- The textile sector is expected to earn $ 2 to 3 billion a year.
- The United States can cut cotton, soy export rates.
- The bilateral surplus stimulates the commercial position of Pakistan.
Islamabad: Pakistan and the United States are on the right track to conclude current trade negotiations, the two parties actively exploring a preferential trade agreement (PTA) aimed at promoting reciprocal market access and encouraging bilateral trade.
The Minister of Finance Muhammad Aurangzeb held a virtual meeting with the American secretary of trade Howard Lutnick on Tuesday to discuss the pricing arrangements, The news reported.
“The two parties have been satisfied with the negotiations in progress and decided to conclude them next week. It was also resolved than in addition to the trade agreement, a partnership, based on strategic and investment interests, would be concluded covering areas of mutual interest on Wednesday,” said an official announcement after a virtual series of conferences. The two parties expressed their confidence in the conclusion of commercial negotiations at the earliest.
The day after the recent visit to Marshal Asim Munnir in the United States, the two countries finalized commercial negotiations. Resources are explored to finalize the TTA or bilateral trade agreement (BTA).
Washington has opted for BTT with countries where the trade deficit presents itself in several billion dollars per year. The United States can promote Pakistan by placing its textile exports in the 10% price category after receiving an encouraged price on its cotton and soy exports in Pakistan. The two countries explore incentives in accordance with the Conditions of the World Trade Organization (WTO), said official sources.
“American companies have created 970 research and development centers in Pakistan.
“In the past, when the Roz has been negotiated between the two parties during the mandate of former leaders Gen Musharraf / PM Shaukat Aziz, they have proven to be a non-starter. The discussion has focused on a significant commitment in trade, investment and deepening of mutually beneficial economic links for both parties with technical trade discussions which will end next week, “added the official declaration.
Bilateral trade is favorable in Pakistan, while its exports oscillate around $ 5.1 billion, while imports from the American range of $ 2.1 billion, so trade is a surplus of $ 3.1 billion for Pakistan.
In agreement with bilateral trade, some officials say that the United States negotiates with those with whom its deficit was enormous, going to billions of dollars. However, in the case of Pakistan, the Trump administration explores the possibilities of encouraging in terms of increased access to the market in the available framework.
For example, Pakistan imports cotton and soybeans from the United States and its price could be rationalized, particularly in the context of the recently promulgated national tariff policy, which was going to be approved with the 2025-26 budget within 24 hours.
On a reciprocal basis, the United States can encourage Pakistan’s textile sector in terms of $ 2 to 3 billion on an annual basis.
“Different options are being studied, and the two countries are moving towards proposals to finalize reciprocal tariff incentives,” said official sources.