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The
Dawn of
A Glorious New Era
By
Dev Varam |
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It was an epoch-making
visit by a Head of State.
US President George Bush
visited India from March
1 to 3, 2006, carrying
an agenda that had been
worked out in detail for
months, covering a vast
range of issues, from
agriculture to civilian
nuclear power, from science
and technology to space
research, as part of further
strengthening the ongoing
strategic partnership
between India and the
United States. It is very
obvious that the world's
richest and most powerful
democracy should reach
out to the world's largest
democracy, which is also
an emerging economic power,
as a partner and ally.
"India in the 21st
century is a natural partner
of the United States,”
President Bush declared,
at the start of his talks
with Prime Minister Manmohan
Singh. Welcoming President
Bush, the Indian Prime
Minister pointed that
the stand taken by the
American leader on the
issue of outsourcing cemented
the relations between
the two countries. But,
the Prime Minister added,
the farsighted approach
helped America retain
its edge in the global
market. On his part, President
Bush was fully aware of
the fact that India's
300-million strong middleclass,
with increasing purchasing
power, provided a huge
market for American products.
He said the Indo-US relationship
was based on the belief
that free and fair trade
was in the interest of
the people of both countries.
In a subtle way, this
implied that India should
further reduce its trade
tariffs on its imports
that include American
goods and services. At
a State banquet given
in honour of the visiting
American leader, Indian
President A.P.J. Abdul
Kalam referred to the
knowledge revolution that
began in the United States
and said that it had become
a powerful force of modernization
in Indian society as well.
“We also have 540
million youth with a potential
of transforming themselves
into a global human cadre
of a skilled and intellectual
work force,” President
Kalam added. Which again
would be to the advantage
of both countries migration
of more and more better
brains to the US and increased
outsourcing work to India.
President Bush understood
the interdependence of
both countries. “The
US and India, separated
by half the globe are
closer than ever before
and the partnership between
our free nations has the
power to transform the
world,”
After their extensive
talks, President Bush
and Prime Minister Singh
signed a historic pact
on civilian nuclear energy
and issued a detailed
joint statement, covering
a gamut of various other
areas of cooperation.
But the nuclear pact,
which does not hinder
India's nuclear weapons
production, stood out
as the testimony of success,
achieved against opposition
from several quarters
in both the countries.
Another significant development
was the presentation of
a report by the India-US
CEOs Forum, laying down
the roadmap for an enduring
strategic partnership
between the two countries.
The Forum identified six
major areas of cooperation
and recommended time-bound
specific action in 15
key business sectors covering
most economic parameters
to boost the two-way trade
and investment between
both the countries. It
was aimed at doubling
the bilateral trade to
$40 billion in three years
from $20 billion as at
present, and carrying
it out into the future
by the same mind-blowing
arithmetic leaps and bounds.
It is quite possible in
view of the vast untapped
potential that exists
as India accounts for
just about one percent
of the US imports. President
Bush was right when he
said: “Our two great
democracies are now united
by opportunities that
can lift our people.”
After hammering out a
slew of agreements President
Bush and Prime Minister
Singh knew that they had
created history. Standing
firmly on ground, they
set their sights on the
distant horizon that is
gathering light. They
both know that a glorious
new era has begun in the
relations between the
United States and India.
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| The
Historic N-Pact |
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President Bush and Prime
Minister Manmohan Singh
have announced an unprecedented
agreement that would provide
U.S. nuclear power assistance
to India without hindering
the country's nuclear
weapons production.
The agreement has marked
a significant break from
decades of U.S. nuclear
policy, and highlighted
the strengthening relationship
between the world's most
powerful democracy and
its largest counterpart.
Both leaders declared
that Bush's visit was
a success.
Under the agreement, India
is to separate its civilian
and military nuclear programmes
over the next eight years
in order to gain U.S.
expertise and nuclear
fuel to meet its rapidly
rising energy needs. India's
civilian facilities would
be subject for the first
time to permanent international
inspections.
Bush and Singh described
the deal, which has been
in the works since July
2005, following Singh's
visit to Washington, where
the two leaders set an
agenda for improving India-US
cooperation in a number
of areas, including Nuclear
energy, as an important
breakthrough in U.S.-India
relations.
