Research · Reference

Policy glossary

The laws, agreements, institutions and places that come up again and again in relations between the United States and Pakistan, each explained in a short, neutral, sourced entry.

65 entries, A to Z

5 of 65 terms in Trade. Show all

A

Afghanistan–Pakistan Transit Trade Agreement

trade. Also APTTA. An agreement signed in 2010 and in force from June 2011 that governs the movement of Afghan goods through Pakistani ports and roads and gives Pakistani traders transit through Afghanistan towards Central Asia. It replaced a 1965 transit agreement; US Secretary of State Hillary Clinton attended the signing of its framework in July 2010. Its implementation, extensions and border closures are recurring issues between Kabul and Islamabad.

C

China–Pakistan Economic Corridor

trade. Also CPEC. A programme of Chinese-financed infrastructure, energy and industrial projects in Pakistan, launched with a memorandum of understanding signed in Beijing on 5 July 2013 and associated with China’s Belt and Road Initiative. It aims to link Kashgar in Xinjiang with Gwadar and Karachi through roads, railways, pipelines and power plants, and includes special economic zones. Pakistan’s Ministry of Planning coordinates it.

G

Generalized System of Preferences

trade. Also GSP. A US trade programme, created by the Trade Act of 1974, that let thousands of products from designated developing countries enter the United States duty-free, subject to eligibility criteria such as respect for workers’ rights and protection of intellectual property. Pakistan was a beneficiary. The programme’s authorisation expired on 31 December 2020, and since then goods that qualified pay normal tariffs unless Congress renews it.

R

Reciprocal tariffs

trade. Also reciprocal tariff, Executive Order 14257. Additional US import duties imposed by President Trump under Executive Order 14257 of 2 April 2025, which cited emergency powers to address large and persistent goods trade deficits: a 10 percent baseline on most imports plus higher rates for countries listed in an annex. Pakistan’s announced rate was 29 percent; a later order in July 2025 set it at 19 percent.

T

Trade and Investment Framework Agreement

trade. Also TIFA. An agreement the United States and Pakistan signed on 25 June 2003, setting out shared principles for trade and investment and creating a joint council to address barriers between them. It is not a free-trade agreement and does not change tariffs. The TIFA Council, which meets periodically between the US Trade Representative’s office and Pakistan’s government, is the main standing forum for bilateral trade talks.

Definitions are kept short and neutral, and each cites its sources on the term’s page. Spotted something to correct? Tell us.