Monday, 3 June 2013

India, Japan and the grand bargain

As India extends its strategic reach into East Asia and the Pacific, Japan will be one of its most important relationships. But building a meaningful partnership will require changes in the way both India and Japan do things.

Both India and Japan have high expectations of the relationship. During his visit to Tokyo last week, Prime Minister Manmohan Singh argued that Japan was a "natural and indispensable partner." A few months ago, Japanese Prime Minister Shinzo Abe called for a strategy in which India, Japan, the United States and Australia formed a "diamond" to safeguard the maritime commons stretching from the Indian Ocean Region to the western Pacific.

These are grand words. But it will take work on both sides to give them substance. In building its relationship with India, Japan is making some major changes to its traditional strategic posture.
The first big leap is in Japan's nuclear policy. Abe has given his strong support to renewed negotiations for an agreement on the sale of nuclear technology to India. He also gave Japan's support for India to become a full member of international export control regimes, including the Nuclear Suppliers Group. Abe understands the symbolic and practical importance of a nuclear deal with India, especially after Australia lifted its ban on uranium exports to India in 2011.

Currently, Japan bans the supply of nuclear technology to India because it has not signed the Nuclear Non-Proliferation Treaty (NPT) or the Comprehensive Nuclear Test Ban Treaty (CTBT). In practice, this not only prevents Japanese companies from working in India but also makes it difficult for major US suppliers, such as Westinghouse and General Electric, which are owned by or in joint ventures with Japanese companies and rely upon Japanese technology. Access to this technology is therefore an important factor for the development of India's nuclear power industry. Japanese nuclear suppliers also see it as a big commercial opportunity.

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