"EU Deal: Far from Reality," 20 Jun 2016

In a new report, Swedwatch presents the practical implications of existing regulations on conflict minerals and concludes that EU negotiations have failed to address key issues related to the illicit trade. Products…used every day…contain minerals extracted…in conflict-affected areas where armed groups use the illicit trade of minerals to finance continued conflict…The OECD has…adopted a due diligence guidance…The EU has reached an agreement on new legislation requiring upstream companies…to conduct due diligence…The Swedwatch report “Far from Reality” provides an analysis of the implications of existing regulations, with the Democratic Republic of Congo (DRC) as an example. The report concludes that the EU agreement falls short…and should instead build on the OECD Guidance – which also includes downstream actors…[T]he…due diligence requirements on upstream companies will rely on establishing a…list of…high-risk countries, instead of requiring on-going due diligence…Such a provision risks becoming rigid and unadaptable…Swedwatch recommends that…governments implement…far-reaching requirements on their companies, in order to cover both upstream and downstream actors…