WASHINGTON, March 2 (UPI) -- President George W. Bush's first presidential visit to India this week was a clear victory for the administration, capped by an agreement to separate New Delhi's civilian and military nuclear programs and a strong push for increasing bilateral economic ties between the world's two largest democracies.
The Bush administration has been aggressively pursuing negotiations with senior Indian officials to agree on a proposed deal -- established last July during Indian Prime Minister Manmohan Singh's visit to Washington -- that would separate India's civilian and military nuclear programs and place permanent safeguards on civilian reactors.
While both U.S. and Indian governments have been attempting to shift attention away from nuclear-cooperation talks, pointing to areas such as trade, energy, agriculture and scientific innovation, the administration's success in securing an agreement on India's nuclear program will still face challenges in Congress.
U.S. lawmakers are concerned that the proposed deal would bypass the nuclear Non-Proliferation Treaty, to which India is not a signatory. They are also concerned the Indian government could divert civilian technology to make nuclear weapons, which is illegal under U.S. law.
However, Bush explained that a nuclear deal with India would be in the economic interests of the United States to help stave off the global demand for energy.
"Nuclear power is a renewable source of energy, and the less demand there is for non-renewable sources of energy, like fossil fuels, the better off it is for the American people," said Bush, at a joint news conference with Singh on Thursday. "Increasing demand for oil from America, from India and China, relative to a supply that's not keeping up with demand, causes our fuel prices to go up."
U.S. Trade Representative Rob Portman, who traveled ahead of President Bush to meet with his Indian counterpart, Commerce and Industry Minister Kamal Nath, told reporters via a conference call that U.S. companies would benefit from the deal given the high-demand for U.S. nuclear power technology.
"The U.S. has technology that is sought after globally for the commercial use of nuclear power," said Portman. "The United States would have significant opportunities in the Indian markets, just as they do in other markets. The technology American companies currently possess with regard to nuclear power generation certainly would be a comparative advantage the United States has and this could affect trade in a positive way."
Compared to nations like China, trade with India is relatively low, totaling $26.8 billion last year, or roughly 10 percent of trade with China.
While over the last five years total bilateral trade between the two nations has increased from $14 billion to $26 billion, both U.S. and Indian officials pledged to double two-way trade to reach $50 billion in the next three years.
"With a country as large as India and with a growing economy, it is certainly in our interest to expand trade and this would be one area by providing services and technology in the nuclear area where we would have a possibility of expanding our trade," said Portman.
Strengthening economic ties with India was a key priority for the administration, which issued an unprecedented joint statement with the Indian government specifically on trade, according to Portman.
"Trade is important. Trade is important for our peoples. Trade is important to help nations develop ways forward, help nations overcome poverty," said Bush.
The two leaders agreed to "intensify efforts to reduce barriers to trade," according to Portman, in the context of the U.S.-India Trade Policy Forum. The forum was established last July during Singh's visit to Washington, making India one of three countries with which the United States holds cabinet-level chaired trade forums.
Both governments agreed to seek further liberalization of investment restrictions, regulatory transparency and reducing tariff and non-tariff barriers in order to expand trade and investment. Both leaders also agreed to hold a high-level public-private investment meeting before the end of the year.
Also high on the economic agenda was reaffirming commitments to complete negotiations in the so-called Doha Round by the end of 2006 and agreeing to meet all deadlines decided upon during the Hong Kong ministerial last December.
In a joint statement, Bush and Singh indicated they would meet the task with "ambition, determination and a willingness to contribute to the outcome, and to keep the development dimension in focus."
Portman, who will be meeting with trade counterparts from the European Union, India, Brazil, Japan and Australia next week in London, described talks with Nath as "intense discussions," with both trade negotiators promising to "re-double efforts" and conclude negotiations by the end of the year before the U.S. Trade Promotion Authority expires in 2007.
"Trade liberalization combined with pro-market developmental reforms enhances the economic growth potential of developing countries, no country understands this better than India," said Portman.
One of the breakthroughs achieved this week was the United States' decision to resume imports of Indian mangoes, ending a 17-year trade dispute. The agreement between the U.S. and Indian agriculture departments would permit the sale of mangoes in the Untied States in 18 months.
