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Pakistan and the United States made "significant progress" in a fresh round of negotiations on a proposed reciprocal trade agreement, according to remarks relayed by Pakistan's Foreign Office spokesperson, Tahir Andrabi, on Saturday. The two-day talks, held in Washington on Thursday and Friday, were led by Commerce Secretary Jawad Paul and aimed to address tariff-related concerns while broadening economic cooperation between the two countries.

"The talks were conducted in a cordial atmosphere, with both sides ironing out differences and building convergence, with a view to the early conclusion of the agreement," Andrabi said on X, quoting Paul as characterising the talks as positive.

Coverage Comparison

Dawn, a Pakistani English-language daily, reported that the negotiations came amid a complex tariff landscape shaped by recent US legal and administrative actions. The discussions followed extensive engagement over the tariff regime announced by US President Donald Trump on April 2, 2025, under the International Emergency Economic Powers Act (IEEPA), which initially imposed a 29 per cent tariff on Pakistani exports.

A Pakistani delegation that visited Washington in July 2025 succeeded in persuading US officials to reduce the proposed tariff to 19 per cent following discussions with the Office of the United States Trade Representative (USTR), according to officials familiar with the negotiations, as reported by Dawn.

The tariff situation evolved after a US Supreme Court ruling invalidated the IEEPA-based tariffs, prompting the Trump administration to invoke Section 122 of the Trade Act to impose a temporary global tariff of 10 per cent — a measure set to expire on July 24 after the statutory 150-day period, according to Dawn.

Additionally, Pakistan is among nearly 60 countries facing Section 301 investigations by the USTR over alleged forced labour and related trade practices. Islamabad has submitted detailed responses to the USTR, including another submission on Wednesday ahead of the talks. Under the Section 301 process, Pakistan faces a proposed additional tariff of 10 per cent, while India and 53 other countries are subject to proposed tariffs of 12.5 per cent. Public hearings before the USTR are continuing, as reported by Dawn.

Key Claims

  • Pakistan and the US made "significant progress" in negotiations on a proposed reciprocal trade agreement, as stated by Commerce Secretary Jawad Paul and relayed by Foreign Office spokesperson Tahir Andrabi.
  • The talks covered not only reciprocal tariff arrangements but also broader areas of economic cooperation, including energy, information technology, mining and investment, according to officials familiar with the discussions.
  • The Pakistani delegation included Commerce Secretary Jawad Paul, Foreign Office spokesperson Tahir Andrabi, Overseas Pakistanis and Human Resource Development Secretary Nadeem Chaudhary, and Joint Secretary (Tariff Policy) Mohammad Ashfaq, with other ministry officials participating virtually.
  • Proposed US duties on certain Pakistani exports were reportedly reduced from an initial 29 per cent to around 19 per cent in August 2025 following earlier engagement between Pakistani officials and the USTR.
  • President Trump has signalled that Washington is prepared to negotiate a better deal with Pakistan, as reported by Dawn.
  • The US is Pakistan's largest single-country export market, while Pakistan is the second largest importer of US cotton, according to the same outlet.
  • Pakistan is among nearly 60 countries facing Section 301 investigations by the USTR over alleged forced labour and related trade practices.

Perspectives

Pakistani Government

The Pakistani government, through Foreign Office spokesperson Tahir Andrabi and Commerce Secretary Jawad Paul, described the talks as positive, citing significant progress and a cordial atmosphere. Officials emphasised the goal of early conclusion of the agreement and highlighted broader economic cooperation areas such as energy, information technology, mining and investment.

US Administration

President Donald Trump has signalled that Washington is prepared to negotiate a better deal with Pakistan, according to Dawn. The US administration, through its use of IEEPA and subsequently Section 122 tariffs, and its ongoing Section 301 investigations, has demonstrated a willingness to adjust tariffs on Pakistani exports following bilateral engagement.