Commentary

Hypocrisy: Trump Deal Allows Saudis To Enrich Uranium – No International Inspections

The hypocrisy is stunning.

The Saudi Path to Enriching Uranium

The Washington Post reports U.S. signs nuclear deal with Saudi Arabia that gives it path to enriching fuel.

The Trump administration on Wednesday signed an agreement with Saudi Arabia that gives that country a pathway to enriching nuclear fuel and commits it to using U.S. firms to supply its reactors.

The agreement, which the Energy Department announced had been signed, is certain to spark heated debate in Congress, where many lawmakers have long expressed concern that exporting enrichment capabilities will lead to a proliferation of nuclear arms.

Saudi Crown Prince Mohammed bin Salman has spoken openly about working to develop nuclear weapons if Iran is not stopped from getting them.

While the Trump administration offered little information about the agreement’s contents, three people familiar with it shared details with The Washington Post. The people spoke on the condition of anonymity because they were not authorized to discuss the agreement publicly.

The people familiar with the new agreement say it is designed with safeguards to keep the Saudis from enriching nuclear fuel to weapons-grade level. But they also acknowledge it includes a waiver that exempts the Saudis from the aggressive international inspections required in nuclear reactor deals with other countries, including the United Arab Emirates.

Instead, sensitive inspections would be executed by American teams under terms spelled out in the agreement, which was initially worked out when the crown prince visited Washington in November.

Because the deal does not include conventional international inspections, President Donald Trump had to sign a separate national security waiver for it to go forward, according to the individuals familiar with it.

The agreement is sparking alarm in Israel, where officials have long sought to keep neighboring nations from enriching nuclear fuel. Unlike the Biden administration’s proposed nuclear energy pact with Saudi Arabia, which U.S. officials had predicated on the Persian Gulf state recognizing Israel’s right to exist, there is no such stipulation in the arrangement Trump negotiated.

Bennett, who is challenging Israeli Prime Minister Benjamin Netanyahu in the upcoming elections, called the deal “a severe strategic failure that jeopardizes our security” by threatening to trigger a regional “nuclear arms race and a dangerous loss of control.”

Israel Ziv, a former head of the Israel Defense Forces Operations Division, wrote in the daily newspaper Maariv that the agreement “is the final diplomatic nail in the coffin for the future of regional normalization.”

Even analysts who concede that the expansion of enrichment to Saudi Arabia and other countries is inevitable — as countries pursue nuclear power amid fast-rising global energy demand — question the structure of the agreement.

Richard Nephew, who advised Presidents Joe Biden and Barack Obama on the Middle East, said in an interview that the sidelining of international inspectors would set a worrisome precedent. He said that while U.S. inspectors are capable of robust review of nuclear activities, adversaries of the U.S. are unlikely to trust their findings and may choose to abandon inspections by the International Atomic Energy Agency.

“The point is not that Americans can’t do a great job at inspections,” he said. “The point is if you were Iran, how much confidence would you have in American inspections of Saudi operations? How would we feel if the Iranians said, ‘Don’t worry. Russians will inspect us.’ We would not accept that.”

Members of Congress are already criticizing the framework. Rep. Brad Sherman (D-California) noted during a House Foreign Affairs Committee hearing Wednesday that Iran’s nuclear program, which the White House says it is now being leveraged by Iranian leaders to build a weapon, is rooted in U.S. technology given to that country when it was still run by the shah.

“We have no idea who is going to be running Saudi Arabia 10 years from now,” Sherman said. “We are bombing Iran because they insist upon enriching and reprocessing. We are entering into an agreement with Saudi Arabia, giving them the green light to reprocess and to enrich, and the only difference I see here is that Westinghouse stands to make an awful lot of money on this deal, whereas the Iranians were not enriching American companies.”

Congressional Review

Should Congress Block This?

The question is moot because this is a done deal. It takes a two-thirds majority to block it.

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Trump calls this a victory for non-proliferation.

If anything, it will increase Iran’s desire for a nuclear weapon.

Article posted with permission from Mish Shedlock

Mish Shedlock

Mike Shedlock / Mish is a registered investment advisor for SitkaPacific Capital Management. On “MishTalk,” global economics blog, he writes several articles a day on the global economy. Topics include interest rates, central bank policy, gold and precious metals, jobs, and economic reports, all from an Austrian Economic perspective.

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