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Updated August 17, 2022
The Pacific Islands
Overview
Northern Mariana Islands) and to the Freely Associated
The Pacific Islands region in the Southwest Pacific has
States (FAS)—Republic of the Marshall Islands (RMI),
emerged as an area of keen interest to major powers, largely
Federated States of Micronesia (FSM), and Republic of
due to the People’s Republic of China’s (PRC’s) expanding
Palau—which have special economic and security ties with
engagement in the region. The region has strategic
the United States. U.S. territory American Samoa lies in the
significance for the United States and hosts key U.S.
Polynesian subregion, where France has territories and
military installations. Congressional considerations include
military bases. Australia and New Zealand maintain strong
bolstering diplomacy in the region, funding assistance in
relations with much of the region, particularly in Melanesia.
such areas as climate change, sustainable fisheries, and
economic development, addressing security threats posed
The PIF has 18 members—14 PICs, two French “overseas
by China, and extending economic and other assistance for
collectivities,” Australia, and New Zealand. The
the Freely Associated States (see below).
organization recently has faced discord. In 2021, the five
Micronesian countries threatened to withdraw from the
Some Pacific Island countries (PICs), such as Papua New
organization over a leadership dispute, and in July 2022,
Guinea (PNG) and Fiji, are relatively large with extensive
Kiribati, which has strengthened its relations with China in
natural resources; others are quite small, sitting on top of
recent years, formally withdrew.
low-lying coral atolls, with limited economic prospects and
high vulnerability to the effects of climate change and sea
The United States and the Region
level rise. PICs were among the first countries to ratify the
U.S. Indo-Pacific Command, based in Hawaii, encompasses
2015 Paris Climate Agreement. PIC leaders agreed on an
the Pacific Islands as part of its area of responsibility. The
expanded concept of security in the 2018 Boe Declaration
U.S. military has air and naval bases on Guam and operates
on Regional Security, which states that climate change
the Ronald Reagan Ballistic Missile Defense Test Site at
remains “the single greatest threat” to the Pacific. Over half
Kwajalein Atoll in the Marshall Islands. The Department of
of the world’s tuna is harvested in the region. Many PICs
Defense is building a high-frequency radar system in Palau.
rely on fisheries, tourism, and remittances for revenue.
The U.S. military has ties with Fiji, PNG, and Tonga, the
Although their remoteness helped most PICs to minimize
only PICs with regular armed forces. The Biden
Coronavirus Disease 2019 (COVID-19) infections, travel
Administration’s Indo-Pacific Strategy (February 2022)
and border restrictions have disrupted tourism and trade.
states that the United States “will work with partners to
establish a multilateral strategic grouping that supports
In February 2022, Antony Blinken visited Fiji, the first U.S.
Pacific Island countries as they build their capacity and
Secretary of State to visit the country in 26 years, as part of
resilience as secure, independent actors.”
an effort to bolster U.S. engagement in the region. Blinken
pledged assistance to the Pacific Islands on climate change,
Figure 1. The Pacific Islands Region and Subregions
illegal fishing, and COVID-19 vaccines. In May 2022, Fiji
became the first PIC to join the Indo-Pacific Economic
Framework, an initiative launched by the Biden
Administration to bolster U.S. economic engagement in the
region. In August 2022, Deputy Secretary of State Wendy
Sherman made stops in Samoa, the Solomon Islands (SI),
and Tonga, as well as Australia and New Zealand, and
participated in discussions to hear PIC priorities for
cooperation with the United States. In 2022, the U.S.
government announced plans to build new embassies in
Kiribati, the Solomon Islands, and Tonga, and to appoint a
U.S. Envoy to the Pacific Islands Forum (PIF), the region’s
main multilateral organization. Bills in the 117th Congress
that support these efforts include S. 4648 and S. 4650.
Geopolitical Context
Source: Congressional Research Service
The PICs are scattered over a broad expanse of ocean and
The United States has shiprider agreements with 11 PICs,
divided among three sub-regions—Melanesia, Polynesia,
allowing local law enforcement officers to embark on U.S.
and Micronesia (see Figure 1.) The United States has long
naval and coast guard ships in order to board and search
held major economic and strategic roles in the Micronesian
vessels suspected of violating laws and to combat Illegal,
subregion, home to two U.S. territories (Guam and the
Unreported, and Unregulated (IUU) fishing. The
Department of State provides $21 million annually to
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The Pacific Islands
Pacific Island parties to the South Pacific Tuna Treaty to
enforcement cooperation, joint fisheries and
support sustainable fisheries. The Biden Administration
communications infrastructure development, Chinese
announced in July 2022 that it would request an increase of
language training, and other objectives.
this assistance to $60 million annually.
In March 2022, the Solomon Islands and China signed a
The U.S. Agency for International Development provides
security agreement, ostensibly in part to address “internal
assistance to the Pacific Islands focusing on disaster
threats,” including the protection of Chinese-owned
prevention and response, climate resiliency, and sustainable
businesses in the country. U.S. and Australian observers
fisheries. Other assistance priorities include supporting
expressed concern that the pact could lead to a PRC
government and civil society, digital connectivity, energy,
military presence in the Solomons. SI Prime Minister
health, and HIV/AIDS prevention and treatment in PNG.
