Pakistan and the United States have made progress toward a reciprocal trade agreement during talks held in Washington this week, Pakistan’s foreign ministry said on Saturday. The negotiations aim to replace a series of temporary trade measures with a more stable bilateral framework, as a temporary 10 percent US tariff imposed under Section 122 of the Trade Act of 1974 is due to expire later this month.
Key Outcomes of the Talks
Pakistani foreign ministry spokesman Tahir Andrabi stated that Islamabad’s delegation was led by Pakistan Commerce Secretary Jawad Paul, who categorized the talks “as positive” and “appreciated the significant progress made during the negotiations.” Andrabi shared on X: “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.”
Background of Tariff Disputes
The negotiations follow more than a year of shifting US trade measures and legal challenges that have repeatedly altered the tariff landscape for Pakistani exports. The dispute began in April last year, when US President Donald Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose a 29 percent tariff on Pakistani exports as part of a broader package of global trade measures. Following talks between Pakistani officials and the Office of the United States Trade Representative (USTR), the proposed tariff on Pakistani goods was reduced to 19 percent.
That arrangement was upended in February when the US Supreme Court ruled, by a 6-3 majority, that the White House had exceeded its constitutional authority by imposing broad tariffs under the IEEPA, effectively invalidating the measure. The Trump administration subsequently invoked Section 122 of the Trade Act of 1974 to impose a temporary 10 percent global tariff for up to 150 days, a measure due to expire on July 24.
Pakistan’s Export Interests
Pakistan is also seeking lower duties on exports to the US, its largest single-country export market. Separately, the USTR last month proposed a 10 percent tariff covering Pakistan and 59 other economies following a Section 301 investigation into forced labor standards and import restrictions. Pakistan has submitted legal and regulatory documentation challenging the proposed measure ahead of the talks.
Next Steps
Both sides are working toward the early conclusion of the reciprocal trade agreement, which would replace the temporary tariff measures with a more predictable and mutually beneficial trade framework. The progress made in Washington signals a positive trajectory for bilateral trade relations.
