The exemption is part of an executive order issued on 5 September, which includes a list of products for which domestic manufacturing cannot meet local demand. This waiver applies to countries that are ‘aligned partners’ with the US. This description applies to countries that have concluded a new trade agreement with the US. The levy waiver will be effective retroactively from 1 September.
The agreement makes Antwerp the only trading hub with tariff-free imports to the US. As reported by Rapaport News, the Antwerp World Diamond Centre described this agreement as a significant victory for the region’s diamond industry.
“This is a tremendous boost for the Antwerp diamond industry in general, and it will give Antwerp’s polishing sector a significant uplift,” the organisation explained.
“The breakthrough may also have a global impact, as it paves the way for other major diamond countries to secure similar favourable tariffs.”
More than 90 per cent of the world’s diamonds are polished in India, which does not currently have a new trade agreement with the US. AWDC CEO Karen Rentmeesters told JCK Online that the situation would continue to evolve.
“There are about 350 polishers in Antwerp. We can’t replace the millions of people who are working in India, but this is at least an interesting opportunity for Antwerp to bring back some of the polishers who have been inactive for the past couple of years,” she explained.
Polishing and the expertise behind polishing have always been part of our DNA. One thing I’ve learned is that in this business, people will go to great lengths to get a great deal. So when something like this happens, people will make moves.”
The Rapaport News report also noted that the American Gem Trade Association (AGTA) is lobbying for the same exemption to apply to colour gemstones. Colour gemstones were also included on the list of goods that could potentially receive a waiver if producing nations successfully negotiated a new agreement.
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