Antwerp diamonds benefit from EU-India trade deal
Antwerp diamonds will benefit from lower import duties in India under a new trade agreement between the European Union and India, the Antwerp World Diamond Centre (AWDC) announced on Tuesday. As a result of the deal, India will reduce its import tariff on natural cut diamonds of European origin from 5.5 to 2.5 per cent.
The tariff reduction applies to diamonds cut in Europe, including in Antwerp. While the sector would have preferred no tariff, the AWDC welcomed the outcome. "This reduction is a win for the Antwerp diamond sector," the organisation said. "Bilateral trade between Antwerp and India will be positively affected."
The agreement comes as a boost for a sector that has faced mounting pressure in recent years. Antwerp’s diamond trade has been struggling with growing competition from countries with fewer regulatory and ethical requirements, as well as from cheaper synthetic diamonds. "This agreement certainly offers some stability and is more than welcome," the AWDC said.
India has frequently adjusted its import tariffs in recent years, alternating between increases and reductions. According to the AWDC, each tariff reduction has had a positive effect on trade flows. Last year, Antwerp exported more than 200 million euros worth of diamonds to India.
Closer ties with Angola
The sector is also looking to strengthen trade ties with Angola. On Tuesday, Angolan diamond industry leaders visited Antwerp to explore closer cooperation. Angola is a major producer of rough diamonds, with output worth more than 1.4 billion US dollars last year, placing it among the world’s leading producers.
For years, Angola struggled with a negative reputation linked to limited transparency in its diamond trade, which led part of its production to be channelled to less regulated markets such as Dubai. The AWDC believes the current Angolan government is determined to break with that past, although local sources acknowledge that challenges remain, including environmental concerns.
"Angola’s change of course makes Antwerp, with its strict regulations and extensive controls, an attractive market," said Karen Rentmeesters, chief executive of the AWDC. "Around 20 per cent of Angola’s rough diamond production is already exported directly to Antwerp."
#FlandersNewsService | © BELGA PHOTO JAMES ARTHUR GEKIERE
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