WASHINGTON: On Wednesday, the United States and Pakistan revived a crucial framework to advance bilateral commerce in the wake of Finance Minister Muhammad Aurangzeb’s prolonged visit to Washington.
An essential framework for resolving bilateral trade concerns is the Trade and Investment Framework Agreement (TIFA), which was signed in 2003. In February 2023, the US and Pakistan wrapped off their ninth TIFA summit. In May 2019, the last intersessional negotiations took place in Islamabad.
The discussions came after the important visit of Iranian President Ebrahim Raisi to Pakistan, when the two countries discussed ways to increase trade to $10 billion over the next five years.
A day after President Raisi’s visit, US State Department spokesperson Vedant Patel responded to a question about the proposed agreements between Pakistan and Iran by saying, “We advise anyone considering business deals with Iran to be aware of the potential risk of sanctions.”
The US mission in Islamabad’s acting spokesperson, Thomas Montgomery, said reporters on Wednesday that representatives from both countries discussed ways to strengthen their economic and investment ties.
Good regulatory practices, digital trade, intellectual property protection, women’s economic empowerment, labor standards, textiles, investment, and agricultural challenges were just a few of the many subjects covered in the debate, he continued.
Additionally, “progress was made on crucial matters,” such access to US biotechnology products and beef produced in Pakistan, according to the US embassy official.
Finance Minister Aurangzeb also met US Assistant Secretary of State Donald Lu during his tour; Lu was a key player in the ‘cipher issue,’ which resulted in the resignation of former Prime Minister Imran Khan. Washington disputes that it had anything to do with the parliamentary effort to remove Mr. Khan.
The talks highlighted “the political will in Washington” to fortify ties between Pakistan and the United States, according to a statement released following the Lu-Aurangzeb meeting.
Without providing any information, the joint statement from Iran and Pakistan emphasized the significance of collaboration in the energy sector, including commerce in electricity, power transmission lines, and the import of Iranian natural gas through a protracted pipeline project that links Pakistan and Iran.
But the US has consistently advised Islamabad not to participate in the pipeline deal with Tehran, citing broad sanctions on Iran’s energy industry due to its nuclear program.
The latest events highlight the intricate dynamics at work in the area as countries negotiate economic alliances in the face of international sanctions and geopolitical concerns.
The TIFA engagement’s timing is especially important since these kinds of exchanges are crucial for achieving shared goals and building economic ties.
The statement underscored the present level of economic relations, highlighting that the United States continues to be Pakistan’s principal export destination, with significant room for growth.
