./.WORLD TRADE
ORGANIZATIONG/C/W/432
12 November 2002
(02-6230)
Council for Trade in Goods Original:  English
WAIVER CONCERNING KIMBERLEY PROCESS CERTIFICATION SCHEME
FOR ROUGH DIAMONDS
Communication from Canada, Japan and Sierra Leone
The following draft waiver decision, dated 11 November 2002, has been received from the
Permanent Mission of Canada on behalf of Canada, Japan and Sierra Leone.
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Draft Decision of [...]
The General Council,
Having  regard  to the Guiding Principles to be followed in considering applications for
waivers adopted on 1 November 1956 (BISD 5S/25), the Understanding in Respect of Waivers ofObligations under the General Agreement on Tariffs and Trade 1994, and paragraphs 3 and 4 of
Article IX of the Marrakesh Agreement Establishing the World Trade Organization (hereinafter
"WTO Agreement");
Conducting the function of the Ministerial Conference in the interval between meetings
pursuant to paragraph 2 of Article IV of the WTO Agreement;
Taking note  of the request of the Members listed in the Annex for a waiver from  paragraphs
1 of Article XI: 1, 1 of Article I:1, and 1 of Article XIII:1 of the GATT 1994 with respect to their
domestic measures to regulate the international trade in rough diamonds consistent with the
Kimberley Process Certification Scheme;
Recognizing  that the trade in conflict diamonds is a matter of serious international concern,
which can be directly linked to the fuelling of armed conflict, the activities of rebel movements aimed
at undermining or overthrowing legitimate government s, and the illicit traffic in, and proliferation of,
armaments, especially small arms and light weapons;
Recognizing  the extraordinary humanitarian nature of this issue and the devastating impact of
conflicts fuelled by the trade in conflict diamonds on the peace, safety and security of people in
affected countries and the systematic and gross human rights violations that have been perpetrated in
such conflicts;
Noting  the relevant resolutions of the United Nations Security Council under Chapter VII of
the United Nations Charter and the Kimberley Process Certification Scheme Participants’ intent to
contribute to and support the implementation of the measures provided for in those resolutions;
Further noting  that the Kimberley Process Certification Scheme responds to the call of the
United Nations General Assembly to give urgent and careful consideration to devising effective and
pragmatic measures to address the problem of conflict diamonds;G/C/W/432
Page 2
Further recognizing  the interests of many WTO Members in the legitimate trade in rough
diamonds;
Noting  the assurances given by Members listed in the Annex that they intend, upon request,
to enter promptly into consultations with any inte rested Member with respect to any difficulty or
matter that may arise as a result of their domestic implementation of the Kimberley Process
Certification Scheme for rough diamonds;
Considering that, in light of the foregoing, exceptional circumstances exist justifying a waiver
from paragraphs 1 of Article XIII, 1 of Article I, and 1 of Article XI of the GATT 1994 with respect
to the trade in rough diamonds;
Decides  as follows:
1. With respect to the measures taken by a Member listed in the Annex necessary to prohibit the
export of rough diamonds to non-Participants in the Kimberley Process Certification Schemeconsistent with the Kimberley Process Certific ation Scheme, paragraphs 1 of Article I; 1 of
Article XI;  and 1 of Article XIII of the GATT 1994 are waived as of 1 January 2003 until
31 December 2006.
2. With respect to the measures taken by a Member listed in the Annex necessary to prohibit the
import of rough diamonds from non-Participants in the  Kimberley Process Certification
Scheme consistent with the Kimberley Process Certification Scheme, paragraphs 1 of
Article I; 1 of Article XI;  and 1 of Article XIII of the GATT 1994 are waived as of
1 January 2003 until 31 December 2006.
3. Members listed in the Annex, upon request, intend to enter promptly into consultations with
any interested Member with respect to any difficul ty or matter that may arise as a result of the
implementation of the measures regulating the export or import of rough diamonds covered
by this waiver; where a Member considers that any benefit accruing to it under the GATT
1994 may be or is being impaired unduly as a result of such implementation, such
consultations shall examine the possibility of action  for a satisfactory adjustment of the
matter.
4. Any Member that considers that measures regulating  the import or export of rough diamonds
covered by this waiver are being applied inconsistently with this waiver or that any benefit
accruing to it under the GATT 1994 may be or is being impaired unduly as a result of
measures to implement the Kimberley Process Certification Scheme covered by this waiverand that considers that consultations have proved unsatisfactory, may bring the matter before
the General Council, which will examine it promptly and will formulate any
recommendations that it  judges appropriate.
5. This waiver shall not preclude the right of affected members to have recourse to Articles XXII
and XXIII of the GATT 1994.
ANNEX
Canada
Japan
Sierra Leone
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