How did the Central American Common Market encourage industrial growth in El Salvador?

The Central American Common Market (CACM) encouraged industrial growth in El Salvador by facilitating regional economic integration and free trade, which allowed member nations to cooperate in attracting industrial capital and diversifying their economies.1

By eliminating or reducing trade barriers between member states, the CACM helped stimulate a steady increase in industrial investment during the mid-20th century. This environment enabled the establishment of new industrial plants throughout El Salvador and the expansion of existing facilities. These efforts were further supported by a combination of government incentives, an advanced banking system, and the availability of development credits from abroad. As a result of these initiatives, El Salvador’s economy—which had been predominantly agricultural—saw rapid expansion in its manufacturing sector during the 1960s and 1970s.123