The memorandum commits Paraguay to peaceful nuclear energy development exclusively, formally abandoning any military atomic program consideration. U.S. Chargé d’Affaires Robert Alter stated the agreement covers sharing of best practices, technology information, and safety, security, and non-proliferation requirements. The framework opens potential incorporation of small modular reactors into Paraguay’s electricity network, which currently relies entirely on hydroelectric generation. Paraguay’s state utility ANDE signed a non-binding SMR cooperation agreement with the International Atomic Energy Agency in April 2026 for long-term technology evaluation.
The Paraguay agreement emerges as Argentina faces October 2027 expiration of its bilateral nuclear cooperation accord with the United States, in force since 1997. Argentina constructed the Pilcaniyeu enrichment facility in 1983 following U.S. supply cutoffs imposed by the 1978 Nuclear Non-Proliferation Act. The facility established Argentina among approximately thirteen nations possessing uranium enrichment technology, a strategic capability that confers negotiating leverage in Section 123 renewals. CNEA president Germán Guido Lavalle announced in June 2025 intentions to reactivate uranium mining and domestic enrichment using centrifugation technology to support small modular reactor exports. However, Argentina’s science and technology budget sustained 40 percent reductions, with total research spending declining to 0.22 percent of GDP against a legislated 0.45 percent target, leaving Pilcaniyeu reactivation dependent on private sector financing rather than state funding. The facility remains operationally dormant as Argentina enters renewal negotiations without documented reciprocal commitments from Washington for technology transfers or enrichment rights previously conceded.
This article was curated and published as part of our South American energy market coverage.
