India, which has not signed the Nuclear Nonproliferation Treaty and
does not have International Atomic Energy Agency safeguards on all
of its nuclear material, 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.
However, President Bush announced July 18, 2005, 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 partnership with India. U.S.
nuclear cooperation with other countries is governed by the Atomic
Energy Act (AEA) of 1954 (P.L. 95-242). However, P.L. 109-401,
which President Bush signed into law on December 18, 2006, allows
the President to waive several provisions of the AEA. On September
10, 2008, President Bush submitted to Congress, in addition to
other required documents, a written determination that P.L.
109-401's requirements for U.S. nuclear cooperation with India to
proceed had been met. President Bush signed P.L. 110-369, which
approved the agreement, into law October 8, 2008. Then-Secretary of
State Condoleezza Rice and India's then-External Affairs Minister
Shri Pranab Mukherjee signed the agreement two days later, and it
entered into force December 6, 2008. Additionally, the United
States and India signed a subsequent arrangement in July 2010 which
governs "arrangements and procedures under which" India may
reprocess U.S.-origin nuclear fuel in two new national reprocessing
facilities, which New Delhi has not yet constructed. The NSG, at
the behest of the Bush Administration, agreed in September 2008 to
exempt India from some of its export guidelines. That decision has
effectively left decisions regarding nuclear commerce with India
almost entirely up to individual governments. Since the NSG
decision, India has concluded numerous nuclear cooperation
agreements with foreign suppliers. However, U.S. companies have not
yet started nuclear trade with India and may be reluctant to do so
if New Delhi does not resolve concerns regarding its policies on
liability for nuclear reactor operators and suppliers. Taking a
step to resolve such concerns, India signed the Convention on
Supplementary Compensation for Nuclear Damage, which has not yet
entered into force, October 27, 2010. However, many observers have
argued that Indian nuclear liability legislation adopted in August
2010 is inconsistent with the Convention. The Obama Administration
has continued with the Bush Administration's policy regarding civil
nuclear cooperation with India. According to a November 8, 2010,
White House fact sheet, the United States "intends to support
India's full membership" in the NSG, as well as other multilateral
export control regimes.
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