US, Pakistan renew trade framework

WASHINGTON: Following Finance Minister Muhammad Aurangzeb’s extensive visit to Washington, the United States and Pakistan renewed a key framework on Wednesday to promote bilateral trade.

The Trade and Investment Framework Agreement (TIFA), signed in 2003, is a vital platform for addressing bilateral trade issues. The US and Pakistan concluded the 9th TIFA meeting in February 2023. The last intersessional talks were held in Islamabad in May 2019.

The talks also followed Iranian President Ebrahim Raisi’s significant visit to Pakistan, during which the two sides explored various options for boosting trade to $10 billion over the next five years.

When asked for comments on the proposed deals between Pakistan and Iran a day after President Raisi’s visit, a US State Department spokesperson, Vedant Patel, said: “We advise anyone considering business deals with Iran to be aware of the potential risk of sanctions.”

On Wednesday, Thomas Montgomery, the acting spokesperson at the US mission in Islamabad, told journalists that officials from both nations deliberated on various avenues to bolster their trade and investment relationship.

The dialogue encompassed a wide array of topics, including good regulatory practices, digital trade, intellectual property protection, women’s economic empowerment, labour standards, textiles, investment, and agricultural issues,“ he added.

The US embassy official also mentioned that ‘progress was made on crucial matters,’ such as access to US biotechnology products and beef within Pakistan.

During his visit, Finance Minister Aurangzeb also met US Assistant Secretary of State Donald Lu, a prominent figure in the so-called ‘cipher controversy’ that led to the ouster of former Prime Minister Imran Khan. Washington denies any involvement in the parliamentary move to remove Mr Khan.

A statement issued after the Lu-Aurangzeb meeting said their discussions underscored ‘the political will in Washington’ to strengthen Pak-US ties.

The Iran-Pakistan joint statement emphasised the importance of cooperation in the energy sector, including trade in electricity, power transmission lines, and the import of Iranian natural gas through a long-delayed pipeline project linking Pakistan and Iran, without sharing further details.

However, the United States has repeatedly warned Islamabad against joining the pipeline project with Tehran, citing sweeping sanctions on Iran’s energy sector over its nuclear programme.

The recent developments underscore the complex dynamics at play in the region as nations navigate economic partnerships amidst geopolitical considerations and international sanctions.

The timing of the TIFA engagement is particularly significant, as such interactions are essential in advancing mutual objectives and strengthening economic relations.

The statement also emphasised the current status of economic ties, pointing out that the US stands as Pakistan’s largest export market, with ample potential for further expansion.