{"id":15825,"date":"2014-09-16T12:30:17","date_gmt":"2014-09-16T02:30:17","guid":{"rendered":"http:\/\/www.aspistrategist.ru\/?p=15825"},"modified":"2014-09-17T09:50:31","modified_gmt":"2014-09-16T23:50:31","slug":"australias-nuclear-safeguards-agreement-with-india","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/australias-nuclear-safeguards-agreement-with-india\/","title":{"rendered":"Australia\u2019s nuclear safeguards agreement with India"},"content":{"rendered":"

\"The<\/a>A fortnight ago, Prime Minister Tony Abbott signed a nuclear safeguards agreement with India, allowing Australia for the first time to export uranium to India for civil nuclear purposes. The agreement is touted as a win for Australia\u2019s small uranium sector<\/a> and a needed step towards improving Australia\u2013India relations<\/a>. India\u2019s refusal to sign the NPT constrained relations for decades. It\u2019s widely understood that the uranium deal is more directly related to diplomacy than boosting Australia\u2019s mining sector, so what\u2019s next now that the safeguards agreement has been signed?<\/p>\n

The uranium deal is first and foremost a diplomatic gesture meant to jumpstart Australia\u2019s broader engagement with India. Both countries share an interest in Indian Ocean maritime security and bilateral military relations can be built around that common interest. We should expect to see strengthened dialogue between India and Australia on security issues. And we can expect that more joint military exercises and military-to-military exchanges will also be announced. A bilateral naval exercise is already scheduled for 2015<\/a>.<\/p>\n

There\u2019s also potential for increased economic engagement between Australia and India. Trade Minister Andrew Robb plans to lead a business delegation of 300<\/a> to India early next year. Australia recognises<\/a> a need to diversify its trade partners, and bilateral trade with India trails far behind that with other major Asian partners. India could become a large-scale market for Australian goods and services. And its surging need for energy security coupled with Australia\u2019s competitive advantage in energy-supply potentially makes for a strong partnership. In the short term, we can expect coal to continue to be a significant export and later LNG will emerge to fuel India\u2019s economy.<\/p>\n

Although this agreement will spark some optimism in the struggling uranium business<\/a>, it won\u2019t make anyone rich anytime soon. Uranium prices are extremely weak due to decreased global demand in the wake of the Fukushima disaster in Japan and there\u2019s a global excess of supply. Although Australia\u2019s known resources are the world\u2019s largest, uranium\u2019s only a small part of Australia\u2019s massive mining sector.<\/p>\n

Moreover, it\u2019ll take some time before uranium shipments to India begin. Australian mining company Toro Energy said shipments could start within five years<\/a>. Things will likely change for Australia\u2019s uranium sector as India and China deliver on their prospective nuclear power projects<\/a>.<\/p>\n

There\u2019s been some concern that the uranium will be used not just for civil purposes. That\u2019s a point of controversy given concerns about India\u2019s nuclear arsenal. However, this June India signed the additional protocol<\/a> with the International Atomic Energy Agency (IAEA) placing its ten reactors<\/a> under the agency\u2019s safeguards. That agreement also allows inspectors into the country and requires India to report to the IAEA all uranium within its control that is redirected for export to a third-party country. Australia also has its own watchdog, the Australian Safeguards and Non-Proliferation Office (ASNO<\/a>). To ensure Australian uranium isn\u2019t used for military purposes, ASNO accounts for it as it moves through the fuel cycle. India will be obliged to report to ASNO on the uses of uranium purchased from Australia.<\/p>\n

While Australia can\u2019t be completely certain uranium will never be diverted for military use, India knows there would be serious diplomatic consequences if it was discovered that such diversion had occurred.<\/p>\n

The nuclear safeguards agreement is a diplomatic tool meant to build trust with India and move bilateral ties forward. As an economic tool, it\u2019s a forward-looking measure to supplement India\u2019s energy needs with Australian resources.<\/p>\n

Kyle Springer is the program associate at the new <\/em>Perth USAsia Centre<\/em><\/a> at The University of Western Australia. He can be followed on twitter @kvspringer<\/a>. Image courtesy of Flickr user\u00a0Narendra Modi<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

A fortnight ago, Prime Minister Tony Abbott signed a nuclear safeguards agreement with India, allowing Australia for the first time to export uranium to India for civil nuclear purposes. 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