International Trade in Conflict Minerals: Solutions for the EU Regulatory Framework

Silná Zuzana and Kittová Zuzana
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Kittová Zuzana: University of Economics in Bratislava, Faculty of Commerce, Department of International Trade, Dolnozemská cesta 1, 852 35 Bratislava, Slovakia

Studia Commercialia Bratislavensia, 2015, vol. 7, issue 28, 620-629

Abstract: International trade in minerals, particularly tin, tungsten, wolfram, and gold, from conflict- affected or high-risk areas can have significant implications on intensifying and perpetuating the conflicts. It occurs that illegal mines are run by armed groups. As a result, minerals acquired from such sources provide financial means to armed movements and support the conflict. In this respect, several international and national regulatory frameworks for responsible sourcing have been established. The most important international initiative is the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, which provides importers with voluntary guidelines for responsible sourcing policy. In addition, the US passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. Section 1502 of the Dodd-Frank Act lays down the rules for responsible sourcing that are compulsory for any company listed on the US stock exchanges. Following to these initiatives and further public consultations, the European Commission and the European External Action Service introduced a proposal for a comprehensive EU policy focused on responsible sourcing of conflict minerals. The package consists of a legislative proposal laying down rules for self-certification of responsible importers, as well as of additional measures providing for support for SMEs and incentives for importers of conflict materials. The aim of this paper is to analyse the legislative proposal and discuss its possible implications given the fact that the EU legislation should be compatible with standing frameworks.

Keywords: Conflict minerals; conflict-affected areas; responsible sourcing; due diligence; regulatory framework (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:stcomb:v:7:y:2015:i:28:p:620-629:n:1

DOI: 10.2478/stcb-2014-0059

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