Thursday 19 April 2012

The Indo-U.S. Nuclear Deal: Creating Domestic, Regional, and Global Levels of Insecurity

Imane Drissi El-Bouzaidi
November 16, 2010 
Nuclear power is a major tool of contention in foreign affairs because it has the potential of being an inexpensive and environmentally-friendly option, yet it also has the potential of being used as a weapon of mass destruction. This debate is evident when deliberating on the 2008 Indo-U.S. nuclear cooperation agreement. This is an agreement in which India is allowed to be supplied with nuclear fuel, reactors, and technology even though it is not a signatory of the Non-Proliferation Treaty (NPT). This deal has had numerous benefits; however, this paper will argue that threats to security, diplomacy, and non-proliferation have emerged. The Indo-US nuclear cooperation agreement has had an adverse effect on domestic, regional, and global security.

Before there is deliberation on the effects of the nuclear deal, it is important to note how the deal was passed and the different actors involved. Before the agreement the United States had implemented sanctions on India due to the fact that it developed nuclear weapons. These sanctions were not effective so the U.S. began examining cooperation with India as a viable solution, especially due to India’s emergence as an economic power. Cooperation began in 2004 with the Next Steps in Strategic Partnership (NSSP) initiative, which began discussion on developing a civilian nuclear energy program for India[1]. In order to pass the United States-India Nuclear Cooperation Approval and Non-Proliferation Enhancement Act many steps had to be taken to lead to the final agreement being passed in 2008. The agreement between India and the U.S. was signed in 2005 but the U.S. had to amend its domestic law with the Hyde Act and pass it through congress in order to make an exemption for India. India then passed a civil-military Nuclear Separation Plan, which ensures that the nuclear energy is not used to make nuclear weapons. The final step was to pass the agreement through the International Atomic Energy Agency (IAEA) for a safeguards agreement and the Nuclear Suppliers Group (NSG) in order for them to grant a waiver for India. Illustrating the different actors involved in passing the deal shows how difficult the legislation was to pass and how it would affect both the domestic and international sphere.  


Benefits to Security:
Before explaining the threats to security, it is evident that the Indo-US nuclear deal has many benefits. The agreement benefits the U.S. because of economic, environmental, and diplomatic reasons. Economically, the deal will lead India to purchase nuclear power, which will allow the U.S. to profit from its exports. The sanctions that America previously had on India were not working because other nations were willing to sell them nuclear reactors. These methods of dealing with India’s complacency were not working so the U.S. decided to start cooperating on nuclear energy, especially in an effort to deal with an unstable Afghanistan and Pakistan; as well as China, an emerging economic power. The U.S. benefits with India as a strong ally because it serves as a “counterbalancing presence against China in South Asia,” and it is useful in protecting the Indian Ocean sea-lanes[2]. Since 40% of the world’s oil and commerce pass through these sea-lanes, it is in America’s interest to help protect them[3]. The U.S. also has a military presence in the Indian Ocean with the base Diego Garcia, which is crucial for the war in Afghanistan. Therefore, having India secure and as an ally improves American security.
India has similar benefits in cooperating with the U.S. because “building alliances with stronger countries has been one route for ensuring security”[4]. The alliance with America would also lead to India being recognized as a nuclear power and in 2010 the U.S. President Barack Obama announced that the U.S. supports India’s bid for a seat on the Security Council[5]. Acquiring nuclear energy is also important for resolving India’s energy deficit. The use of fossil fuels is costly, it is a major source of pollution and the resources are diminishing. Therefore, the use of nuclear energy is a way to avoid serious competition for hydrocarbons, as well as being the economic and environmentally-preferred choice. Regardless of these potential benefits, it is evident that the Indo-US deal threatens domestic, regional, and global security; and these threats far exceed the benefits.

