Negotiations for the 2nd Compact Review Agreement under the Compact of Free Association (COFA) is on hold while Palau wait for the new United States administration to settle in and come back to the negotiation table, this according to President Surangel Whipps Jr. on the status of the COFA negotiations.
On Palau side, Whipps said that no action has been taken by his administration. “Simple answer, we have not done anything with our team, we are waiting for their report and from there, we will decide our next steps.”
Next review of Palau’s Compact of Free Association with United States as mandated under the Compact, is due in 2024. Under former United States’ President Donald Trump, he had pushed for Palau and US to negotiate and conclude the negotiations by end of 2020.
A Compact Negotiation team was assembled by former President Remengesau with former Vice President Raynold Oilouch as Palau’s chief negotiator. Number of virtual meetings were held last year between Palau and United States but no outcome was finalized or released by end of 2020.
Although no agreement was reached, it was reported that United States made an initial offer of $400 million dollars to Palau as part of the next round of Compact Review Agreement.