WTO approves trade ban on 'blood diamonds'

Asian Economic News, March 3, 2003

GENEVA, Feb. 27 Kyodo

The World Trade Organization (WTO) on Wednesday approved a ban on the trade of so-called ''blood diamonds'' that have financed armed conflicts in Africa.

The decision, reached at the Council for Trade in Goods of the Geneva-based world trade watchdog, bans such trade retroactively from Jan. 1 this year to Dec. 31, 2006.

With the move, rough diamonds that originate from areas in Africa experiencing conflicts are waived from the WTO's founding principles under which governments must offer the same conditions to all trading partners.

In last November, 11 countries, including Japan, the United States and Canada, jointly proposed the waiver. The governments and the diamond processing industries of 52 countries reached an agreement to stop the trade in rough diamonds from African areas with civil conflicts.

''Trade in conflict diamonds is a matter of serious international concern, which can be directly linked to the fueling of armed conflict, the activities of rebel movements aimed at undermining or overthrowing legitimate governments, and the illicit traffic in, and proliferation of, armaments especially small arms and light weapons,'' the WTO said in a statement.

Blood diamonds have played a crucial role in prolonging brutal civil wars in countries like Angola and Sierra Leone.

They are estimated to make up about 3% of the annual world production of rough diamonds, which totaled $7.8 billion in 2001.

Wednesday's decision still needs a formal approval by the WTO's General Council, but when authorized, exporters of rough diamonds must show government certification that their products do not come from conflict-ridden areas.