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Arabica Robusta

IPS - U.S. Passes New Rules Regulating Conflict Minerals | Inter Press Service - 0 views

  • On Wednesday, the Securities and Exchange Commission (SEC), charged with overseeing U.S. stock exchanges, approved rules on the implementation of two widely anticipated provisions of a broad financial reform package passed by the U.S. Congress in mid-2010, known in part as Dodd-Frank.
  • The first provision, section 1502, is aimed at cutting off financial support for so-called conflict minerals, whose extraction and sale has been blamed in part for financing rebel groups in several countries, particularly those at the centre of the violence raging in eastern Democratic Republic of Congo (DRC). Indeed, the legislative text of section 1502 specifically notes the situation in the DRC.
  • While proponents of the provisions suggest that the SEC has no mandate to actually reject laws enacted by Congress, there has been much anticipation during the course of the SEC deliberations. There has also been mounting frustration from across the ideological spectrum as the SEC has failed to act, in part citing massive public response on the issue.
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  • During the lengthy period of deliberation, activist and watchdog groups suggest, the SEC was ferociously lobbied by industry groups, resulting in certain elements of the two provisions being watered down. In the final ruling, for instance, manufacturers using scrap or recycled materials will not be required to do due diligence on their supply chains.
  • “We are particularly disappointed that companies will be able to describe the country of origin for their minerals as ‘undeterminable’ for several years.
  • “The [SEC] was clearly thoughtful and deliberative and made some constructive changes to the final rule,” Lisa K. Burgess, with the U.S. Chamber of Commerce, an industry lobbying group that had threatened to file a lawsuit to stop the SEC’s implementation of these provisions, told IPS. “However, clearly, challenges remain, and we will need to analyse the text of the rule to determine our next steps.” Indeed, in the immediate aftermath of Wednesday’s vote, both industry and watchdog groups hastened to note that the full strength, or weakness, of the new Dodd-Frank provisions will be understood only after a careful examination of the final details.
    • Arabica Robusta
       
      Is the lack of industry pushback good news or bad news on conflict minerals?
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