"What this agreement
says is -- things change,
times change, that leadership
can make a difference,"
Bush said at the news
conference. "I am
trying to think differently,
not to stay stuck in the
past, and recognize that
by thinking differently,
particularly on nuclear
power, we can achieve
some important objectives."
Singh said, "We have
made history today.”
The deal must clear two
large hurdles before it
can take effect. Bush
must overcome concerns
by lawmakers in both parties
that the United States
is rewarding one of only
three countries that refused
to sign the 1968 nuclear
Non-Proliferation Treaty.
R. Nicholas Burns, the
undersecretary of state
for political affairs,
said that India, unlike
Iran and North Korea,
earned special treatment
from the United States
with its commitment to
democracy and international
inspections. Burns was
intensely involved in
working out the details
of the nuclear pact.
Burns said one of the
most crucial aspects of
the pact is that India
would subject future civilian
plants to inspections.
"This is a significant
gain for nonproliferation
purposes and it certainly
is far better than the
zero influence we had
before the deal,"
he said. India, however,
won the right to classify
reactors as for either
military or civilian use,
which could limit inspections.
Mohammed ElBaradei, head
of the International Atomic
Energy Agency, which would
be in charge of the inspections,
praised the deal. "It
would also bring India
closer as an important
partner in the nonproliferation
regime," he said
in a statement issued
from his office in Vienna.
For India, which faces
dwindling supplies of
indigenous uranium, the
deal would allow it to
import uranium to fuel
its civilian program.
Of India's 22 nuclear
plants, 14 classified
for civilian use would
be subject to new and
permanent international
inspections under the
deal. The country's eight
other reactors, as well
as future ones designated
for military use, would
be off-limits.
Analysts said the pact
was an important part
of a White House strategy
to accelerate New Delhi's
rise as a global power
and as a regional counterweight
to China.
Bush and Singh also made
progress on cementing
closer economic ties,
including an informal
commitment to try to double
bilateral trade every
three years. |
| |
U.S-India
Joint Statement
A Pledge to
boost business climate,
investment |
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President
George W. Bush and Prime
Minister Manmohan Singh
have expressed satisfaction
with the great progress
the United States and
India have made in advancing
their strategic partnership
to meet the global challenges
of the 21st century.
In a Joint Statement
issued at the end of
their talks, President
Bush and Prime Minister
Singh said: “Both
our countries are linked
by a deep commitment
to freedom and democracy;
a celebration of national
diversity, human creativity
and innovation; a quest
to expand prosperity
and economic opportunity
worldwide; and a desire
to increase mutual security
against the common threats
posed by intolerance,
terrorism, and the spread
of weapons of mass destruction.
The successful transformation
of the U.S.-India relationship
will have a decisive
and positive influence
on the future international
system as it evolves
in this new century.”
Reviewing the progress
made in deepening the
global partnership between
the United States and
India since their Joint
Statement of July 18,
2005, the President
and the Prime Minister
reaffirm their commitment
to expand even further
the growing ties between
their two countries.
Consistent with this
objective, the two leaders
wish to highlight efforts
the United States and
India are making together
in the following areas,
where they have:
FOR
ECONOMIC PROSPERITY
(1)
Agreed to intensify
efforts to develop a
bilateral business climate
supportive of trade
and investment by:
1. Welcoming the report
of the U.S.-India CEO
Forum, agreeing to consider
its recommendations
aimed at substantially
broadening our bilateral
economic relations,
and directing the Chairs
of the Indo-U.S. Economic
Dialogue to follow up
expeditiously with the
CEO Forum;
2. Endorsing the efforts
of the U.S.-India Trade
Policy Forum to reduce
barriers to trade and
investment with the
goal of doubling bilateral
trade in three years;
3. Agreeing to advance
mutually beneficial
bilateral trade and
investment flows by
holding a high-level
Public-Private Investment
Summit in 2006, continuing
efforts to facilitate
and promote foreign
direct investment and
eliminate impediments
to it, and enhancing
bilateral consultations
on various issues including
tariff and non-tariff
barriers to trade in
goods and services,
and preventing the illicit
use of the financial
system.
(2)
Sought to expand
cooperation in agriculture
by:
1. Launching the Knowledge
Initiative on Agriculture
with a three-year financial
commitment to link our
universities, technical
institutions, and businesses
to support agriculture
education, joint research,
and capacity building
projects including in
the area of biotechnology.
