The Antwerp World Diamond Centre (AWDC) has welcomed the conclusion of the EU–India trade agreement. The pact provides for a reduction of India’s import duty on naturally polished diamonds of European origin, from 5.5% to 2.5%. AWDC said the tariff reduction follows its sustained lobbying in close coordination with the European Commission.
“We are extremely pleased with the outcome of the long-awaited trade agreement between Europe and India,” said 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.”
She added that the agreement strengthens Antwerp’s competitive position as a polishing hub. “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 jewellery and therefore also offers strong prospects for European diamonds.”
Rentmeesters also highlighted the importance of tariff stability. “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, AWDC noted.