2010 Iran Sanctions Affects Persian Oriental Rug Trade
September 29, 2010
With the new US sanctions against Iran taking effect on September 29th and the EU following suit, the oriental rug industry will see some major changes similar to what happened in the 1980s and 90s. Smaller rug companies are closing while others are stockpiling inventory. The rest of the industry is forced to rework traditional Persian designs in different rug producing regions.
If this round of sanctions is like the last, some trends can be expected:
Prices for Persian rugs (of all qualities) will increase sharply.
Very high quality Persian rugs will trickle to the West through smugglers and command very high prices.
Low quality rugs will still be produced under subsidy of the Iranian government to be warehoused.
When the embargo is lifted, the market will be flooded with sub-standard rugs, causing a drop in the prices.
While many of us in the West think of Persian rugs as "the best", the reality is that Persian rugs can also be "the worst". There are many rug producing centers in Iran, and they vary widely. At one end of the spectrum are nomadic kilims and the rough and primitive Gabbeh, at the other end are some of the most intricate carpets in the world, like the Tabriz and Mahal.
Hand-knotted rugs have traditionally been made from Eastern Europe to China, and most areas in between. Except for specialist companies that deal exclusively in Persian rugs, the modern rug industry will easily shift to rugs made in other areas, notably the Himalayan countries. According to CEO of
High Country Rugs
, Jason Leach: "The rug industry in Nepal, for example, utilizes fine wools, with top quality dyes, using a local knotting technique that is preferred over Persians for our commercial and hospitality clients due to its softness and durability, as well as our company's ability to customize every aspect of it. I expect the rest of the world will fill the supply void left by the embargo on Iran."
Section 103(b)(1) would ban all imports of Iranian origin from the United States, with the exception of informational material.
High Country Rugs
is a custom oriental rug company based in Aspen and Vail Colorado. All rugs are custom designed online before production, reducing overhead and impact on the environment. This highly efficient business model allows us to provide some of the highest quality rugs in the world for much less than the competition. Visit our site to try our FREE online design studio, no download or log in is necessary.
http://www.reuters.com/article/idUSTRE68E4XB20100915
http://www.reuters.com/article/idUSTRE68E44H20100915?loomia_ow=t0:s0:a49:g43:r1:c0.236842:b37359390:z0
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