Palau, a small Pacific Island nation and long-time US partner, has increasingly drawn attention as a key strategic ally. Several military exercises in 2024 have underscored Palau’s importance in the Indo-Pacific.
The United States–Palau relationship saw impactful developments over 2024, marked by the renewal of the Compacts of Free Association (COFA), and several high-profile joint exercises aimed at securing the Indo-Pacific. COFA is an extensive agreement between the United States and the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau, providing aid to the Pacific Island states and institutionalizing security cooperation between these allies. Under COFA, the United States is responsible for Palau’s security; the island thus welcomes the US armed forces in several military exercises, a key part of this defense partnership. Chief among these was the tenth iteration of Operation Valient Shield, a military exercise bringing together US forces under the Indo-Pacific command in Guam, the Commonwealth of Northern Mariana Islands, and Palau. The exercise takes place once every two years. The 2024 operation featured a sink exercise involving the decommissioned Austin-class amphibious transport dock and the ex-USS Cleveland in the North Pacific Ocean, along with a joint mass casualty exercise. The exercise also included triage simulations for medical teams as well as a port repair operation in Koror, Palau’s largest city. Participants including the Tennessee National Guard also fired Precision Strike Missiles from an Autonomous Multi-domain Launcher as part of the sink exercise, the first time these technologies have been used together outside of the United States. Valient Shield serves as a consistent avenue for the US armed forces and its partners in the region to test and demonstrate the power of cutting-edge equipment to deter disruption to the status quo.
These exercises highlight Palau’s strategic importance, but security cooperation extends far beyond joint drills. A particularly notable aspect is the high rate of Palauan enlistment in the US military. Under COFA, Palauans are eligible to serve in the US armed forces, and astoundingly, they do so at a higher rate per capita than any US state. Some serve to gain skills for future career paths, but many volunteer out of a sense of duty or desire to protect their people. In addition to direct military engagement, maritime security cooperation has become a critical pillar of US-Palau relations, particularly through the efforts of the U S Coast Guard. In 2024, there were numerous initiatives to support the island country, for example a September dispatchment to assist Palau in policing illicit fishing activity in its Exclusive Economic Zone (EEZ), which covers 237,850 miles2. The US Coast Guard supported Palauan forces in patrol operations that identified 12 vessels and several fish aggregating devices in and around Palau’s EEZ. This comes after a major bilateral agreement in 2023, which granted the US Coast Guard the authority to enforce Palauan laws without a Palau officer present, enhancing the ability of US forces to support Palauan security and the integrity of its EEZ. Though there is currently no permanent US military presence on the Pacific Island nation, the Palauan government has made clear that it welcomes the US armed forces should they wish to construct a military base or other security-related infrastructure on the island. The country has doubled down on this approach after its 2024 presidential election, which re-elected the pro-US Surangel Whipps Jr. with a significant majority. Taking Palau up on its welcoming stance, the United States successfully restored an airstrip in Peleliu in June of 2024 and is working to install over-the-horizon radar by 2026.
Regardless of how the new United States administration, which has yet to discuss an official Indo-Pacific strategy, approaches the region, Palau is likely to remain a key regional partner. Its strategic location and deep-rooted ties with the United States make the island an indispensable ally. In a potential security crisis, Palau’s position in the Pacific would be critical to regional stability. Additionally, as one of only 12 nations still recognizing Taiwan—a quarter of which are Pacific Island states—Palau plays an important role in the broader geopolitical balance, evidenced by Chinese pressure on the island to adopt a One-China policy. As US foreign policy in the Indo-Pacific continues to evolve, maintaining strong security cooperation with Palau will be essential to preserving regional stability and deterrence.
Tommis Meyer is a Spring 2025 Young Professional Intern at the East-West Center in Washington. Tommis is also in his final semester pursuing an undergraduate degree in Global International Relations at American University under its Joint Degree Program with Ritsumeikan University in Japan.