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KP plenary fails to reach consensus on strengthened scope

22nd November 2019

By: Marleny Arnoldi

Deputy Editor Online

     

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The World Diamond Council (WDC) says governments have failed to reach consensus on a strengthened scope for the Kimberley Process (KP) during this year’s KP plenary meeting, which was held in India earlier this week.

The meeting was expected to discuss the end of the KP’s three-year reform and review cycle, including the future of the much-anticipated reform agenda.

The KP is a multilateral trade regime established in 2003 with the goal of preventing the flow of conflict diamonds.

The KP’s role is not to be a sanctions-imposing body, but rather the operator of a system that prevents violence, supports conflict resolution and facilitates capacity-building in the mining areas, while maintaining and growing consumer confidence in diamonds.

“While the KP Certification Scheme (KPCS) continued to fulfil an important function, the failure of the political process to achieve consensus was a missed opportunity to enhance the effectiveness of this foundation stone of integrity in the diamond business.

“The KPCS had been a critical element in maintaining peace in producing countries through increased traceability of rough diamond trade, and we must redouble our efforts to strengthen its impact,” said WDC president Stephane Fischler.

The WDC reported that about 95% of the rough diamonds produced – by value – were mined by a handful of large industrialised mining companies, almost all of which had implemented compliance systems that went beyond the scope of the KPCS.

These all required observance of the WDC’s System of Warranties (SoW), which had been expanded last year.

“As recognised in the KP’s core document, the SoW was designed to facilitate full traceability of diamond transactions by government authorities. This was achieved by requiring all business-to-business sellers of rough diamonds, polished diamonds, and jewellery containing diamonds, to include a statement on the invoice or memo document that the goods being sold were in compliance with the KPCS. 

“Importantly, the updated SoW, which was endorsed by this session of the KP, moved significantly beyond the KPCS, by including a commitment by companies to adhere to WDC guidelines, which expressly reference international conventions relating to human and labour rights, anti-corruption and anti-money laundering,” explained Fischler.

While the WDC advocated strongly that the scope of the KP be strengthened, it simultaneously strengthened the SoW, which was a powerful tool that had already been applied by industry, to ensure consumer confidence both within the KP and independently.

During the KP plenary meeting in New Delhi, following a proposal by the US delegation, the KP Plenary had agreed to restructure the operational framework system created for the Central African Republic (CAR), while maintaining the current strict monitoring of exports.

“We supported the objectives of this change in policy, which was to encourage an increase in legal exports from the CAR, as well as improve the efficiency of the system.

“As this process will shift some of the burden of verifying the provenance of the goods to the importers in the trading centres, we will soon issue guidance in this respect for the industry,” Fischler confirmed.

The WDC expressed its support for new KP-related community development projects reported on during the plenary meeting.

It noted that they were excellent examples of the organisation’s capacity to expand beyond its original mandate as mainly a preventive mechanism, to also being a facilitator of reconstruction and renewal in countries that had been or still were afflicted by conflict.

One such project is the European Union- and Germany-funded “Mano River Union”, which supported KPCS implementation in Côte d'Ivoire, Guinea, Liberia and Sierra Leone, preventing cross-border smuggling, as well as capacity building in artisanal mining communities.

The WDC said the same regional approach was being considered for countries in Central Africa.

Another example was the US Agency for International Development’s Artisanal Mining and Property Right project, which addressed development challenges in the artisanal/small-scale mining sector in the CAR, while improving compliance with KPCS requirements.

“These innovative national or regional programmes complemented a growing number of grass-roots capacity-building being carried out by industry, including WDC member companies and organisations.

“The KP should not only be judged by what it prevents, but also by what it is able to facilitate. Peacemaking and nation-building were both part of its legacy, and it was vital that it used all avenues at its disposal to achieve these goals,” Fischler lamented.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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