WRITTEN QUESTION E-0848/02

by Glenys Kinnock (PSE) to the Commission

(27 March 2002)

Subject: Diamonds

The successful conclusion of the Kimberley Process is critical if the world-wide trade in conflict diamonds is to be stopped. Unless this trade is rapidly brought to an end,

the millions of people whose lives are affected by diamond-fuelled conflicts will continue to suffer, as will the reputation of the diamond industry and diamonds in general. Ending the trade in conflict diamonds is essential for countries, such as Botswana which produce clean diamonds and rely on the revenue generated for their sustainable development, as well as for the diamond industry in the EU.

Would the Commission therefore indicate whether or not it is satisfied with the progress of the Kimberley Process to date?

Does the Commission consider that the final Kimberley Agreement will be effective in stopping the trade in conflict diamonds?

Does the Commission believe that implementation of the Kimberley Agreement at EU level will be effective in stopping illegal diamonds from entering the European supply chain?

Answer given by Mr Patten on behalf of the Commission

(24 April 2002)

With the aim of breaking the link between armed conflicts and the trade in conflict diamonds, the Kimberley Process has successfully negotiated a Certification Scheme for the international trade in rough diamonds.

On 29 November 2001 the ministerial meeting of the Kimberley Process arrived at detailed proposals for such a scheme. The Commission is satisfied by the result of the negotiations. The proposals were welcomed by the United Nations General Assembly in a resolution adopted 13 March 2002.

The participants of the Kimberley Process met in Ottawa 18-20 March 2002 to address certain technical elements of the Scheme. A ministerial meeting will be held in November 2002 to launch the simultaneous implementation of the Kimberley Certification Scheme.

The measures of the Kimberley Scheme consist of a certification scheme and minimum standards for controlling production, transport, export, import and re-export. A voluntary system of industry self-regulation will provide for a system of warranties, which will help to facilitate the full traceability of rough diamond transactions. The scheme also features a monitoring system including options for review missions.

The certification scheme for rough diamonds will require governments to only allow imports or exports of rough diamonds from other participants if they are accompanied by a Kimberley Certificate stating that the rough diamonds in this shipment have been handled in accordance with the provisions of the Kimberley Process international certification scheme for rough diamonds indicating that they are, in all likelihood, free of conflict diamonds.

The design of the scheme aims at effectiveness and a minimum use of administrative resources. While such a system can never fully remove conflict diamonds from the legitimate trade, it will undoubtedly make the marketing of conflict diamonds inside, as well as outside, of the Community considerably more difficult.

The Commission intends to present a proposal for a Council Regulation implementing the Kimberley Certification Scheme as soon as possible in order to allow the Community to participate in the launching of the scheme no later than the end of 2002. The Regulation will provide for a system of controls throughout the Community. The Commission expects the system to considerably diminish the trade in conflict diamonds. The Commission is counting on the European diamond industry to effectively support the implementation of the scheme and avoid its circumvention. With the introduction of the Scheme there is a real risk that the smuggling of illicit diamonds will increase, which may call for further controls by the Community.