Pakistan eyes bigger share in US rice market after Trump's 50 percent
arabnews.com -- Friday, August 15, 2025, 7:29:20 AM Eastern Daylight Time
Categories: Trade Policy & Tariffs, Presidential Campaigns, U.S.–China Relations
Islamabad has sought exporters' input to boost rice shipments after a favorable US trade deal that allowed 19 percent tariff on Pakistani imports
ISLAMABAD: Pakistan is seeking to increase its rice exports to the United States (US) to 100,000 metric tons this financial year, up from 80,000 metric tons last year, after President Donald Trump imposed a 50 percent tariff on regional competitor India, the head of the country's rice exporters association said this week.
Pakistan ranks among top ten rice-producing countries in the world. According to the latest Economic Survey of Pakistan, the country's total rice production stood at 9.72 million metric tons in the outgoing fiscal year that ended in June.
In Pakistan, more than 60 percent of the harvest is surplus and available for export, according to the Rice Exporters Association of Pakistan (REAP). The country exported over 5.544 million metric tons of rice, valued at $3.203 billion, worldwide from July 2024 till May 2025.
India, on the other hand, exported 234,467 metric tons of rice to the US alone in the fiscal year 2023-24, valued at $0.31 billion, according to the Indian commerce ministry. However, Trump last month imposed a 50 percent tariff on India, citing New Delhi's imports of Russian oil and its trade barriers on US, and reduced the tariff on Pakistan from 29 percent to 19 percent.
"This [tariff difference] presents a major opportunity for Pakistan to fill the gap and expand its rice exports to the United States," Malik Faisal Jahangir, chairman of the Rice Exporters Association of Pakistan (REAP), told Arab News on Wednesday.
"Last year, Pakistan exported 80,000 metric tons of basmati rice to the US and this year, we aim to exceed at least 100,000 metric tons by leveraging this tariff advantage."
The US Department of Agriculture (USDA) reports that rice imports in the country have consistently risen over the past 30 years, increasing from 7 percent of the domestic market in 1993-94 to more than 25 percent in 2022-23. Over 60 percent of these imports are aromatic varieties from Asia, predominantly jasmine from Thailand and basmati from India and Pakistan.
Pakistani rice is of much better quality than India's and far more compliant with US regulations and standards, according to Jahangir. Islamabad could also enjoy a significant competitive advantage in terms of price.
"The 50 percent tariff on Indian rice will effectively price it out of the US market," he added.
Pakistan struck the trade deal with the US late last month, with the government in Islamabad saying the agreement would increase investments in the South Asian country. A key China ally, Pakistan has been warming up to Trump after he threatened tariffs and has credited US diplomatic intervention for ending a four-day military standoff with India in May. Islamabad has also nominated Trump for the Nobel Peace Prize.
Pakistan exports basmati rice to more than 110 countries, with the Middle East and Europe remaining its primary markets, according to official data.
Pakistani commerce ministry spokesperson Naveed-ul-Haq Kallu said the government is in contact with REAP to fully capitalize on the opportunity to boost Pakistani rice exports to the US.
"Pakistan's commerce ministry has asked rice exporters to submit their recommendations to help fully capitalize on the opportunity to boost Pakistani rice exports to the United States," Kallu said, adding that rice exports are incorporated into the ministry's tariff implementation strategy that has been forwarded to the prime minister for approval.
"The government will continue working closely with the association to provide maximum facilitation for exporters as it is keen to leverage the advantage created by the new tariffs."
Arab News tried reaching out to the Pakistani embassy in Washington and the Trade Development Authority of Pakistan (TDAP) regarding their trade facilitation efforts but did not receive a response by the time of filing of this story.
Pakistani exporters and analysts view the new US tariffs as a major opportunity but warn that stringent quality standards would be a key challenge in meeting the US Food and Drug Administration's (FDA) approval.
"We have very small share of around 4.5 percent of the total US rice imports but have this opportunity to take it forward and gradually doubling it, if tariff issue with India persists," Abdul Basit, a manager at leading Pakistani rice exporter Guard Rice, told Arab News.
Basit noted that although an opportunity exists, attention needs to be given to ground realities as he stressed the importance of producing basmati rice that met both quality and the FDA's compliance standards.
"We need to assess how much FDA-compliant rice we can source from our farmers as failing to do so could expose us to numerous non-tariff barriers from the US, particularly strict regulations on pesticide levels," he added.
The Guard Rice official described the US tariffs as a "great opportunity" to expand their presence in the US market, adding that his company, which initially exported around 3,000 metric tons to the US, is now planning to double that volume.
Sana Taufik, head of research at Arif Habib Limited investment and financial services firm, said Pakistan's ability to capitalize on the advantage depends on production, which was hit by climate change and the recent floods.
