U.S.-India Bilateral Agreements in 2005

Publication Date: September 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: India

Abstract:

On July 18, 2005, President George W. Bush and Prime Minister Manmohan Singh issued a Joint Statement resolving to establish a "global partnership" between the United States and India through increased cooperation on numerous issues, including "full civilian nuclear energy cooperation" (such cooperation would require changes in both U.S. law and international guidelines). This clause is widely viewed as representing the most direct recognition to date of India's status as a nuclear weapons state and thus as a reversal of more than three decades of U.S. nonproliferation policy. On June 28, 2005, the United States and India signed a tenyear defense framework agreement that calls for expanding bilateral cooperation in a number of security-related areas. U.S.-India bilateral agreements in 2005 represent a new set of landmarks in rapidly warming ties between the world's two most populous democracies. Many observers view U.S. moves to build strategic relations with India as part of an effort to "counterbalance" the rise of China as a major power.

The Administration's policy of assisting India's rise as a major power has significant implications for U.S. interests in Asia and beyond. The course of U.S. relations with China and Pakistan, especially, is likely to be affected by an increase in U.S.-India strategic ties. Of most immediate interest to the U.S. Congress may be the Bush Administration's intention to achieve "full civilian nuclear energy cooperation with India," and its promise to bring before Congress related and required legislative proposals in the latter months of 2005.

During a September 8, 2005 hearing on U.S.-India relations, members of the House International Relations Committee expressed widespread approval of increasingly warm U.S.-India relations. However, many also expressed concerns about the potential damage to international nonproliferation regimes that could result from changes in U.S. law that would allow for full civil nuclear cooperation with India. Many also voiced concerns about India's relations with Iran and the possibility that New Delhi's policies toward Tehran's controversial nuclear program may not be congruent with those of Washington. More broadly, congressional oversight of U.S. foreign relations in Asia likely will include consideration of the potential implications of increased U.S. cooperation with India in functional areas such as arms sales and high-technology trade. With rapid increases in Indian and Chinese influence on the world stage, many in Congress will seek to determine how and to what extent a U.S.-India "global partnership" will best serve U.S. interests. This report reviews the major provisions of the agreements signed in 2005, including the status of issues addressed in the recently completed Next Step in Strategic Partnership initiative, security relations, and economic relations. The report reviews arguments made in favor of and in opposition to increased bilateral cooperation in each major issue-area and includes Indian perspectives. Regional issues involving China, Pakistan, and Iran also are discussed. The report will be updated as warranted by events. See also CRS Issue Brief IB93097, India-U.S. Relations, and CRS Report RL33016, U.S. Nuclear Cooperation With India.