Pakistan and the United States have made “significant progress” towards finalising a reciprocal trade agreement following two days of negotiations in Washington, DC, according to the Foreign Office.
Foreign Office spokesperson Tahir Andrabi said the talks on the Pakistan–United States Agreement on Reciprocal Trade were held on July 9 and 10 in a positive and constructive atmosphere.
In a statement shared on his official X account, Andrabi said both sides worked to narrow their differences and build greater consensus, with the objective of concluding the agreement as early as possible.
Pakistani Delegation Led by Commerce Secretary
According to the Foreign Office, the Pakistani delegation was headed by Commerce Secretary Jawad Paul.
Andrabi said the commerce secretary described the negotiations as productive and welcomed the substantial progress achieved during the discussions.
The spokesperson added that both governments remain actively engaged in efforts to finalise the agreement at the earliest opportunity.
The Pakistani delegation also included Additional Secretary for the Ministry of Overseas Pakistanis and Human Resource Development Nadeem Chaudhary and Joint Secretary (Tariff Policy) Ashfaq Khan. Officials from several other ministries participated in the negotiations virtually, according to The News.
Background of the Trade Agreement
The latest discussions build on a trade understanding reached by Pakistan and the United States in July last year, ahead of US President Donald Trump’s deadline for imposing reciprocal tariffs on imports from several countries.
At the time, the Embassy of Pakistan in Washington described the agreement as a landmark step aimed at strengthening bilateral trade, improving market access, attracting investment, and expanding cooperation in areas of mutual economic interest.
Officials said the understanding also envisioned lower reciprocal tariffs, particularly on Pakistani exports to the US market.
Cooperation Beyond Traditional Trade
In addition to tariff-related issues, the proposed agreement includes plans to enhance cooperation in several strategic sectors.
According to Pakistani officials, both countries intend to expand collaboration in:
- Energy
- Minerals
- Information technology
- Cryptocurrency
- Other sectors of mutual economic interest
The broader framework is intended to deepen commercial ties and encourage greater investment between the two countries.
Tariff Negotiations
Following negotiations between Pakistani officials and the Office of the United States Trade Representative (USTR), Washington agreed to reduce the proposed reciprocal tariff on Pakistani exports from 29% to 19%.
However, the tariff framework later faced legal challenges in the United States.
In February, the US Supreme Court, in a 6-3 ruling, held that the White House had exceeded its constitutional authority by imposing broad tariffs under the International Emergency Economic Powers Act (IEEPA), effectively invalidating that policy.
Temporary US Tariff Policy
Following the court’s decision, the Trump administration introduced a temporary 10% global tariff under Section 122 of the Trade Act of 1974.
The measure, which can remain in effect for up to 150 days, is scheduled to expire on July 24 unless further action is taken.
The ongoing negotiations between Pakistan and the United States are taking place against this evolving legal and policy backdrop.
Looking Ahead
Officials from both countries have expressed optimism about the direction of the talks, although no final agreement has yet been announced.
If concluded, the reciprocal trade agreement is expected to strengthen bilateral economic relations, improve market access for exporters, encourage new investment opportunities, and expand cooperation in emerging sectors.
Further discussions are expected as both sides work to finalise the remaining details of the proposed agreement.
