Palau achieved full independence through the Compact of Free Association with the United States on October 1, 1994, marking the end of its status as the last Trust Territory of the Pacific Islands. This crucial agreement allows Palau to rule its domestic and global affairs as a sovereign state while the US realises responsibility for its defense for 50 years. The agreement provides Palau with security assurance and economic support, allowing it to focus on nation-building and global engagement.
Since achieving independence, Palau has established itself as an active and respected member of the global community. Joining the United Nations on December 15, 1994, Palau has since developed diplomatic relations with over 100 countries. Palau’s foreign policy, notably its unwavering support for Israel in the UN General Assembly, represents its independent stance on global issues, often aligning with democratic values and strategic partnership.
Palau’s location, geopolitically, in the western Pacific has raised its importance in US defense strategy. Palau has become an important partner in the US effort to maintain regional stability as tension in the Indo-Pacific region increases. The completion of the US Air Force’s Tactical Multi-Mission Over the Horizon Radar (TACMOR) system in Palau— a project exceeding $100 million— stresses this strategic alliance. This high-frequency radar system will provide enriched surveillance capabilities, ensuring broader security for nations and their allies.
Besides hosting advanced defense infrastructure, Palau actively participates in US- led military exercises, like Valiant Shield, further integrating into the US security framework. Particularly, the Valiant Shield exercise saw the first-ever Patriot missile launch in Palau, solidifying the island nation’s role in US military operation. Palau’s support for these initiatives demonstrates its commitment to regional security and its increasing value as a defense partner.
Over the previous three decades, Palau has transitioned from a trust territory to a sovereign nation with growing global influence. Its strategic partnership with the US, combined with its active diplomacy and security contribution, has made Palau a vital performer in Pacific geopolitics. As Palau looks to the future, its balanced approach to sovereignty, defense and international relations will continue to strengthen its standing.
