Key points
- Pakistan has a trade surplus of around $3 billion with US
- It faces up to 29pc tariffs on its exports to the US
- Trump says peace between India and Pakistan crucial for trade talks
ISLAMABAD: US President Donald Trump has revealed that Pakistani officials are heading to Washington next week to discuss a potential trade agreement.
Pakistan has a trade surplus of around $3 billion and faces up to 29 per cent tariffs on its exports to the US following tariff hikes Washington announced last month targeting multiple countries.
Talking at Joint Base Andrews after a Pennsylvania rally, Trump emphasised that any trade discussions would be off the table if Pakistan and India were to resume military conflict, according to EconoTimes.
The two nuclear-armed neighbours recently engaged in their most intense fighting in decades, involving airstrikes, missiles, drones, and artillery over four consecutive days.
Formal negotiations
“And India, as you know, we’re very close to making a deal with India. And I wouldn’t have any interest in making a deal with either (Pakistan and India) if they were going to be at war with each other,” Trump told reporters, noting that he would not pursue talks with either country in the event of further escalation.
Pakistan’s formal negotiations with the United States on reciprocal tariffs started earlier in the day with a phone call between Finance Minister Muhammad Aurangzeb and US Trade Representative Jamieson Greer, a press release from the finance ministry said.
US firms
Reuters reported last week that India is likely to allow US firms to bid for contracts worth over $50 billion, mainly from federal entities, as it negotiates a trade deal with Washington.
The increase in trade tariffs on Pakistani products, amongst a global tariff announcement by US President Donald Trump, which were paused, could have a devastating impact on Pakistan’s important exports and serve as a wake-up call for diversification, according to a state-owned think tank.