Threat to Security:
Domestic Insecurity:
The Indo-US nuclear deal has had negative effects on domestic security because of the threat of political division, the threat of terrorist organizations obtaining nuclear weapons, and the threat of nuclear accidents in India.
Firstly, a source of domestic insecurity resulted from the passing of the agreement because it caused a major division within the Indian government. Opposition arose against the deal because of the lack of transparency when the deal was passed. Singh did not consult Parliament when he signed the agreement in 2005 and he blocked them from analyzing the deal. In addressing the issue, Singh said that “the deal is signed and sealed…It is not renegotiable”[6]. Politicians also had objections to the inconsistencies considering what parliament was told and the actual facts of the deal. The dispute led Singh’s coalition government to lose political support from groups, such as the Left Front. His government ended up barely passing a vote of confidence in 2008.
Another source of contention was the content of the agreement, especially the Hyde Act amendment. This was an American agreement, which modified Section 123 of the U.S. Atomic Energy Act, and served to put restrictions on India[7]. The Act stipulated that if India were to test nuclear weapons, then the U.S. would stop supplying them with nuclear energy. This became a threat to Indian autonomy because the state would be tied to the nuclear non-proliferation regime, they would be unable to test nuclear weapons, and they would have to follow NSG guidelines, which would limit their access to nuclear technology. Congressman Tom Lantos further increased anxiety over the deal by saying that “if our Indian friends are interested in receiving all of the benefits of US support we have every right to expect that India will reciprocate in taking into account our concerns”[8]. There were increased fears that the U.S. would have strong influence over Indian foreign policy.
The political ramifications of Singh’s actions have been numerous, with many politicians calling for an amendment to the Indian Constitution in order to make parliamentary ratification mandatory when passing international agreements or treaties[9]. It has also led to considerable debate as to whether the agreement is against Indian interests. Many Indians disagreed on the limitations being put on India and did not want to sign the deal at the expense of independent foreign policy.
The second source of domestic insecurity from the nuclear deal is the fact that having more nuclear technology available in the country increases the threat that terrorist groups can obtain nuclear weapons. Incidents, such as the 2008 attacks in Mumbai, show that terrorism is prevalent. Lisa Curtis calls India “one of the most terrorism-afflicted countries in the world,” especially due to its major ethnic, linguistic, and religious diversity [10].
The last major issue that threatens domestic security is the chance of a nuclear power accident occurring in India. Ashwin Kumar writes that “the safety record in India’s nuclear facilities reveals poor practices and routine accidents”[11]. There have been six major nuclear power accidents, calculated in 2006, which have cost a total of 910 million US dollars[12]. A serious incident could economically and environmentally hinder the state and increasing dependence on nuclear energy will inevitably lead to an increase in the risks involved.
Regional Insecurity:
The Indo-US nuclear deal has also had a significant effect on creating regional insecurity. The common belief in the area is that “given the fact that India currently needs only seven percent of its energy requirements from nuclear power, it is obvious that geopolitics is a driving force in this deal”[13]. The agreement has created tensions with states in the South Asia and Central Asia region, especially those such as Iran, China, and Pakistan who have nuclear programs. One possible threat is that the deal could lead to an arms race and encourage states to continue developing nuclear weapons. Supporting “India with its nuclear program will, even in the civilian sphere, trigger a nuclear weapons pursuit by other countries,” who will assume that the U.S. will grant similar concessions[14]. The fact that the U.S. has refused to grant these same concessions to other states has created tensions among states who feel resentment over the double standards. Another issue is that other nuclear weapons states may consider mimicking the U.S. by granting its allies concessions, making it easier for rogue states to attain nuclear weapons[15]. Non-proliferation appears to have been ignored so that America could exploit its economic interests in the region. Despite these general threats to regional security, there are also more specific issues felt by Iran, China, and Pakistan, concerning the deal.
Relations between Iran and India were said to have strained because the deal led to India supporting the U.S. against Iran. Huntley explains that “in return for the agreement, India [was] obliged to support U.S. non-proliferation efforts toward Iran”[16]. The nuclear deal included conditions on having India align with US views over Iran, which it did in 2005 when India voted against Iran on a nuclear issue in the International Atomic Energy Agency (IAEA). The U.S. Ambassador to the IAEA, Greg Schulte, explained that “India’s voice will carry particular weight” because its vote was crucial in getting a sizeable majority in order to refer the matter to the Security Council for further actions against Iran. The Iran nuclear crisis can also lead to an arms race in Asia motivated by ideological differences. There may be an increase of tensions between Western and Islamic countries because it “will antagonize Muslim opinion in the world with India provided with concessions not granted to Pakistan and Iran, both Islamic countries” [17].
Pakistan has had a similar reaction to the Indo-US nuclear deal because it acquired nuclear weapons in 1975, yet has not signed the NPT agreement. It is resentful of not having the same accord and concessions because historically Pakistan has been a valued ally to the U.S. and it continues to be in the twenty-first century by providing support for the war in Afghanistan and a collaborative campaign against the Taliban. The deal increases the chance of a nuclear arms race in the region, especially since India and Pakistan have had a history of disputes from the issue of Kashmir, border disputes, and accusations of backing militant groups. Involving nuclear power in the equation merely increases regional insecurity.  
Furthermore, the nuclear deal has affected relations with China, which has threatened regional security. Historically China and India have had tense relations due to issues, such as unresolved border disputes. Therefore, when China began developing its nuclear arsenal, India responded with a nuclear test in 1974. Although relations have slightly resolved, the 2005 US-Indo nuclear agreement could reignite tensions between the two powers. China objects to the fact that India has not signed onto the Non-proliferation Treaty (NPT) and hopes that “non-signatory countries will join it as soon as possible as non-nuclear weapon states, thereby contributing to strengthening the international non-proliferation regime”[18]. China resents America’s double standards by having nuclear dealings with India, which is not a signatory to the NPT; while not having these ties with China, a signatory state. However, China’s apprehension of the agreement does not solely come from these double standards but also from America’s involvement in South Asia. The two countries have had many incidents of tension, such as in 2005, the U.S. implemented sanctions on six Chinese companies because of their supporting the nuclear weapons program of Iran, and another incident over the Taiwan conflict, which resulted in a Chinese general threatening the use of nuclear weapons on the U.S[19]. The fact that China has emerged as a formidable economic power makes these threats a challenge to deal with because “if China turns hegemonic, then the US would have to balance Chinese dominance with a partnership with India”[20]. Therefore, China objects to the Indo-US nuclear deal because it is believed to be motivated by an effort to contain them. 
Global Insecurity:
Global security is also threatened as a result of the agreement because it undermines the nuclear non-proliferation regime. The NPT does not allow those not a signatory to the treaty to acquire nuclear energy; therefore, India being the only exception does not only cause resentment among other states, but it shows that the U.S. puts its interests before global non-proliferation. India was granted an exemption by the U.S., which has allowed them to access nuclear technology without having to commit to the Nuclear Suppliers Group (NSG) guidelines, such as allowing the IAEA “inspect military facilities that remain sufficient to produce large quantities of weapon grade plutonium”[21]. Although the IAEA and NSG approved the policy, there were numerous objections and a lack of consensus on the matter.
The agreement also threatens the U.S. role in international diplomacy because its reputation and credibility in the world is harmed when it does not follow traditions and regulations. This action shows that “America is not at all a guard of NPT and the treaty however is no more than a disguise for US interest[22]. The NPT is undermined by the Indo-US nuclear agreement because it rewards India for not signing and accepting restrictions on nuclear weapons[23]. Countries in the future will be less willing to join the NPT but rather they will look to other alternatives, such as being supplied by the U.S. The agreement creates an interesting issue, which is not the dangers of nuclear war but the problems with nuclear peace and how the “relative stability would reinforce perceptions of the strategic and political efficacy of nuclear weapons and, ironically, pose the greatest challenge to the non-proliferation regime”[24]. Therefore, the agreement has had negative ramifications, which affect global security by undermining non-proliferation organizations and American credibility in the world.
In conclusion, the Indo-US nuclear cooperation agreement has created insecurity in the domestic, regional, and global sphere. Some arguments can be said about the benefits of the deal, especially in terms of economic and environmental effects; however, overall security is threatened. Domestically, the deal threatens security because it causes political division, it can lead to a nuclear accident, or the nuclear power can find its way to terrorist groups. In the region, tensions between states, such as China, Pakistan, and Iran have increased because they feel resentment and are threatened by the deal. Lastly, global security is threatened by undermining the international non-proliferation bodies and the U.S. There is no strong basis for nuclear weapons as a security tool because “sixty years since Hiroshima should be enough to make clear to anyone that there is no security to be found in the threat to kill millions”[25]. Many believe that no country should ever be able to acquire nuclear energy because of the possibility of nuclear war. However, due to the increasing importance of nuclear power as an energy source; it is evident that banning nuclear power is not an option but that making sure that regulations are strictly adhered to should be the main priority. Maintaining the regulations set up by international non-proliferation organizations is crucial because making exemptions and violations could lead to a nuclear arms race, and eventually a nuclear holocaust, which would be in the interest of everyone around the world to prevent.


