Dear Excellencies, Ladies and Gentlemen, Dear KP Family,

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1 Vice-Eersteminister en Minister van Werk, Economie en Consumenten, Belast met Buitenlandse Handel Vice-Premier Ministre et Ministre de l Emploi, de l Economie et des Consommateurs, Chargé du Commerce Extérieur TOESPRAAK DOOR KRIS PEETERS VICE-EERSTE MINISTER EN MINISTER VAN WERK, ECONOMIE, CONSUMENTENZAKEN, BELAST MET BUITENLANDSE HANDEL Kimberley Process Intersessional 19 juni 2018 Dear Excellencies, Ladies and Gentlemen, Dear KP Family, It is with great pleasure that I can welcome you today in Antwerp, not only my own hometown but also the world s Diamond Capital since This is indeed the right place to organize this Kimberley Process Intersessional. Not in the least because Antwerp and Belgium have been strong supporters of the Kimberly Process since its very inception. And together with us, so are the EU and its 28 member states. 1

2 And together with you, KP Participants and Observers, we have managed to turn the page of the dark period when conflict diamonds contaminated global supply chains. Together, we have made real progress. Today, conflict diamonds account for a negligible part of rough diamonds in circulation, down from 15% back in But the race is far from run. We need to remain vigilant to sustain and strenghten the progress that has been achieved. Because in some cases, diamonds remain a source of conflict, rather than a source of sustainable development. Together with you, Belgium is committed to continuing this common endeavor and turn natural resources, and diamonds in particular, into an unquestionable partner for sustainable and inclusive growth. This drives our commitment to reform the Kimberley Process. 2

3 The European Union as Chair of the Kimberley Process, together with India and Angola, are currently shepherding the reform process in a bid to keep the KP fit for purpose. Belgium supports this reform process and we would like to see progress in an inclusive way. Like many other sectors, the diamond sector faces new challenges. Due to technological advances in the production of synthetic diamonds, diamond producing countries and the diamond industry need to rethink their business model and marketing strategies. The block chain revolution has also reached the diamond sector offering increased traceability. Discussions on KP Reform need to take these evolutions into account. An ambitious agenda is put forward based on a deepening, widening and professionalizing of the KP. 1) First of all deepening: Internal controls are the hallmark of the KP. Reinforcing the peer 3

4 review mechanism and reporting requirements are quick, but essential wins. 2) Secondly widening: The Core Document is the foundation of the KP. Many Administrative Decisions have since then complemented the Core Document. Streamlining the KP acquis is thus necessary to reinforce implementation. In a later stage it will also give us the opportunity to look at the scope of the KP itself. 3) Finally professionalizing: the current Administrative Support Mechanism has delivered robust results especially given its limited resources. We need to take stock of these and assess how to reinforce the administrative capabilities of the KP. I am confident that you all perceive the current reform cycle as a golden opportunity to modernise the KP and to answer to the needs and demands of retailers and final consumers. 4

5 This being said, we do realise that Rome wasn t built in a day. Policy changes should be flanked by appropriate capacity building and training to make sure these policies are implemented correctly and in accordance with capabilities at all levels, especially for countries who depend on fiscal income from the diamond industry. The Antwerp World Diamond Center at this point already provides technical assistance and training to KP Participants who encounter challenges linked to KP implementation and knowledge. I am grateful that our industry trains African diamond producing countries so they can maximize revenues of their precious stones. Natural resources are indeed a vital component of many African economies. Growth of the mining industry, and of the diamond industry in particular, can bring vital resources for economic development. Beneficiation is a key element in this discussion. 5

6 Many African governments have been successfully testing innovative natural resources strategies in a bid to improve the livelihoods of their populations, while also ensuring the respect of environmental and social standards. One of the best examples of these efforts is the Africa Mining Vision, that was adopted by Heads of State at the February 2009 African Union summit. Belgium wants to be a partner in this endeavour. We are convinced that peace and security, development and the protection of human rights go hand in hand. Excellencies, Ladies and Gentlemen, Belgium is host to the Largest rough diamond trading centre worldwide. In 2017, a total of million carats of diamonds were imported to and exported from Antwerp for a total value of $US46 billion in diamonds. Diamonds occupy the 4th place in the ranking of trade goods in Belgium. 6

7 Each year, Kimberley Process certificates are issued in the EU and thus in Antwerp, or almost half of all the KP certificates issued worldwide. Antwerp has over 1,600 diamond firms officially registered with the Federal Public Service Economy, including rough diamond producers and dealers, manufacturers and polished diamond wholesalers. An effective implementation of minimum standards and an improvement of its governance systems are essential to further strengthen the functioning of the KP to ensure a more coherent playing field for all participants. Let me conclude, ladies and gentlemen, by thanking the KP Chair for hosting the KP Intersessional in the brilliant city of Antwerp. A special word of thanks goes also to the organizing entities: the European Commission, the City of Antwerp, the Antwerp World Diamond Center and the Belgian federal ministries of Foreign Affairs and Economy. 7

8 And finally, I would like to thank all KP Participants for having supported the successful Belgian bid for a non-permanent seat in the UN Security Council. Belgium has a long track record as a trustworthy development partner, in particular for the poorest and the most vulnerable countries. Fostering consensus, acting for peace is the motto we will stand by during our tenure in the Security Council. And it is also what drives us to remain a steadfast supporter of the Kimberley Process. Thank you. 8