Sector: Communications Services: Advertising and promotion services for radio and television
Obligations Concerned: National Treatment (Article 13.3) Most-Favored-Nation Treatment (Article 13.4)
Measures: Decree of provisions to regulate the exploitation of works of an intellectual nature by means of public communication and the participation of Salvadoran artists in public shows. Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 111, Volume 279, dated June 15, 1983, Article 4.
Decree No. 18, Substitution of Articles 1 and 4 of Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 7, Volume 282, dated January 10, 1984.
Description: Cross-border trade in services
At least ninety percent (90%) of the production and recording of any commercial advertisement to be used in the public media of El Salvador, whether television, radio broadcast and printed material, originating in El Salvador, must be done by companies organized under Salvadoran law.
Commercial advertisements produced or recorded by a company incorporated under the laws of a Central American country may be used in the media of El Salvador, provided that such Party provides similar treatment to commercial advertisements produced or recorded in El Salvador.
Commercial advertisements that do not meet the aforementioned requirements may be broadcast in the public media of El Salvador, if they are advertisements of international products, brands or services imported or produced in the country under license, and shall be subject to the payment of a one- time fee to be collected by the National Board of Advertising which may evaluate the application of this provision.
Sector: Services from Services: Services Television and Radio Broadcasting Services
Obligations Concerned: National Treatment (Article 12.5)
Measures: Telecommunications Law, Article 123
Description: Investment
Concessions and licenses for free reception broadcasting services shall be granted to Salvadoran nationals born in El Salvador or to companies incorporated in accordance with Salvadoran laws. In the case of such companies, the capital stock must be constituted with at least fifty-one percent (51%) of Salvadoran nationals.
Sector: Performing Arts
Obligations Concerned: National Treatment (Article 13.3)
Measures: Migration Law, Articles 62-A and 62-B.
Legislative Decree No. 382, dated May 29, 1970, published in the Official Gazette No. 64, Volume 227, dated April 10, 1970.
Executive Decree No. 16 dated May 12, 1970, published in the Official Gazette No. 87, Volume 227, dated May 18, 1970.
Description: Cross-border trade in services
No foreign artist may offer a performance of any kind without the express authorization of the Ministry of the Interior, which shall previously hear the illustrative opinion of the legally established union of artists in the field of work of the foreign artist, within 15 days of the presentation of the request. The foreign artists shall pay in advance to the respective union, a performance fee of ten percent (10%) of the gross remuneration they receive in the country.
If advance payment is not possible, the artist will have to provide a sufficient surety in favor of the respective union.
No foreign artist or group of artists may perform in the country for more than thirty (30) consecutive days or at intervals within a period of one (1) year counted from the first day of its performance.
An artist is any person who performs in El Salvador, either individually or in the company of another or others, for the performance of music, singing, dancing or reading or offering performances, either in person (live) before a large or small audience or by means of radio or television.
Sector: Circuses
Obligations Concerned: National Treatment (Article 13.3)
Measures: Migration Law, Article 62-C.
Decree No. 122 dated November 4, 1988, published in the Official Gazette No. 219, Volume 301, dated November 25, 1988, Article 3
Legislative Decree No. 382 dated May 29, 1970, published in the Official Gazette No. 64, Volume 227, dated April 10, 1970.
Decree No. 193 dated March 8, 1989, published in the Official Gazette No. 54, Volume 302, dated March 17, 1989, Articles 1 and 2.
Regulations for the Application of Legislative Decrees 122 and 193 Related to Circus Enterprises, Articles 1 and 2
Description: Cross-border trade in services
Foreign circuses or similar shows must pay to the respective Circus Artists Union the performance fee equivalent to two point five percent (2.5%) of the gross admission, which is collected daily at the box office. The fee must be paid in full through the withholding system.
Every foreign circus must be authorized by the corresponding Ministry and, once authorized, notify the Asociacién Salvadorefia de Empresarios Circenses (ASEC) and is obliged to pay to the ASEC three percent (3%) of the gross income from the sale of tickets for each presentation, as well as ten percent (10%) of the total income obtained from the sale to the public within the circus of banners, caps, T-shirts, balloons, photographs and other kinds of objects. The foreign circus shall render sufficient surety in favor of the ASEC.
A foreign circus entering El Salvador may only work in the city of San Salvador for a period of fifteen (15) days, extendable only once for another fifteen (15) days.
