U.S India Nuclear Deal

Introduction

This paper is about the ongoing negotiation between India and United States for an Indo-US agreement for peaceful nuclear cooperation. Although it is nearly two years since the Prime minister of India, Dr. Manmohan Singh and the President of United States, Mr. George.W.Bush announced their intention to facilitate civil nuclear commerce between India and the members of the Nuclear Suppliers Group, the process is still to be completed with even the first step towards that goal. The process is still under negotiations with apparently strong differences between the two countries on a number of issues.

The deal aims to give India access to U.S. nuclear fuel and equipment, India's demand for the permit for reprocessing spent nuclear fuel, assure permanent fuel supplies and not penalize India by ending nuclear trade if it conducts another nuclear test.

History of India's nuclear program

In the 1950s, the United States helped India develop nuclear energy under the Atoms for Peace program. The United States built a nuclear reactor for India, provided nuclear fuel for a time, and allowed Indian scientists study at U.S. nuclear laboratories. In 1968, India refused to sign the NPT, claiming it was biased. In 1974, India tested its first nuclear bomb, showing it could develop nuclear weapons with technology transferred for peaceful purposes. As a result, the United States isolated India for twenty-five years, refusing nuclear cooperation and trying to convince other countries to do the same. But since 2000, the United States has moved to build a "strategic partnership" with India, increasing cooperation in fields including spaceflight, satellite technology, and missile defense.

Factual Background

The much-heralded, but controversial two-year-old India-United States civilian nuclear deal was supposed to be the benchmark for the growing affability between the two most vibrant democracies in the world. The deal, which marks a notable warming of U.S.-India relations, would lift the U.S. moratorium on nuclear trade with India, provide U.S. assistance to India's civilian nuclear energy program, and expand U.S.-Indian cooperation in energy and satellite technology.The two nations have failed so far to conclude a bilateral pact due to India's stand that it will not accept new terms in the deal included at the insistence of American lawmakers. Officials from both nations have met many times since last year to conclude the pact.

In effect, negotiations have been unable to resolve a central question: should India be treated as a recognized nuclear weapons state, one that retains the right to test its weapons and reprocess spent nuclear fuel? Those two issues - testing and fuel processing - are proving more difficult to sort out than anyone anticipated. The dispute has come up as the two countries are trying to negotiate on the detail of the accord, known as a "123 agreement."

123 AGREEMENT

The 123 agreement between India and USA refers to Sec. 123 of the U.S. Atomic Energy Act. There is a ban on transfer of nuclear technology to other countries under this Act. The Hyde Act was passed by U.S.A to make an exception for India, to enable transfer of technology for civil nuclear energy. The 123 Agreement is the terms of engagement which operationalizes the treaty agreement between India and U.S for transfer of civil nuclear technology. The next step is to enter into agreement with the IAEA (International atomic energy agency) for safeguards of the civil nuclear reactors to be set up under the 123 agreement and to enter into an agreement with the NSG (Nuclear Suppliers Group) for supply of nuclear fuel for the civil nuclear reactors. Once India completes the agreements with IAEA and NSG, then the U.S. Congress will vote on the 123 agreement. Once it is approved by the U.S. Congress, then the deal is complete and India and U.S.A can enter into nuclear commerce which includes supply of nuclear reactors, transfer of technology, supply of nuclear fuel etc.

The deal has been stalled over some of the terms imposed by the U.S. Congress under the Hyde Act, which sought to impose certain restrictions on India. The first was to hold the deal hostage, allowing it to be suspended if India staged more nuclear tests. The second was to bring some, but not all, of India's nuclear rectors under the intensive inspection regime of the NPT and the International Atomic Energy Agency.

Analysis

Terms of the deal

The details of the agreement are still being negotiated, but experts say some clear points are emerging. They include the following:

* India agrees to allow inspectors from the International Atomic Energy Association (IAEA), the United Nations' nuclear watchdog group, access to its civilian nuclear program. But India would decide which of its many nuclear facilities to classify as civilian. Military facilities--and stockpiles of nuclear fuel that India has produced up to now--will be exempt from inspections or safeguards.

* India commits to signing an Additional Protocol--which allows more intrusive IAEA inspections--or its civilian facilities.

* India agrees to continue its moratorium on nuclear weapons testing.

* India commits to strengthening the security of its nuclear arsenals.

* India works toward negotiating a Fissile Material Cutoff Treaty (FMCT) with the United States banning the production of fissile material for weapons purposes. India agrees to prevent the spread of enrichment and reprocessing technologies to states that don't possess them and to support international nonproliferation efforts.

* U.S. companies will be allowed to build nuclear reactors in India and provide nuclear fuel for its civilian energy program.

What kind of technology would India receive in return?

India would be eligible to buy U.S. dual-use nuclear technology, including materials and equipment that could be used to enrich uranium or reprocess plutonium, potentially creating the material for nuclear bombs. It would also receive imported fuel for its nuclear reactors.

Proponents of the deal

Proponents of the agreement argue it will bring India closer to the United States at a time when the two countries are forging a strategic relationship to pursue their common interests in fighting terrorism, spreading democracy, and preventing the domination of Asia by any single power. Experts say the deal lays out