Mexico, US Sign Agreement for the Peaceful Use of Nuclear Energy

This Wednesday, Mexico and the US announced the first agreement on Cooperation for the Peaceful Use of Nuclear Energy. The agreement enables the trade of nuclear equipment between countries to improve bilateral energy security cooperation and strengthen diplomatic as well as economic ties. "The Agreement builds on the nearly 80 years of peaceful nuclear cooperation between our two countries," the statement presented by the US State Department reads.

The US State Department specified that nuclear cooperation agreements, known as 123 agreements for Peaceful Cooperation, will provide a legal framework aimed at exports of nuclear materials from the US to Mexico, such as reactors, components and information for nuclear energy research and production. “The objective of these agreements is peaceful nuclear cooperation with Mexico based on the mutual commitment of nonnuclear proliferation" added the State Department. 

Recently, President López Obrador announced that Mexico and the US will work on a bilateral clean energy plan. The idea came up during last week’s meeting with John Kerry, the US Special Presidential Envoy for Climate, where the president and Kerry outlined Mexico’s goals to fight climate change and increase renewable energy production. 

López Obrador pointed out that Mexico is already working on the development of clean energy projects, of which the most relevant is the Sonora Plan that involves the construction of the largest solar power plant in Latin America, in addition to lithium extraction and the production of electric car batteries. Likewise, the efforts of the Mexican government to boost clean energy include the modernization of hydroelectric power plants with an investment of US$10 billion, and wind power production in the Isthmus of Tehuantepec. While the state utility has not formalized any plans to expand Mexico’s nuclear energy portfolio, the government has repeatedly expressed its interest in small, modular nuclear reactors.

"The evaluation is not yet completed, but there are billions of dollars involved and all plans are being managed by CFE. Our goal is to strengthen public companies, not only to give concessions to foreigners,” said President López Obrador. Authorities from both countries are evaluating the possibility of allowing US companies to participate in this strategy.

López Obrador stressed that he aims to sign the binational plan as part of the celebration within the framework of 200 years of diplomatic relations between Mexico and the US, which began on Dec. 12, 1822. Furthermore, the president added that the deal might be signed during President Biden’s next visit to Mexico.