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How the 123 Agreement Works: Legal Framework & Enrichment

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How the 123 Agreement Works: Legal Framework & Enrichment

WASHINGTON, July 22 — The Trump administration has submitted a nuclear cooperation agreement with Saudi Arabia to Congress, setting off a 90-day review period that could reshape nonproliferation policy in the Middle East. At the heart of the deal is Section 123 of the Atomic Energy Act of 1954, a Cold War-era law that governs how the United States shares nuclear technology with other countries.

Before the U.S. can transfer any nuclear equipment, materials or know-how to another nation, it must first negotiate a bilateral agreement spelling out the nonproliferation rules. The law requires that such agreements include International Atomic Energy Agency safeguards and physical security measures.

There is a spectrum of how tight those rules can be. The “Gold Standard” version of a 123 agreement — the one the U.S. signed with the United Arab Emirates in 2009 — includes a binding commitment not to enrich uranium or reprocess spent nuclear fuel. That is important because enrichment and reprocessing are the technologies that can produce bomb-grade material.

The UAE gave up that right entirely. The Trump-Saudi 123 agreement is different.

It omits that commitment, meaning Saudi Arabia can build enrichment and reprocessing facilities — as long as it gets U.S. consent first. The deal requires the kingdom to use enriched uranium only for peaceful purposes, report to the IAEA, and accept American assistance in designing its reactors. The agreement covers 30 years and is renewable.

What the deal actually says

In plain terms, the Trump administration’s argument is that this pact strengthens nonproliferation because it brings Saudi Arabia under direct U.S. supervision. Instead of going it alone — possibly with help from other countries — the kingdom would be tied into American inspections, consent rights and reporting obligations. But critics point to statements by a senior Saudi official that the kingdom would develop a nuclear bomb if Iran does.

That statement hangs over the whole debate. The deal does not forbid enrichment and reprocessing from the outset; it lets the U.S. approve or reject specific facilities as they arise.

The 90-day clock

Here’s the practical upshot for Congress. U.S. law gives lawmakers 90 continuous days to review the agreement. During that window, if both chambers pass a joint resolution of disapproval and the president signs it — or if Congress overrides a veto — the deal is blocked.

That is a high bar, but it is the only real lever Congress has to stop it. The agreement was submitted under the Trump administration.

The administration argues the deal is a net gain for nonproliferation, bringing Saudi Arabia under a formal U.S. framework that did not exist before. What to watch next: whether congressional critics can muster the votes for a disapproval resolution. If they cannot, the deal takes effect after 90 days — and Saudi Arabia will have the right, with U.S. permission, to build the very fuel-cycle facilities that the “Gold Standard” agreements forbid.

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