Nuclear Suppliers Group (NSG) and India

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Nuclear Suppliers Group (NSG): the essential facts

The Times of India, May 28, 2016

(Compiled by: Ankita Rajeshwari)

The NSG and China's opposition to India's entry in it has been in the news recently. Here's all you need to know about this body and India's position in it:

'What is NSG?

The NSG is an international organisation that aims to control proliferation of nuclear weapons. This 48-member body was established to prevent civilian nuclear trade from being used for military purposes. It was formed by the signatories to the non-proliferation treaty (NPT). Though the NSG has been open to admitting new members to its clan, the group has so far opened its doors only to nations that are part of the NPT or Comprehensive Test Ban Treaty (CTBT). India has signed neither the NPT nor the CTBT.

Why was it formed and what was its objective?

The NSG was founded in reaction to the Indian nuclear test in May 1974. The main objective of the body, to begin with, was to make sure that the nuclear energy was used only for peaceful purposes and not for weapon-making.

India, Pakistan, Israel and South Sudan are among four UN member states which have not signed the NPT, the international pact aimed at preventing the spread of nuclear weapons.

Membership of NSG helps ease the transfer of technology, raw materials among the participant countries and US companies.

Where does India stand in the NSG?

In July 2006, the United States Congress amended US laws to allow civilian nuclear trade with India.

In 2008, the NSG participating governments agreed to grant India a "clean waiver" from its existing rules, which forbid nuclear trade with a country which has not signed the Nuclear Non-Proliferation Treaty (NPT).

In November 2010, President Barack Obama announced US support to India's participation in the Nuclear Suppliers Group.

In January 2015, during his India visit, Obama said that India was ready for the NSG membership.

China's foreign ministry offered conditional support for Indian membership in the NSG.

Pakistan applied for the NSG membership in May 2016, probably to block India's entry into the group.

What is the recent development?

After world's superpowers gave a nod to India's entry into the nuclear group, China came out in the open to oppose the move.

Why is China opposing India's entry?

China has opposed India's bid to get NSG membership on the ground that it was yet to sign the NPT.

At the same time, China has been lobbying for Pakistan's entry into the group.

India’s diplomatic efforts

The Times of India, Jun 3, 2016

Indrani Bagchi

India submitted its formal application for NSG membership on May 12, armed with over 200 documents, an exercise that culminated almost seven years of intensive engagement with the nuclear group.

With the NSG being an informal grouping whose decisions are based on consensus, India has walked an intensive diplomatic journey engaging stakeholders in a reprise of its efforts 8 years ago. While the core of the opposition to India's bid remains the same in 2016 as it was in 2008, a number of other countries have already swung in India's favour.

For instance, the Scandinavian countries who led a lot of the opposition in 2008, have been more supportive. PM reached out to Ireland in 2015 with his bilateral visit. He met with John Key, the New Zealand PM on the sidelines of the nuclear security summit in March, as well as sensitising the European and Belgian leadership. Austria, which was so reluctant in 2008 has been more understanding this time round. Foreign secretary S. Jaishankar made a quick trip to South Korea and Japan a few weeks ago to engage them. In the past few weeks, PM has reportedly made a number of calls to other NSG members. In the last few days before the meeting, he will personally reach out to the Swiss and Mexican leadership. Switzerland had been a big voice of opposition in 2008. No one is sure whether this will be enough. The US led the entire campaign to get a waiver for India in 2008, but while it has promised support this time, it's not the same. The US and China are more opposed to each other today than they were in 2008. No one is certain whether Obama would be willing to do the heavy lifting inside the group as Bush did. India is having to do a lot of the work itself, but this has been an easier exercise this time. For the past few years, India has assiduously worked through the points of objection by NSG and US. Since 2010 nuclear liability law slowed down US-India nuclear engagement. The nuclear deal itself could not be operationalised, neither could the remaining agreements between the two sides. India had also decided it wanted to enter all four non-proliferation regimes all at once, which meant slowdown in one affected all four. The Modi government, despite being nuclear sceptics, has moved fairly quickly. In January 2015, India and US signed an "understanding" on completing the nuclear deal, in order to begin unraveling the knotty legacy. The government closed the loop on the liability law by engaging the suppliers, working out a nuclear insurance pool that would help both operator (NPCIL) and suppliers cover their risk. They completed the administration arrangements with the US, the last remaining pact under the deal. India also completed the additional protocol and ratification of CSC. The government unbundled the applications - NSG and MTCR are priority, followed by Waasenaar and Australia Group. With the first US nuclear company, Westinghouse moving close to signing the first commercial contract for six reactors in Andhra Pradesh, India has checked all the boxes. India's keenness to join now has a lot to do with its quest for more clean energy in its energy mix as well as wanting to spark nuclear manufacturing and become a nuclear supplier. Confirming this, foreign secretary S. Jaishankar told journalists "We are looking at major expansion of domestic nuclear power sector and international collaboration. Getting us into the NSG would help facilitate nuclear trade. We want our own industry to be compliant With the existing global rules and regulations" which is done best if India is a member. "Merits of joining NSG derives from substantial expansion of nuclear energy segment," Jaishankar said. "We will also become serious nuclear exporter. We have a solid record, world is comfortable with us." Since the 2008 waiver, India, he said, had fulfilled all its promises to NSG and IAEA. In 2008, as now, India's opposition was centred in China, who influenced several countries, Austria, New Zealand and Ireland among them to remain as the last opposition to the waiver exercise. It took a midnight phone call from Condoleezza Rice to Chinese president Hu Jintao to bring back Chinese diplomats to the meeting which they had walked out of, and voted a reluctant 'yes'.

