The United States and Palau signed the Amended Agreement following the Compact of Free Association Section 432 Review (the “Compact Review Agreement”), on September 19 in Koror, Palau. The United States and Palau also exchanged diplomatic notes bringing into force the Compact Review Agreement, which was signed in 2010. The signing marks the completion of the first review and amendment process as provided for under the Compact of Free Association (the “Compact”), U.S. Public Law 99-658.
Since the implementation of the Compact in 1994, the United States has provided over $700 million in direct assistance and investment to Palau. The U.S. investment in Palau under the Compact and numerous other federal programs have provided funds for essential government operations, law enforcement, infrastructure development, weather pattern monitoring, immunizations and health screenings, scholarships for higher education, and postal services.
The United States sees Palau and the Pacific Islands as an essential part of a free and open Indo-Pacific region and is committed to the Pacific Islands’ security and prosperity. The United States is actively engaged in advancing a regional order based on respect for sovereignty, the rule of law, and the principles of free, fair, and reciprocal trade.