Region: US elevates Pacific diplomacy and prioritises economic interests over aid
On 15 September, US Deputy Assistant Secretary of State Matt Murray announced a second Pacific Investment Summit would be held between US companies and Pacific Island leaders in early 2027. He also outlined three US priorities in the region: expanding "commercial diplomacy," energy security, and law enforcement cooperation and maritime security. Major recent commercial diplomacy announcements include AUD$70 million to upgrade a northern Cook Islands port, upgrades to a Fiji port, several joint undersea cable projects, and Millennium Challenge Corporation (MCC) and International Development Finance Corporation (DFC) agreements with Fiji, Vanuatu, and the Solomon Islands. Additionally, the US' second highest diplomat, Deputy Secretary of State Christopher Landau, has made three Pacific visits over the last 12 months, including to the Pacific Islands Forum in September where he announced AUD$211 million in support across several projects. The first ever US Ambassador to the Cook Islands was also accredited in August 2026, immediately prior to the port announcement.
Assessment: The US investments indicate both elevated diplomatic interest in the Pacific Islands and an 18-month transition from aid as a major relationship pillar to economic activity. This latter development followed the worldwide cuts to USAID that began in March 2025. MCC and DFC are US government development agencies that work in parallel to USAID but with an economic development focus, including facilitating and de-risking the entry of US businesses into partner countries. While Pacific countries will welcome US attention and investment opportunities as a traditional and high-profile partner, US businesses will face challenges with the small scale, difficult infrastructure, availability of skilled workers, cultural barriers, and the ongoing maintenance of projects past the initial set-up.
Sources: US Department of State, “Virtual Press Briefing with Deputy Assistant Secretary of State Matt Murray on U.S. Participation in the Pacific Islands Forum (PIF) Leaders’ Meeting,” official website, 15 September 2026; Rashneel Kumar, “Penrhyn to serve as 'friendly port' for United States to counter 'bad actors' in the Pacific,” RNZ/Cooks Islands News, 7 September 2026; “SIG, MCC discuss how to broaden economy”, Solomon Islands Government, 11 September 2026.
