India’s recent trade agreement with the United States has provided the country with 18% tariff relief on selected goods, a move that strengthens its position in bilateral trade relations and enhances its export competitiveness. Meanwhile, Pakistan secured 19% tariff relief for some products, but analysts argue that Islamabad’s influence in Washington remains limited despite extensive diplomatic efforts. The development has triggered criticism in Pakistan, with observers suggesting that the country’s months of high-profile outreach did not produce substantial results.
Over the past year, Pakistan had made repeated efforts to engage the US administration. These included nominating US President Donald Trump for the Nobel Peace Prize and supporting his involvement in peace-related initiatives. Despite these gestures, Pakistan’s efforts did not translate into a more favourable trade outcome, leaving many in the country questioning the effectiveness of its diplomatic strategies.
In contrast, India pursued focused trade negotiations with clear objectives, enabling it to secure tariff concessions that benefit its exporters. The 18% relief will reduce import costs for US consumers and enhance India’s competitiveness in key sectors, including textiles, steel, and certain agricultural products. Experts say that India’s success reflects careful planning, strong economic arguments, and sustained dialogue with US trade officials.
The trade agreement highlights broader shifts in South Asia’s economic landscape. Pakistan’s limited gains and India’s more favourable outcome suggest that Islamabad’s influence in Washington is waning, while New Delhi’s ability to negotiate favourable terms signals growing confidence and leverage in international trade matters. Economists argue that Pakistan needs to recalibrate its trade and diplomatic strategies to avoid falling behind in a region where India increasingly dominates key economic discussions.
Beyond tariffs, the deal also reinforces India’s long-term economic objectives. Access to the US market with reduced duties will help Indian exporters scale up operations, attract investment, and strengthen supply chains. Conversely, Pakistan faces the challenge of reassessing its trade priorities and enhancing its institutional capacity for negotiations.
While Pakistan continues to maintain strategic and political ties with the United States, the recent agreement illustrates that symbolic gestures and political lobbying alone cannot replace robust economic diplomacy. Observers in Islamabad point to the need for clear trade policies, strong negotiation teams, and sector-specific strategies to compete effectively with India on the global stage.
In conclusion, India’s 18% tariff relief marks a win for New Delhi’s trade ambitions and underscores its growing influence in Washington. Pakistan, despite securing 19% relief on some goods, faces criticism at home for failing to achieve comparable outcomes, raising broader questions about its position and effectiveness in international economic diplomacy.
