The United States has renewed its Compact of Free Association with three traditional Pacific allies for another 20 years.

The new economic and security deal with Palau, the Marshall Islands and the Federated States of Micronesia signed by US President Joe Biden over the weekend provides the said nations with $7.1 billion in funding, Secretary of State Anthony Blinken said on Monday.

Special funds to counter climate change and additional money for health care are included.

In return, Washington gains influence and the right to locate military facilities across a swathe of the central Pacific.

Marshall Islands President Hilda Heine said the agreement “represents a very big step in our mutual and enduring efforts to strengthen and improve the Compact.”

The deal includes $700 million for the Marshalls over the next four years as part of a trust fund agreement, Heine added.

Micronesia President Wesley Simina described the signing as “an important milestone” which “opens a new chapter in our enduring partnership with the United States.”

Simina said Micronesia will receive funding for education, health care, environmental projects and improved infrastructure.

The office of Palau President Surangel Whipps Jr. said it was “wonderful news.” The legislation includes $889 million for Palau, officials said in a statement.

Palau and Micronesia agreed to renew the compact in the middle of last year. The Marshall Islands followed suit in October, but US lawmakers took five months to agree on a package.

With Washington and Beijing tussling for influence in the Pacific, Heine had said the delay was damaging to US relations with the Marshalls.

Members of Congress from both parties in February warned US House speaker Mike Johnson that a failure to ratify the compacts would be “the most self-destructive gift the United States could give to the PRC (China) in the Pacific.”

with AFP