[1] Rahul Bhonsle et al., Indo-US Civil Nuclear Deal (New Delhi: Atlantic Publishers, 2007) 4.
[2] Bhonsle 2
[3] Hari Sud, India-US Nuclear Deal: The Benefits, South Asia Analysis Group (SAAG) 2006, <http://www.southasiaanalysis.org/%5Cpapers18%5Cpaper1740.html>
[4] Mushahid Hussain, Pakistan’s Quest for Security and the Indo-U.S. Nuclear Deal. The Korean Journal of Defense Analysis, Vol.XVIII, No. 2, Summer (2006) <http://kida.re.kr/data/2006/10/25/06_2_6(2).PDF> pp. 118.
[6] The Japan Times Online, Nuclear Deal Fueling Opposition to Singh, 22. Aug, 2007. <http://search.japantimes.co.jp/cgi-bin/eo20070822a1.html>
[7] Scott Douglas Sagan, Inside Nuclear South Asia, (Stanford: Stanford University Press, 2009) 252
[8] Wade L. Huntley, and Karthika Sasikumar, Nuclear Cooperation with India: New Challenges, New Opportunities, (Vancouver: the Simons Centre for Disarmament and Non-Proliferation Research, 2006) 43.
[9] The Japan Times Online
[10] Lisa Curtis, After Mumbai: Time to Strengthen US-India Counterterrorism Cooperation, (Massachusetts:The Heritage Foundation, 2008)  2
[11] Ashwin Kumar, Nuclear Safety: A Poor Record. India Together. 30 Mar 2007. <http://www.indiatogether.org/2007/mar/env-nukesafe.htm>
[12] Benjamin K. Sovacool. A Critical Evaluation of Nuclear Power and Renewable Electricity in Asia, Journal of Contemporary Asia, Vol. 40, No. 3, August 2010, pp. 393–400.
[13] Hussain 13
[14] Bhonsle 39
[15] Bhonsle 26
[16] Huntley 43
[17] Bhonsle 26
[18] Jabin T. Jacob, Indo-US Nuclear Deal: The China Factor. Institute of Peace and Conflict Studies (IPCS) Special Report 14. (New Delhi: 2006) 1.
[19] Jacob 3
[20] Bhonsle 18
[21] Hussain 12
[22] Jacob 3
[23] Huntley 28
[24] Huntley 4
[25] Huntley 27

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