The Antwerp World Diamond Centre (AWDC) is advocating for rough-verification nodes outside the Group of Seven (G7) bloc as a way of enforcing sanctions on Russian goods, the organization said.
“We believe this is a necessary step in the further development towards a control system that meets the interest of all stakeholders involved, in particular those of African producing countries,” according to a statement the AWDC released on Friday. “The conversations are progressing constructively, and we all are working towards an effective and efficient control system with [a] focus on sanctioned goods.”
The announcement follows opposition from across the industry to the European Union’s plan for Antwerp to be a single inspection point. This would have required all rough to undergo verification in the Belgian city before it could enter G7 markets as polished.
Botswana and other African mining countries claimed the procedure would place an unfair burden on the supply chain. The World Federation of Diamond Bourses (WFDB) has criticized the plan’s inefficiency.
On Friday, the AWDC said it sought a “solid verification system, underpinned by traceability, that is workable for all parties involved.” However, this must not disrupt the trade in non-sanctioned goods, it cautioned.
To this end, the organization supports implementing “one or more additional rough-verification points outside the G7,” it continued. It did not specify where these would be.
The AWDC is acting as an “industry representative and expert” in conversations at G7 and EU level, it said. These conversations are “progressing constructively, and we all are working towards an effective and efficient control system with focus on sanctioned goods.”
The trade body is also working on a “smooth transition towards the implementation of a fully fledged traceability system,” it continued.
SOURCE:rapaport.com
