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Fall 2018 MODERN + TRANSITIONAL A NEW GENERATION OF DESIGNS
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Dear Colleagues, and so on? Back in the late 1970s and early 1980s, I hope you have all had a great summer and are ready China had “None Most Favoured Nations” status for the fall, traditionally our strongest season. It’s there was a 45% duty on Chinese rugs and carpets been a busy summer with markets in among other Chinese products Atlanta, Las Vegas and New York in imported into the US. At the same which I hope you participated. time, “Most Favoured Nations— During the July Atlanta market, MFN” such as India, Pakistan and ORIA officers and members had the even Iran were enjoying between opportunity to meet with Mr. Bob much lower tariffs of between 8% Maricich, Chairman and CEO of and 11% based on knot count. International Market Centers (IMC), Eventually, of course, the US grant- and executives of AmericasMart ed MFN status to China and duty (which is now owned by IMC) dur- dropped to same level of other MFN ing our semi-annual membership countries. By the late ‘90s and early meeting. Bob spoke about the merg- 2000s duty was fully removed on all er and his expectations for a smooth rugs and carpets except for tufted transition. He was also very receptive and clearly and machine-made rugs that is still 6% up to today. knowledgeable about our Association and our 30 However I would point out that when duty was years of co-sponsorship with AmericasMart. His 45% on Chinese rugs (and for example a Chinese 90 recognition of the work that ORIA does to support Line 5/8” was selling for $30 to $40 per sq. ft. whole- our industry and his commitment to working closely sale), we could not get enough of them. Every ship- with our association bodes well for future coopera- ment that arrived was pre sold at these high prices. tion between the ORIA and IMC. But when the duty was lowered to 8% from 45%, a By now you have likely heard of 25% additional year or two later, we could not sell even one of these tariff that the USA may impose on Chinese imports, for as little as $5 per sq.ft. My point is that tariffs including tufted rugs, knotted rugs, carpets and have an impact, but other forces play out to balance it broadloom amongst other Chinese products. Our and ultimately the jump in price will be forgotten. Association, as usual, is at the forefront of this issue, Remember, it wasn’t long ago that gas was $1.00 per standing behind our members and their best interests gallon and now it’s as much as $3.00 or more—but in this matter. We have engaged our Attorney Brenda we are all used to it now. Jacobs to represent us during USTR hearings in We all know that markets adjust to change in Washington and hopefully she will be able to con- many different ways, but of course let’s hope this sit- vince Congress to exclude these products from the uation works itself out and that we are successful in list of items to receive this additional tariffs as some getting carpets off of the inclusion list for this addi- other products such as TV’s have done. tional tariff. Certainly, we do not need to bear any However, I would suggest that this may not additional tariffs, sanctions or anything else that irrevocably hurt our industry. Do you remember make our business more difficult to conduct. Chinese 90 line 5/8”, 120 line 3/,” 160 line, 200 Line Wishing you all a great fall,
Ramin Kalaty President - Oriental Rug Importers Association, Inc.
6 Fall 2018 Fall APublished by REAthe Oriental Rug Importers Association, Inc. 400 Tenafly Rd., #699, Tenafly NJ 07670 • 201-866-5054 • www.oria.org
President Ramin Kalaty Vice-President Kami Navid Treasurer Behrooz Hakimian Secretary Hari Tummala Executive Director Lucille Laufer AREA Advisory Reza Momeni, Chrm. Committee Dennis Dilmaghani
Editor-Emeritus Archie Cherkezian Editor-in-Chief Lucille Laufer Editor Sally James Contributing Author Alix Perrachon Contributing Author Carol Milano Contributing Author Ellyne Raeuber 28 Production Artistic Color Graphics