WASHINGTON — As the Biden administration approaches its final days in office, efforts are underway to strengthen relationships with key Indo-Pacific countries. President Joe Biden has presented three significant agreements to Congress aimed at bolstering ties with essential allies and partners in a region increasingly influenced by China.
On Tuesday, Biden requested legislative approval for a civil nuclear cooperation agreement with Thailand, as well as the ratification of free association accords with the Pacific island nations of Palau and the Marshall Islands. The incoming Trump administration is not expected to oppose these agreements, as it previously emphasized the importance of enhancing U.S. relations with these countries during its final two years in office, focusing on countering China’s growing influence.
The proposed civil nuclear agreement with Thailand is slated to commence in 90 days unless Congress raises objections. This 30-year deal will facilitate the transfer of sensitive, yet unclassified nuclear equipment, materials, and information, aiding Thailand in addressing its expanding energy demands.
The free association compacts with Palau and the Marshall Islands were generally approved by lawmakers earlier this year. However, Biden has now submitted the specifics of these agreements to Capitol Hill, which encompass roughly $7.1 billion in support for both nations. Under these agreements, the island nations will gain access to various U.S. agencies, including those related to disaster relief, weather forecasting, and postal services. Additionally, the agreements include provisions allowing financial institutions in Palau and the Marshall Islands to apply for backing from the Federal Deposit Insurance Corporation (FDIC).
FDIC insurance is crucial as it protects depositors in the event of bank failures, ensuring that their funds up to a designated limit are secured by the federal government. The Freely Associated States collectively have a population of under 200,000 individuals distributed across over 1,000 islands and atolls, located approximately 4,000 kilometers (2,500 miles) southwest of Hawaii.
Besides Guam, the three states provide the U.S. military with a strategic forward presence in the Pacific region, which includes a missile testing facility in the Marshall Islands and an advanced radar system currently under construction in Palau.
The historical relationship between these nations and the U.S. dates back to World War II when American forces liberated them from Japanese rule. However, in recent years, China has been actively working to increase its influence in these regions.
