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Australia May Lift Ban on Uranium Sales to India

Australia May Lift Ban on Uranium Sales to India
Australian Prime Minister Julia Gillard has announced her intention of lifting her country’s ban on sales of uranium to India. Although this will set up a clash within the Labor and Green coalition, she probably doesn’t have to muster the votes to push this through the Australian Parliament; an executive order may well suffice. Even if it came to a vote, the opposition Liberal-National alliance would likely back the PM.

Australia has refused to sell India uranium because the Asian giant has declined to sign the Non-Proliferation Treaty. However, in 2008, the 45-member Nuclear Suppliers Group signed a deal with India that allows uranium sales without India having to accede to the treaty; the NSG includes the US, Russia and France.

As a result, the Australian ban has been rather pointless. It did not deny India uranium, and at the same time, it harmed Australia’s mining industry. By allowing the trade with India to develop, Australia will be removing a barrier to closer ties to one of Asia’s most vibrant economies.

Bob Brown, leader of the Green Party told the Australian Broadcasting Corporation, “It’s going to be pretty horrifying for many Australians. It’s specious to think sending Australian uranium to India is not going to bolster its ability to put uranium into nuclear weapons.” Mr. Brown is right, of course, but when it comes to India having a sizable nuclear arsenal, well, that ship sailed years ago.

The World Nuclear Association notes, “India has 20 reactors in operation, and four under construction (two expected to be completed in 2011). This includes two large Russian reactors and a large prototype fast breeder reactor as part of its strategy to develop a fuel cycle which can utilise thorium. Twenty further units are planned. 17 further units are planned, and proposals for more – including western and Russian designs – are taking shape following the lifting of trade restrictions.”

Australia’s ban only deprives its mining sector of a customer and impedes ties with India; it does nothing about nuclear proliferation. Ms. Gillard has made the right call.

 

Author

Jeff Myhre

Jeff Myhre is a graduate of the University of Colorado where he double majored in history and international affairs. He earned his PhD at the London School of Economics in international relations, and his dissertation was published by Westview Press under the title The Antarctic Treaty System: Politics, Law and Diplomacy. He is the founder of The Kensington Review, an online journal of commentary launched in 2002 which discusses politics, economics and social developments. He has written on European politics, international finance, and energy and resource issues in numerous publications and for such private entities as Lloyd's of London Press and Moody's Investors Service. He is a member of both the Foreign Policy Association and the World Policy Institute.