The diamond industry in Antwerp is set to experience a significant uplift following a new trade agreement between the European Union and India. This pact will notably decrease India's import tariff on polished diamonds originating from Europe, lowering it from 5.5% to a more favorable 2.5%. This strategic adjustment, championed by the Antwerp World Diamond Centre (AWDC) in collaboration with the European Commission, is anticipated to rejuvenate Antwerp's position as a leading diamond polishing hub and strengthen its export market, particularly towards India's burgeoning consumer base.
Karen Rentmeesters, CEO of AWDC, expressed immense satisfaction with the fruition of this long-awaited accord. She highlighted that the AWDC's persistent advocacy efforts were instrumental in securing the tariff reduction. This move is expected to have a profoundly positive effect on the Belgian diamond sector, enhancing its global competitiveness. Diamonds polished in European facilities will now benefit from a more advantageous entry into the Indian market compared to those from other major trading centers. India, recognized as one of the fastest-expanding markets for jewelry, presents substantial opportunities for European diamond exporters.
A crucial aspect of this trade agreement is the structural embedding of the new 2.5% import duty, providing much-needed stability and predictability. Rentmeesters pointed out that previously, tariffs on polished diamonds experienced frequent fluctuations, ranging from 2% to 7.5% between 2012 and 2022. Such volatility generated considerable uncertainty within the sector. By anchoring the tariff within a formal trade agreement, the industry gains a stable framework, which is particularly vital during the current geopolitical landscape that poses challenges to various sectors, including diamonds.
The implementation of this trade agreement still requires ratification by both European and national parliaments. This procedural step can often be time-consuming, typically spanning several months or even years before the agreement fully comes into effect. Nevertheless, the diamond sector anticipates a period of renewed growth and stability once all parliamentary approvals are secured.
This landmark agreement marks a pivotal moment for the Antwerp diamond trade, offering a more stable and competitive environment for European-polished diamonds. It not only streamlines trade processes but also secures a firmer foothold in one of the world's most dynamic jewelry markets, promising sustained benefits for the industry in the long run.