China is more aggressive this time, and along with asking Pakistan to apply for the same NSG membership has, in the past few weeks even linked NSG membership with India signing the NPT, knowing fully that India would only join it as a nuclear weapons state. On May 25, Pakistan's Ambassador to Austria Ayesha Riyaz in Vienna formally applied for Pakistan's membership of the NSG with a letter stating Pakistan's positive nuclear safety record and efforts to curb nuclear proliferation. Former Indian diplomat Sheel Kant Sharma wrote, "the Safeguards Agreement that China signed with the IAEA in 1988, INFCIRC/369, was a voluntary offer agreement along the lines of those done by the other P5 states i.e. nuclear weapon states. However, in contrast with other P5, China makes no mention of NPT in INFCIRC/369. ... China's subsequent agreement with the IAEA in 1998, which was an Additional Protocol to its 1988 safeguards agreement, even that makes no mention of NPT or China's commitment thereto. Thus even the legal commitments of China with the IAEA are bereft of any NPT reference while all other P5 make it a point to refer to the Treaty."

China's opposition to India is therefore a political one. Pakistan is not a serious contender, but it will depend on how far China is willing to take this. Also it's not clear what happens when China is the last man standing against India's membership. Ultimately, no one is certain how far the US is willing to push for India within the grouping. Jaishankar said on Friday, India had made a very good case for its membership, the NSG should accept it. This is about a lot more.

Countries supporting and opposing India

US support

The Times of India, Jun 22, 2016

Chidanand Rajghatta

The Obama administration again put its weight behind India's admission to the Nuclear Suppliers Group, calling on member sates to support New Delhi's application even as China, the main hurdle, appeared to soften its position. The administration used both its White House and state department pulpits to voice its support for India's membership as the 48-country cartel began its plenary session in Seoul. "India is ready for membership. And the United States calls on participating governments to support India's application," President Barack Obama's spokesman Josh Earnest said at his daily briefing.

"We continue to call — and nothing's changed about our position — on participating governments of NSG to support India's application at the plenary session this week in Seoul," echoed state department spokesperson John Kirby. He said India's application is "something about which we have routinely talked to other NSG members", and it is "not a new topic of discussion that we've had privately with the members," suggesting that Washington had done its spadework and left it to New Delhi to convince Beijing, believed to be the lone, or at least the principle, holdout. Earnest said the White House has made its views known both publicly and privately, and "we'll continue to do so in advance of the meeting this week," indicating that President Obama might still weigh in if needed. "Participating governments will need to reach a consensus decision in order to admit any applicant into the group. And the US will certainly be advocating for India's membership," he said.

In Beijing, Chinese spokespersons and government proxies went into contortions to explain their opposition to India's bid, sometimes pointing to the "principle" of only signatories of the Non-Proliferation Treaty being entertained as members, and pointing to the US for setting up the rule. "The door is open for the admission of the non-NPT members. It is never closed. But the members of the NSG should stay focused on whether the criteria should be changed and whether non-NPT members should be admitted into the NSG," Chinese foreign ministry spokesperson Hua Chunying told reporters at a media briefing on Tuesday, indicating that Beijing is open to negotiations on the issue. Some sources have suggested that eventually it will boil down to a modus vivendi between Washington, Beijing and New Delhi to make an accommodation through back channel talks that will include finessing positions about their respective roles in Asia Pacific, South China Sea and the Indian Ocean Region. This is not just about NSG membership; it will be about a lot more, sources said.

US asks NSG members to support India

The Times of India, Jun 21, 2016

The US asked the members of the Nuclear Suppliers Group (NSG) to consider and support India's application to join the grouping during their plenary meeting in Seoul. "We believe, and this has been US policy for some time, that India is ready for membership and the United States calls on participating governments to support India's application at the plenary session of NSG later this week," White House Press Secretary Josh Earnest told reporters at his daily news conference. "At same time, participating governments will need to reach a consensus decision in order to admit any applicant into the group, and the United States will certainly be advocating for India's membership," Earnest said on the eve of the 48-member grouping's plenary meeting in Seoul. His comments came after China has said that India's membership is not on the agenda of the NSG meeting. US President Barack Obama, Earnest said, had an opportunity to discuss this issue with Prime Minister Narendra Modi when he was at the White House early this month, he said. "The United States, as you know, strongly supports India's application to join the Nuclear Suppliers Group," Earnest said. "We have made our views known both publicly and privately, and we'll continue to do so in advance of the meeting this week," Earnest said when asked if the US has reached out to members of the NSG in support of India's application. At a separate news conference, the State Department reiterated the same. "As you know, during Prime Minister Modi's visit, the President welcomed India's application to join the NSG and reaffirmed that India is ready for membership. We continue to call on the participating governments, the NSG, to support India's application at the plenary session this week itself," State Department Spokesman John Kirby told reporters at his daily news conference.

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