U.S. Congressional Approval of Civil Nuclear Accord Marks Historic Watershed
in U.S.-India Relations
Collaborations in Science and Commerce will Shape Destiny of the 21st Century
WASHINGTON, Oct. 1 /PRNewswire-USNewswire/ -- The U.S.-India Business Council
(USIBC) hailed today's historic vote of the 110th U.S. Congress, which ends 34
years of a "technology denial regime" imposed against India, opening a wide
vista of opportunity for U.S.-India collaboration in commerce, civil nuclear
research, technology transfer and nuclear fuel supply -- essential inputs to
power India's dynamic, fast-growing economy.
On the operational level, today's U.S. Congressional ratification of Section
123 of the U.S. Atomic Energy Act -- referred to as the 123 Agreement -- sets
the parameters for U.S. Industry participation in India's civil nuclear
build-out, but on a symbolic level represents a historic breakthrough, shoring
up a durable foundation upon which U.S.-India relations will flourish and
America's partnership will deepen with the world's largest free-market
democracy.
"The benefits will be many and the impact profound, beckoning a new era in
U.S.-India relations," said Ron Somers, President of the U.S.-India Business
Council, the Washington-based industry association comprised of 300 of
America's top U.S. companies committed to a long-term partnership with India.
"By enabling U.S.-India civil nuclear cooperation, India not only joins the
international nuclear non-proliferation mainstream, but now has the
opportunity to achieve energy security, while protecting the global
environment. A massive scope for commercial opportunity between U.S. and
Indian companies will also be the result, valued at more than $150 billion
over the next 30 years, spurring a revival of the nuclear power industries of
both countries that will create as many as a quarter million high-tech U.S.
jobs for generations to come," USIBC President, Ron Somers, noted.
Today's Congressional endorsement of the civil nuclear accord concludes a
remarkable timeline of international diplomacy that began on July 18, 2005
when U.S. President George W. Bush and Indian Prime Minister Dr. Manmohan
Singh announced the U.S.-India civil nuclear cooperation initiative. What
followed was an epic bilateral and international diplomatic effort to untie
the knots of a 34 year history during which India had been denied civil
nuclear cooperation.
President Bush visited India on March 2, 2006 -- the fifth-ever U.S. President
to do so -- to intervene in successfully concluding a Separation Plan, whereby
India would isolate its strategic nuclear program from its civil nuclear
energy facilities.
On December 9, 2006, on the last hour of the last day of the 109th U.S.
Congress, the Atomic Energy Act of 1954 was amended by the U.S.-India Henry J.
Hyde Peaceful Atomic Energy Act by overwhelming bipartisan support: 359-68 in
the House of Representatives and 85-12 in the U.S. Senate. The Hyde Act
allowed U.S. companies to cooperate with India in civil nuclear trade and
technology, but with one catch: India would first be required to negotiate a
safeguards agreement with the International Atomic Energy Agency (IAEA), and
achieve consensus approval by the 45-nation Nuclear Suppliers Group (NSG).
In July 2007, the so-called 123 Agreement between the United States and India
was hammered out, which sets the operational parameters guiding U.S.-India
cooperation in transfer and commerce of civil nuclear technology and fuel.
Multilateral engagement then began in earnest at the U.N.'s IAEA, but these
efforts were derailed by Indian domestic political opposition. Partners of the
ruling coalition from India's Left Front parties insisted on suspension of
talks that would open India's civil nuclear program.
When India's Prime Minister proceeded with IAEA negotiations, the Communist
Party of India withdrew support from the Indian government, leaving the Prime
Minister short of a Parliamentary majority. This precipitated a Trust Vote on
July 22, 2008.
India's Prime Minister won majority support in this confidence motion, where
he staked his personal reputation in what will be remembered in India as a
watershed moment of high stakes political courage. In the process, the Prime
Minister won the mandate to conclude the IAEA safeguards agreement, which
occurred on August 1, seen by many as an endorsement of the Prime Minister's
desire to strengthen U.S.-India ties.
The IAEA safeguards agreement opens India's existing civil nuclear program for
international inspection "in perpetuity" -- a substantive gain for nuclear
non-proliferation, while assuring safeguards over all future transfers to
India of fuel and nuclear technology.
On August 21 and 22 the 45-nation Nuclear Suppliers Group (NSG) convened in
Vienna to consider granting a waiver allowing NSG countries to commence
international civil nuclear trade with India. A 'group of ten' NSG-countries
resisted the move, prompting hectic international diplomacy. Ultimately, four
'hold-out' countries stood between India and NSG approval.
Finally, on September 4, India publicly issued assurances to mollify remaining
concerns of the NSG, re-affirming India's commitment to end nuclear testing
and pledging its support for a fissile material cut-off treaty.
In the early morning hours of September 6th a breakthrough in negotiations
occurred, clearing way for the 45-nations of the Nuclear Suppliers Group to
reach consensus in support of a clean waiver of NSG rules for India.
NSG approval opens-up for the first time in 34 years India's opportunity to
trade in civil nuclear fuel and technology. NSG approval is effectively an
international acknowledgement of India's responsible development and oversight
of its domestic civil nuclear program, which has operated without accident for
more than three decades with no proliferation taking place beyond its borders.
All NSG-countries as of September 6 were then eligible to trade in civil
nuclear cooperation with India except for the United States, which was bound
by the Henry J. Hyde Peaceful Atomic Energy Act of 2006, requiring
ratification of the 123 Agreement.
"Passage of today's legislation clears the way for U.S. companies to
participate in India's civil nuclear opportunity," USIBC President, Ron
Somers, said. "This sets U.S.-India relations on a course that will shape the
democratic and economic destiny of the 21st Century."
The U.S.-India Business Council (USIBC), formed in 1975 under the aegis of the
U.S. Chamber of Commerce, is the premier business advocacy organization
representing 300 of the largest U.S. companies investing in India, whose
mandate is to deepen U.S.-India commercial ties.
www.usibc.com
SOURCE U.S.-India Business Council
Ron Somers, +1-202-258-3575, rsomers@uschamber.com or Ted Jones,
+1-202-255-9546, tjones@uschamber.com, both of U.S.-India Business Council
