Compact of Free Association
Encyclopedia
The Compact of Free Association (COFA) defines the relationship that three sovereign states—the Federated States of Micronesia
Federated States of Micronesia
The Federated States of Micronesia or FSM is an independent, sovereign island nation, made up of four states from west to east: Yap, Chuuk, Pohnpei and Kosrae. It comprises approximately 607 islands with c...

 (FSM), the Republic of the Marshall Islands
Marshall Islands
The Republic of the Marshall Islands , , is a Micronesian nation of atolls and islands in the middle of the Pacific Ocean, just west of the International Date Line and just north of the Equator. As of July 2011 the population was 67,182...

 (RMI) and the Republic of Palau
Palau
Palau , officially the Republic of Palau , is an island nation in the Pacific Ocean, east of the Philippines and south of Tokyo. In 1978, after three decades as being part of the United Nations trusteeship, Palau chose independence instead of becoming part of the Federated States of Micronesia, a...

—have entered into as associated state
Associated state
An associated state is the minor partner in a formal, free relationship between a political territory with a degree of statehood and a nation, for which no other specific term, such as protectorate, is adopted...

s with the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

.

Now sovereign
Sovereign
A sovereign is the supreme lawmaking authority within its jurisdiction.Sovereign may also refer to:*Monarch, the sovereign of a monarchy*Sovereign Bank, banking institution in the United States*Sovereign...

 nations, the three freely associated states were formerly part of the Trust Territory of the Pacific Islands
Trust Territory of the Pacific Islands
The Trust Territory of the Pacific Islands was a United Nations trust territory in Micronesia administered by the United States from 1947 to 1986.-History:...

, a United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

 trusteeship administered by the United States Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...

 from 1947 to 1951 and by the United States Department of the Interior
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...

 from 1951 to 1986 (to 1994 for Palau). Under the COFA relationship, the United States provides guaranteed financial assistance over a 15-year period administered through the Office of Insular Affairs
Office of Insular Affairs
The Office of Insular Affairs is a unit of the United States Department of the Interior that oversees federal administration of several United States possessions...

 in exchange for full international defense authority and responsibilities.

Economic provisions

The freely associated states actively participate in all Office of Insular Affairs technical assistance activities. The U.S. treats these nations uniquely by giving them access to many U.S. domestic programs, including disaster response and recovery and hazard mitigation programs under the Federal Emergency Management Agency
Federal Emergency Management Agency
The Federal Emergency Management Agency is an agency of the United States Department of Homeland Security, initially created by Presidential Reorganization Plan No. 1 of 1978 and implemented by two Executive Orders...

, and services provided by the National Weather Service
National Weather Service
The National Weather Service , once known as the Weather Bureau, is one of the six scientific agencies that make up the National Oceanic and Atmospheric Administration of the United States government...

, the United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...

, the Federal Aviation Administration
Federal Aviation Administration
The Federal Aviation Administration is the national aviation authority of the United States. An agency of the United States Department of Transportation, it has authority to regulate and oversee all aspects of civil aviation in the U.S...

, the Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...

, and U.S. representation to the International Frequency Registration Board of the International Telecommunications Union. The Compact area, while outside the customs area of the United States, is mainly importable duty-free.

Most citizens of the associated states may live and work in the United States, and most U.S. citizens and their spouses may live and work in the associated states. In 1996, the U.S. Personal Responsibility and Work Opportunity Act
Personal Responsibility and Work Opportunity Act
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is a United States federal law considered to be a fundamental shift in both the method and goal of federal cash assistance to the poor. The bill added a workforce development component to welfare legislation, encouraging...

 included removing Medicaid
Medicaid
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...

 benefits for resident aliens from these states. (Most other resident aliens have a five-year waiting period.)

Military provisions

The COFA allows the United States to operate armed forces in Compact areas, to demand land for operating bases (subject to negotiation), and excludes the militaries of other nations without U.S. permission. The U.S. in turn becomes responsible for protecting its affiliate nations and responsible for administering all international defense treaties and affairs, though it may not declare war on their behalf. It is not allowed to use nuclear, chemical, or biological weapons in Palau territory. It also is not allowed to store such weapons there except in times of national emergency, state of war, or when necessary to defend against an actual or impending attack on the U.S., the Marshall Islands, or the Federated States of Micronesia.

2003 renewal

In 2003, the Compacts with the RMI and FSM were renewed for 20 years. These new Compacts provided US$3.5 billion in funding for both nations. US$30 million will also be disbursed annually amongst American Samoa
American Samoa
American Samoa is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the sovereign state of Samoa...

, Guam
Guam
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...

, Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...

, and the Northern Mariana Islands
Northern Mariana Islands
The Northern Mariana Islands, officially the Commonwealth of the Northern Mariana Islands , is a commonwealth in political union with the United States, occupying a strategic region of the western Pacific Ocean. It consists of 15 islands about three-quarters of the way from Hawaii to the Philippines...

 in "Compact Impact" funding. This funding helps the governments of these localities cope with the expense of providing services to immigrants from the RMI, FSM, and Palau. The U.S. usage of Kwajalein Atoll
Kwajalein
Kwajalein Atoll , is part of the Republic of the Marshall Islands . The southernmost and largest island in the atoll is named Kwajalein Island. English-speaking residents of the U.S...

 for missile testing was renewed for the same period. The new Compacts also changed certain immigration rules. RMI and FSM citizens traveling to the U.S. are now required to have passports. The U.S. Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...

 was given the option to apply international postage rates for mail between the U.S. and RMI/FSM (phased in over five years). The USPS did begin implementing the change in January 2006, but decided to resume domestic services and rates in November 2007.

The renewed Compact (commonly called "Compact II") for FSM took effect on May 1, 2004, and for RMI on June 30, 2004.
The economic provisions of the Compact for Palau which provided $18 million in annual subsidies and grants, expired on September 30, 2009, and the renewal talk was expected to conclude in early 2010. U.S. financial support for Palau is currently based on a continuing resolution
Continuing resolution
A continuing resolution is a type of appropriations legislation used by the United States Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the Congressional fiscal year...

passed by the U.S. Congress. The Compact Trust Fund set up to replace US financial aid underperformed due to the recession. The military and civil defense provisions will remain until 2044.

External links

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