Iran rug ban would have little effect
Little effect on rug industry if trade sanctions accepted
Lissa Wyman -- Furniture Today, October 3, 2007
AT THE MARKET — If proposed trade sanctions against Iran are accepted by the U.S. Senate, Iranian rugs again will be barred from legal entry into the United States. But the effect on the rug industry will be minimal, rug importers say. Iran is known as the cradle of rug weaving, but in the past 20 years the American market has moved on. India, China and Pakistan have taken over as major source countries. “Iran doesn’t respond to color and design like China and India,” said Hari Tummala, executive vice president of Kas Oriental Rugs, which imports largely from the latter two. “Iranian producers tend to make rugs in the traditional colors and designs, but Americans want rugs that coordinate with their furniture.” Iranian rug imports have been drifting downward since the last embargo was lifted in 2000. In 2006, Iranian carpet and rug shipments to the United States amounted to $108.6 million, a small portion of the $1 billion in total 2006 carpet and rug imports, according to U.S. Department of Commerce figures. In 2005, Iran shipped $119.4 million worth of rugs and carpets to this country. From January to July 2007, Iranian rug shipments were valued at $49.7 million, down nearly 25% compared to the $66 million shipped to the United States in the first seven months of 2006. “Rugs that come here from Iran are either very high end or low-end garbage,” said Nasser Rahmanan, president of Masterlooms, which imports primarily from Pakistan and India. The very high end often involves antique and collector’s items, and the low end, wholesaling for as little as $1 to $2 a square foot, usually are sold to operators of going-out-of-business sales and tent sale promotional events, he said. “There are a few importers who specialize in Iranian rugs, but the impact on the industry in general (of any embargo) will be minimal,” said Rahmanan. The bottom line is that Iranian rugs no longer are considered part of the American mainstream rug business, which has shifted from a one-of-a-kind industry to programmed, re-orderable rugs. “Iranian production is geared largely to one-of-a-kind rugs. Most of the producers have not been able to provide programmed rugs,” said Tummala of Kas. Amir Loloi, president of Loloi Rugs, which imports primarily from China and India, said, “Sure, there are some Iranian products still being sold in the United States, and there will be a bit of a shortage for people who specialize, but there won’t be a major effect on the industry (from any embargo).” At Capel, President Bruce Hric said, “Iran is no longer a player in the American rug business, so the impact will be minimal. We haven’t imported Iranian rugs for many years.” While over 90% of U.S. handmade rug imports come from India, China, Pakistan and Nepal, there is still a market for Iranian rugs, according to Reza Momeni, president of Momeni Rugs. “We do well with a range of Gabbeh rugs that are hand knotted in Iran,” said Momeni. “The hand-crafted, one-of-a-kind nature of these tribal rugs has great appeal for people who are interested in having something unique.” Although the consensus in the rug community is that banning Iranian rugs won’t have a major impact on the market, there is some concern that negative publicity about Iranian rugs could have more general consequences. “An embargo is not good for our industry,” said Momeni. “In the consumer’s mind, all rugs are related. They don’t differentiate between one country and another.” Kami Navid, senior vice president of Jaunty Rug, voiced a similar view: “This is negative publicity for the entire rug business. Consumers might well think all rugs come from Iran, and it will stop them from buying rugs altogether.” Last week, the House of Representatives approved legislation designed to broaden existing U.S. sanctions against Iran, including the importation of rugs. The bill now goes to the Senate.
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