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Updated January 11, 2022
The Pacific Islands
Overview
intercontinental ballistic missile test site on Kwajalein Atol
In recent years, the Pacific Islands region in the Southwest
in the Marshall Islands (Ronald Reagan Missile Test Site),
Pacific has re-emerged as an area of interest to major
which also supports space surveillance activities. The
powers, largely due to the People’s Republic of China’s
Department of Defense is installing radar systems in Palau.
(PRC’s) expanding engagement in the region. The region
The United States has military ties with Fiji, PNG, and
has strategic significance for the United States and hosts
Tonga, the only PICs with regular military forces.
key U.S. military installations. Major issues affecting the
Pacific Islands include intra-regional and international
Figure 1. The Pacific Islands Region and Subregions
tensions, economic development, illegal fishing, climate
change, and issues related to self-determination and
decolonization.
Geopolitical Context
Pacific Island countries (PICs) are scattered over a broad
expanse of ocean and are divided among three sub-regions
—Melanesia, Polynesia, and Micronesia (see Figure 1).
The United States has long held a major economic and
strategic role in the Micronesian subregion, home to two
U.S. territories (Guam and the Northern Mariana Islands)
and to the Freely Associated States (FAS)—Republic of the
Marshall Islands, Federated States of Micronesia, and
Republic of Palau—which have special economic and
security ties with the United States. U.S. territory American
Samoa lies in the Polynesian subregion. Australia and New
Source: Congressional Research Service
Zealand maintain strong relations with much of the
The United States has shiprider agreements with 11 PICs,
Southwest Pacific, particularly in the Melanesian subregion.
which allow local law enforcement officers to embark on
U.S. naval and coast guard ships in order to board and
Pacific Island Countries
search vessels suspected of violating laws and to combat
Some PICs, such as Papua New Guinea (PNG) and Fiji, are
Illegal, Unreported, and Unregulated (IUU) fishing. The
relatively large with extensive natural resources; others are
Department of State extends $21 million annually in
very small, sitting on top low-lying coral atolls, with
assistance to Pacific Island parties to the South Pacific Tuna
limited economic prospects and high vulnerability to the
Treaty (SPTT) to support sustainable fisheries.
effects of climate change and sea level rise. Over half of the
world’s tuna is harvested in the region. Many PICs rely on
U.S. Department of State and U.S. Agency for International
fisheries, tourism, and remittances for revenue. Although
Development (USAID) assistance to the Pacific Islands
their remoteness helped most PICs to minimize
region focuses on disaster prevention and response, climate
Coronavirus Disease 2019 (COVID-19) infections, travel
resiliency and environmental protection, government and
restrictions and border controls have disrupted tourism and
civil society, digital connectivity, fisheries, energy, basic
trade, including food imports and tuna exports.
health, and HIV/AIDS prevention and treatment in PNG. In
2018, the United States announced the Papua New Guinea
The Pacific Islands Forum (PIF) is the region’s main
Electrification Partnership, a collaborative effort with
political and economic policy organization with 18
Australia, Japan, and New Zealand, that focuses on
members, including 14 PICs, two French “overseas
expanding the capacity and distribution of the country’s
collectivities,” Australia, and New Zealand. In February
electrical supply. In 2019, the Department of State launched
2021, following a leadership dispute, the five countries of
a new Pacific Islands regional program as part of its Indo-
the Micronesian subregion announced that they would
Pacific Strategy.
withdraw from the organization. Tensions within the PIF
may present challenges to regional cooperation.
In 2019 and 2020, the Department of State, as part of its
“Pacific Pledge,” committed a total of $300 million in new
The United States and the Region
U.S. assistance, including $130 million to respond to
The United States has significant military assets based in
COVID-19 in the region. USAID provided over $27.7
the Pacific. U.S. Indo-Pacific Command, based in Hawaii,
million in COVID-19 assistance as of November 2021. In
encompasses Oceania as part of its area of responsibility.
the 117th Congress, a wide-ranging bill, Boosting Long-
The United States has air and naval bases on Guam and an
term U.S. Engagement in the Pacific Act (BLUE Pacific
https://crsreports.congress.gov
The Pacific Islands
Act, H.R. 2967), would increase U.S. assistance to the
the PRC in 2019, combined with inter-ethnic tensions,
Pacific Islands and promote government capacity, trade,
culminated in anti-government demonstrations in Honiara,
climate resiliency, and civil society.
the capital, by people from Malaita province in November
2021. Protesters set buildings on fire, mostly in the city’s
The Freely Associated States
Chinatown. Australia, New Zealand, Fiji, and PNG sent
The United States and the FAS are negotiating the
security forces to help restore order. In December 2021,
extension of economic assistance pursuant to the Compacts
China sent police advisors and anti-riot equipment.
