(PRESS RELEASE) ANTWERP — The recently concluded trade agreement between the European Union and India provides for a reduction of India’s import duty on naturally polished diamonds of European origin, from 5.5% to 2.5%. This tariff reduction is the result of intensive lobbying efforts by the Antwerp World Diamond Centre (AWDC), in close cooperation with the European Commission. The measure represents a new boost for the Antwerp diamond industry and strengthens Antwerp’s attractiveness as a polishing centre. The reduced tariff is expected to have a positive impact on exports from Antwerp to India.
“We are extremely pleased with the outcome of the long-awaited trade agreement between Europe and India,” says Karen Rentmeesters, CEO of AWDC. “Thanks to AWDC’s intensive and sustained lobbying, in close cooperation with the European Commission, India’s import duty on polished diamonds has been reduced from 5.5% to 2.5%. This is an important boost for the Belgian diamond sector and is expected to have a positive impact on exports of Antwerp-polished diamonds to India. Moreover, this measure strengthens our competitiveness as a polishing center: diamonds polished in Europe will now be able to enter India at a more favourable tariff than before, and also compared to other major trading hubs. India is one of the fastest-growing consumer markets for jewelry and therefore also offers strong prospects for European diamonds.”
An additional important advantage of the trade agreement is that the new, reduced Indian import duty of 2.5% is now structurally anchored and can no longer be adjusted unilaterally. “In the past, this was often the case,” Rentmeesters continues. “Since 2012, we have seen the tariff fluctuate from 2% to 2.5%, then to 5% and even 7.5% in 2018, before falling again to 5.5% in 2022. This lack of predictability created uncertainty within the sector. The fact that the tariff is now anchored in a trade agreement provides much-needed stability in a period that — partly due to geopolitical developments — is particularly challenging for the diamond sector, as it is for many other sectors.”
Trade agreements need to be ratified by European and national parliaments before entering into foce. This procedure that usually takes multiple months or sometimes even years.
