Understanding the US-Bangladesh Civil Nuclear Cooperation Agreement

The recently signed civil nuclear cooperation agreement between Bangladesh and the United States creates a framework for government bodies, regulators, and private sector entities from both nations to explore collaborative opportunities in the nuclear energy sector. This partnership could eventually lead to enhanced technical expertise, stronger regulatory frameworks, and improved security measures, potentially paving the way for Bangladesh to import nuclear materials from American suppliers.

The memorandum of understanding, which took effect on September 25 following its signing in New York, is non-binding and does not permit the immediate transfer of nuclear materials. Instead, it serves as a preliminary step toward what is known as a '123 agreement'—a formal accord that establishes the legal framework for transferring nuclear technology and materials between the United States and a partner nation.

What the Agreement Actually Covers

At its core, the memorandum enables officials, agencies, and businesses from both countries to engage in dialogue and identify areas for potential collaboration. The five-page document outlines both strategic and commercial interests while establishing desired safety and security benchmarks.

The agreement's introduction acknowledges nuclear energy's role in addressing energy requirements and strengthening the bilateral relationship between the two nations. It encourages future discussions and agreements involving governments, corporations, and industries, while emphasizing the goal of deepening connections between public and private sector representatives.

Interestingly, the document references a 1981 cooperation agreement between Bangladesh and the United States concerning peaceful nuclear energy uses. That earlier treaty, which has since expired, was actually a '123 agreement'—named after Section 123 of the US Atomic Energy Act of 1954, which mandates safeguards for nuclear materials and equipment and prohibits their use for weapons development or other military applications.

Key Areas of Cooperation

The first section identifies several priority areas for enhanced cooperation, including national security, energy security, and cybersecurity. It also calls for collaboration between relevant government agencies, ministries, and regulatory bodies; development and implementation of nuclear energy regulations; capacity building for independent oversight; cooperation in developing specialized expertise; and maintenance of the highest safety, security, and safeguard standards.

Collectively, these provisions aim to establish the necessary groundwork for American companies to construct reactors in Bangladesh or supply enriched uranium. This would require the Bangladeshi government to implement appropriate regulations and protocols, develop sufficient local expertise to operate the equipment, and establish adequate safeguards to prevent nuclear materials from falling into unauthorized hands.

Two subsections reveal particular American priorities. One expresses support for future developments involving emerging technologies, including advanced and small modular reactors, while addressing commercial challenges such as financing, localization, and nuclear liability.

Small modular reactors are prefabricated power generation units with components that can be assembled on-site. These reactors typically produce up to 300 megawatts—significantly less than conventional reactors that exceed 1,000 megawatts—occupy less space, and require shorter construction timelines since they don't need to be custom-built at each location.

However, several questions remain unanswered. Financing arrangements will likely involve credit lines from the US government. Localization refers to the ability to manufacture, maintain, service, and operate facilities and equipment using domestic expertise. Nuclear liability concerns the extent of responsibility borne by each party when problems arise. These matters will need to be negotiated as plans become more concrete.

Another paragraph indicates willingness to explore cooperation across the full spectrum of current and future American civil nuclear technologies, fuel, equipment, and services. This raises the question of whether Bangladesh would be required to purchase uranium pellets from the United States for use at the Rooppur nuclear plant, which is being constructed by Russia.

Not a Binding Obligation

The answer is no—at least not under this agreement. The second section clearly states that the memorandum does not create rights or obligations under domestic or international law, meaning the parties are not legally bound to comply with its provisions. The same section specifies that activities under the agreement will be governed by each country's national laws and regulations.

Addressing concerns about the Rooppur operations, the fifth section clarifies that the memorandum does not restrict either participant from engaging in similar activities with other public or private organizations, agencies, or individuals.

The memorandum framework was specifically designed to provide political support for government agencies, regulators, scientists, officials, and private companies from both nations to communicate and collaborate.

The memorandum signed with the Philippines in March 2022 follows a similar structure to the Bangladesh agreement, though the Philippine version explicitly states an intention to open negotiations for a new peaceful nuclear cooperation agreement. The Philippines' 123 agreement was signed in 2023 and entered into force in July 2024.

The Bangladesh agreement does express a desire to engage in other forms of civil nuclear cooperation that may be mutually determined by both participants.

Duration and Confidentiality

The agreement remains valid for five years and automatically renews for subsequent five-year periods unless either party provides six months' notice of termination.

There is also a notable confidentiality requirement. Except when mandated by national laws or regulations, the participants intend not to disclose to third parties the provisions of the memorandum or any information or documents related to its framework or implementation without written consent from the other party.

The United States launched this nuclear cooperation memorandum program in 2019. A 2021 United Nations report identified Bulgaria, Ghana, Poland, Romania, and Slovenia as countries that had signed such agreements by that time.