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The US-India Business Council on Monday applauded President George W. Bush's signing into law the Henry J. Hyde United States and India Peaceful Atomic Energy Promotion Act of 2006, which allows -- for the first time in three decades -- civilian nuclear cooperation with India. It marks a defining moment in US-India relations, reminiscent of Nixon's opening to China.
USIBC officials attended the White House Signing Ceremony to witness President Bush's endorsement of the legislation passed by an overwhelming bipartisan majority of the US Congress on December 9, 2006. It amends the Atomic Energy Act of 1954, and authorises US companies to engage in civilian nuclear trade with India, subject to International Atomic Energy Agency safeguards.
Ron Somers, President of the US-India Business Council, which spearheaded US Industry's advocacy campaign in favor of the deal, said:
"It is extremely gratifying that after only 17 months to the day when Prime Minister Manmohan Singh and President George W Bush committed in a Joint Statement on July 18, 2005 to deepen the US-India strategic partnership as embodied in civilian nuclear cooperation, we are now witnessing this change in US law that finally ends three decades of technology denial against India -- and, in so doing, will change the course of history."
"What is accomplished today -- given India's wealth of human resources, its superior educational institutions, and its embrace of free-market democracy -- goes far beyond the sale of nuclear reactors and atomic fuel, but is the beginning of an equal partnership based on trust and mutual respect that will change the economic and geopolitical destiny of the 21st Century."
USIBC, a division of the 3 million-member strong US Chamber of Commerce, formed the Coalition for Partnership with India shortly after the July 2005 visit to Washington of India's prime minister.
The coalition served as host for like-minded parties -- think-tanks, policy experts, Industry and the Indian American community - to ensure US Congressional passage of this landmark legislation. USIBC hired the Washington lobbying firm of Patton Boggs LLP to advocate US Industry's voice on Capitol Hill.
US companies project that with high technology trade now unshackled by this change in law, two-way trade with India will increase rapidly, which stands today at $27 billion, only 1/10th that of US trade with China.
India's rapidly expanding economy, growing at greater than 9% GDP, is confronting a major energy deficit. India's energy security challenge portends major collaborations with American companies, the result of which will be the creation of jobs and opportunities in India and across the US India's nuclear industry has announced plans to expand from its current installed capacity of 3,500 MW to 60,000 MW over the next 26 years. The expansion is valued at $150 billion.
"The government officials on both sides who enabled this historic initiative to become reality deserve our deepest gratitude and respect for their vision and statesmanship," Somers added.
"Our next steps will be to support ratification by the US Congress next year of the bi-lateral 123 Agreement detailing the terms and conditions of civilian nuclear trade, while simultaneously advocating India's adoption of the International Atomic Energy Agency's Convention on Supplementary Compensation. The Convention will allow US fuel, equipment, and technology to enter the Indian civilian nuclear power sector on a level playing field. We're very hopeful US nuclear companies will commence substantive engagement with their Indian counterparts as early as mid-2007."
Before US civilian nuclear trade with India can commence, India must conclude a safeguards agreement with the International Atomic Energy Agency, enter a bilateral agreement with the US -- the so-called 123 Agreement, which must be approved by the US Congress, and, the US must win consensus approval by the 45-nation Nuclear Suppliers Group, authorizing civilian nuclear trade with India.
The US-India Business Council is based in Washington, DC, with offices in New York, Silicon Valley and New Delhi, and is today comprised of the largest 250 US companies with trade interests and investments in India, joined by two dozen of India's premier global companies -- whose common objective is to expand trade and deepen commercial ties between the United States and India.