Prime Minister Narendra Modi's whirlwind visit to Canada last week – the first bilateral visit by an Indian prime minister in 42 years – saw the completion of several memoranda of understanding in a range of areas, including civil aviation, rail regulation, space co-operation, education and health. And while the three-day visit to Ottawa, Toronto and Vancouver resulted in a number of key initiatives and agreements between our two countries, none was as significant as the sale of uranium and the closing of a chapter of suspicion and mistrust between Canada and India over the uses of nuclear technology.
Saskatchewan-based Cameco signed a $350-million agreement last week to provide 7.1 million pounds of uranium to fuel nuclear reactors in India over a five-year period. The sale is the first substantial trade outcome from the Canada-India Nuclear Cooperation Agreement, and opens the door once again for trade in nuclear fuel, technology and services.
The Cameco deal effectively reboots Canada-India civil nuclear energy co-operation, which ended more than 40 years ago when India tested a nuclear weapon built using Canadian nuclear technology. It also positions Canada ahead of Australia – our fierce competitor – for access to the growing Indian market.
Beyond the pages of the Cameco deal, the bilateral visit produced a number of positive outcomes that will help Canada-India civil nuclear energy collaboration achieve its long-term potential.
First, the visit highlighted specific opportunities for Canada-India civil nuclear co-operation beyond the commercial exchange of reactor fuel. The Canadian Nuclear Safety Commission finalized a formal agreement with its Indian counterpart for collaboration in the field of nuclear and radiation safety regulation. The government of Canada could build on this momentum to develop an expanded MoU on civilian nuclear technology co-operation that includes research in pressurized heavy water reactor technology, nuclear medicine and other areas discussed by the prime ministers.
Second, the bilateral discussions set a tone of trust and respect. The joint statement issued by the prime ministers emphasized that Canada and India would collaborate as equal partners in nuclear energy technology and services. India has a good track record on non-proliferation and the joint statement importantly highlights India's commitment to preventing the spread of nuclear weapons.
Third, many Canadian and other foreign companies have been unwilling to supply nuclear technology and services to India because Indian laws leave suppliers open to financial liability for damages to third parties in the case of a nuclear accident. During last week's visit, the prime ministers made progress on this front, discussing the framework necessary to facilitate Canada-India nuclear technology and services trade, including the Indian Nuclear Insurance Pool as a mechanism for managing liability issues. While progress in this area has been made, further discussions with Canadian companies may be necessary to ensure that the mechanism is sufficient to address their concerns.
Finally, elevating the nuclear discussion to the prime ministerial level is a strong indication to government, scientific and corporate communities that a new era of collaboration and trust is in place. Canadian and Indian scientists and businesses are once again free to work together.
India, a country of a billion plus people, has committed to nuclear power as a key clean energy source for the growth of its economy. At one point in our bilateral history, as India developed its civil nuclear capacity, Canada was India's mentor and partner. Since 1974, however, we have been working on our common technology in isolation. Today we embark on a collaborative path that will lead to process and service improvements benefiting both countries and economies. This is good for our environment and our prosperity.
Stewart Beck is the President and CEO of the Asia Pacific Foundation of Canada, and a former Canadian High Commissioner to India.