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Rug importers mull Pakistan options

By Lissa Wyman -- Furniture Today, November 18, 2001

HIGH POINT — The war against terrorism is touching the rug business as importers face difficult decisions about rugs from Pakistan.

The issues go beyond price and availability to humanitarian concerns. There's also ambivalence about the politics of war, religion and international trade.

The picture is further complicated by Pakistan's request that the Bush administration reduce tariffs on Pakistani-made textile products, including rugs. Pakistan's largest industry is textiles, and the United States is its biggest trading partner.

Much of the country's production is apparel, but the U.S. government appears willing to make trade concessions only for rugs and leather gloves. It's possible that Pakistani rugs could be awarded duty-free status.

Peshawar rugs from Pakistan currently are coming into the United States on schedule, but importers worry that supply may be disrupted by the war just over the border in Afghanistan. Farther southeast in the city of Lahore, the war has had little effect on production and shipping. The question is: Can this "normal" trade continue?

Total annual Pakistani rug production amounts to $20 million to $30 million, importers estimate, and a large share of re-orderable, programmed rug production goes to the U.S. market. One-of-a-kind pieces are distributed worldwide.

Peshawar rugs mostly are made by tribal people from Afghanistan; many are refugees from the Sino-Afghan war. Rugs are made on traditional horizontal looms using a unique, thick knot. It is largely a cottage industry, with entire families involved. Afghan wool is particularly prized for its silky sheen.

The "city rugs" of Lahore use finer, denser knots and typically are priced much higher than Peshawars. They are made in a factory environment and are considered more refined, but Peshawars have wide appeal for both aesthetic and economic reasons.

Peshawar rug production is not easily shifted to China, India or Turkey, said Ron Couri, chief executive officer of Couristan. "We are committed to this production and we do not want to disrupt these people's livelihood," he said. "These are the very people our country wants to support."

"Some factories in Lahore have learned the Peshawar weaving technique, so some production is shifting there," said Michael Harounian, a principal of rug importer Ebisons Harounian. But the rugs are not the same. "They have the look and the construction, but the wool is different," he said.

Americans have strong ties to this area, personal as well as economic. Over the past 10 years, a handful of U.S. importers have been instrumental in developing a uniquely American-style business. Rug patterns and colors have been Americanized to fit U.S. tastes, and U.S. importers have worked closely with Pakistani exporters to assure continuity of supply, color and quality.

Some importers worry that American retailers and consumers may not want to buy rugs made by Afghani refugees, believing some may have terrorist ties.

Not true, said David Grasse, executive vice president of Noonoo Rugs, one of the first importers to develop re-orderable rugs in the Peshawar area. "These are families trying to make a living under the worst possible circumstances," he said. "In fact, most of the rug makers now consider themselves to be citizens of Pakistan."

On the other hand, another importer is angry with terrorist sympathizers in Pakistan. Citing TV images of young men burning American flags, the executive said, "I am getting out of Pakistani rugs as soon as possible. I won't support a country that harbors terrorist crazies."

Importers say they have enough stock to satisfy demand for the next few months. What happens then is anyone's guess.

"We hope things will return to normal soon," said Couri. "It's not a major part of our business, but it's a good business. We can certainly survive without it. Unfortunately, the weavers cannot survive without us."

Noonoo has built its reputation with Pakistani-made rugs. A year ago, however, the company started to import from India and Nepal. "Now we are also going into China," said Grasse. "We are developing a more balanced line between several areas of production."

Ebisons Harounian also is planning to increase imports from China.

Well-organized programmed rugs are just one part of the Peshawar story. In the market squares, Pakistani dealers sell stock lots of one-of-a-kind native weavings. This is the industry hit hardest by the war. Few people are venturing into the markets to buy, so prices are plummeting.

"If you're brave enough to go over there, you can pretty much name your price for one-of-a-kind rugs," said Couri. "They are desperate to raise cash."

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This Peshawar rug from Couristan's Chobi collection retails at about $1,399 in a 5'6" by 8' size.

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