Excessive criticism because of their strong "automatic alliances"

In a recent issue of Diamond Intelligence Briefs, "Keeping Stock of US Kimberley Process Certificates," Chaim Even-Zohar, an industry analyst, is once again considering Trade in diamonds in the United States and the country's lack of enthusiasm when it comes to implementing Kimberley Process certification standards (Kimberley Process, KR). Judging by the title of the publication, it gives the impression that no one, or at least the government in charge of it, actually monitors the stock of empty KP certificates.  The United States Government relies on the United States Kimberley Process Authority (USKPA), a non-profit trade association, which licenses transport and diamond companies to issue KP certificates for diamond exports from the United States. Or, as Even-Zohar writes, she "gives away" the confirmation of such KP certificates "at the level of the exporter", "avoiding legal responsibility" and shifting her responsibility to those whom the KPI's Certification Scheme is called to control.

In this regard, the subtitle of his essay "Will the Trump Administration revitalize the domestic diamond industry" is somewhat misleading: from the very beginning it has been suggested that the diamond industry will have an ally in the person of the first daughter of Ivanka Trump and Jared Kushner, , Her husband (and the senior adviser to the president). The main question is whether the president will exercise his authority over the American department for working with the Kimberley Process to do something more than to use the KP to advance the goals of US foreign policy - something the State Department has shown in the past, According to the author, "extraordinary interest". Will the Trump administration be sufficiently interested in diamond trading to assume the legal responsibility associated with this,

The influence of Ivanka

The first daughter of President Ivanka Trump will bring a good knowledge of the business of diamonds and diamond jewelry to the administration, even if - as announced on January 11 - she will officially leave work for The Trump Organization and her brand of diamond jewelry until her father holds this position. The most obvious consequence will be an advantage for the American diamond business and the strengthening of existing strong ties between the government and the Diamond Dealers Club. "It is reasonable to assume that the diamond community in New York will continue to be important for both Ivanka and her husband ... They can do a lot of good for this sector," writes Even-Zohar.

He suggests that the company's recent involvement, (Madison Avenue Diamonds) in a lawsuit with KGK Jewelry, De Beers Indian sightholder (which Madison lost) caused her to focus her attention and perhaps the attention of the White House on consumer protection issues and confidence in the jewelry industry . "The diamond industry in New York could not have dreamed of more knowledgeable friends in Washington," writes Even-Zohar, and even suggests the possibility that President Trump will be able to actively engage in diamond trading in the context of the tasks he spoke about widely in the election - such , As employment and trade regulation. "In New York there is almost no production of diamonds. Will the elected president return Trump cutters? "- the author of the essay asks the question. At the same time, the main issue is,

Double standards

Even-Zohar begins with an explanation: "KP is undoubtedly falling into the sphere of responsibility of the US president," but the most active participant is the State Department, whose main interest in the requirements and rules of the KP seems to be to control other countries so that they Contributed to the achievement of American interests. Sanctions against the diamond trade of Zimbabwe, introduced in 2011, which have not yet been lifted (the EU lifted its sanctions in 2013), are one of the clear examples. Another example is the partial resumption of exports of rough diamonds from the Central African Republic last year: "Without diminishing the merits of the chairman of the KP, (partial) lifting of sanctions for the export of diamonds from the CAR, it became possible because the State Department wanted to do this, Because the United States was very interested in this, "the author notes. But within the US, the authority to work with the Kimberley Process was delegated to "half a dozen government departments and agencies" in a terribly bureaucratic system.  

"From the very first days of the KP," writes Even-Zohar, "the State Department was not very interested in implementing the KP requirements in the United States, but was more focused on protecting the interests of international politics abroad." Some argue that the United States has failed to meet even the "minimum requirements" of the KPCS, and among the 81 member countries it is believed that there is one law for the United States, and another law for everyone else. The United States has not been subjected to excessive criticism because of their strong "automatic alliances" in the CP (Australia, Europe, Canada) and their "warm relations" with non-governmental organizations working with the KP, who often count on the US to finance its activities. Even-Zohar summarizes: "In the latest KP Peer Review Mission mission (2012), civil society representatives did not participate. Undoubtedly, if the same American standards were applied to African countries, Dubai, Switzerland or other states, NGOs would take advantage of this opportunity and write sharp critical reports. " Instead, they preferred to close their eyes. But this situation can change.

"Swamp" Certification scheme KP

The US Kimberley Process Authority (USKPA) is responsible for issuing CA certificates in the US, but Even-Zohar specifies in detail that there are many inconsistencies, statistical deviations and alarming signs indicating that there is "an obvious Lack of proper oversight "for the diamond trade in the United States. Wild statistical discrepancies in diamond trade data in the US indicate prosperous "ring deals" (multiple imports and re-exports of the same goods in order to increase performance and obtain funding from banks, which allows among other things to obtain legal means for money laundering "Or more profitable investments), although he believes that this is probably done by foreign players, rather than by members of the domestic industry.

However, one of the positive developments is that in September 2016, the US State Department, the Census Bureau (monitors official trade figures) and the USKPA announced that they had created a Public-Private Partnership to "strengthen the process, With the help of which the US industry can acquire KP certificates approved by the government. " This was expected a long time ago (the USKPA was established in 2003), and this is good news, even if there are still no reports of the implementation of his work. However, Even-Zohar wonders why it was required to create USKPA. The answer is this: because the US government "has never assumed responsibility for issuing state certificates of the KP." But if a well-established non-profit education has been doing this for 13 years, There should not be problems ..., but there is a problem, because "USKPA also avoids legal responsibility".

This did not escape the attention of the independent expert review missions of the KP, which "politely" called for the removal of the disclaimer on the KP certificates issued by the US Department of Operations with the KP: "The person who issues this certificate does not bear any responsibility for the accuracy of the data Registered by the exporter of the mentioned supply ". Needless to say, this is very surprising. Even-Zohar writes: "How can the government issuing the KP certificate evade responsibility, stating that it is not responsible for its content"? This did not escape the attention of the independent expert review missions of the KP, which "politely" called for the removal of the disclaimer on the KP certificates issued by the US Department of Operations with the KP: "The person who issues this certificate does not bear any responsibility for the accuracy of the data Registered by the exporter of the mentioned supply ". Needless to say, this is very surprising. Even-Zohar writes: "How can the government issuing the KP certificate evade responsibility, stating that it is not responsible for its content"? This did not escape the attention of the independent expert review missions of the KP, which "politely" called for the removal of the disclaimer on the KP certificates issued by the US Department of Operations with the KP: "The person who issues this certificate does not bear any responsibility for the accuracy of the data Registered by the exporter of the mentioned supply ". Needless to say, this is very surprising. Even-Zohar writes: "How can the government issuing the KP certificate evade responsibility, stating that it is not responsible for its content"? Does not bear any responsibility regarding the accuracy of the data registered by the exporter of the said supply. " Needless to say, this is very surprising. Even-Zohar writes: "How can the government issuing the KP certificate evade responsibility, stating that it is not responsible for its content"? Does not bear any responsibility regarding the accuracy of the data registered by the exporter of the said supply. " Needless to say, this is very surprising. Even-Zohar writes: "How can the government issuing the KP certificate evade responsibility, stating that it is not responsible for its content"?

http://www.thediamondloupe.com/articles/2017-01-16/chaim-even-zohar-potential-impact-trump-us-diamond-trade-kp-certification