Republic of Palau

The Republic of Palau is an archipelago located in the Pacific, north of the Equator line and  east of the Philippines. With a population of around 22,000 people, the country is a presidential republic.

In 1945, following its occupation by Spain, Germany and Japan, Palau became part of the UN Trust Territory of the Pacific, administered by the United States. Palau gained its independence in 1994 by signing the Compact of Free Association with the United States. Under the treaty, effective for 50 years, the US has responsibility for safeguarding defense and security of the archipelago.

Palau has one of the highest standards of living among the Pacific island countries, in part due to the US funding under the free association compact. The per capita income of its population is the highest of the region and is similar to that of Brazil (around $15,000).

The archipelago’s main economic activity is tourism. The state also plays an important role in the economy by employing a significant part of the population. Fish is the main Palauan  exportation product.

The country is a member of the 1982 Nauru Agreement, which aims to promote the coordination and harmonization of tuna fishery management in the eight member countries. The issue is of great relevance to Pacific island countries, which depend to a greater or lesser extent on revenues from fishing licenses for foreign vessels to fund the government. In the case of Palau, 8.7 percent of government revenues in 2016 came from such licenses.

Brazil established diplomatic relations with Palau on January 31, 2005, on the occasion of the visit of Ambassador Georges Lamazière to the country, in addition to the Marshall Islands and Micronesia.

The Brazilian Embassy in Manila is responsible for overseeing bilateral relations with the Republic of Palau.  Bilateral agreements between Brazil and Palay have not yet been signed.

Bilateral trade was practically nonexistent until 2016, when Brazil exported nearly $1 million to Palay. Brazil began to export oil to Palau in 2018 (around $300,00 in 2021).

Chronology of bilateral relations

2005 – First Brazilian official mission to Palau

2005 – Establishment of diplomatic relations