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Australia’s uranium sale to India
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December 16, 2011
The Australia’s ruling Labor Party agreed to sell uranium to India on December 4, 2011. This new nuclear-trade venture certainly cements both states bilateral relationship and would create the potential for closer ties in defense and security. Nevertheless, Australian uranium sale would have regional and global strategic ramifications. It would boost the nuclear commercial trade and industry at the cost of nuclear non-proliferation regime.

Australia lifted decade-long ban on its uranium export to India due to two reasons. First, India’s growing economic market is very attractive for the Australian business community. The proponents of uranium sale believe that it would provide more jobs to the Australian unemployed youth. Secondly, Australia wants to establish long-term strategic relations with India to combat the expanding role of China in the Southern Asia. The Australian Prime Minister Julia Gillard claimed that the decision to export uranium to India would boost trade and enhance Australia's relationship with the world’s largest democracy. She stated: “Selling uranium to India... (will mean) strengthening our strategic partnership with India in this, the Asian century.”

Prime Minister Gillard decision to lift ban on the uranium sale to India received a severe home-criticism. For instance, the motion to remove a ban on uranium sales to India was narrowly supported by 206 votes to 185 in the Australian Labor Party (ALP) national conference. The Member of Parliament clashed over the issue and protesters were marched from Sydney's convention centre before the Prime Minister Gillard’s motion to remove a party ban on uranium sales to India. Indeed, it negatively influence Australia’s moral stance on nuclear disarmament at the various international forums.

Importantly, India had always criticized Australia's uranium trade with China and Russian Federation without taking into account that both these states were party to the Nuclear Nonproliferation Treaty (NPT) and being a nuclear weapon states by virtue of the Article 9, clause 3 of the NPT, both states do not require comprehensive safeguards on their nuclear facilities. Therefore, Australian uranium trade with these states was neither the violation of NPT nor nuclear supplier groups trade guidelines.


India has intelligently brought into play Australia’s uranium trade with the nuclear weapon states to convince Gillard Government to approve the sale of uranium to India. This approval has created India’s access to the world’s 40% known uranium reserves. The Australia’s willingness to export uranium to India, certainly, reinforces India’s nuclear industry.

The Gillard Government uranium sale to India is a violation of the NPT because India does not agree to Article 3 of the NPT. Moreover the uranium export to India contravenes Australia’s obligations to regional nuclear weapon free zone treaty. Australian National University treaty law expert Don Rothwell pointed out that the South Pacific Nuclear Free Zone treaty, known as the Rarotonga Treaty, stops Australia trading the nuclear material with India. Ironically, the Gillard government is insensitive to Australia’s regional and global nuclear non-proliferation commitments.

The uranium sale obviously increases indirectly India’s capability to augment its nuclear arsenal. New Delhi would not only save its indigenous uranium purposely for manufacturing nuclear devices, but also increase its capability to generate more plutonium by using the nuclear reactor waste.

Pakistan also expressed its desire to be treated equally by the Gillard government in the realm of uranium trade. It was reported that Pakistan’s high commissioner to Australia Abdul Malik Abdullah stated that if Australia was willing to export uranium to India then it should be open to selling it to Pakistan as well. The Gillard government, however, is not ready to sell uranium to Pakistan. The Australians he Defense Minister Stephen Smith categorically stated Pakistan does not have the same record so far as proliferation is concerned. Mr. Smith’s position is hypocritical; that Australia is willing to sell uranium to India but not to the Pakistan. Whereas, both states are not party to the NPT.

India did violate its commitment with the nuclear supplier states, when it used the plutonium of CIRUS reactor in 1974 and again in 1998. The International Atomic Energy Agency’s record confirms that Pakistan has not violated its prior commitments with the Agency and did not use the safeguarded nuclear reactor spent fuel for producing fissile material (plutonium) for its nuclear weapons.

To conclude, the Indo-Australia uranium trade not only negatively influences the regional strategic environment, but it would also intensify the fragility of the nuclear non-proliferation regime.

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