"This issue needs to be addressed and Pakistan should invest in research and development to drive better growth," she said.
Pakistani products should be patented and branded as the country has so far secured few patents and could not claim royalties, unlike India, which established this advantage long ago, according to Taufik.
"These challenges could hinder Pakistan's ability to capitalize on the opportunity created by the high tariff on India," she said. "But with better coordination, the country can gradually expand its share of the US market for Pakistani basmati rice."
Sign Our PetitionThe recent developments regarding Pakistan's rice exports to the United States highlight the interplay between international trade policies and geopolitical dynamics. The decision by former President Donald Trump to impose a 50 percent tariff on Indian rice while simultaneously offering a reduced tariff on Pakistani rice from 29 percent to 19 percent represents not only a shift in trade strategy but also a potential opportunity for Pakistan's economy to capitalize on a competitive advantage. This situation serves as a microcosm of broader trends in global trade, where historical relationships, national interests, and market forces converge to shape economic outcomes.
Historically, the agricultural sector has been a cornerstone of Pakistan's economy, particularly rice production. The country has consistently ranked among the top rice producers in the world, with over 60 percent of its harvest available for export. This reliance on agriculture underscores the importance of international markets for sustaining economic growth and development. However, the recent tariff changes reflect a more contentious international landscape, where trade decisions often serve as political tools rather than purely economic ones. The U.S. approach to tariffs has often been driven by broader geopolitical considerations, as seen in its dealings with India—where trade barriers have been linked to geopolitical concerns over relationships with Russia.
The situation also underscores the precarious nature of international trade, especially for developing economies like Pakistan, which often find themselves at the mercy of larger powers' political whims. The notion that Pakistan must "leverage tariff advantages" to secure its place in the U.S. market speaks to a vulnerability that many smaller nations face in the global economic structure. The reliance on a single market, particularly one that is characterized by such unpredictable shifts in policy, raises questions about the sustainability of Pakistan's economic strategy. It highlights the need for a more diversified approach to international trade, one that mitigates the risks associated with dependence on the U.S. market.
Moreover, the competitive edge touted by Pakistani rice exporters—claiming superior quality and compliance with U.S. regulations—opens a dialogue about standards in agricultural exports. While it is beneficial for Pakistan to position itself as a higher-quality supplier, this also serves as a reminder of the disparities that exist in global agricultural production. The U.S. market's increasing reliance on imported rice over the past three decades—rising from 7 percent to over 25 percent—demonstrates a significant shift in consumption patterns. However, it also raises concerns about food sovereignty and the implications of relying on imports for essential commodities. The question remains: how can countries ensure that their agricultural practices align with sustainable and ethical standards, particularly when engaging with a market that often prioritizes profit over people?
Furthermore, this trade opportunity cannot be viewed in isolation from the ongoing social struggles within Pakistan. The agricultural sector employs a significant portion of the population, and any increase in exports can have far-reaching impacts on rural incomes and livelihoods. Yet, it is essential to consider the broader implications of such trade agreements, particularly in light of social justice and equitable economic development. The focus on rice exports may divert attention away from other pressing issues facing the agricultural sector, such as land rights, labor conditions, and environmental sustainability. A holistic approach to economic development must consider the needs of farmers, rural communities, and the ecological consequences of intensified agricultural production.
In conclusion, while Pakistan's potential expansion in the U.S. rice market presents new economic opportunities, it is critical to contextualize these developments within a broader historical and political framework. The trade dynamics between the U.S., Pakistan, and India illustrate the complexities of international relations and economics, where agricultural policies intersect with geopolitical strategies. As the global economy continues to evolve, it is paramount for countries like Pakistan to not only seize current opportunities but also advocate for a fair, equitable, and sustainable trading environment that benefits all citizens, particularly those most vulnerable. Engaging in discussions around these issues can empower individuals to critically assess the implications of trade policies and advocate for a more just economic system that prioritizes people and the planet over profits.
The recent article covering Pakistan's ambitions to expand its rice exports to the United States represents a complex intersection of trade policy, international relations, and market dynamics. At the heart of this discussion lies the significant impact of U.S. tariffs—a tool wielded by the Trump administration that has reshaped global agricultural markets, particularly in the context of U.S.-Pakistan relations. The 50 percent tariff imposed on Indian rice, in light of geopolitical tensions and trade barriers, presents a moment of opportunity for Pakistan. However, this also highlights the broader implications of protectionist policies that often prioritize short-term gains over long-term sustainability and fair trade practices.
