The United States and Micronesia signed a memorandum of understanding (MOU) on Feb. 10 reaffirming their close ties, a pact considered crucial to the U.S. efforts to counter Beijing’s growing influence in the Pacific.
“The memorandum of understanding was signed as part of the ongoing Compact of Free Association negotiations and confirms our shared vision for a strong and enduring partnership that will continue to benefit both nations and the entire Pacific region,” the department stated.
The United States is bound with the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau through the Compact of Free Association; these countries are called the Freely Associated States (FAS).
The agreement allows these states access to U.S. domestic economic programs and allows the United States to operate defense bases in these nations. The citizens of FAS are also allowed to serve in the U.S. Armed Forces.
Micronesian President David Panuelo had said on Feb. 3 that his negotiating team would sign a memorandum with the U.S. government “for the extension of the economic provisions for another 20 years.”
On Jan. 13, Panuelo said Micronesia had received economic and social benefits under the agreement with the United States. He anticipated a rise in U.S. military drills near Micronesia’s territory in the coming years amid “the geopolitical atmosphere in the Pacific.”
“These exercises will be increasing in frequency over the next several years, and while they are ultimately in our national interest and in the interest of our Nation’s security—of which the U.S. is our indisputable guardian—it is important that our citizens know about them well in advance so that our people do not see these activities and then immediately fear the worst.”
The move occurs as China has been increasing its diplomatic efforts in the region.
US Must Strengthen Ties
The United States Institute of Peace (USIP), a federally funded think tank, released a report in September 2022 urging the United States to elevate engagement with the three FAS nations amid its increasing power rivalry with China.“The United States has historically assigned only limited diplomatic resources to the FAS and even less to other Pacific Island nations,” reads the report, which was released on Sept. 20, 2022.
“By contrast, China has consular staff for and frequent working and senior-level engagement with every Pacific Island nation with which it has diplomatic relations.”
The Compact of Free Association provisions will expire in 2023 for the Marshall Islands and Micronesia and in 2024 for Palau. Although the island nations still enjoy close ties to Washington, critics warn that a failure to finalize economic aid could spur them to look to China for funding or increased trade and tourism.
USIP stated that China perceives Washington’s “limited” engagement as a strategic void in the Pacific Island region and has been open about its intentions to fill it.
As the competition between the United States and the Chinese regime gains pace in the Pacific region, the FAS presents a unique opportunity for the United States, whose military is expanding its force posture, according to the report.
“U.S. defense rights in the FAS present unique opportunities for new facilities and dual-use ports and airfields development. Strong U.S.–FAS connections mean that a deterioration in FAS economic or security conditions would have spillover effects into U.S. states and territories,” it reads.
