India’s G&J industry voices concerns at USTR public hearing

At the United States Trade Representative (USTR) multi-jurisdictional hearing held virtually on 10th May, the GJEPC along with trade bodies and exporters from the gem & jewellery sector represented the Indian industry’s grievances over a proposed 25% import duty on 17 Indian jewellery items.
The panel included GJEPC Chairman Colin Shah, Rajiv Jain of Sitapura Gems & Jewelry Industry Association, Suvankar Sen of Senco Gold Limited and Convener of GJEPC’s SEZ Sub-committee, Arvind Gupta of Gallant Jewelry, Rajeev Pandya of SGJMA, and Neville Tata of Renaissance Global Ltd.
Colin Shah, Chairman, GJEPC said: “The perception of injustice would lead to real-life consequences such as loss of jobs and livelihoods and a shift of business to countries such as China and Mexico. American jewellery companies also bank on Indian companies to fund their business by giving long credit and memo facilities, which would have major repercussions. The timing could not have been worse for imposing this tariff on Indian jewellery exporters, who are already reeling under the impact of the pandemic.”
“With the drop in GSP benefit a lot of products which were higher average unit price, they either went to China or Mexico. So they were the beneficiaries as that business started moving out of India. In last few years the imports into the US has been dropping progressively every year with no growth for the last 6 to 7 years,” Shah added.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished