Editor’s Note
A new EU-India trade agreement will see import duties on European cut diamonds, including those from Antwerp, reduced from 5.5% to 2.5% in the key Indian market.
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.
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.
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.
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.