The Three Examples of Independence with “Free Association”

The Puerto Rico Status Act, a legislative proposal pending before Congress, seeks to offer voters in Puerto Rico a choice among three options for a more dignified, democratic relationship with the United States: statehood, independence, and independence with a “free association” component.

While it is well established what it means to be a state or an independent country, the definition of “free association” is less well known. Fortunately, the United States has three Compacts of Free Association that can provide examples.

The United States Department of the Interior has posted public statements on the political status of all three of the Free Associated States. The statements have some important things in common:

• All three of the FAS are independent, sovereign countries. All are described as having gained independence before they entered into their Compacts of Free Association.
• The U.S. provides some economic assistance to the FAS.  As a practical matter, this assistance covers USPS (postal service) and limited financial aid, as the U.S. provides to foreign nations, but does not include funding anywhere near the level of what states receive from the federal government.  There is no access to federal programs like Medicare, Medicaid, or refundable tax credits for working families.
• In return for defense and financial assistance, the U.S. gets “exclusive and unlimited access to [FAS] land and waterways for strategic purposes,” essentially unfettered national security and defense rights and authority.
• FAS citizens may serve in the U.S. armed forces, but they are not U.S. citizens and cannot vote for President, the Commander in Chief.
• FAS citizens may work or study in the U.S. but do not have any type of special path to U.S. citizenship.

This is a far cry from the proposals of some supporters of  free association for Puerto Rico, which often sound very like the definitions of “enhanced commonwealth” which all three branches of the federal government have rejected. The definition of free association is quite different.

Palau

The U.S. Department of the Interior defines Palau’s political status like this:

The Republic of Palau (Palau) emerged from the Trust Territory of the Pacific Islands (TTPI) which the United States administered on behalf of the United Nations from 1947 to 1978. Palau was the TTPI’s last district to choose its political future and become a sovereign country. Upon independence in 1994, Palau entered into a 50-year Compact of Free Association (U.S. Public Law 99-658) with the United States, similar to that of its neighbors, the Federated States of Micronesia and the Republic of Palau. Palau also joined the United Nations in 1994. Under the Compact, the United States, through the Department of the Interior, provides economic and financial assistance, defends Palau’s territorial integrity, and allows uninhibited access by Palauan citizens to the United States in return for exclusive and unlimited access to Palau’s land and waterways for strategic purposes. The close strategic and economic ties between the United States and Palau that go back to the end of World War II are also reflected in the fact that hundreds of Palauan citizens serve in all branches of the U.S. Armed Forces and choose to further their education in the United States. Palau also uses the U.S. dollar as its currency.

Federated States of Micronesia (FSM)

Here is the description of the FSM as posted by the U.S. Interior Department:

The Federated States of Micronesia (FSM) emerged from the Trust Territory of the Pacific Islands (TTPI) which the United States administered on behalf of the United Nations from 1947 until 1978.  The FSM adopted its own constitution and became an independent country in 1979; it entered into a Compact of Free Association with the United States in 1986 and became a member of the United Nations in 1991. The first financial package of the Compact covered 15 years, from 1986 to 2001. Under provisions of the Compact, the Compact was extended for two years while the United States and the FSM completed negotiations for a new financial package in 2003, covering 2003-2023. A Trust Fund was also created to contribute to the long-term budgetary self-reliance of the FSM when the financial grant provisions of the Compact expire in 2023. Under the Compact, the United States provides financial assistance, defends the FSM’s territorial integrity, and provides uninhibited travel for FSM citizens to the U.S.  In return, the FSM provides the United States with unlimited and exclusive access to its land and waterways for strategic purposes.  The close ties between the United States and the FSM that go back to the end of World War II are also reflected in the fact that hundreds of FSM citizens serve in all branches of the U.S. Armed Forces and further their education in the United States. The FSM also uses the U.S. dollar as its currency.

The Marshall Islands

The Marshall Islands also has a description on the U.S. Department of Interior website:

The Republic of the Marshall Islands (RMI) was a district of the Trust Territory of the Pacific Islands (TTPI) which the United States administered on behalf of the United Nations from 1947 until 1978. The RMI came into being as a sovereign country in 1979 and entered into a Compact of Free Association with the United States in 1986. The first financial package of the Compact lasted 15 years, from 1986 to 2003. By the provisions of the Compact, the United States and the RMI negotiated a new financial package in 2003, covering 2003-2023. Under the Compact, the United States provides economic and financial aid and defends the RMI’s territorial integrity. In return, the RMI provides the United States with unlimited and exclusive access to its land and waterways for strategic purposes. A Trust Fund was also created to contribute to the future, long-term budgetary self-reliance of the RMI. In 2024, the United States and the RMI negotiated a new Compact agreement. The close ties between the United States and the RMI that go back to the end of World War II are also reflected in the fact that the RMI uses the U.S. dollar as its currency.  Strategically, the RMI hosts the U.S. Army Kwajalein Atoll (USAKA) Reagan Missile Test Site, a key installation in the U.S. missile defense network.

Puerto Rico

Based on the clear descriptions above, if Puerto Rico were to choose sovereign free association, the explanation of the Puerto Rico-U.S. relationship would not be likely to include continued U.S. citizenship for any length of time under any Compact agreements.  Similarly, it would be expected that Puerto Rico provide the United States with unlimited and exclusive access to its land and waterways for strategic military purposes. The United States may continue minimal financial assistance and federal programs to Puerto Rico, such as the U.S. Postal Service, but it would likely discontinue eligibility for Medicare, Medicaid funding and Child Tax Credit reimbursements, and the overall level of U.S. resources for Puerto Rico would be expected to plummet. Claims to the contrary can be found among supporters of free association for Puerto Rico, but not in any real-world description of a current freely associated state.

The title of this article was updated on September 18, 2024 to more accurately reflect its text.  All three nations that have signed Compacts of Free Association with the U.S. are independent countries.