Pakistan and U.S. Report Advances in Bilateral Trade Agreement

ISLAMABAD: Pakistan and the United States have made progress toward a reciprocal trade agreement following talks held in Washington this week, according to the Pakistani foreign ministry.

The discussions took place against the backdrop of a temporary 10 percent U.S. tariff imposed under Section 122 of the Trade Act of 1974, which is set to expire later this month. Both sides are working to replace the temporary measures with a more durable bilateral framework, aiming to lower duties on Pakistani exports to the United States, the country’s largest single‑country market.

Pakistani foreign ministry spokesman Tahir Andrabi said the Pakistani delegation was led by Commerce Secretary Jawad Paul, who described the talks as “positive” and highlighted “significant progress” made during the negotiations.

“The talks were conducted in a cordial atmosphere, with both parties working to iron out differences and build convergence, with the goal of concluding the agreement early,” Andrabi said in a post on X.

These talks follow a year of shifting U.S. trade policies and legal challenges that have repeatedly altered tariff arrangements for Pakistani goods.

The dispute dates back to April of the previous year, when former President Donald Trump invoked the International Emergency Economic Powers Act to impose a 29 percent tariff on Pakistani exports. After negotiations, the U.S. Trade Representative reduced the proposed tariff to 19 percent.

A February ruling by the U.S. Supreme Court, decided 6‑3, concluded that the White House had exceeded its constitutional authority by imposing broad tariffs under IEEPA, effectively nullifying the measure.

In response, the Trump administration invoked Section 122 of the Trade Act of 1974 to impose a temporary 10 percent global tariff, a measure that was scheduled to expire on July 24.

Separately, the U.S. Trade Representative recently proposed a 10 percent tariff covering Pakistan and 59 other countries following a Section 301 investigation into forced‑labor concerns and import restrictions.

Pakistan has submitted legal and regulatory documentation challenging the proposed measure ahead of these talks.

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