate dance of global trade, their partnership exemplifies the power of economic collaboration and the potential for shared prosperity in an interconnected world.

The presented information stems from the author's own research and viewpoints and might not reflect the stance of any particular institution. To attain a more comprehensive insight, we suggest readers engage in their own additional research. For any questions about LATAM and SBF@GlobalConnect, feel free to reach out to Novia at [email protected] for an enlightening conversation.