U.S. Nuclear Cooperation With India: Issues for Congress

Publication Date: November 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: India

Abstract:

On July 18, 2005, President Bush announced he would "work to achieve full civil nuclear energy cooperation with India" and would "also seek agreement from Congress to adjust U.S. laws and policies," in the context of a broader, global partnership with India to promote stability, democracy, prosperity and peace. Administration officials have promoted nuclear cooperation with India as a way to reduce India's carbon dioxide emissions and its dependence on oil, bring India into the "nonproliferation mainstream" and create jobs for U.S. industry.

India, which has not signed the Nuclear Nonproliferation Treaty (NPT) and does not have International Atomic Energy Agency safeguards on all nuclear material in peaceful nuclear activities, exploded a "peaceful" nuclear device in 1974, convincing the world of the need for greater restrictions on nuclear trade. The United States created the Nuclear Suppliers Group (NSG) as a direct response to India's test, halted nuclear exports to India a few years later, and worked to convince other states to do the same. India tested nuclear weapons again in 1998.

Nonproliferation experts have suggested that the potential costs of nuclear cooperation with India to U.S. and global nonproliferation policy may far exceed the benefits. At a time when the United States has called for all states to strengthen their domestic export control laws and for tighter multilateral controls, U.S. nuclear cooperation with India would require loosening its own nuclear export legislation, as well as creating a NSG exception. This is at odds with nearly three decades of U.S. nonproliferation policy and practice. Some believe the proposed agreement undercuts the basic bargain of the NPT, could undermine hard-won restrictions on nuclear supply, and could prompt some suppliers, like China, to justify supplying other states outside the NPT regime, like Pakistan. Others contend that allowing India access to the international uranium market will free up its domestic uranium sources to make more nuclear weapons.

U.S. nuclear cooperation is governed by the Atomic Energy Act (AEA), which would require certain waivers and determinations from the President before nuclear cooperation with a state such as India could proceed. The Administration proposed legislation that, in addition to providing waivers of relevant provisions of the AEA (Sections 123 a. (2), 128, and 129), would have allowed an agreement to enter into force without a vote from Congress, as though it conformed to AEA requirements. In late July, the House passed H.R. 5682, facilitating U.S. nuclear cooperation with India, but retaining the prerogative of Congress to vote on the actual cooperation agreement later. The Senate passed its version of H.R. 5682 on November 16, 2006 by a vote of 85 to 12. Notably, Title II of that bill contains implementing legislation for the U.S. Additional Protocol. Negotiations between U.S. and Indian officials are proceeding very slowly on the text of a cooperation agreement as are negotiations between IAEA and Indian officials on a safeguards agreement. The NSG has not yet decided to take a decision and appears to be awaiting action by the U.S. Congress. This report will be updated as necessary.