of Free Association, which is set to expire in 2023 for the
Marshall Islands and Micronesia and 2024 for Palau, while
Security Challenges
defense, security, and immigration provisions are to
Some reports suggest China is interested in developing
continue. Some U.S. policymakers have expressed support
dual-use ports and airfields in the region. A PRC company
for continued economic support to the FAS, including
constructed a wharf in Vanuatu in 2017, although Vanuatu
federal program assistance, given their ongoing economic
leaders stated there were no discussions about a PRC
dependency, U.S. historical obligations, and the perceived
military base. To preempt PRC investment at Lombrum
need to counter China’s rising influence in the region.
naval base in PNG, Australia and the United States agreed
in 2018 to jointly develop it; a Chinese company reportedly
From 1946 to 1958, the United States conducted 67
is expanding and upgrading an airport nearby. Observers
atmospheric atomic and thermonuclear weapons tests over
have expressed concern China will recommission the
the Marshall Islands atolls of Bikini and Enewetak. The
satellite tracking station in Kiribati it built prior to Kiribati
U.S. government has provided compensation and funding to
establishing relations with Taiwan (from 2003 to 2019).
the Marshall Islands for nuclear test-related injuries,
damages, health care, and soil remediation through the
The United States, Australia, and Japan have cooperated on
Compact of Free Association and legislation. Some
efforts to provide alternatives, due to cybersecurity
policymakers, including Members of Congress, argue that
concerns, to Chinese investment in 5G telecommunications
the United States should provide additional assistance to the
networks in the region. In 2021, the three countries
Marshall Islands to address lingering issues related to the
announced that they would jointly fund an undersea
nuclear tests. (See CRS Report R46573, The Freely
telecommunications cable that would boost internet access
Associated States and Issues for Congress.)
in Kiribati, Micronesia, and Nauru. In 2019, Australia
financed an undersea cable connecting PNG, the Solomon
International Assistance
Islands, and Australia, thereby precluding Chinese
According to the Lowy Institute in Australia, Australia and
telecommunications firm Huawei from successfully
New Zealand contribute 55% of all foreign assistance to the
competing for the project. Australia, the United Kingdom
Pacific Islands region. In 2019, the top aid donors were
(U.K.), and the United States signed the AUKUS agreement
Australia ($864.6 million), New Zealand ($253.9 million),
in 2021, which allows Australia to build nuclear-powered
and Japan ($179.3 million). The United States provided
submarines with U.S. and U.K. technology. The agreement
$140.1 million and China $128.5 million. Other large
aims to counter PRC military advances in the Indo-Pacific.
donors include the European Union and Taiwan, which has
competed with China for diplomatic allies in the region.
Climate Change
Taiwan has official relations with four PICs (Marshall
Climate change and related sea level rise present an
Islands, Nauru, Palau, and Tuvalu), while China has
existential threat to several PICs. Some studies project that
relations with ten. Most U.S. economic assistance to the
groundwater contamination and damage to crops and
region is provided to the FAS pursuant to the Compacts of
infrastructure will render many low-lying Pacific atoll
Free Association, with funds appropriated by the
islands uninhabitable within decades. PICs were among the
Department of the Interior. China now rivals Australia in
first countries to sign the Paris climate accord. PIC leaders
terms of economic assistance to the PICs, although most
agreed on an expanded concept of security in the 2018 Boe
PRC aid is in the form of loans rather than grants.
Declaration on Regional Security, which states that climate
change remains “the single greatest threat” to the Pacific.
China’s Influence
The PRC has become a significant actor in the South
Self Determination
Pacific through diplomacy, economic engagement, and
In a third referendum vote in November 2021, New
infrastructure and other construction. China has eight
Caledonia, which has large nickel deposits, voted to remain
embassies among the PICs compared to the United States’
part of France. Indigenous Kanak boycotted the
six, and regularly hosts Pacific Island leaders in Beijing.
referendum, which may undermine the legitimacy of the
China has loaned significant sums to several PICs, which
vote and possibly lead to political unrest. In a non-binding
some analysts fear could lead to unsustainable debt burdens
2019 referendum, 98% of the inhabitants of the island of
and greater PRC leverage. China has surpassed Australia to
Bougainville in PNG voted for independence. The
become the region’s largest trade partner. The PRC is a
Bougainville and PNG governments are in the process of
significant market for PIC natural resource exports and
negotiating a roadmap for independence which must be
tourism. China’s rapidly expanding fishing fleet in the
approved by the PNG parliament.
region has contributed significantly to IUU fishing.
Thomas Lum, Specialist in Asian Affairs
Solomon Islands Prime Minister Manasseh Sogavare’s
Bruce Vaughn, Specialist in Asian Affairs
decision to switch diplomatic recognition from Taiwan to
https://crsreports.congress.gov
The Pacific Islands
IF11208
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https://crsreports.congress.gov | IF11208 · VERSION 2 · UPDATED