Pakistan, US Report Significant Progress in Trade Agreement Talks

Pakistan and the United States have reported significant progress in a fresh round of negotiations concerning a proposed reciprocal trade agreement. Foreign Office (FO) spokesperson Tahir Andrabi conveyed this, quoting the commerce secretary. The two-day talks, held on Thursday and Friday in Washington DC, were led by Commerce Secretary Jawad Paul.

The discussions aimed to address tariff-related concerns and broaden economic cooperation between the two countries. Commerce Secretary Paul characterized the talks as positive, appreciating the significant progress made. Andrabi stated that the talks were conducted in a cordial atmosphere, with both sides working to iron out differences and build convergence for the early conclusion of the agreement. Andrabi was also part of the Pakistani delegation, which included Overseas Pakistanis and Human Resource Development Secretary Nadeem Chaudhary and Joint Secretary (Tariff Policy) Mohammad Ashfaq, with officials from other ministries participating virtually.

Negotiations covered reciprocal tariff arrangements and broader areas of economic cooperation, such as energy, information technology, mining, and investment. These latest talks follow earlier engagements between Pakistani officials and the Office of the United States Trade Representative (USTR) on tariff concerns and commercial ties. Pakistan is among nearly 60 countries currently facing Section 301 investigations by the USTR over alleged forced labor and related trade practices. Islamabad submitted detailed responses to the USTR, including another submission on Wednesday prior to the talks.

Previous discussions resulted in proposed US duties on certain Pakistani exports being reduced from an initial 29 percent to approximately 19 percent in August 2025. At that time, US President Donald Trump announced the finalization of a trade deal, stating that both countries would collaborate on developing their massive oil reserves. Both Islamabad and Washington have expressed interest in increasing collaboration in areas such as critical minerals, energy development, and information.