As part of the Trump administration’s trade policy, it is negotiating Agreements on Reciprocal Trade (ART) as a practical framework for rebalancing trade relations and expanding market access for US companies. Through ART negotiations, U.S. officials (at the Office of the U.S. Trade Representative and the Departments of Commerce and State, among others) are engaging trading partners in targeted commitments—including reducing tariffs, eliminating non-tariff barriers, improving regulatory transparency, and expanding investment opportunities. In exchange, the US can adjust tariff levels to reflect improved reciprocity. The administration’s goal: to achieve specific bilateral outcomes rather than comprehensive, one-size-fits-all agreements.
What makes ART effective?
The Trump administration is attempting to set important and timely indicators of what modern high-level trade agreements can deliver for economic growth, market access, competition, trusted technology, digital transformation and cybersecurity.
For example, this week’s ART between the US and El Salvador, as well as the US and Guatemala, are pragmatic, pro-growth deals that will have real trade and economic impact. El Salvador and Guatemala made ambitious commitments to open their markets to US goods and suppliers and align with advanced digital and security practices, while the US agreed to reduce the effective tariff rate on exports from both countries.
Specifically, the agreement allows El Salvador and Guatemala to import refurbished products, which promotes affordability and longer equipment life cycles; recognizes FedRAMP-certified cloud solutions for government procurement, eliminating duplicative security requirements for US suppliers; and will lock in strict digital trade disciplines, including non-discrimination in digitally provided services and support for a global moratorium on tariffs on electronic transmissions. Both countries also pledged to limit the use of communications equipment from untrusted vendors and deepen cooperation with the US on cybersecurity, underscoring the centrality of trusted technologies to national resilience and growth.
Together, these agreements reflect a clear, modern vision
Cisco welcomes the agreements between the US, El Salvador, and Guatemala, which provide a solid foundation, a meaningful foundation, and an early precedent for further ART. As more agreements are finalized, we look forward to working with the US and other governments to ensure effective implementation while supporting future agreements that advance open, secure and trusted digital markets.