Botswana is close to sealing a duty-free diamond trade agreement with the United States to cushion its diamond-reliant economy from steep U.S. tariffs that have hurt exports and employment.
Botswana is close to finalizing a landmark trade deal with the United States that would allow its diamonds to be imported duty-free, offering significant economic relief to the southern African nation’s diamond-dependent economy.
The 15% tariff currently imposed on Botswana’s diamond exports has strained national revenues and employment, prompting negotiations to grant U.S. companies priority access to Botswana’s minerals in exchange for tariff removal. Officials also seek to expand local diamond processing to increase domestic value addition.
Speaking to the BBC, President Duma Boko said, “The negotiations are in an advanced stage. We are on the verge of reaching an agreement.”
The U.S. tariffs apply to stones cut and polished in Botswana and imported unset, while diamonds processed abroad—particularly in India—face a 50% tax. Only diamonds from Belgium and Canada enter duty-free.
Following the absence of a new trade framework, Washington imposed a 37% tariff on Botswana’s imports on August 1, combining previous levies.
President Boko cautioned, “These punitive measures threaten the sustainability of Botswana’s diamond industry and present a serious obstacle to broader economic growth across Africa.”