Pakistan-U.S. Reciprocal Trade Agreement Talks Advance in Washington

On July 9-10, 2026, Commerce Secretary Jawad Paul led the United States delegation in two days of talks with a Pakistani team that included Secretary Overseas Pakistanis and Human Resource Development Nadeem Chaudhary, Joint Secretary (Tariff Policy) Mohammad Ashfaq, and Foreign Office spokesperson Tahir Andrabi. The discussions focused on a proposed Reciprocal Trade Agreement aimed at expanding bilateral commerce, reducing tariff barriers, and deepening cooperation in energy, information technology, mining, and investment.

Express Tribune

The talks follow a series of tariff disputes. Earlier in 2026 the Trump administration proposed a 29 % duty on Pakistani goods, later reduced to 19 % after negotiations. A U.S. Supreme Court decision subsequently ruled that the International Emergency Economic Powers Act did not authorize broad emergency tariffs, prompting the administration to invoke Section 122 of the Trade Act of 1974 for a temporary 10 % global tariff lasting up to 150 days. Pakistan is also responding to a Section 301 investigation by the Office of the United States Trade Representative over alleged forced-labour practices.

Express Tribune

• Jawad Paul – U.S. Secretary of Commerce (lead negotiator)

Express Tribune

• Tahir Andrabi – Foreign Office spokesperson, Pakistan (public communications)

Express Tribune

• Nadeem Chaudhary – Secretary, Overseas Pakistanis & Human Resource Development, Pakistan

Express Tribune

• Mohammad Ashfaq – Joint Secretary, Tariff Policy, Pakistan

Dawn

• Faheem Ur Rehman Saigol – President, Lahore Chamber of Commerce and Industry (industry perspective)

Express Tribune

• July 9-10, 2026 – Negotiations held in Washington, D.C.

Dawn

• July 11, 2026 – Dawn reports on the significance of the talks for Pakistani exporters, especially textiles.

Dawn

• Total U.S. goods and services trade with Pakistan estimated at $10.1 billion in 2024.

Express Tribune

• U.S. goods trade reached $8.7 billion in 2025, with $3.3 billion in exports to Pakistan and $5.4 billion in imports from Pakistan.

Express Tribune

• Tahir Andrabi described the atmosphere as “cordial” and said both sides were “ironing out differences and building convergence, with a view to the early conclusion of the Agreement.”

Express Tribune

• Jawad Paul characterized the discussions as “positive” and praised the “significant progress” made.

Express Tribune

• Faheem Ur Rehman Saigol emphasized that the agreement could benefit key export sectors—textiles, apparel, surgical instruments, sports goods, and IT services—and urged Pakistan to leverage diplomatic engagement for economic gains.

Express Tribune

Analysts note that lingering tariff uncertainties and the broader Section 301 probe could constrain the agreement’s scope. Pakistani exporters remain wary of non-tariff barriers that could limit market access despite tariff reductions.

Express Tribune

Industry leaders stress that improved U.S. market access is vital for Pakistan’s textile sector, which they view as a driver of employment and investment.

Dawn

Sources differ on the exact tariff trajectory: one report cites an initial 29 % duty reduced to 19 %, while another mentions a separate 10 % global tariff applied under Section 122. The final structure of non-tariff barriers and the timeline for implementation remain unspecified.

Express Tribune

• “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,” — Tahir Andrabi, Foreign Office spokesperson

Express Tribune

• “The talks aim to further strengthen Pakistan-US trade relations, facilitate bilateral trade as a driver of economic cooperation, and pave the way for the diversification and expansion of existing trade,” — Tahir Andrabi, social-media post

Dawn

• “Pakistan should leverage its constructive diplomatic engagement and regional importance to secure economic benefits. We expect negotiations to focus on enhancing bilateral trade, attracting US investment, and removing non-tariff barriers that hinder Pakistani exports,” — Faheem Ur Rehman Saigol, Lahore Chamber of Commerce and Industry President

Express Tribune

Both delegations have agreed to report progress within six months, with the expectation that a finalized agreement could be signed later in 2026 pending resolution of outstanding tariff and regulatory issues.

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