Pakistan and the United States have reached an understanding during the latest round of Pakistan-US trade talks, helping safeguard Pakistan’s textile and agricultural exports from heavy tariffs.
The Pakistani delegation, led by Commerce Secretary Javed Paul, concluded a successful four-day round of talks in Washington before the July 9 deadline. Both sides have reportedly agreed on the contours of a long-term bilateral tariff deal although no formal announcement will be made until the US completes negotiations with its other trade partners.
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At the core of the talks was Pakistan’s attempt to negotiate permanent elimination of the 29% tariff on major exports — a temporary reprieve that has been available so far this year. Without the agreement, Pakistan’s textiles and farm products exports would have faced hefty duties again after July 9, risking putting a skid on the country’s export growth.
Sources close to the negotiations said that the recent Pakistan-US trade negotiations extended beyond tariffs, setting the stage for more extensive economic cooperation. The pact is also expected to increase US crude oil exports to Pakistan and provide new opportunities for American investment in Pakistan’s mining, energy, and infrastructure sectors.
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The historic agreement can also increase economic cooperation through the US Export-Import Bank, clearing the way for greater bilateral trade and investment.
While US Treasury Secretary Scott Besant had previously indicated a possibility of an extension past the July deadline, Pakistani negotiators insisted on a quick resolution to end uncertainty among investors and exporters.
Trade officials are hopeful that this development will sustain Pakistani access to the US market, restoring long-needed balance to the bilateral economic relationship. They hope that this progress will result in sustained export growth for Pakistan’s industries and deepen the overall economic partnership between the two countries.
