Friday, November 5, 2010

Zimbabwe Thumbs Nose at Diamonds-Control Regime

Zimbabwe is vowing to push ahead with a massive export of controversial gems from its violence-plagued diamond fields, despite its failure to win approval from a global regulatory scheme.
The threat from close allies of President Robert Mugabe is a major challenge to the Kimberley Process, the global certification system that aims to prevent the trade of “blood diamonds” from war zones.
Despite four days of meetings this week, the 75-nation Kimberley Process was unable to reach agreement on whether to allow exports of Zimbabwe’s diamonds, which could represent up to 25 per cent of the world’s diamond exports within the next two years.
The Zimbabwe diamonds are one of the richest discoveries in decades, and Zimbabwe could become the world’s biggest diamond producer. But hundreds of people have been killed or beaten by Zimbabwe’s military and police as they seized control of the diamonds, according to human-rights groups.
Zimbabwe’s Mines Minister Obert Mpofu said his government would “immediately” begin selling its diamonds. “Zimbabwe will sell diamonds without any conditions,” he vowed on Thursday, according to Reuters news agency.
Canada was one of the earliest architects of the Kimberley Process, and it was a key player at the meetings this week in Jerusalem. Canadian officials, along with European and Australian representatives, are still unwilling to allow Zimbabwe to export its diamonds freely on world markets, sources said. Since the system requires a unanimous agreement, no deal was possible when Canada, Europe and Australia objected.
Zimbabwe might now push ahead with exports in defiance of the Kimberley Process. It has already won support from India, China, Russia and most African countries. Because of the failure to reach agreement this week, and because of ambiguities in international trade rules, Zimbabwe might now legally have the right to export its diamonds.
* Globe and Mail