US-India agreement faces final hurdle
11 September 2008
President George Bush has approved the US-India civilian nuclear agreement - the '123 Agreement' - and sent the text of the deal to Congress for final approval. There is speculation whether the deal can be approved before Bush leaves office next January.
In a statement, the White House said: "The conclusion of this agreement, which completes the US-India Civil Nuclear Cooperation Initiative, has been a priority for both President Bush and Prime Minister [Manmohan] Singh, and strengthens the US-India Strategic Partnership."
It added, "This historic achievement will bolster international non-proliferation efforts, provide economic and business opportunities in both countries, and help India address its growing energy needs in an environmentally responsible manner. The President looks forward to working with Congress to ensure passage on the agreement this year."
However, there is speculation about how soon Congress will be able to approve the agreement. Lawmakers have just returned after thier August holiday and are expected to leave Washington again in late September to campaign ahead of the elections on 4 November. The Bush administration is seen as in need of help to overcome a law that says Congress cannot ratify the nuclear accord sooner than 30 working days after receiving it.
US secretary of state Condoleezza Rice is trying to persuade Congress to approve the agreement. She went to Capitol Hill to discuss with House of Representatives speaker Nancy Pelosi and Foreign Affairs Committee chairman Howard Berman how to win congressional approval for the deal before Bush leaves office on 20 January 2009.
The proposed deal, signed by Bush and Singh in July 2005, offers India access to American nuclear fuel and technology. India could begin to conclude bilateral nuclear cooperation deals with other nations now that Nuclear Suppliers Group guidelines for trade with India are in place, but the US-India deal stands out as not only the one with most potential but also as the agreement that started the whole initiative.
Meanwhile, the Indian government has said that it will amend the Atomic Energy Act of 1962 to allow private investment in the country's nuclear power industry. Several Indian companies have already expressed an interest in participating in the nuclear energy field. A change in the law would also enable foreign companies to participate.
Kapil Sibal, India's minister for science and technology, was cited by The Hindu newspaper as saying, "Till now no private party was able to do nuclear trade and commerce. Now whatever amendment required in the law will be brought to allow them to do nuclear trade."