Strasbourg, 20/05/2015 (Agence Europe) - On Wednesday 20 May, the first reading vote by the European Parliament on the draft regulation proposed by the Commission in March 2014 to limit the funding of military and armed groups in conflict zones, such as in the Great Lakes Region in the DRC and East Africa, through the extraction and trade of tin, tungsten, tantalum and gold (3 TG - which are essential in the manufacture of high-tech equipment and goods), produced a somewhat theatrical situation.
During the vote with 400 in favour, 285 against, with 7 abstentions, MEPs reversed the Commission and international trade committee positions and gave their support to an obligatory certification system for all EU importers of the metals concerned that are supplied from conflict zones - in other words, smelters and refiners and also the downstream importers of these products (that is, 880,000 EU companies using these metals in the manufacturing of consumer goods). This obligatory system would bind all the businesses in the supply chain to provide the traceability of these raw materials to prove that they have not been tainted by human rights violations or linked to the funding of armed groups, tax evasion or money laundering.
The Parliament was clearly divided into two different camps on the initial Commission proposal, which sought to introduce a voluntary certification system for importers and producers of the metals concerned so as to avoid imposing too much of a burden on the smallest companies. For those criticising it, an obligatory certification system could also lead to what would almost constitute an embargo of the countries supplying these metals, such as the DRC and the Great Lakes Region
Following the line advocated in the proposal of the rapporteur at the Parliament Iuliu Winkler (EPP, Romania), the right wing at the Parliament (EPP, ECR and liberals) did not want to impose certification except for the smelters and refiners (that is, around 20 companies in Europe). On Wednesday, however, it was groups on the Left at the Parliament - the S&D, GUE/NGL and the Greens/EFA - who called for a duty of care for the whole supply chain, that won the vote. This was thanks to the adoption of two amendments submitted by a dissident of the Liberal group, the former Belgian foreign minister and European commissioner for development, Louis Michel.
At a vote of 343 in favour, 331 against and 9 abstentions, the MEPs decided not to close the first reading position and to start informal negotiations in trialogue with the Council and Commission in order to agree on a final version of the legislation and thus avoid a second reading - which would have long delayed the adoption of a European certification mechanism.
In its position, the Parliament also calls on the Commission to provide those very small businesses and SMEs that want it with financial aid for certification through the COSME programme. The Parliament also insists on the strictest monitoring of the system, with a review two years after its enforcement and every three years from then on (instead of three and six years respectively, as the Commission proposed). The Parliament also insists on an impact assessment on the local people in conflict areas and on the costs for EU companies.
“Universal awareness has triumphed on the sordid racketeering. It will be enough that the companies declare the identity of their direct suppliers. We ask them neither for an audit nor a report. It is therefore a minimum constraint without an overload of red tape”, said Louis Michel. “This is a victory for the S&D Group which has succeeded in imposing a duty of care on the whole supply chain. In its trialogue negotiations, the Parliament will argue that all products manufactured or sold in the EU and containing the 3 TG will have to indicate their origin. The Right backed hypocritical legislation supported by lobbyists which would not have changed the situation on the ground and would only have had an impact on 0.5% of the companies that that use or market these minerals in the EU”, said Belgian Socialist Marie Arena. “By voting for an obligatory system of transparency on the whole supply chain for minerals, the Parliament has refused to be subjected to the cynicism of the Commission and a large part of its right wing which is more concerned about serving the interests of a few companies than saving the people who fall victim to the violence of armed groups”, said French ecologist Yannick Jadot.
Inspired by similar legislation adopted in the USA in 2010 - the Dodd-Frank Act - the system adopted on Wednesday was supported by numerous NGOs and Congolese doctor Denis Mukwege, who recently won the Sakharov Prize for his work to help rape victims. “This option binding the whole supply chain is the only political gesture able to put the respect of human rights above certain people's economic interests. The MEPs made a choice of coherence and credibility”, Mukwege stated. (Emmanuel Hagry)