FSM president says they're finalizing compact agreement with U.S.

The Federated States of Micronesia is expected to ink a $2.8 billion deal in Compact Sector Grants with millions more in federal projects. 

In his recent visit to Japan, FSM President David Panuelo told media at the Japan National Press Club that the nation is finalizing its agreement with the United States. While in Japan, Panuelo also joined Japanese officials including Prime Minister of Japan Fumio Kishida in opening its new embassy building in the country, marking their continuing 35-year diplomatic relationship.

 "Our negotiation team will actually be in D.C. soon where the two governments will be likely signing an MOU for the extension of the economic provisions for another 20 years," Panuelo said. "So our relationship has three main pillars under the compact, which is political, economic, and defense, or security."

Panuelo has been participating in high-level security talks given concerns about North Korea and China in the region. He reiterated Micronesia's allyship with Japan and the U.S. in enforcing its maritime laws to maintain a free and open Indo-Pacific.