What happened
Pakistan and the United States made “significant progress” in a fresh round of negotiations on a proposed reciprocal trade agreement, Foreign Office spokesperson Tahir Andrabi said on Saturday 11 July 2026, after two days of talks in Washington.
The negotiations were held on Thursday 9 and Friday 10 July and were led by Commerce Secretary Jawad Paul, according to the Foreign Office. Andrabi, who was part of the delegation, said on X that 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.”
Andrabi quoted Paul as characterising the discussions as positive and as appreciating the significant progress made. The Pakistani side also included Secretary for Overseas Pakistanis and Human Resource Development Nadeem Chaudhary and Joint Secretary (Tariff Policy) Mohammad Ashfaq, with officials from other ministries joining virtually, according to the Dawn newspaper.
Officials familiar with the discussions said the round covered not only reciprocal tariff arrangements but also broader economic cooperation, including energy, information technology, mining and investment.
The tariff backdrop
The Washington meeting follows earlier engagement between Pakistani officials and the Office of the United States Trade Representative (USTR) on tariff concerns and commercial ties. Those talks produced progress on tariff issues, with proposed US duties on certain Pakistani exports reportedly reduced from an initial 29 per cent to around 19 per cent in August 2025.
That arrangement was disrupted in February 2026 when the US Supreme Court ruled 6-3 that the White House had overstepped its constitutional authority by imposing sweeping tariffs under the International Emergency Economic Powers Act, effectively nullifying the policy. The administration then invoked Section 122 of the Trade Act of 1974 to introduce a temporary 10 per cent global tariff for up to 150 days, a measure due to expire on 24 July, the sources said.
Pakistan is also among nearly 60 countries facing Section 301 investigations by the USTR over alleged forced labour and related trade practices. Islamabad has submitted detailed responses to the USTR, including another submission on Wednesday ahead of the talks.
Why it matters
The United States is Pakistan’s largest single-country export market, while Pakistan is the second-largest importer of US cotton. US goods and services trade with Pakistan was estimated at $10.1 billion in 2024, and US goods trade reached $8.7 billion in 2025, with US exports to Pakistan at $3.3 billion and imports from Pakistan at $5.4 billion, according to the USTR.
Business leaders welcomed the reported progress. Lahore Chamber of Commerce and Industry President Faheem Ur Rehman Saigol said a reciprocal trade agreement could benefit key export sectors including textiles, apparel, surgical instruments, sports goods and information technology services.
The talks were continuing against a still-unsettled tariff picture in Washington, and no date for a further round or a deadline for concluding the agreement was announced in the statements reviewed on 11 July 2026.
Sources & reporting notes
This is a summary of published reporting, not independent reporting. Details are as carried by the cited sources, which were reviewed on 2026-07-11.
- Dawn — "Pakistan, US make 'significant progress' in talks on proposed reciprocal trade agreement"11 July 2026 · Andrabi's statement, the delegation, the scope of the talks and the tariff background.
- Emra News — "FO says 'significant progress' made in reciprocal trade talks with US"11 July 2026 · The two-day timetable, the 29-to-19 per cent tariff reduction and the Section 122 measure.
- The Express Tribune — "Pakistan, US cite 'significant progress' in Washington trade talks: FO"11 July 2026 · The Foreign Office statement and the quoted description of the talks.
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