William Walker explains why the new US-Euratom Agreement has been so difficult to negotiate. It is a story of the United States being led by concerns over nuclear proliferation to seek greater controls over foreign nuclear activities, and of European governments trying to defend sovereignty and protect reprocessing industries. US nuclear exports to the European Union will cease on 1 January 1996 as there is no longer time to bring a new agreement into force by the end of the year. As a result, European trade with the United States and Japan will be threatened. Walker calls for a quick settlement of the remaining disagreements.