2. Endorsing an agreed
workplan to promote
bilateral trade in agriculture
through agreements that:
lay out a path to open
the U.S. market to Indian
mangoes, recognize India
as having the authority
to certify that shipments
of Indian products to
the United States meet
USDA organic standards,
and provide for discussions
on current regulations
affecting trade in fresh
fruits and vegetables,
poultry and dairy, and
almonds.
(3)
Reaffirmed their
shared commitment to
completing the WTO Doha
Development Agenda (DDA)
before the end of 2006,
and agreed to work together
to help achieve this
outcome.
FOR ENERGY
SECURITY AND A CLEAN
ENVIRONMENT
(1) Welcomed the successful
completion of discussions
on India's separation
plan and looked forward
to the full implementation
of the commitments in
the July 18, 2005 Joint
Statement on nuclear
cooperation. This historic
accomplishment will
permit our countries
to move forward towards
our common objective
of full civil nuclear
energy cooperation between
India and the United
States and between India
and the international
community as a whole.
(2) Welcomed the participation
of India in the ITER
initiative on fusion
energy as an important
further step towards
the common goal of full
nuclear energy cooperation.
(3) Agreed on India's
participation in FutureGen,
an international public-private
partnership to develop
new, commercially viable
technology for a clean
coal near-zero emission
power project. India
will contribute funding
to the project and participate
in the Government Steering
Committee of this initiative.
(4) Welcomed the creation
of the Asia Pacific
Partnership on Clean
Development and Climate,
which will enable India
and the U.S. to work
together with other
countries in the region
to pursue sustainable
development and meet
increased energy needs
while addressing concerns
of energy security and
climate change. The
Partnership will collaborate
to promote the development,
diffusion, deployment
and transfer of cleaner,
cost-effective and more
efficient technologies
and practices.
(5) Welcomed India's
interest in the Integrated
Ocean Drilling Program,
an international marine
research endeavor that
will contribute to long-term
energy solutions such
as gas hydrates.
(6) Noting the positive
cooperation under the
Indo-U.S. Energy Dialogue,
highlighted plans to
hold joint conferences
on topics such as energy
efficiency and natural
gas, to conduct study
missions on renewable
energy, to establish
a clearing house in
India for coal-bed methane/coal-mine
methane, and to exchange
energy market information.
FOR INNOVATION
AND THE KNOWLEDGE ECONOMY
(1) Emphasizing the
importance of knowledge
partnerships, announced
the establishment of
a Bi-National Science
and Technology Commission
which the U.S. and India
will co-fund. It will
generate collaborative
partnerships in science
and technology and promote
industrial research
and development.
(2) Agreed that the
United States and India
would work together
to promote innovation,
creativity and technological
advancement by providing
a vibrant intellectual
property rights regime,
and to cooperate in
the field of intellectual
property rights to include
capacity building activities,
human resource development
and public awareness
programs.
(3) Agreed to continue
exploring further cooperation
in civil space, including
areas such as space
exploration, satellite
navigation, and earth
science. The United
States and India committed
to move forward with
agreements that will
permit the launch of
U.S. satellites and
satellites containing
U.S. components by Indian
space launch vehicles,
opening up new opportunities
for commercial space
cooperation between
the two countries.
(4) Welcomed the inclusion
of two U.S. instruments
in the Indian lunar
mission Chandrayaan-1.
They noted that memoranda
of understanding to
be signed by ISRO and
NASA would be significant
steps forward in this
area.
(5) Welcomed the U.S.
Department of Commerce's
plan to create a license
exception for items
that would otherwise
require an export license
to end-users in India
engaged solely in civilian
activities.
FOR GLOBAL
SAFETY AND SECURITY
(1) Noted the enhanced
counter-terrorism cooperation
between the two countries
and stressed that terrorism
is a global scourge
that must be fought
and rooted out in every
part of the world.
(2) Welcomed the increased
cooperation between
the United States and
India in the defense
area, since the New
Framework for the U.S.-India
Defence Relationship
was signed on June 28,
2005, as evidenced by
successful joint exercises,
expanded defence cooperation
and information sharing,
and greater opportunities
to jointly develop technologies
and address security
and humanitarian issues.
