The United States (U.S.) and Paraguay have formalized a new step in their bilateral relationship by signing a Memorandum of Understanding (MOU) aimed at expanding civilian nuclear cooperation. The agreement extends collaboration between the two countries into civilian nuclear technology, reflecting Paraguay’s continued strategic alignment with the Donald Trump administration.
Paraguay, which remains the only South American nation maintaining diplomatic ties with Taiwan, is broadening cooperation with the United States beyond security and trade to include the nuclear sector. The Strategic Civilian Nuclear Cooperation MOU was signed on the 4th August 2026 at the U.S. Department of State in Washington, D.C., by U.S. Secretary of State Marco Rubio and Paraguayan Foreign Minister Ruben Ramirez. During the signing ceremony, Rubio stated, “What we seek is not merely a continuously growing relationship but the establishment of a perpetual one. We must create a foundation for bilateral ties that remains unshaken by changes in administrations or political environments.”
Ramirez highlighted the significance of the partnership, saying, “The strategic alliance between our nations is of paramount importance. Beyond bilateral relations, we are closely cooperating on regional security and global issues,” while identifying freedom, democracy, human rights, and the rule of law as the shared principles underpinning the relationship. The agreement marks another milestone in civilian nuclear cooperation between the two countries.
Section 123 Agreement Framework and International Safeguards
The newly signed civilian nuclear cooperation arrangement is structured under the framework of the Section 123 Agreement, which is based on Article 123 of the U.S. Atomic Energy Act. The provision, enacted in 1954, authorizes the transfer of civilian nuclear technology, nuclear materials, and equipment for power generation and scientific research, provided that recipient countries comply with International Atomic Energy Agency (IAEA) safeguards and non-proliferation standards.
In addition, the United States maintains the authority to verify that transferred materials and technology are not redirected for military purposes. The U.S. signed a comparable agreement with Saudi Arabia on 22nd July 2026 and has concluded Section 123 agreements with more than 20 countries, including South Korea, Brazil, and the United Arab Emirates (UAE).
The latest civilian nuclear cooperation agreement also comes at a time of strategic competition between the United States and China for influence in Paraguay. Since taking office in August 2023, President Santiago Peña has placed market-friendly economic policies and stronger pro-U.S. cooperation at the center of Paraguay’s diplomatic approach, strengthening ties with the Trump administration across political, diplomatic, and security areas.
