Next Steps in Strategic Partnership (NSSP)
In January 2004 the United States and India agreed to expand cooperation in three specific areas: civilian nuclear activities, civilian space programs, and high technology trade. The following statement was made by President Bush in January, shortly after the finalization of the agreement:
"In November 2001, Prime Minister Vajpayee and I committed our countries to a strategic partnership. Since then, our two countries have strengthened bilateral cooperation significantly in several areas. Today we announce the next steps in implementing our shared vision.
The United States and India agree to expand cooperation in three specific areas: civilian nuclear activities, civilian space programs, and high-technology trade. In addition, we agree to expand our dialogue on missile defense. Cooperation in these areas will deepen the ties of commerce and friendship between our two nations, and will increase stability in Asia and beyond.
The proposed cooperation will progress through a series of reciprocal steps that will build on each other. It will include expanded engagement on nuclear regulatory and safety issues and missile defense, ways to enhance cooperation in peaceful uses of space technology, and steps to create the appropriate environment for successful high technology commerce. In order to combat the proliferation of weapons of mass destruction, relevant laws, regulations and procedures will be strengthened, and measures to increase bilateral and international cooperation in this area will be employed. These cooperative efforts will be undertaken in accordance with our respective national laws and international obligations.
The expanded cooperation launched today is an important milestone in transforming the relationship between the United States and India. That relationship is based increasingly on common values and common interests. We are working together to promote global peace and prosperity. We are partners in the war on terrorism and we are partners in controlling the proliferation of weapons of mass destruction and the means to deliver them.
The vision of U.S.-India strategic partnership that Prime Minister Vajpayee and I share is now becoming a reality."
Since January, the two governments have worked closely together to conclude Phase One of the NSSP. This has included implementation of measures to address proliferation concerns and to ensure compliance with U.S. export controls. These efforts have enabled the United States to make modifications to U.S. export licensing policies that will foster cooperation in commercial space programs and permit certain exports to power plants at safeguarded nuclear facilities. These modifications, including removing the Indian Space Research Organization (ISRO) Headquarters from the Department of Commerce Entity List, are fully consistent with U.S. Government nonproliferation laws, obligations, and objectives.
The specific modifications to U.S. licensing policies designed to expand U.S.-India civil space and civil nuclear cooperation and enhance bilateral high-technology trade will be: Removing the Indian Space Research Organization (ISRO) Headquarters, Bangalore from the Department of Commerce Entity List, which will permit many dual-use items to be exported to ISRO Headquarters without an export license. The removal of ISRO Headquarters from the Entity List will facilitate U.S. exports to India's civilian space program and encourage U.S. investment in the peaceful uses of space. Removing licensing requirements for low-level dual-use items (known as EAR99 and XX999 items) exported to ISRO subordinate entities that are on the Entity List. This change in licensing policy is expected to reduce the number of applications submitted for exports to ISRO subordinate entities by approximately 75-85 percent and reduce the total number of applications for all dual-use exports to India by approximately 20-25 percent.
Applying a "presumption of approval" policy for all dual-use items not controlled by the Nuclear Suppliers Group (NSG), if intended for export to the "balance-of-plant" portion of an Indian nuclear facility subject to International Atomic Energy Agency (IAEA) safeguards. Permitting the export of all U.S.-origin items not controlled by the NSG to the "balance of plant" portion of safeguarded facilities will expand the scope of civilian nuclear cooperation between the United States and India.
Next Steps in Strategic Partnership (NSSP) signing ceremony:
Marc I. Grossman, Under Secretary of State, Shyam Saran, Indian Foreign Secretary,
and Kenneth I. Juster, Under Secretary of Commerce.
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