European Polished Diamonds Achieve Zero Percent Import Tariff Under New Trade Agreement

The Antwerp World Diamond Centre (AWDC) has achieved a significant milestone by securing a zero percent import tariff for natural polished diamonds. This development is part of a new trade agreement between the European Commission and the United States. The AWDC attributed this success to "intensive negotiations" in their announcement on Wednesday.

This exemption, effective retroactively from 1st September, is included in a US decree that offers tariff waivers to trading partners who agree on industrial exports like nickel, gold, and other metals. The AWDC explained that diamonds polished in Antwerp will not face the usual 15 percent tariff, benefiting the local diamond industry significantly.

The decision is expected to have global repercussions, allowing other major diamond-cutting nations to negotiate favourable tariffs as well. The AWDC highlighted that with an annual export value of $2.1 billion from Antwerp to the US market, the United States remains a crucial trading partner for them.

Karen Rentmeesters, CEO of AWDC, emphasised the importance of this achievement for maintaining competitiveness as a trading and cutting hub. She acknowledged the contributions of all partners in the diamond sector, along with support from the Belgian government and the European Commission.

Rentmeesters stated, "They have been able to make it clear that a 15 percent import duty would not benefit the US jewellery market in any way but would primarily harm consumers." She pointed out that since there are no diamond mines or significant cutting factories in the US, such duties would not protect any domestic industry.

This breakthrough is poised to enhance Antwerp's position as a leading centre for diamond trading and cutting. By eliminating tariffs on European-origin diamonds entering the US, Antwerp's diamond sector stands to gain substantial competitive advantages.

With inputs from WAM