A foreign circus that has performed in the country may only enter again after one (1) year has elapsed from the date of its departure.
Sector: Performing Arts
Obligations Concerned: National Treatment (Article 13.3)
Measures: Decree of the provisions to regulate the exploitation of works of an intellectual nature by means of public communication and the participation of Salvadoran artists in public shows, Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 111, Volume 279, dated June 15, 1983.
Decree No. 18, Substitution of Articles 1 and 4 of Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 7, Volume 282, dated January 10, 1984.
Description: Cross-border trade in services
In the case of public shows with the live participation of artists of any genre, the participation of Salvadoran nationals shall be equivalent to twenty percent (20%) of the number of foreigners participating.
Sector: Transportation Services: Land Transportation Services
Obligations Concerned: National Treatment (Articles 12.5 and 13.3)
Measures: Constitution of the Republic of El Salvador, Article 95.
Law of Land Transportation, Transit and Road Safety, Articles 38-A and 38-B
Regulation General of Transportation Land Transportation, Articles 1 and 2
Description: Investment and Cross-Border Trade in Services
Permits for the provision of regular and non-regular passenger transportation services within El Salvador may only be granted to Salvadoran nationals or their partners.
Only vehicles with Salvadoran license plates may transport goods from points in El Salvador to other points in El Salvador.
At least fifty-one percent (51%) of the capital stock of an enterprise engaged in the transportation of goods in El Salvador must be owned by Salvadoran nationals. If such capital is owned by a company, at least fifty-one percent (51%) of the shares of such company must be owned by Salvadoran nationals.
Sector: Land Transportation
Obligations Concerned: Market Access (Article 13.5)
Measures: General Land Transportation Regulations, Title Ill, Article 11, Title V, Articles 29 and 30.
Description: Cross-border Trade In Services
The concessions of public land passenger transportation for a specific route will be limited, subject to technical studies of the existing demand. A concession of a free supply service of public land passenger transportation is limited to one vehicle.
Sector: Construction and Related Engineering Services
Obligations Concerned: National Treatment (Articles 12.5 and 13.3) Most-Favored-Nation Treatment (Articles 12.6 and 13.4) Local Presence (Article 13.6)
Measures: Law on Incentives to National Construction Industry Enterprises, Legislative Decree No. 504, published in Official Gazette No. 167, Volume 308, dated July 9, 1990, amended by Legislative Decree No. 733, published in Official Gazette No.80, Volume 311, dated April 23, 1991.
Description: Investment and Cross-Border Trade in Services
To develop activities of design, consulting, consulting and management of engineering or architectural projects, or any type of work or study regarding the construction of such projects, either before, during or after construction, a company whose majority capital is owned by foreigners ("foreign company"), must be contractually associated with a company legally registered, qualified and established in El Salvador ("Salvadoran company").
The foreign company must appoint a_ resident representative in El Salvador.
Additionally, an engineering or architectural project is subject to the following requirements:
(a) companies incorporated under Salvadoran law must have an investment in the project equivalent to at least forty percent (40%) of the value of the project; and
(b) such firms must provide at least thirty percent (30%) of the technical personnel and ninety percent (90%) of the administrative personnel for the project.
For more certainty, the staff technical and administrative personnel does not include executive personnel. The requirements of (a) and (b) above shall not apply:
(i) when the funds for the project come partially or totally from foreign governments or international organizations; or
(ii) to specific projects or grants for specialized technical cooperation.
Sector: Public Accounting and Auditing
Obligations Concerned: National Treatment (Articles 12.5 and 13.3) Most-Favored-Nation Treatment (Articles 12.6 and 13.4)
Measures: Law Regulatory of Exercise of ofthe Accountancy, Articles 2, 3 and 4
Description: Investment and Cross-Border Trade in Services
Only a Salvadoran national may be authorized as a public accountant. Only a person authorized as a public accountant can be authorized as an external auditor.
For a company to be authorized to provide public accounting services, the principal partners, shareholders or associates must be Salvadoran nationals, and at least one person among the partners, shareholders, associates or administrators must be authorized as a public accountant in El Salvador.
Annex I. Schedule of the Republic of Guatemala
Sector: All Sectors
Obligations Concerned: National Treatment (Article 12.5)
Measures: Decree No. 118-96 of the Congress of the Republic, which amends Decrees Numbers: 38- 71 and 48-72, Articles 1 and 2, both of the Congress of the Republic.
