India won the right to buy atomic- energy equipment after a suppliers’ group lifted a three-decade ban on exports to the country, swayed by promises that the nation will keep its moratorium on nuclear-bomb tests.
“This constitutes a major landmark in our quest for energy security,” Indian Foreign Minister Pranab Mukherjee said in televised comments. “This decision will open a new chapter in India’s cooperation with other countries in the peaceful use of nuclear energy.”
India has suffered power shortages as the economy has grown more than 8 percent annually since 2003, increasing demand from cement companies and steelmakers. The U.S. made the proposal to the 45-member Nuclear Suppliers Group to give the south Asian country access to atomic fuels and technologies.
“It’s really a very big step forward for the nonproliferation framework,” U.S. Secretary of State Condoleezza Rice told reporters during a trip to Tunisia and Algeria.
Rice said she spoke with Chinese officials this morning and negotiators from Ireland and Austria in recent days. The NSG, founded in 1974 to prevent countries from copying India’s use of imported technology to make its first atomic bomb, needed a unanimous vote to pass the deal.
Areva, Toshiba, GE
The waiver means that companies including France’s Areva SA, Russia’s Rosatom Corp. and Japan’s Toshiba Corp. will be able to export nuclear equipment to India. General Electric Co. and other U.S. companies will have to wait until Congress ratifies a 2006 trade pact backed by President George W. Bush and Indian Prime Minister Manmohan Singh.
General Electric, the world’s biggest maker of energy- generation equipment, said Aug. 25 that it may lose contracts in India to French, Russian and Japanese rivals if the U.S. Congress doesn’t ratify a U.S.-India nuclear deal soon after the agreement wins approval from the Suppliers Group.
Rice said the U.S. has talked to India about the potential competitive disadvantage.
“I think they recognize and appreciate American leadership on this issue,” she said. “Because of that I think we’ll have ways to talk them about not disadvantaging American companies.”
Still, she said “the best thing would be to get it through Congress.”
Congressional Approval
Congress, starting its next session on Sept. 8, may not be able to endorse the U.S.-India nuclear cooperation agreement before it adjourns on Sept. 26, House Foreign Affairs Committee Chairman Howard Berman, a California Democrat, wrote in an Aug. 5 letter to Rice.
The U.S.-India Business Council, which advocated the nuclear accord, issued a statement saying it will lobby for congressional approval. Rice said she talked with 12 committee chairmen in the weeks before the NSG decision to urge them to approve the agreement.
“I’ll have those conversations again most likely Monday or Tuesday as well as trying to see whether the leadership believes that this can go forward,” Rice told reporters today at the residence of the U.S. ambassador in the Algerian capital Algiers. “I don’t think most people thought we were going to be able to get this through the NSG this weekend.”
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