Historically, U.S. agricultural trade policies have been a double-edged sword, frequently benefiting some nations while disadvantaging others. The preferential treatment granted to Pakistan over India is not merely a tactical maneuver in agricultural trade, but also reflects a more extensive narrative of U.S. foreign policy that has often leaned on economic incentives to foster alliances. This particular tariff shift underscores how geopolitical considerations can distort market dynamics, leading to outcomes that may not align with principles of fair competition and equity in international trade. It serves as a reminder that the mechanisms of trade are often influenced by factors beyond pure economic rationale, thereby necessitating a more nuanced understanding of global markets.
As American consumers and citizens, we hold significant power in influencing these outcomes. The demand for ethically sourced and high-quality products can drive a more equitable trade system. Advocating for transparency in sourcing practices, supporting local and sustainable agriculture, and pushing for trade agreements that prioritize fair labor practices and environmental protections are essential actions that can lead to a more just agricultural landscape. By engaging in informed discussions about the implications of tariffs and trade agreements, we can challenge the narratives that prioritize short-term economic gains at the expense of long-term sustainability and ethical considerations.
Moreover, the situation invites us to reflect on the role of the United States in shaping global agricultural markets. The rise in rice imports from Pakistan, driven by tariff advantages, is an opportunity to examine the implications of our consumption patterns. While supporting the diversification of supply chains can be beneficial, it is important to consider the impact on local farmers and communities both domestically and internationally. Engaging in dialogues about fair trade and advocating for policies that place a premium on equitable treatment of farmers globally can encourage a more balanced approach to agricultural trade.
In the grand scheme of things, the current dynamics in U.S.-Pakistan trade relations can serve as a catalyst for broader discussions about the future of global agriculture. As we navigate these complex issues, it is crucial to advocate for policies that not only enhance economic opportunities but also uphold principles of fairness, sustainability, and respect for the people and environments involved in agricultural production. By fostering a more equitable trade environment, we can help ensure that the benefits of global trade are shared more broadly, contributing to a more resilient global economy and a more just world.
Analyzing the recent developments in the rice trade between Pakistan and the United States reveals a complex interplay of international relations, trade policy, and economic opportunity. As concerned citizens, we can take several actions to influence the situation positively, promote fair trade practices, and advocate for sustainable agricultural policies. Here’s a detailed list of ideas and actions we can personally take:
### Personal Actions to Take
1. **Educate Yourself and Others** - Stay informed about trade policies and their impacts on global agriculture. - Share articles, studies, and insights on social media platforms or community forums to raise awareness.
2. **Support Local Agriculture** - Purchase and promote local rice and other agricultural products to support domestic farmers. - Participate in farmers' markets or local co-ops to encourage sustainable farming practices.
3. **Engage with Local Representatives** - Write to your local representatives to express your views on international trade policies and their implications for farmers and consumers. - Attend town hall meetings to voice your concerns and ask questions about agricultural trade.
### Specific Actions to Consider
1. **Petition for Fair Trade Practices** - Create or sign petitions advocating for fair trade practices that protect both domestic farmers and foreign suppliers. - Example Petition: Search for existing petitions on platforms like Change.org related to trade policies that adversely affect farmers or promote sustainable agricultural practices.
2. **Contact Government Officials** - Write to key officials advocating for fair trade agreements that benefit all parties involved and promote sustainable practices. - **Who to Contact:** - **U.S. Secretary of Agriculture:** Tom Vilsack - Email: tom.vilsack@usda.gov - Mailing Address: U.S. Department of Agriculture, 1400 Independence Ave SW, Washington, D.C. 20250 - **U.S. Trade Representative:** Katherine Tai - Email: katherine.tai@ustr.eop.gov - Mailing Address: Office of the United States Trade Representative, 600 17th Street NW, Washington, D.C. 20508
3. **Promote Sustainable Practices** - Encourage sustainable rice farming practices through local agricultural organizations or non-profits. - Volunteer with or donate to organizations that support sustainable farming initiatives in both the U.S. and abroad.
### What to Say in Correspondence
When reaching out to government officials or signing petitions, consider the following points to articulate your concerns clearly:
- **Express Concern Over Tariff Inequities:** Highlight how the recent tariff changes disproportionately impact certain countries and farmers, advocating for fair trade policies that do not favor one nation over another at the expense of another's economy. - **Promote Sustainability:** Advocate for trade agreements that prioritize sustainable agricultural practices, protecting the environment and ensuring food security for all nations involved.
- **Highlight the Importance of Local Farmers:** Emphasize the need to protect domestic agriculture while also allowing fair competition for foreign products, ensuring that U.S. farmers are not adversely affected by international trade policies.
### Conclusion
By taking these actions, we can contribute to a more equitable and sustainable agricultural trade system. Engaging with the political process, supporting local farmers, and advocating for fair trade practices are crucial steps we can take to ensure that the benefits of international trade are shared broadly and do not come at the expense of local communities and the environment.