RAPAPORT… The definition of a conflict diamond will remain unchanged, despite a three-year effort to broaden the mandate of the Kimberley Process (KP).
Government representatives were not able to reach the required consensus on the issue at last week’s plenary meeting in New Delhi, India. The meeting on November 22 marked the end of the KP’s three-year review period, thus presenting a final opportunity for the definition to be updated, reported the
World Diamond Council (WDC), which represents the industry at the KP.
The definition has been the subject of debate for several
years, with critics arguing that the current language doesn’t reflect the
present situation. The WDC has
been working to expand the definition — which is centered on rough diamonds
used by rebel movements — to include human-rights abuses, labor rights and all
forms of systemic violence.
“While the Kimberley Process Certification Scheme [KPCS]
continues to fulfill 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,”
WDC president Stephane Fischler said Friday.
Although KP member states did not reach a unanimous decision
on the expanded definition, which is required for the motion to pass, they did
endorse the WDC’s updated system of warranties (SoW). The new guidelines
specifically reference international conventions relating to human and labor
rights, anti-corruption and anti-money laundering, Fischler noted.
“While we advocated hard to strengthen the scope of the KP,
we simultaneously strengthened the SoW, which is a powerful tool that is
already applied by the industry, to ensure consumer confidence both within the
KP and independently,” Fischler added.
At the plenary meeting, the KP also agreed to restructure
the operational framework system created for the Central African Republic
(CAR). “We will soon be issuing guidance in this respect for the industry,”
Fischler said, explaining that the new process would transfer the burden of
verifying provenance to importers in the trading centers.
The country is currently separated by green zones, from
which monitored export is allowed, and red zones, from which export is
prohibited, according to the KP’s guidelines.
“We support the objectives of this change in policy, which
is to encourage an increase in legal exports from CAR, as well as improve the
efficiency of the system,” Fischler continued.
Image: WDC president Stephan Fischler speaking at the KP Plenary. (World Diamond Council)
KP Fails to Expand Conflict-Diamond Definition
The Bottom Line
- KP member states did not reach consensus to broaden the conflict-diamond definition to include human rights abuses, labor rights, and systemic violence.
- The World Diamond Council’s updated system of warranties, referencing international human and labor rights conventions, was endorsed to bolster consumer confidence.
- The KP agreed to restructure the operational framework for the Central African Republic, shifting provenance verification responsibilities to importers to improve legal exports.
Summary by Rapaport AI
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