Pakistan’s proposal aims to boost bilateral trade, coinciding with India’s similar offer and broader US trade dynamics in South Asia.
Key Takeaways:
- Pakistan has proposed a zero-tariff bilateral trade agreement to the United States, seeking to enhance trade relations across various sectors.
- This move aligns with a similar offer from India, highlighting a competitive dynamic in the region’s trade engagements with the US.
- The US-Pakistan trade relationship saw an estimated $7.3 billion in total goods trade in 2024, with the US being a significant trade partner for Pakistan.
Islamabad, Pakistan – In a recent analysis by Geo News, concerns were raised regarding Pakistan’s economic strategy in light of regional trade dynamics. The article “Pakistan offers zero-tariff bilateral trade agreement to US“, authored by Geo News, details Pakistan’s offer of a zero-tariff bilateral trade agreement to the United States. According to the article, “[Pakistan has offered the United States a zero-tariff bilateral trade agreement, according to government sources.]”
This proposal follows a US-brokered ceasefire between Pakistan and India and aims to expand bilateral trade by eliminating tariffs on selected items of mutual interest. The move positions Pakistan to strengthen its economic ties with the US, which is already a significant trading partner. In 2024, the total goods trade between the US and Pakistan was estimated at $7.3 billion, with US exports to Pakistan at $2.1 billion and imports from Pakistan at $5.1 billion, according to the United States Trade Representative.
Simultaneously, India has also proposed a trade deal to the US, offering zero tariffs on American goods. This competitive dynamic underscores the strategic importance of the US in the trade policies of both South Asian nations. President Trump mentioned India’s offer while commenting on Apple’s investment plans in India, as reported by Business Standard.
The evolving trade landscape reflects a broader effort by both Pakistan and India to secure favorable trade agreements with the US, potentially reshaping economic relationships in the region.
