Date:14/09/2006 URL: http://www.thehindu.com/2006/09/14/stories/2006091408881200.htm

National

U.S. curbs on nuclear issue a barrier to trade: Pranab

Amit Baruah

Washington committed to implementing civilian nuclear deal: Mulford

NEW DELHI: Defence Minister Pranab Mukherjee declared on Wednesday that a "large body of restrictions" on the nuclear issue imposed by the United States formed an "invisible barrier" to trade and investment between India and the U.S.

These restrictions impacted India in the areas of high-technology trade and cooperation, "so vital" to advancing the economies of the two countries, he said inaugurating an Indo-U.S. business meeting.

Referring to the still-in-the-works civilian nuclear deal, Mr. Mukherjee felt that the passage of legislation in the American Congress would finally permit bilateral cooperation to "come into its own."

Bilateral trade between the two countries, which stood at $26.8 billion in 2005, was one-tenth of the trade between China and the U.S. "There is no reason why the levels of trade between our two countries should not rise to, and even surpass, those levels."

"New level of trust"

Earlier, U.S. Ambassador David Mulford said Washington was committed to implementing the civilian nuclear understanding reached between the two countries in July 2005.

"The goalposts are not being moved; it is a civil nuclear agreement and when finally implemented will mark a new level of trust and cooperation in our partnership."

Mr. Mulford said the U.S. Senate was expected to vote this month on the legislation to allow for civilian nuclear cooperation.

"We are working with Congress to produce an Act that reflects the spirit and terms of what the Prime Minister [Manmohan Singh] and the [U.S.] President [George W. Bush] agreed to. Our leaders came to this agreement in partnership and they intend to continue in partnership," Mr. Mulford said.

"President Bush understands the Prime Minister's concerns about certain aspects of the draft legislation and has indicated to him our intention to complete the process."

"Move forward"

Both countries needed to move forward with the legal framework of the nuclear deal expeditiously, "working hard" to complete the process before the U.S. Congress completed its term this year, the envoy said.

"The changes in U.S. laws will bring about a cascade of revisions in India's international status — opening the nuclear market not only for American companies but also for the entire international community," Mr. Mulford claimed.

"This will require the Nuclear Suppliers Group to alter its rules to allow civil nuclear commerce with India. In addition, India will conclude a safeguards agreement and an additional protocol with the International Atomic Energy Agency, a sign of its commitment to nuclear non-proliferation."