US and El Salvador to move forward with second Millennium Challenge Corporation Compact

Earlier this week, it was announced that the second Millennium Challenge Corporation compact between El Salvador and the US (FOMILENIO II) would go forward as planned. The agreement had been held up as a result of concerns on the part of various US government institutions concerning access to Salvadoran agricultural markets, perceived weak money laundering laws and presidential elections.

The US seems to have relented on forcing El Salvador to also consider purchasing seeds from US corporations rather than solely national small- and medium-sized farmers. The reforms to the Public-Private Partnership (P3) and money laundering laws moved the legislation towards where the US wanted them to go but maybe not as much as it wanted. Hence, negotiations.

Republicans also wanted the US to hold the compact hostage in return for lifting the ban on gold mining in El Salvador. It's not clear, however, that any of those directly involved in the negotiations were pushing this condition.

In a telephone interview Saturday, Mari Carmen Aponte, the U.S. ambassador to El Salvador, said her embassy must be “vigilant” to make sure El Salvador follows through on promised reforms. But looking back at the past year of negotiations, she said it has been a learning experience for both sides.

“The new government in El Salvador has learned a lot. We also have learned a lot,” Aponte said. “We have to keep our eyes open” going forward, she added. But given the migrant crisis, she was excited that $101 million of the aid is for improved training and education that could help young men and women find jobs in El Salvador

The two countries will now move forward with the $277 million compact for coastal and maritime development, including $101 million for improved training and education. The FMLN, however, will have to continue to work with those communities in the affected areas, many of whom are against the proposed development projects. They fear that the proposed projects will destroy already fragile ecosystems and their livelihoods as well as turn the region into another Cancun.