(3) Reaffirmed their
commitment to the protection
of the free flow of
commerce and to the
safety of navigation,
and agreed to the conclusion
of a Maritime Cooperation
Framework to enhance
security in the maritime
domain, to prevent piracy
and other transnational
crimes at sea, carry
out search and rescue
operations, combat marine
pollution, respond to
natural disasters, address
emergent threats and
enhance cooperative
capabilities, including
through logistics support.
Both sides are working
to finalize a Logistics
Support Agreement at
the earliest.
(4) Welcomed India's
intention to join the
Container Security Initiative
aimed at making global
maritime trade and infrastructure
more secure and reducing
the risk of shipping
containers being used
to conceal weapons of
mass destruction.
(5) Reiterated their
commitment to international
efforts to prevent the
proliferation of weapons
of mass destruction.
(6) Building on the
July 2005 Disaster Relief
Initiative, noted the
important disaster management
cooperation and their
improved capabilities
to respond to disaster
situations.
(7) Recognized the importance
of capacity building
in cyber security and
greater cooperation
to secure their growing
electronic interdependencies,
including to protect
electronic transactions
and critical infrastructure
from cybercrime, terrorism
and other malicious
threats.
DEEPENING DEMOCRACY
(1) Recalled their joint
launch of the UN Democracy
Fund in September 2005
and offered the experience
and expertise of both
Governments for capacity
building, training and
exchanges to third countries
that request such assistance
to strengthen democratic
institutions.
(2) Welcomed the decision
of India and the United
States to designate
a representative to
the Government Advisory
Board of the International
Centre for Democratic
Transition (ICDT) located
in Budapest to facilitate
cooperative activities
with ICDT.
(3) Agreed that the
Virtual Coordination
and Information Centres
set up in September
2005 should be further
strengthened and a bilateral
meeting aimed at developing
a practical programme
for utilization of its
services be held soon.
(4) Expressed satisfaction
at the expedited USFDA
drug approval processes
that strengthen the
combat against HIV/AIDS
at the global level
and encourage greater
corporate participation
to meet this challenge,
including the establishment
of the Indo-U.S. Corporate
Fund for HIV/AIDS.
(5) Agreed to expand
bilateral efforts and
continue cooperation
in the area of medical
research and strengthen
technical capacity in
food and drug regulation
in India as well as
address the concern
on avian influenza,
including agreement
to reach out to the
private sector, develop
regional communications
strategies, and plan
an in-region containment
and response exercise.
The President welcomed
India's offer to host
the International Partnership
on Avian and Pandemic
Influenza meeting in
2007.
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| Trade
Essential for Economic Growth |
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The
Joint Agreement on Trade
India and the United States
agree that trade is essential
to promoting global economic
growth, development, freedom
and prosperity. In a joint
statement President Bush
and Prime Minister Singh
said:
We fully share the goal
of completing the WTO
Doha Development Agenda
(DDA) before the end of
2006, and agree to work
in partnership to help
achieve this outcome.
During our discussions,
we agreed to meet the
task with ambition, determination
and a readiness to contribute,
consistent with our roles
in global trade, and to
keep the development dimension
in focus. The system of
trading rules to which
our two great democracies
have contributed immensely
must be strengthened.
Towards this global cause,
we recommit ourselves
and invite all key participants
to demonstrate their leadership.
We agree that a successful
Round depends upon progress
in all areas of the negotiations
if we are to meet our
goal of promoting development
through trade. We are
committed to a DDA result
consistent with the mandates
already agreed that realize
a substantial outcome
in all three pillars of
the agriculture negotiations
(domestic support, export
competition and market
access); significant improvements
in market opportunities
in manufacturing and services;
and appropriate disciplines,
including transparency
of regulatory practices
in services. We also believe
we should strengthen the
rules that facilitate
trade, where we have jointly
made proposals. Work in
all these areas must go
hand in hand.
We agree to pursue an
ambitious agenda for the
first half of 2006,consistent
with the important milestones
that were set at the Hong
Kong Ministerial for agriculture,
manufacturing, services
and other issues, and
continuing to press for
the goal of concluding
the negotiations by the
end of 2006.
We will continue to work
to promote reform, respond
to the concerns of developing
countries, and create
opportunities for growth
for all. We are building
the trading system of
the future, where progressive
liberalization and reform
result in improvement
in standards of living
for all, in particular
for the millions of poor
across the developing
world. |
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