Public Policy

Before U.S. companies can obtain an export license for nuclear equipment or materials, the United States must conclude a bilateral agreement for civil nuclear trade, or Section 123 agreement. The purpose of these agreements is to prevent diversion of U.S. commercial nuclear materials, components and technology from their intended peaceful use.

The United States has Section 123 agreements in place with 21 countries, Euratom (which includes 27 member countries), the International Atomic Energy Agency and Taiwan. Seven of these agreements are scheduled to expire by 2015. These expiring agreements include not only the International Atomic Energy Agency, but also major nuclear trading partners like South Korea, Taiwan, and China. Timely renewal of these agreements is critical to continuation of nuclear trade between U.S. firms and firms in these nations.

Many nations that are developing new nuclear programs do not have a Section 123 agreement with the United States, which closes the market to U.S. businesses. Meanwhile, foreign suppliers are actively pursuing nuclear project development in these countries. For example, Vietnam, Saudi Arabia, Jordan and Malaysia—all with interest in expanding nuclear energy—do not have 123 agreements with the United States and consequently, these markets are not open to U.S. exporters.

• NEI Issues in Focus: Nuclear Energy Exports and Nonproliferation
• White Paper – HR 1280: A Misguided Attempt to Control Enrichment and Reprocessing Technologies
• Nuclear Industry Position on Controls Over Enrichment and Reprocessing Technologies
• NEI Issue Summary - NSG Imposes More Stringent Conditions for E&R Transfers
• Joint letter from National Association of Manufacturers, the Nuclear Energy Institute, and the U.S. Chamber of Commerce to Secretary of State Hillary Rodham Clinton of August 30, 2012, on international nuclear energy cooperation agreements.
• Testimony of Daniel Lipman, Westinghouse Electric Company, at the House Foreign Affairs Committee’s Subcommittee on Asia and the Pacific hearing, “What’s Next for the U.S.-Korea Alliance,” June 6, 2012
• Nuclear Cooperation with Other Countries: A Primer, Congressional Research Service, February 23, 2011
• The U.S.-UAE Peaceful Nuclear Cooperation Agreement: A Gold Standard or Fool’s Gold?, by Fred McGoldrick, Center for Strategic and International Studies, November 30, 2010
• "Negotiating Nuclear Cooperation Agreements," by Mark Hibbs, Carnegie Endowment for International Peace, August 7, 2012