Pakistan, U.S. move quickly toward trade deal

June 27, 2025 (MLN): Pakistan offered to increase American imports, particularly cotton, as trade talks with the United States moved forward rapidly, with both sides aiming to conclude negotiations next week.

The accelerated progress follows a recent meeting between Pakistan’s army chief Asim Munir and President Donald Trump at the White House, where they discussed various issues, including the situation in Iran.

The trade talks are part of Pakistan’s strategy to avoid U.S. tariffs by increasing purchases of American cotton and soybeans, with a goal to halve its bilateral trade surplus with the United States.

Pakistan is already the second-largest buyer of U.S. cotton by value after China and primarily exports garments and textiles to America, as Bloomberg reported.

“Both sides showed satisfaction on the ongoing negotiations,” Pakistan’s finance ministry stated on Wednesday.

The statement followed virtual talks held a day earlier between Pakistan’s Finance Minister Muhammad Aurangzeb and U.S. Commerce Secretary Howard Lutnick.

Efforts to boost U.S. imports include Pakistani textile makers offering to purchase more American cotton.

“The U.S. wants immediate decline in trade deficit so we’re trying to increase the composition of their cotton in our value-added garments,” said Sarah Javaid, trade economist at the All Pakistan Textile Mills Association.

The fast-paced negotiations come in the wake of a ceasefire announced by President Trump in a conflict that broke out in April between India and Pakistan after a terrorist attack in Kashmir.

New Delhi blamed the attack on Islamabad, which denied the allegation.

Drawing closer to the U.S. presents economic and strategic opportunities for Pakistan, which counts the U.S. among its top export destinations.

The country is working to sidestep tariffs imposed by Trump in April, which were later suspended for 90 days.

Despite Pakistan’s opposition to the U.S. air strike in Iran, the two administrations have come closer to a deal in less than a month.

This stands in contrast to India’s recent indications of a tougher approach in its own trade negotiations with Washington.

“The political considerations are now a more dominant factor in sorting out this,” said Manzoor Ahmad, Pakistan’s former ambassador to the World Trade Organization.

“Pakistan isn’t a big market for the U.S. and a little adjustment can be done easily.”