ISLAMABAD –
Pakistan may emerge out to be victorious in the ongoing trade war betweenChina and United States.Pakistan is likely to reduce the trade deficit in the wake of opportunitiesemerging due to the US-China trade war.
The two biggest economies of the world have made 62% ($360 billion) ofbilateral trade expensive by slapping additional tariffs on thousands ofeach other’s goods since July 2018 and have caused a slowdown in the globaleconomy, according to the State Bank of Pakistan (SBP).
“For Pakistan, the imposition of these cross-tariffs offers someinteresting opportunities as well as challenges.
On a positive note, key food items, such as rice, seafood and soybean (bothseeds and oil), have come in the crosshairs, which offer an opportunity toPakistan to reduce its trade deficit,” the SBP said in its first-quarterreport on the state of economy for fiscal year 2018-19.
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Among the thousands of goods on which additional tariffs have been imposedby the two countries, three product categories may provide benefit toPakistan’s exports which are seafood, rice and cotton (raw cotton, fabricand yarn).
“Specifically, American seafood exports to China are now much costlier as aresult of the tariffs, as are Chinese exports of rice and cotton items tothe US,” the central bank said.
