Section 123 Nuclear Cooperation Agreement

A Section 123 agreement is a bilateral agreement that establishes the legal framework required under the United States Atomic Energy Act of 1954 for significant peaceful nuclear cooperation between the United States and another country. It sets non-proliferation and oversight conditions under which nuclear material, equipment, components or technology may be transferred.

Purpose and scope

The agreement enables cooperation in the peaceful uses of nuclear energy, but does not itself approve a particular export or reactor project. Individual transfers remain subject to applicable United States laws, regulations and licensing decisions.

• Cooperation may cover nuclear material, reactors, components, information, research and related services.
• The agreement defines rights and obligations concerning safeguards, security, use and subsequent handling of transferred items.

Statutory non-proliferation conditions

Section 123 requires such agreements to contain safeguards against diversion from peaceful purposes. Their terms normally address IAEA safeguards, physical protection, retransfer to third parties and controls over enrichment, reprocessing or alteration of transferred nuclear material.

• Transferred material and equipment cannot be used for nuclear explosive purposes or other military purposes prohibited by the agreement.
• Retransfer and certain sensitive activities generally require prior United States consent.
• Safeguards and other controls help maintain accountability over transferred material and material produced through its use.

Approval process and India's agreement

The United States executive negotiates the agreement and submits it to Congress with the required statutory determinations. Congressional review and approval procedures vary according to whether the agreement meets all statutory criteria or requires exemptions.

• The India-US Civil Nuclear Cooperation Agreement, commonly called the India-US 123 Agreement, was signed in 2008.
• It provided the bilateral legal framework for civil nuclear commerce, while India's safeguards arrangements and the Nuclear Suppliers Group decision were separate enabling steps.

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