Description: Investment
Only the following persons may obtain titles of ownership, lease or usufruct of national lands in the Department of Petén:
(1) Guatemalans by birth, who are not owners of rustic real estate in any part of the territory not exceeding forty-five (45) hectares; and
(2) Guatemalans by birth, who are not owners of industrial, mining or commercial enterprises.
Companies owned one hundred percent (100%) by Guatemalans by birth, which meet the requirements listed in the previous paragraph, may obtain titles of ownership, lease or usufruct of national lands in the Department of Petén.
Sector: All Sectors
Obligations Concerned: National Treatment (Article 12.5)
Measures: Decree No. 49-79 of the Congress of the Republic, Supplementary Titling Law, Article 2.
Description: Investment
Only Guatemalans by birth and companies that are majority owned by Guatemalans by birth can obtain supplementary title.
Sector: All Sectors
Obligations Concerned: National Treatment (Article 12.5)
Measures: Constitution Policy from ofthe Republic of Guatemala, Article 122
Decree No. 126-97 of the Congress of the Republic, Ley Reguladora de las Areas de Reservas Territoriales del Estado de Guatemala, Article 5.
Description: Investment
Foreigners require authorization from the State Reserve Areas Control Office to acquire ownership of the following State-owned lands:
(a) national lands located in urban areas; and
(b) national lands in property, on which there are rights registered in the General Property Registry, prior to March 1, 1956, located in:
(i) A three-kilometer strip of land along the oceans;
(ii) 200 meters around the shores of the lakes;
(iii) 100 meters on each side of the banks of navigable rivers; and
(iv) 50 meters around fountains and springs that supply water to the population.
Only the Government of Guatemala may grant the lease of state-owned real estate, as described above, to companies legally incorporated in Guatemala.
Sector: All Sectors
Obligations Concerned: National Treatment (Article 12.5)
Measures: Constitution Policy from ofthe Republic of Guatemala, Article 123
Description: Investment
Only Guatemalans by birth and companies owned one hundred percent (100%) by Guatemalans by birth, may own or possess national lands located within fifteen (15) kilometers of the borders.
Foreigners may, however, own or possess urban property or State property rights, registered in the General Property Registry, prior to March 1, 1956, within fifteen (15) kilometers of the border.
Sector: All Sectors
Obligations Concerned: National Treatment (Article 12.5)
Measures: Decree No. 2-70 of the Congress of the Republic, Code of Commerce and its amendments.
Description: Investment
In order for a company incorporated under foreign laws to establish itself in Guatemala, in any form, it must constitute an assigned capital for its operations in Guatemala, and a bond in favor of third parties for an amount not less than the equivalent in quetzales of fifty thousand dollars of the United States of America (US $ 50,000), which must remain in force during all the time that such company operates in Guatemala.
The exact amount of the guarantee will be determined by the Commercial Registry based, among other factors, on the amount of the investment.
For greater certainty, the requirement of a bond should not be considered as an impediment for a company organized under the laws of a foreign country to establish itself in Guatemala.
Sector: Forestry
Obligations Concerned: National Treatment (Article 12.5)
Measures: Constitution Policy from of the Republic of Guatemala, Article 126
Description: Investment
The exploitation of all forest resources and their renewal shall correspond exclusively to Guatemalan persons by birth, individuals or legal entities.
Sector: Professional Services - Notaries
Obligations Concerned: National Treatment (Article 13.3) Local Presence (Article 13.6)
Measures: Decree No. 314 of the Congress of the Republic, Notarial Code, Article 2.
Description: Cross-border trade in services
To practice as a notary an individual must be Guatemalan by birth and reside in Guatemala.
Sector: Professional Services
Obligations Concerned: National Treatment (Article 13.3)
Measures: Decree No. 2-70 of the Congress of the Republic, Commercial Code, Article 213.
Description: Investment
A company organized under the laws of a foreign country engaged in the provision of professional services that requires legal university recognition of a university degree, title or diploma may not be established in Guatemala (1).
However, a foreign company may provide such services in Guatemala through a contract or other relationship with a company incorporated in Guatemala.
LIST OF THE REPUBLIC OF GUATEMALA
Sector:
Obligations Affected:
Measures:
Sector: Cultural Entertainment