OTTAWA - With unanimous support from Senators this week, Canada moved ahead to curb the global illicit diamond trade. Bill S-36 introduces amendments to the Export and Import of Rough Diamonds Act to comply with the Kimberley Process Certification Scheme (KPCS), which came into effect in January 2003.

KPCS is a joint agreement between governments, the diamond industry, and civil society to quell the trade of “blood diamonds”— diamonds traded by rebel groups to finance armed conflicts in several African nations, such as Sierra Leone, Angola, and the Democratic Republic of Congo. KPCS works by enforcing strict requirements to ensure that diamonds traded are conflict-free.

Although blood diamonds account for a very small percentage of the international diamond trade, Larry Bagnell, Parliamentary Secretary to the Minister of Natural Resources, says they “have had a devastating impact on peace, security, and sustainable development in affected countries.”

Canada is the world’s third-most-important diamond producer, with an estimated mine production value of C$2.1 billion and 4,000 jobs in the diamond industry. The KPCS includes 43 countries that are Canada’s major diamond trading partners, and that account for 99.8 percent of global diamonds that are produced, processed, exported, and imported.

Bill S-36, which passed its third reading in the Senate this week, clarifies which stones fit into the definitions under the Kimberly Process. Also, Canada will file trade data based on KPCS requirements.

Bagnell said the Kimberley Process has enabled African countries most affected by the diamond conflict to regain control of their resources. The legal export of diamonds in these countries has increased substantially, with the value of Sierra Leone diamond exports increasing from C$10 million in 2000 to C$130 million in 2004.

Canadian authorities have seized dozens of diamond shipments that violated the Kimberley Process; charges have been laid and prosecutions have either been completed or remain ongoing.

Canada took over as chair of the Kimberley Process in January of 2004 for a two-year term, succeeding South Africa. The Canadian Jewellers Association stated in their press release, “The selection of Canada was an endorsement of the early and key leadership role our government played in the development of measures to fight the global trade in conflict diamonds.”

The Act will be reviewed every three years in consultation with stakeholders.