Al Jazeera's Andrea Clarke reports on the deal that was "supposed" to be the foundation of a new partnership between India and the US after decades of diplomatic tension. But instead, it's heading for disaster: with India's prime minister telling President George W. Bush that he's having difficulties finalizing the pact. SHARON Sharon Squassoni of the Carnegie Centre says everyone know all along there was some dissent within political parties. But there's not much this White House can do to fix this problem, that's going to be Prime Minister Singh's job. The agreement allows for peaceful nuclear co-operation. India could buy US nuclear reactors and access technology. And in return, the US becomes a regular supplier for India's energy programme. The pact drew heavy criticism from American lawmakers, who argued it could spark a regional arms race. The deal also angered an alliance of communist parties whose support is key to the survival of Singh's coalition, and BJP, India's largest opposition party. They're concerned the deal would erode India's sovereignty. Tensions have reached boiling point in recent weeks, triggering the backdown from Prime Minister Singh. Squassni says one of criticisms in Indian press now is he putting his own political future first before India's strategic interests. There are a number of ways this could play out. Desperate to salvage the agreement, the US remains positive, insisting the deal is not dead. Tom Case, State Department spokesman, says: "We still believe the deal is a good one for India and its broader efforts at non-proliferation". At stake here --a major foreign policy embarrassment for the administration. And potentially, a number of defense contracts worth billions of dollars to the US. Even if India found a way to move forward it would have major obstacles to overcome with the IAEA and then face a US congress preoccupied with finding a way to end the war in Iraq.
