Pakistan, US make 'significant progress' on reciprocal trade agreement

In a post on his official X account, Andrabi said talks on the Pakistan-United States Agreement on Reciprocal Trade were held in Washington, DC, on July 9 and 10.

He said the negotiations took place in a cordial atmosphere, with both sides resolving differences and building consensus to conclude the agreement at the earliest.

According to Andrabi, Commerce Secretary Jawad Paul led the Pakistani delegation and described the discussions as positive, appreciating the substantial progress achieved during the negotiations.

He added that both countries remained engaged in efforts to finalise the reciprocal trade agreement as soon as possible.

The Pakistani delegation included Additional Secretary at the Ministry of Overseas Pakistanis and Human Resource Development Nadeem Chaudhary and Joint Secretary Tariff Policy Ashfaq Khan, while officials from other ministries participated virtually.

Pakistan and the United States had previously reached a trade agreement in July last year ahead of US President Donald Trump s August 1 tariff deadline, which introduced higher reciprocal tariffs on imports from several countries.

At the time, the Pakistani Embassy in Washington described the agreement as a landmark step aimed at boosting bilateral trade, expanding market access, attracting investment and strengthening cooperation in areas of mutual interest.

The agreement also envisaged lower reciprocal tariffs, particularly on Pakistani exports to the United States, while both sides agreed to expand cooperation in energy, minerals, information technology, cryptocurrency and other strategic sectors.

Following negotiations with the Office of the United States Trade Representative (USTR), Washington reduced the proposed reciprocal tariff on Pakistani exports from 29% to 19%.

However, the arrangement was disrupted in February after 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 International Emergency Economic Powers Act (IEEPA), effectively striking down the policy.

The Trump administration subsequently invoked Section 122 of the Trade Act of 1974 to impose a temporary 10% global tariff for up to 150 days. That measure is scheduled to expire on July 24.