The volume of trade due to the agreement between the two states was $13 billion in 2013 and reached $20 billion in 2017, when the two countries signed 51 agreements and memoranda of understanding (MoUs) for cooperation in various fields. [5] China had already made a significant contribution to Pakistan`s imports before the signing of the free trade agreement and had seen a significant improvement in its ranking after the implementation of the free trade agreement in 2007. In 2012, it accounted for 15% of Pakistan`s total imports from the world, up from 9.8% in 2006. [6] [7] This report includes a section on the U.S. soybean industry, with a particular focus on Pakistan as an importer of U.S. soybeans. Currently, Pakistan imports more than US$657.0 million and US$273.0 million worth of soybeans from Brazil. In recent months, in the wake of the U.S.-China trade war, U.S. soybean prices have plummeted, giving Pakistan the opportunity to reduce its import bill by redirecting its import demand from Brazil to the U.S. Pakistan is the 5th largest exporter of cotton yarn (HS-5205, HS-5206 and HS-5207) with exports of over $1.2 billion in 2018.

A significant part of the locally produced yarn is exported instead of being used for domestic production of value-added products such as fabrics or clothing. This is a significant structural weakness in the country`s textile sector. The main importers of Pakistani yarn are China, Bangladesh and Portugal, which then convert the imported yarn into high value-added products and reach high prices on the international market. The United States is the 10th. the largest export market for Pakistani cotton yarn, but Table 47 shows that the duty imposed by the former was higher than that imposed by all other major importers of Pakistani yarn. A preferential trade deal with the U.S. could lower the rate of tariffs on yarn and potentially boost Pakistan`s yarn exports. The agricultural industry makes a significant contribution to the United States. The economy and the country is a net exporter of agricultural products.

In 2018, it exported more than $149.0 billion worth of agricultural products. Most U.S. agricultural products depend on international demand as the main component of aggregate demand. The country is a low-cost source of agricultural raw materials with high production, and the removal of trade barriers has given the sector an economic boost. It is therefore not surprising that U.S. agricultural exports to FTA partners are significantly higher than to non-FHA partners. The current 20 U.S. FTA partner countries account for about 10.0 percent of global GDP and 6.0 percent of the world`s population, but they account for 46.0 percent of U.S. agricultural exports to the world, up from 29.0 percent in 1990 before the majority of U.S.

free trade agreements were implemented. U.S. agricultural exports to FHA partners are growing faster than to non-FHA countries, indicating the role that free trade agreements have played in foreign markets for the United States. Producers and exporters of agricultural products. Pakistan`s agricultural sector contributes more than 23.0% of the country`s GDP. Opening up the agricultural market to U.S. producers would increase competition, and local farmers and businesses could suffer and, as a result, be expelled from the market. Pakistan must therefore carefully weigh the benefits it will obtain by signing a free trade agreement with the United States against the likely costs it will have to bear. Pakistan is a beneficiary of the U.S. Generalized System of Preferences (SPA) program, which provides duty-free access to the United States for more than 3,500 products. In 2018, Pakistan`s exports to the United States under the program amounted to $326.0 million, representing only 8.0% of total exports to the United States.

As the GSP does not apply primarily to exports of textiles, leather and clothing, Pakistan has not been able to take full advantage of the programme. An economy dependent on the textile industry, coupled with a lack of awareness and interest from traders, are factors that have prevented the country from reaping the full benefits of the program. However, recent efforts by the Ministry of Commerce to include leather products in the GSP have proven beneficial. Bilateral trade between Pakistan and the United States reached a record high in 2018 with bilateral trade worth $6.8 billion. Pakistan`s exports to the United States amounted to $3.8 billion, while imports amounted to $2.9 billion. The United States is one of the few countries with which Pakistan has a trade surplus of nearly $969.0 million in 2018. However, this surplus has been on a downward trend, with imports continuing to rise while exports continue to slow. In 2018, textiles and textiles (HS-50 to HS-63) accounted for 78.0% of Pakistan`s exports to the United States, including 73.0% for ready-to-use clothing and other textiles. The idea of a free trade agreement between Pakistan and the United States is an old idea with Pakistan at various stages of their bilateral relations, asking the United States for better market access for Pakistani products, especially textiles.

The possibility that the U.S. will now be more open to signing a market access agreement with Pakistan has its roots in a September 2018 statement when U.S. Senator Lindsey Graham hinted that he would offer Pakistan a trade proposal in exchange for the country`s help ending the war in Afghanistan. This report seeks to provide a perspective on bilateral trade in the event of the signing of a free trade agreement between Pakistan and the United States. Describes the bilateral and multilateral trade agreements to which this country has acceded, including with the United States. Contains websites and other resources where U.S. companies can learn more about how to use these agreements. Currently, Pakistan is the 56th largest trading partner of the United States. with a bilateral trade relationship of $6.8 billion in 2018. The 20 most important raw materials with Pakistan`s highest export potential to the United States were identified in Table 26.

According to rough estimates, these goods have an additional $5.3 billion in commercial potential. Rice, semi-ground or fully ground (HS-100630) and “cotton bed linen” (HS-630231) have the highest commercial potential with a total value of more than $1.4 billion. In addition, an analysis of Pakistan`s top exports to the world in Table 28 shows that the country is one of the most important suppliers to the United States, especially in textiles and textile products, and in some categories meets at least 10.0% of total U.S. demand. However, Bangladesh and countries in the RD-CAFTA region, which enjoy significant tariff advantages, are competing with Pakistan. This study also analyzed U.S. exports to Pakistan and found 20 products for which the U.S. could potentially increase its exports to Pakistan. The top 20 products with the highest potential can boost U.S. exports to Pakistan by about $7.8 billion. Most of these high-potential elements are classified as electrical machines, mechanical devices and their equipment. The United States and Pakistan established diplomatic relations in 1947, shortly after Pakistan`s independence.

Since then, relations have alternated between episodes of close partnership and strong friction – reflecting the ups and downs of global and regional geopolitics. The flood of foreign policy has had a corresponding impact on trade and investment. Diplomacy after the 11th century. September has now created a strong relationship between Pakistan and the United States. Would a free trade agreement between these two counties benefit them? What kind of economic benefits can be expected? This new book addresses these and many other issues and concludes that a free trade agreement between the United States and Pakistan would benefit both countries. The China-Pakistan Free Trade Agreement is an important free trade agreement signed between the People`s Republic of China and Pakistan. [1] [2] [3] [4] It was completed in 2006 and entered into force in July 2007. An analysis of the opportunities from Pakistan`s perspective of the US government`s decision to withdraw India`s GSP status was also conducted in the report. .