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(2004/C 88 E/0566)

WRITTEN QUESTION E-0986/04

by Richard Corbett (PSE) to the Commission

(30 March 2004)

Subject:   Blood diamonds

Does the DG Competition have access to the data held by the DG External Relations concerning the Kimberley Agreement on tracing the sources and stocks of diamonds (in order to avoid ‘blood diamonds’ coming on to the market)?

Does the Commission consider that the data held for this purpose might also shed light on the trading practices of companies in the diamond sector? Will it evaluate such data in the context of its consideration of the De Beers ‘Supplier of Choice’ restrictive practices?

Answer given by Mr Monti on behalf of the Commission

(30 April 2004)

In reply to the Honourable Member's written question, it may be useful to clarify the objectives of the Kimberley Process and the role of the Commission within the Kimberley Process.

The Kimberley Process Certification Scheme (KPCS), a multilateral initiative put in place with the backing of the United Nations to stem the flow of ‘conflict diamonds’, has developed a number of internal instruments to promote the effective implementation of its requirements by all Participants in the Scheme, including, notably, the regular reporting of statistics on the trade in, and production of, rough diamonds, and a system of ‘peer review’ of Participants' implementation of the Scheme. The Commission, and specifically Directorate-General (DG) External Relations, representing the Community as a Participant in the KPCS, has access to the information which is made available in this context to all Participants with a view to ensuring and enhancing implementation of the Scheme. However, all the information in question is made available by Participants within the Kimberley Process with the exclusive purpose of ensuring implementation of the Scheme, and the Community, like all other Participants in the KPCS, is bound by strict confidentiality provisions concerning the data to which it has access as a Participant.

The Commission, therefore, wishes to emphasize that as DG Competition is in no way concerned with the implementation of the KPCS (the statistical and monitoring provisions of which concern only aggregated production data and trade flows between countries as well as implementation of the Scheme by Participants, and not actions of particular undertakings), the statistical and other data on implementation of the KPCS to which the Commission, representing the Community as a Participant in the KPCS, has access are not made available to DG Competition. The Commission is of the view that using data made available by Participants in the KPCS for any purpose other than enhancing implementation of the KPCS would be incompatible with the provisions of the Scheme and undermine the effectiveness of the KPCS as a crucial tool in the fight against conflict diamonds.

DG Competition is therefore not in a position to have access to or use the sensitive data gathered in this context for the purposes of considering De Beers' Supplier of Choice allegedly restrictive practices. However, should DG Competition consider that the information relating to trading practices of certain undertakings is necessary to its proper evaluation of the competitive situation in the diamond market, it certainly can make use of its investigatory powers in order to collect such information from the undertakings or organisations concerned.

As already referred to in the Commission's reply to the Honourable Member's previous Oral Question H-0637/03 during question time at Parliament's November 2003 session (1), DG Competition, after having authorised the implementation of the Supplier of Choice arrangements by De Beers in January 2003, committed to look at the diamond market closely, should legal or factual elements come to its attention, which would affect the view the Commission had taken of the Supplier of Choice arrangements.

Following allegations of a number of companies on the implementation of the Supplier of Choice arrangements by De Beers, DG Competition has sent a number of requests for information to a variety of market operators in order to be fully informed of the situation in the market and is in the process of collecting answers to these requests. Once the answers have been analysed, the Commission will have to consider the next steps, if any, to be taken.

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(1)  Oral Reply, 18.11.2003.

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