Pakistan and the United States have made significant progress towards a reciprocal trade agreement after two days of negotiations in Washington, with both sides narrowing differences and building consensus for the pact’s early conclusion, the Foreign Office said on Saturday.

Foreign Office spokesperson Tahir Andrabi said the negotiations on the Pakistan-United States Agreement on Reciprocal Trade were held on July 9 and 10 in Washington in what he described as a cordial atmosphere.

“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 said in a post on X.

According to the spokesperson, Commerce Secretary Jawad Paul, who led Pakistan’s delegation, termed the negotiations “positive” and appreciated the significant progress made during the discussions.

The Pakistani delegation included Secretary Overseas Pakistanis and Human Resource Development Nadeem Chaudhary, Joint Secretary Tariff Policy Mohammad Ashfaq and officials from the Ministry of Foreign Affairs, while representatives of other ministries participated virtually, according to Pakistan TV.

The negotiations focused on strengthening bilateral trade, facilitating greater commercial cooperation and expanding existing trade between the two countries.

Photographs shared by the foreign office showed officials from both sides posing after the talks. In one image, Paul presented a Pakistan-made football to a US official, highlighting one of Pakistan’s leading export industries.

The latest round of negotiations came as Islamabad and Washington seek to deepen economic engagement through trade, investment and commercial partnerships. The US remains Pakistan’s largest single-country export destination, while both countries have recently expanded cooperation in areas including investment promotion and critical minerals.

According to the office of the US Trade Representative, total US goods and services trade with Pakistan was estimated at $10.1 billion in 2024. US goods trade reached $8.7 billion in 2025, with US exports to Pakistan rising to $3.3 billion and imports from Pakistan increasing to $5.4 billion.

Business leaders have welcomed the progress in the negotiations, saying a reciprocal trade agreement could improve Pakistani exporters’ access to the US market.

Lahore Chamber of Commerce and Industry President Faheem Ur Rehman Saigol said the agreement could benefit key export sectors, including textiles, apparel, surgical instruments, sports goods and information technology services.

“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,” Saigol said.

He added that a mutually beneficial agreement should strengthen Pakistan’s export competitiveness, generate employment and support long-term economic cooperation between the two countries.

The talks also come against the backdrop of evolving US tariff measures affecting Pakistani exports. Earlier this year, the Trump administration proposed a 29% tariff on Pakistani goods before reducing it to 19% following negotiations with Pakistani officials.

Subsequently, the US Supreme Court ruled that the International Emergency Economic Powers Act did not authorise the President to impose broad tariffs under emergency powers. The administration later invoked Section 122 of the Trade Act of 1974 to impose a temporary 10% global tariff for up to 150 days.

Pakistan is also among the countries responding to a Section 301 investigation by the office of the United States Trade Representative over alleged forced labour-related trade practices. Islamabad has submitted detailed responses to the US authorities, including an additional submission ahead of the latest round of negotiations.