Sogavare’s decision to switch diplomatic recognition from
The State Department launched a new Pacific Islands
Taiwan to China in 2019, combined with inter-ethnic
regional program in 2019, and as part of its “Pacific
tensions, culminated in anti-government demonstrations
Pledge” committed a total of $300 million in new funding
and unrest in Honiara, the capital, in 2021, including rioting
for the Pacific Islands in 2019 and 2020, including $130
and the burning of properties in the city’s Chinatown.
million for COVID-19 programs.
Security Challenges
The Freely Associated States
Some reports suggest China is interested in developing
The United States and the FAS are negotiating the
dual-use ports and airfields in the region. A PRC company
extension of economic assistance pursuant to the Compacts
constructed a wharf in Vanuatu in 2017, although Vanuatu
of Free Association, which is set to expire at the end of
leaders denied there were discussions about a possible PRC
FY2023 for the RMI and FSM and FY2024 for Palau, while
military base. In 2018, Australia outbid China to upgrade
defense-related and other provisions will continue. In
Blackrock military camps in Nadi, Fiji, and Australia and
March 2022, the Biden Administration appointed
the United States agreed to jointly develop Lombrum naval
Ambassador Joseph Yun as the Special Presidential Envoy
base in PNG to preempt PRC investment. In 2021, some
for Compact Negotiations. Once bilateral agreements on
regional observers expressed concern about China’s plans
renewing assistance are reached, Congress must approve
to upgrade an airstrip in Kiribati, which had switched
them through implementing legislation. (See CRS In Focus
diplomatic relations from Taiwan to China in 2019.
IF12194, The Compacts of Free Association).
The United States, Australia, and Japan have cooperated on
Congress also may consider whether to provide further
efforts to address cyber and other security concerns posed
compensation and assistance related to U.S. nuclear testing
by China in the region. In 2020 and 2021, the three
over the Marshall Islands between 1946 and 1958. The U.S.
countries partnered to finance undersea telecommunications
government to date has provided roughly $600 million for
cables for Kiribati, Micronesia, Nauru, and Palau. In 2019,
compensation, environmental cleanup and restoration,
Australia financed an undersea telecommunications cable
resettlement, and health care related to the nuclear tests.
connecting PNG, the Solomon Islands, and Australia,
The RMI claims $2.2 billion in unpaid property damages.
thereby precluding Chinese telecommunications firm
Huawei from undertaking the project. In 2021, the United
International Assistance
States, Australia, and the United Kingdom (U.K.) signed
The top foreign bilateral assistance donors to the PICs are
the AUKUS agreement, allowing Australia to build nuclear-
Australia, New Zealand, Japan, and the United States. Most
powered submarines with U.S. and U.K. technology. Some
U.S. assistance to the PICs is provided to the FAS pursuant
regional leaders expressed concern that AUKUS may raise
to the Compacts. Other major aid providers include China,
tensions in the region or infringe upon their aspiration of a
the European Union, and Taiwan. Taiwan has diplomatic
nuclear-free Pacific. Australia, New Zealand, and 11 PICs
relations with four PICs (RMI, Nauru, Palau, and Tuvalu),
are signatories to the 1985 South Pacific Nuclear Free Zone
down from six in 2018, while China has relations with ten.
Treaty (Treaty of Rarotonga), which bans nuclear weapons
The PRC provides most of its development assistance in the
among its members.
form of loans rather than grants. Some analysts fear that
Chinese lending could lead to unsustainable debt burdens
Self Determination
among some PICs and greater PRC leverage in the region.
In a third referendum in November 2021, New Caledonia,
which has large nickel deposits, voted to remain part of
China’s Influence
France. Indigenous Kanak, who make up approximately
China has become a significant actor in the region through
40% of the population, boycotted the referendum, which
diplomacy and economic engagement. The PRC is an
some argue may undermine the legitimacy of the vote. In a
important market for PIC natural resource exports and
nonbinding 2019 referendum, 98% of the inhabitants of the
tourism. China’s fishing fleet in the region has contributed
island of Bougainville in PNG voted for independence. The
significantly to IUU fishing. Ten PICs have joined China’s
Bougainville and PNG governments are in the process of
Belt and Road Initiative, which promotes PRC-backed
negotiating a roadmap for independence which must be
infrastructure development. In May 2022, the PRC
approved by the PNG parliament.
proposed a sweeping diplomatic, economic, and security
pact between China and the region that met resistance
Thomas Lum, Specialist in Asian Affairs
among some PICs and was shelved. It reportedly would
Bruce Vaughn, Specialist in Asian Affairs
have supported expanded official exchanges, law
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The Pacific Islands
IF11208
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https://crsreports.congress.gov | IF11208 · VERSION 5 · UPDATED