▲ Japanese Prime Minister Takaichi, US President Trump
A next-generation small modular reactor (SMR) project, promoted under the tariff negotiations between the United States and Japan, is facing hurdles due to a disagreement between the two countries over liability responsibilities in the event of a nuclear accident.
According to the Financial Times on the 22nd (local time), Japan has been withholding funds for the SMR project, which is being pursued as part of a 550 billion dollar (approx. 806 trillion won) US investment initiative.
This is reportedly due to concerns that financial institutions providing funding, such as the Japan Bank for International Cooperation (JBIC), could potentially be held liable for damages if a nuclear accident occurs within the United States.
Following the past Fukushima nuclear accident in Japan, decommissioning and compensation costs are estimated to have reached about 2.34 trillion yen, or approximately 219.3 trillion Korean won.
In Japan, a system is currently in place where nuclear operators bear virtually unlimited liability for accidents.
In response, the Donald Trump administration is reportedly reassuring Japan that it legally does not need to bear responsibility because it is merely an investor rather than the operating entity.
However, the US government's stance has not yet been put into a legally binding document, and it is expected to take considerable time to overhaul the relevant regulations.
The United States has a system in which multiple entities, including power plant owners, share responsibility in the event of a nuclear plant accident.
Another factor complicating the negotiations is the uncertainty surrounding the project's economic viability and safety, given that aside from China and Russia, there are currently no SMRs in commercial operation.
The SMR project, which is Japan's second major investment initiative in the US, is scheduled to be built in Tennessee and Alabama with an investment of 40 billion dollars (approx. 58.7 trillion won).
Previously, the two countries selected and announced three projects as Japan's first round of US investments: gas-fired power generation, crude oil export infrastructure development, and synthetic diamond manufacturing.
Japan and the US are also reportedly discussing plans to announce a third tranche of investment projects—including semiconductor plants and oil and gas export terminals—before the US midterm elections in November.
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