HRD Scraps International Offices Plan

The HRD has scrapped plans to open gemological labs and training centers in India and China, deciding to focus its attention on Antwerp. Public pressure from local diamond firms might have played a role in the decision.

“Due to the continuing weakness of the dollar, high labor costs and import duties on rough diamonds, the Belgian diamond industry can no longer compete with other polishing centers,” says the umbrella organization of the Belgium diamond industry, choosing as a result to focus on strengthening its Antwerp operations.

Last September, the organization announced plans to open diamond grading schools, service centers and gem labs in Mumbai, India and Shanghai, China.

Government regulations place an extra burden on the industry, harming smaller businesses in particular, says the HRD.

Following the terrorist attacks on the United States of September 11, 2001, governments and banks have been keeping close tabs on money transfers and diamond movements.

The HRD has presented the government of Belgium with a 10-point list of actions to enable the industry to remain globally competitive.

“We have to consider the small and medium-sized players who are finding it difficult to keep up with the current climate. They are seeing their market share dwindle. There is an urgent need for deregulation,” says Peter Meeus, Managing Director of the HRD. The HRD now considers the 10-point memorandum an absolute priority, he adds.

Last November, the HRD’s announcement that it planned to open offices in Mumbai and Shanghai was met with opposition by some Antwerp traders. One of them, Daniel van Dievoet of Beladamas, circulated a letter asking his colleagues what they thought about the decision.

Van Dievoet said at the time that opening an HRD lab in Mumbai was no less than suicidal. His rationale was that if the HRD diamond certificate is highly regarded, then buyers will come to Antwerp to buy HRD certified diamonds, from Antwerp traders. However, if Indian traders could certify their diamonds in Mumbai, buyers of HRD goods would buy them there, robbing Antwerp dealers of some of their business.