PREVIEW: Nuclear exporters want clear conditions for trade with India

By Albert Otti Aug 20, 2008, 14:23 GMT

Vienna - In a meeting of nuclear-exporting nations on August 21 and 22 in Vienna, several countries will seek clear conditions before agreeing to allow nuclear trade with India, diplomats said.

The 45 members of the Nuclear Suppliers' Group (NSG), which sets international export control standards, will start discussing a proposal by the United States for an exemption for India, which currently cannot receive foreign nuclear materials and technology as it has not signed the Nuclear Non-Proliferation Treaty.

A decision is not expected this week, several diplomats said. At least one further meeting in early September would be necessary to find a consensus, they said.

Diplomats said several countries including Austria, Ireland, the Netherlands, New Zealand, Switzerland and Scandinavian countries would propose amendments to the US draft that clearly spell out which non-proliferation conditions India has to meet if it wants to receive foreign nuclear supplies.

In Washington's proposal, there are references to India's commitments so far, including separating its nuclear weapons programme from its civilian energy sector, allowing International Atomic Energy Agency (IAEA) inspections, and supporting international efforts to stop the production of nuclear weapons materials.

But these commitments should be made binding, diplomats said.

'Even if there are exemptions, they should be balanced with measures that strengthen, rather than weaken, the non-proliferation regime,' a European diplomat said.

The planned NSG rule change for India is part of Washington's 2005 nuclear agreement with New Delhi, under which the US pledged to seek changes of international export norms. In return, India agreed to a number of non-proliferation measures.

Although detailed negotiations about the trade exemption lie ahead, members of the Nuclear Suppliers' Group do not think that a country would block the rule change in the end.

As India was an important market for nuclear and other goods for many NSG members, economic considerations would eventually prevail over non-proliferation concerns, a European diplomat said.

India is planning to increase its nuclear power output from currently 3,779 megawatts to 20,000 megawatts in 2020.

The NSG was formed after India conducted a nuclear weapons test in 1974 with material produced in a reactor supplied by Canada.

'It is important to ensure that this can't happen again,' a Western diplomat said.

The US is pushing for the Nuclear Suppliers' Group to decide on allowing trade as soon as possible so that Congress can approve the US-India deal in its autumn session.