Kimberley Process Certification Scheme

Kimberley Process Certification Scheme. The Kimberley Process Certification Scheme is an international certification system established to regulate the trade in rough diamonds and prevent conflict diamonds from entering the mainstream market. Launched in 2003 following negotiations in South Africa, the scheme aims to assure consumers that purchased diamonds are free from associations with armed conflict and human rights abuses. Its implementation involves a coalition of governments, the diamond industry, and civil society organizations working under a legally binding framework.

Background and establishment

The impetus for the Kimberley Process Certification Scheme emerged in the late 1990s, driven by global concern over the role of diamonds in fueling brutal civil wars in African nations such as Sierra Leone, Angola, and the Democratic Republic of the Congo. These conflicts, funded by the illicit diamond trade, were highlighted by reports from organizations like Global Witness and featured in high-profile media. In May 2000, diamond-producing states met in Kimberley, South Africa, initiating a series of negotiations that included key industry players like De Beers and governments such as the United States and Russia. These talks, supported by the United Nations General Assembly, culminated in the adoption of the Kimberley Process Certification Scheme in 2003, with administrative support later provided by the World Trade Organization.

Key provisions and requirements

The core mechanism of the Kimberley Process Certification Scheme requires each participant to enact national legislation and establish import and export controls. All shipments of rough diamonds must be accompanied by a forgery-resistant Kimberley Process certificate and transported in tamper-resistant containers. Participants must also maintain detailed records of transactions and share statistical data with the scheme’s secretariat. Internal controls mandate that member countries only trade with other participants, effectively creating a closed system. The scheme’s administrative support is rotated among member states, with past chairs including the European Union, India, and the United Arab Emirates.

Implementation and participating countries

Implementation of the Kimberley Process Certification Scheme is decentralized, relying on national authorities in each participating country to enforce the agreed standards. As of 2023, the scheme has 85 participants, representing the vast majority of global diamond production and trade, including major producers like Botswana, Canada, and Russia, and key trading centers such as Antwerp and Dubai. The Plenary is the scheme’s supreme decision-making body, which meets annually. Monitoring involves periodic review visits and the analysis of trade data by working groups, with technical assistance sometimes provided by the World Bank. Notable suspensions for non-compliance have historically affected nations like the Republic of the Congo and Venezuela.

Impact and effectiveness

The Kimberley Process Certification Scheme is credited with significantly formalizing the international diamond trade and reducing the percentage of conflict diamonds in the global market from an estimated 15% in the 1990s to less than 1% today. It has brought stability to the diamond sectors of post-conflict countries like Sierra Leone and supported the economies of major producers such as Botswana and Namibia. The scheme has also fostered unprecedented cooperation between governments, industry leaders like the World Diamond Council, and advocacy groups. Its model has influenced other initiatives aimed at curbing trade in conflict minerals, such as those concerning tin, tantalum, tungsten, and gold from the Great Lakes region.

Criticisms and challenges

Critics, including organizations like Amnesty International and Human Rights Watch, argue the Kimberley Process Certification Scheme has a narrow definition of "conflict diamonds," focusing only on gems financing rebellions against recognized governments. This excludes diamonds linked to state-sponsored violence, human rights abuses, or environmental degradation in countries like Zimbabwe and the Central African Republic. Other challenges include issues of smuggling and non-compliance, weaknesses in internal controls in some member states, and the scheme’s consensus-based decision-making, which can hinder decisive action. The rise of laboratory-grown diamonds also presents a new market dynamic that the scheme’s framework does not address.

Category:International trade Category:Diamond