123 agreement: US, Saudi ink landmark nuclear pact

The United States and Saudi Arabia have signed a landmark civil nuclear cooperation pact, known as a "123 agreement," establishing a legal framework for long-term collaboration in peaceful nuclear energy. The deal opens Saudi Arabia’s nuclear programme to American companies.

Washington: The United States and Saudi Arabia have signed a landmark civil nuclear cooperation agreement, marking a major step in their strategic partnership and opening the door for American companies to participate in the Kingdom’s planned nuclear energy programme.

US Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman on Wednesday (local time) signed the peaceful nuclear cooperation agreement, known as a “123 agreement”, along with a bilateral safeguards agreement that the US said establishes the legal framework for long-term nuclear cooperation between the two countries.

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The US Department of Energy described the deal as the foundation for a “decades-long, multi-billion-dollar partnership” that will support Saudi Arabia’s civilian nuclear ambitions while advancing US commercial, strategic and non-proliferation objectives.

The agreement gives American companies expanded access to Saudi Arabia’s emerging nuclear energy sector and is expected to benefit US industry, workers and supply chains while helping the Kingdom diversify its energy mix.

US officials said the accompanying safeguards agreement commits both countries to high standards of nuclear safety, security and non-proliferation.

“These agreements reflect our two nations’ shared commitment to strengthening US-Saudi commercial relations, delivering prosperity at home and security to our allies abroad,” Wright said after the signing.

“Rest assured, these agreements uphold the highest standards of nuclear safety and nonproliferation, while relying on the world’s best nuclear technology and scientists, designed right here in the United States.”

He added: “Thanks to President Trump, the American nuclear renaissance is underway and will deliver long-term benefits to the American and Saudi people.”

The Energy Department said the agreement advances the Trump administration’s effort to expand US leadership in the global civil nuclear market and promote exports of American nuclear technology.

According to the department, the partnership is expected to expand US nuclear technology exports, create high-paying American jobs, strengthen US energy and national security, reinforce global non-proliferation standards and deepen strategic ties with Saudi Arabia.

The agreement builds on President Donald Trump’s executive order on deploying advanced nuclear reactor technologies for national security, including provisions promoting American civil nuclear exports under Section 123 of the US Atomic Energy Act of 1954.

Under US law, a Section 123 agreement is required before Washington can engage in significant civilian nuclear cooperation with another country. Such agreements establish the legal and non-proliferation framework governing nuclear trade, technology transfers and related cooperation.

The agreement will now be sent to the US Congress for review, the Energy Department said.