La Union Department

La Unión Department occupies El Salvador's eastern corner, the Gulf of Fonseca providing natural harbor shared with Honduras and Nicaragua. The port of La Unión—massively expanded with $200 million investment completed in 2009—represented an attempt to position El Salvador for Pacific trade growth. The port's underutilization demonstrates how infrastructure alone cannot create commerce; transport connections and competitive services matter equally.

The department borders Honduras, creating cross-border economic flows that include formal trade, informal commerce, and migration. The Gulf of Fonseca's shared waters create fishing grounds and transit routes that all three countries use. Conchagua volcano provides dramatic backdrop for a territory otherwise defined by coastal lowlands and dry forest.

Remittances dominate household income as emigration has depopulated rural areas. La Unión has lost population in recent census counts—residents leave for the United States or San Salvador rather than attempt livelihoods in a department with limited opportunity. Whether the port can eventually attract the investment originally projected—or whether La Unión continues decline—depends on regional trade patterns El Salvador cannot unilaterally control.