Kenneth Fletcher
NS&D Monitor
10/10/2014
A new U.S.-Vietnam civil nuclear agreement fully entered into force last week after an exchange of diplomatic notes Oct. 3 that finalized the deal. Notably, the agreement has raised questions from some lawmakers on both sides of the aisle because it lacks legally binding restrictions on enrichment and reprocessing, known as the ‘gold standard.’ The completion of the deal came after the Obama Administration sent the agreement to Congress in May, where it sat for 90 days of continuous legislative session as a requirement to enter into force. Last week Secretary of State John Kerry met with Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh and discussed the 123 agreement, among other issues.
Instead of the ‘gold standard, ’the Vietnam deal finalized in October 2013 includes a nonbinding commitment from Vietnam to rely on existing fuel services rather than developing its own sensitive nuclear technologies. In July the Senate Foreign relations Committee approved the pact in legislation that includes a provision calling for strengthened nuclear proliferation reviews of possible nuclear cooperation agreements, but does not address the gold standard issue. Members of the House Foreign Relations Committee took a harder stance on the Vietnam deal, with several members coming out in opposition to the deal. However, 123 agreements do not need the approval of Congress to enter into force, although House lawmakers have introduced legislation in an effort to change that.
The industry group Nuclear Energy Institute applauded the progress on the deal. “Vietnam is one of those places where international competitors have a head start but, with this agreement in place, U.S. companies can now compete on a more even playing field,” according to an NEI statement. “The market in Vietnam is estimated to be worth as much as $20 billion. According to the Department of Commerce, that much work would create 50,000 high-paying U.S. jobs and ensure a U.S. presence and influence in a critical industry.”
