India is expressing worry about the proposed expansion of the definition of ‘conflict diamonds’ under the Kimberley Process. This revision is being championed by developed nations, including the United States and Canada, and seeks to factor in human rights violations and child labor issues. Critics have alleged that such a redefinition could eventually morph into a non-tariff barrier, which could negatively impact developing economies.
Understanding Non-Tariff Barriers
A non-tariff barrier is a method employed to control trade that does not involve levying taxes on imports. These can take various forms, including quotas, sanctions, or embargoes. The principal aim behind such measures is to advance political or economic objectives. Non-tariff barriers are frequently employed by countries as part of their international trade strategies. Unlike standard tariff barriers, such measures spare countries from additional import duties but create different monetary influences that also impact trade significantly.
India’s Standpoint
India’s concerns spring primarily from documented instances of human rights violations in diamond mines in Zimbabwe and Angola. There is apprehension that broadening the definition of conflict diamonds could unwittingly open the doors to the inclusion of plenty more subjective issues. This worry is heightened by the fact that India is currently the global leader in cut and polished diamond production, contributing 75% to the global polished diamond exports. The diamond industry in India employs over 4.64 million people. It is anticipated to provide employment to 8.23 million individuals by 2022. While India condemns human rights abuses and violations of labor laws, it believes these should be handled by other agencies such as the UN Human Rights Commission and the International Labour Organization (ILO).
| Country | Global Contribution to Polished Diamond Exports (%) | Expected Workers in Diamond Industry by 2022(millions) |
|---|---|---|
| India | 75 | 8.23 |
The Kimberly Process: A Background
The Kimberly Process has been criticized in recent years by member countries like Canada, the European Union, and the United States. They argue that the process addresses only a small fraction of the issues pertinent to the diamond trade while overlooking the majority. At a plenary session in Brussels last year, Canada recommended that the definition of conflict diamonds be expanded to consider rough diamonds used by public security forces or armed groups, private or otherwise, that gain wealth through illegal control, bribery, taxation, extortion, or dispossession of people. Being the chair of the Kimberley System Certification Scheme (KPCS) for 2019, India is responsible for rallying other developing countries such as Sri Lanka, Bangladesh, Brazil, and Vietnam to counter this possible obstruction to trade.
