August 10, 2002
The Government of Canada today announced that it will participate fully in the Kimberley Process certification scheme for rough diamonds and that it has introduced enabling legislation in the House of Commons. The certification scheme, which will affect the way Canada and 47 other countries export and import rough diamonds, is designed to curb the global illicit trade in conflict diamonds, which has had a devastating impact on peace, security and sustainable development in Angola, Sierra Leone, the Democratic Republic of Congo and Liberia.
"Canada has played a leadership role in developing measures to curb trade in conflict diamonds," said Herb Dhaliwal, Minister of Natural Resources Canada (NRCan). "By supporting the process to ensure the security and sustainable growth of this industry in developing countries in Africa, we will help ensure that Canada's industry continues to prosper." "By exercising control over the global exports and imports of conflict diamonds, the international community will cut off sources of rebel funding in affected African countries. This will help reduce violent conflicts and prevent their recurrence," said Foreign Affairs Minister Bill Graham. "The certification scheme should serve to promote economic development and increase tax revenues in those nations as legitimate mining ventures increase."
"This initiative is important for the diamond industry and for northerners," said Robert D. Nault, Minister of Indian Affairs and Northern Development. "Canada's participation in the Kimberley process will help maintain jobs and economic prosperity, and lead northern communities toward greater self-sufficiency."
David Pratt (MP Nepean-Carleton) also lent active support to this issue-first, through the introduction of a private member's bill (which was overtaken when Canada started negotiations for the Kimberley Process), and second, when he represented Canada at a ministerial-level Kimberley Process meeting in Gaborone, Botswana, in November 2001.
The international certification scheme, which ministers would like to have implemented by the end of 2002, was negotiated through the Kimberley Process, a South African-led initiative to prevent conflict diamonds from entering legitimate markets. The Process includes the governments of 48 countries, as well as representatives from the diamond industry and non-governmental organizations.
Among other measures included in the certification scheme, participating countries will be required to export rough diamonds in tamper-resistant containers and provide a certificate, validated by the government of the export country, confirming that the diamond exports are conflict-free. Participating countries will also be prohibited from importing rough diamonds from countries not engaged in the Kimberley Process.
Under proposed Canadian legislation, NRCan will be the Canadian authority for the import and export of rough diamonds. As such, it will ensure that Canada meets its inspection and enforcement obligations under the international certification scheme. The Department of Foreign Affairs and International Trade will continue to oversee the coordination of Canada's participation in international agreements related to the Process.
Canada produces nearly six percent of world diamond production by value from the Ekati mine in the Northwest Territories, and exports its entire production of rough diamonds for sorting. Some gem-quality diamonds are re-imported to Canada for cutting and polishing. Production will increase in early 2003 when the Diavik mine, also in the Northwest Territories, begins operation.
This initiative builds upon the Government of Canada's commitment to creating a world-leading economy, and to creating and sharing opportunities with people in northern communities.
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