The government of the Federated States of Micronesia (FSM) conducts its own foreign relations. Since independence in 1986, the FSM has established diplomatic relations with 92 countries, including all of its Pacific neighbors.
The FSM maintains permanent embassies in four nations: China, Fiji, Japan and the United States. The FSM also maintains a resident consulate in Hawaii, Portland, Oregon and Guam. The FSM maintains non-resident embassies for four nations: Indonesia, Malaysia and Singapore (all in Japan) and Israel in Fiji. Four nations maintain permanent embassies in the FSM: Australia, China, Japan and the United States. Additionally, 15 nations maintain non-resident embassies with the FSM. France and the United Kingdom have non-resident embassies for the FSM in Fiji. Canada, Italy and South Africa have non-resident embassies for the FSM in Australia. Indonesia has a non-resident embassy for the FSM in Japan. Chile has its non-resident embassies for the FSM in the United States. Croatia has its non-resident embassy for the FSM in Indonesia. Czech Republic, Finland, the Netherlands, Portugal, Spain, and Switzerland have non-resident embassies in the Philippines. New Zealand has its non-resident embassy for the FSM in Kiribati.
The People's Republic of China has close relations with the FSM in terms of both trade and foreign aid. Chinese aid projects have included among others the Giant Clam Farm Project in Kosrae, the Pilot Farm Project in Madolenihmw, the construction of a gymnasium on Pohnpei (officially named the FSM-China Friendship Sports Center), donation of police vehicles for the Yap state police, a facility to house the FSM's Tuna Commission, an expansion of the Chuuk State Airport Terminal, a biogas project on Chuuk, the construction of the Pohnpei Administration Building, and the construction of Kosrae High School Project.
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China is the FSM's third largest trade partner (after the United States and Japan), a fact marked by the rapid increase in trade between the two nations. As the Chinese Ambassador to the FSM Zhang Weidong observed on the 20th anniversary of relations between the two countries, trade between China and the FSM had gone from "almost zero to $9.5 million in 2007."[5]
Micronesia was one of ten Pacific countries to send a government member to the first Cuba-Pacific Islands ministerial meeting, held in Havana in September 2008.[6][7] The aim of the meeting was to "strengthen cooperation" between Micronesia and Cuba, notably on addressing the impact of climate change.[8]
India and Micronesia have maintained diplomatic relations with each other since 1996. India gave 'Development assistance' to the country of about US$73,145 in 2009 for the purchase of machinery for the coconut industry. India also made a grant of 3 ITEC scholarships in 2010–11. As per the Ministry of External Affairs of the Government of India, "Micronesia has been supportive of issues of importance to India, particularly Indian candidatures to international organizations and supported India's candidature for the UNSC non-permanent seat in 2011–12. As per information available, there is one Indian family in Micronesia."[9]
The FSM is one of the most consistent supporters of Israel (along with the United States) in international affairs. Throughout the history of the United Nations General Assembly, it is claimed by some there has always been an "automatic majority" against Israel.[10]
The United States has consistently opposed what it perceives as "unbalanced" "anti-Israel" resolutions and, in recent years, one other nation has joined Israel's defense — Micronesia.
The foreign policy goals of the Federated States of Micronesia (FSM) are primarily linked to achieving economic development and protecting their vast marine environment. Israel was one of the first to welcome the FSM into the family of nations, even before the FSM became a member of the U.N. According to the FSM U.N. deputy ambassador, Micronesia has since sought close bilateral relations with Israel in areas such as agriculture, technical training and health care training.
Israel has assisted the FSM in its early development. As one Micronesian diplomat said, "We need Israeli expertise, so I don't see a change in our policy anytime soon."[citation needed]
The Federated States of Micronesia officially recognized the independence of the Republic of Kosovo on 5 December 2008.[11][12] Kosovo and Micronesia established diplomatic relations on 19 September 2013.[13]
The Governments of the FSM and the U.S. signed the final version of the Compact of Free Association on October 1, 1982.
The Compact went into effect on November 3, 1986, and the FSM became a sovereign nation in free association with the United States.
Under the Compact, the U.S. has full authority and responsibility for the defense of the FSM.
This security relationship can be changed or terminated by mutual agreement.
The Compact provides U.S. grant funds and federal program assistance to the FSM.
The basic relationship of free association continues indefinitely, but certain economic and defense provisions of the Compact expire in 2001, subject to renegotiation.
Negotiations on extending the Compact began in November 1999.
The United States is the FSM's largest trading partner. The relationship is heavily imbalanced. Of the FSM-US total balance of trade in goods in 2010 of US$38.3 million, the FSM imported $42.5 million in goods from the United States while exporting only US$4.2 million to the United States.[17] (see Economy of the Federated States of Micronesia).
