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Summary

In 1974, India exploded a "peaceful" nuclear device and demonstrated that nuclear technology transferred for peaceful purposes could be used to produce nuclear weapons. As a result, the United States has refused nuclear cooperation with India for twenty-five years and has convinced other states to do the same. On July 18, 2005, President Bush announced a new global partnership with India to promote stability, democracy, prosperity and peace. The desire to transform relations with India, according to Administration officials, is "founded upon a strategic vision that transcends even today's most pressing security concerns." Nuclear cooperation is one element of that strategic vision. President Bush said 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." Administration officials have described the agreement as a "win" for nonproliferation because it would bring India into the nonproliferation mainstream. At a time when the United States has called for all states to strengthen their domestic export control laws and for tighter multilateral controls, U.S. nuclear cooperation with India would require loosening its own nuclear export legislation, as well as creating an Nuclear Suppliers Group exception. It would reverse nearly three decades of U.S. nonproliferation policy and practice towards India. Many observers believe India requires a new paradigm, but some of those also believe the agreement should contain additional restrictions, like a ban on further nuclear material production for Indian nuclear weapons. Some believe this agreement undercuts the basic bargain of the NPT, could undermine hard-won restrictions on nuclear supply, and could prompt some suppliers, like China, to justify supplying other states outside the NPT regime, like Pakistan. India's uncertain support for U.S. efforts to keep Iran from developing nuclear weapons may be an important consideration for some members of Congress. Some have questioned why the United States would reward India, given its alliance with Iran. Other members of Congress have questioned whether nuclear cooperation is the appropriate "carrot" in U.S.-Indian relations, in contrast to other options like supporting a permanent Indian seat on the UN Security Council. Significant U.S.-Indian nuclear cooperation cannot go forward without action by Congress. India does not meet existing nonproliferation criteria under current U.S. law (Atomic Energy Act; P.L. 95-242; 42 U.S.C. 2153 et seq.), so the Bush Administration could use exemptions and waivers under current law; propose legislation to amend certain portions of the Atomic Energy Act; or propose standalone legislation to create an exception for India. The Administration has not revealed its proposal yet. Congress may also choose to approve an agreement with conditions, as it did for the 1985 nuclear cooperation agreement with China. This report will be updated as necessary.

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