Facing elections, US clinches India nuclear trade waiver details on waiver (2nd Roundup)

Sep 6, 2008, 11:39 GMT

Vienna - The United States convinced nuclear-exporting countries to approve trade with India on Saturday, leaving the US Congress just enough time before the presidential elections to ratify the 2005 bilateral nuclear agreement with New Delhi.

At the end of a three-day meeting in Vienna of the Nuclear Suppliers Group (NSG), which sets nuclear export rules, diplomats said they reached consensus on an export waiver for India.

It will now be able to access global nuclear markets for its growing atomic energy programme, despite the fact that it has not signed the Nuclear Non-Proliferation Treaty.

The trade waiver is an essential part of Washington's 2005 nuclear deal with New Delhi, which is seen as as a cornerstone for improving strategic relations.

It was a 'historic moment for the Nuclear Suppliers Group, for India, for US-Indian relations, indeed, India's relations with the rest of the world,' US Undersecretary of State John Rood told reporters.

The administration of President George W Bush was under pressure to find NSG consensus this week, as there is little time for Congress in Washington to approve the bilateral agreement before it goes into recess in late September or early October.

India's declaration on Friday about its commitments to nuclear non-proliferation was key to making a decision possible.

The draft trade exemption now includes a direct reference to a statement by Indian Foreign Minister Pranak Mukerjee, in which he said his country was committed to a moratorium on nuclear weapons testing and reconfirmed New Delhi's commitment to non-proliferation.

'The NSG decision states explicitly that the present exemption is being granted on the basis of these commitments,' the Austrian foreign ministry said in a statement.

Austria, Ireland, the Netherlands, New Zealand, Norway and Switzerland were the most vocal of the 45 NSG members in insisting that the trade exemption should take the possibility of an Indian nuclear weapons test into consideration.

There had been 'intense pressure' from the US to agree to the waiver, and Washington talked to critical countries at the highest levels on Friday, a participant of the NSG meeting said.

Some other provisions had also been added to the waiver, Austria said, including a clause under which nuclear exporters should inform each other about trade with India, as well as 'revision and control mechanisms' for the exemption.

'This is an important moment also for the strengthening the nuclear non-proliferation regime,' Rood said.

Apart from the US, countries such as France and Russia are hoping to win lucrative nuclear contracts with India, which plans to build at least eight new nuclear reactors until 2012.

If US vendors won two of these contracts, it would create 3,000 to 5,000 new domestic jobs, according to the US State Department.

The Nuclear Suppliers Group was formed in reaction to India's first atomic weapons test in 1974, which it conducted using foreign nuclear technology.